[Federal Register Volume 74, Number 147 (Monday, August 3, 2009)]
[Pages 38484-38486]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E9-18454]



Departmental Offices; Privacy Act of 1974, as Amended

AGENCY: Departmental Offices, Treasury.

ACTION: Notice of Proposed New Privacy Act System of Records for the 
Home Affordable Modification Program.


SUMMARY: Pursuant to the provisions of the Privacy Act of 1974 (5 
U.S.C. 552a), the U.S. Department of the Treasury (``Treasury'' or the 
``Department'') is giving notice that it proposes to establish a new 
system of records necessary to administer the Home Affordable 
Modification Program and related homeownership preservation programs 

DATES: We have requested that OMB waive eight days of its review period 
for this system of records. If OMB grants the waiver, the system of 
records is effective upon publication in the Federal Register; if OMB 
does not grant the waiver, we will implement the system on September 
14, 2009. In any event, we will not disclose any information under a 
routine use until 32 days after publication. We may defer 
implementation of this system of records or one or more of the routine 
use statements listed below if we receive comments that persuade us to 
defer implementation. Comments must be received no later than September 
4, 2009.

ADDRESSES: Comments should be sent to the Deputy Assistant Secretary 
Fiscal Operations and Policy, Department of the Treasury, 1500 
Pennsylvania Avenue, NW., Washington, DC 20220. The Department will 
make such comments available for public inspection and copying in the 
Department's Library, Room 1428, Main Treasury Building, 1500 
Pennsylvania Avenue, NW., Washington, DC 20220, on official business 
days between the hours of 10 a.m. and 5 p.m. Eastern Time. You can make 
an appointment to inspect comments by telephoning (202) 622-0990. All 
comments, including attachments and other supporting materials received 
are part of the public record and subject to public disclosure. You 
should submit only information that you wish to make available 

FOR FURTHER INFORMATION CONTACT: Theodore R. Kowalsky, Manager, Data & 
Information Technology, Office of Fiscal & Financial Agents, Department 
of the Treasury, 1500 Pennsylvania Avenue, NW., Washington, DC 20220, 
202-927-9445 or at [email protected].

SUPPLEMENTARY INFORMATION: The Department established HAMP, pursuant to 
the Emergency Economic Stabilization Act of 2008 (Pub. L. 110-343), to 
enable eligible homeowners who have a record of making timely mortgage 
payments, but are experiencing hardships in doing so, to modify the 
principal amounts and interest rates of their mortgage loans. HAMP 
facilitates such mortgage loan modifications by providing subsidies to 
mortgage loan servicers who agree to them. The Department administers 
HAMP with the assistance of designated Financial Agents.
    The Department establishes this new system of records to provide 
Treasury and its Financial Agents with access to information about 
mortgage borrowers and their respective home mortgage loans that is 
necessary to determine whether, and to what extent, borrowers qualify 
for loan modification assistance.
    The report of this new system of records, as required by 5 U.S.C. 
552a(r) of the Privacy Act, has been submitted to the Committee on 
Oversight and Government Reform of the House of Representatives, the 
Committee on Homeland Security and Governmental Affairs of the Senate, 
and the Office of Management and Budget, pursuant to Appendix I to OMB 
Circular A-130, ``Federal Agency Responsibilities for Maintaining 
Records About Individuals,'' dated November 30, 2000.
    The proposed new system of records, entitled ``Home Affordable 
Modification Program--Treasury/DO .218,'' is published in its entirety 

    Dated: July 28, 2009.
 Melissa Hartman,
Acting Deputy Assistant Secretary, Privacy and Treasury Records.

    Home Affordable Modification Program Records--Treasury/DO.

    The Office of Financial Stability, Department of the Treasury, 
Washington, DC. Other facilities that maintain this system of records 
are located in Urbana, MD and at a backup facility located in Reston, 
VA. Both facilities belong to the Federal National Mortgage Association 
(``Fannie Mae''), which has been designated as a Financial Agent for 

    This system of records contains information about mortgage 
borrowers that is submitted to the Department or

[[Page 38485]]

its Financial Agents by loan servicers that participate in HAMP. 
Information collected pursuant to HAMP is subject to the Privacy Act 
only to the extent that it concerns individuals; information pertaining 
to corporations and other business entities and organizations is not 
subject to the Privacy Act.

    This system of records contains loan-level information about 
individual mortgage borrowers (including loan records and financial 
records). Typically, these records include, but are not limited to, the 
individual's name, Social Security Number, mailing address, and monthly 
income, as well as the location of the property subject to the loan, 
property value information, payment history, and type of mortgage.

    Emergency Economic Stabilization Act of 2008 (Pub. L. 110-343) (the 

    The purpose of this system of records is to facilitate 
administration of HAMP by the Department and its Financial Agents, 
including by enabling them to (i) collect and utilize information 
collected from mortgage loan servicers, including loan-level 
information about individual mortgage holders; and (ii) produce reports 
on the performance of HAMP, such as reports that concern loan 
modification eligibility and ``exception reports'' that identify 
certain issues that loan servicers may experience with servicing loans.

    These records may be used to:
    (1) Disclose pertinent information to appropriate Federal, State, 
local or foreign agencies responsible for investigating or prosecuting 
violations of, or for enforcing or implementing, a statute, rule, 
regulation, order, or license, where the disclosing agency becomes 
aware of an indication of a potential violation of civil or criminal 
law or regulation;
    (2) Disclose information to a Federal, State, or local agency, 
maintaining civil, criminal or other relevant enforcement information 
or other pertinent information, which has requested information 
relevant to or necessary to the requesting agency's or the bureau's 
hiring or retention of an individual, or issuance of a security 
clearance, license, contract, grant, or other benefit;
    (3) Disclose information to a court, magistrate, or administrative 
tribunal in the course of presenting evidence, including disclosures to 
opposing counsel or witnesses in the course of civil discovery, 
litigation, or settlement negotiations, in response to a subpoena where 
arguably relevant to a proceeding, or in connection with criminal law 
    (4) Provide information to a Congressional office in response to an 
inquiry made at the request of the individual to whom the record 
    (5) Provide information to third parties during the course of a 
Department investigation to the extent necessary to obtain information 
pertinent to that investigation;
    (6) Disclose information to a consumer reporting agency to use in 
obtaining credit reports;
    (7) Disclose information to a debt collection agency for use in 
debt collection services;
    (8) Disclose information to a Financial Agent of the Department, 
its employees, agents, and contractors, or to a contractor of the 
Department, for the purpose of ensuring the efficient administration of 
HAMP and compliance with relevant guidelines, agreements, directives 
and requirements, and subject to the same or equivalent limitations 
applicable to Department's officers and employees under the Privacy 
    (9) Disclose information originating or derived from participating 
loan servicers back to the same loan servicers as needed, for the 
purposes of audit, quality control, and reconciliation and response to 
borrower requests about that same borrower;
    (10) Disclose information to Financial Agents, financial 
institutions, financial custodians, and contractors to (a) Process 
mortgage loan modification applications, including, but not limited to, 
enrollment forms; (b) implement programs relating to HAMP; (c) 
investigate and correct erroneous information submitted to the 
Department or its Financial Agents; (d) compile and review statistics 
to improve the quality of services provided under HAMP; or (e) develop, 
test and enhance computer systems used to administer HAMP;
    (11) Disclose information to financial institutions, including 
banks and credit unions, for the purpose of disbursing payments and/or 
investigating the accuracy of information required to complete 
transactions pertaining to HAMP and for administrative purposes, such 
as resolving questions about a transaction;
    (12) Disclose information to the appropriate Federal financial 
regulator or State financial regulator, or to the appropriate Consumer 
Protection agency, if that agency has jurisdiction over the subject 
matter of a complaint or inquiry, or the entity that is the subject of 
the complaint or inquiry;
    (13) Disclose information and statistics to the Department of 
Housing & Urban Development and the Federal Housing Finance Agency to 
improve the quality of services provided under HAMP and to report on 
the program's overall execution and progress, if such agencies have 
jurisdiction over the subject matter of a complaint or inquiry, or the 
entity that is the subject of the complaint or inquiry;
    (14) Disclose information to appropriate agencies, entities, and 
persons when (a) The Department suspects or has confirmed that the 
security or confidentiality of information in the system of records has 
been compromised; (b) the Department has determined that as a result of 
the suspected or confirmed compromise there is a risk of harm to 
economic or property interests, identity theft or fraud, or harm to the 
security or integrity of this system or other systems or programs 
(whether maintained by the Department or another agency or entity) that 
rely upon the compromised information; and (c) the disclosure made to 
such agencies, entities, and persons is reasonably necessary to assist 
in connection with the Department's efforts to respond to the suspected 
or confirmed compromise and prevent, minimize, or remedy such harm.
    (15) Disclose information to the U.S. Department of Justice 
(``DOJ'') for its use in providing legal advice to the Department or in 
representing the Department in a proceeding before a court, 
adjudicative body, or other administrative body before which the 
Department is authorized to appear, where the use of such information 
by the DOJ is deemed by the Department to be relevant and necessary to 
the litigation, and such proceeding names as a party or interests:
    (a) The Department or any component thereof, including the Office 
of Financial Stability (``OFS'');
    (b) Any employee of the Department in his or her official capacity;
    (c) Any employee of the Department in his or her individual 
capacity where DOJ has agreed to represent the employee; or
    (d) The United States, where the Department determines that 
litigation is likely to affect the Department or any of its components, 
including OFS.

[[Page 38486]]

    Information contained in the system of records is stored in a 
transactional database and an operational data store. Information from 
the system will also be captured in hard-copy form and stored in filing 
cabinets managed by personnel working on HAMP.

    Information about individuals may be retrieved from the system by 
reference including the mortgage borrower's name, Social Security 
Number, address, or loan number.

    Safeguards designed to protect information contained in the system 
against unauthorized disclosure and access include, but are not limited 
to: (i) Department and Financial Agent policies and procedures 
governing privacy, information security, operational risk management, 
and change management; (ii) requiring Financial Agent employees to 
adhere to a code of conduct concerning the aforementioned policies and 
procedures; (iii) conducting background on all personnel with access to 
the system of records; (iv) training relevant personnel on privacy and 
information security; (v) tracking and reporting incidents of suspected 
or confirmed breaches of information concerning borrowers; (vi) 
establishing physical and technical perimeter security safeguards; 
(vii) utilizing antivirus and intrusion detection software; (viii) 
performing risk and controls assessments and mitigation, including 
production readiness reviews; (ix) establishing security event response 
teams; and (x) establishing technical and physical access controls, 
such as role-based access management and firewalls.
    Loan servicers that participate in HAMP (i) have agreed in writing 
that the information they provide to Treasury or to its Financial 
Agents is accurate, and (ii) have submitted a ``click through'' 
agreement on a Web site requiring the loan servicer to provide accurate 
information in connection with using the Program Web site. In addition, 
the Treasury's Financial Agents will conduct loan servicer compliance 
reviews to validate data collection controls, procedures, and records.

    Information is retained in the system on back-up tapes or in hard-
copy form for seven years, except to the extent that either (i) the 
information is subject to a litigation hold or other legal retention 
obligation, in which case the data is retained as mandated by the 
relevant legal requirements, (ii) or the Treasury and its financial 
agents need the information to carry out the Program. Destruction is 
carried out by degaussing according to industry standards. Hard copy 
records are shredded and recycled.

    Deputy Assistant Secretary, Fiscal Operations and Policy, 
Department of the Treasury, 1500 Pennsylvania Avenue, NW., Washington, 
DC 20220.

    Individuals wishing to be notified if they are named in this system 
of records, to gain access to records maintained in this system, or to 
amend or correct information maintained in this system, must submit a 
written request to do so in accordance with the procedures set forth in 
31 CFR Sec. Sec.  1.26-.27. Address such requests to: Director, 
Disclosure Services Director, Disclosure Services, Department of the 
Treasury, 1500 Pennsylvania Ave., NW., Washington, DC 20220.

    See ``Notification Procedure'' above.

    See ``Notification Procedure'' above.

    Information about mortgage borrowers contained in the system of 
records is obtained from loan servicers who participate in HAMP or 
developed by the Treasury and its Financial Agents in connection with 
HAMP. Information is not obtained directly from individual mortgage 
borrowers to whom the information pertains.


[FR Doc. E9-18454 Filed 7-31-09; 8:45 am]