[Federal Register Volume 76, Number 221 (Wednesday, November 16, 2011)]
[Notices]
[Pages 71067-71069]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2011-29522]


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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

[Docket No. (FR-5478-N-06)]


Privacy Act of 1974; Notification To Delete and Create a New 
System of Records, ``HUD/FHA Lender Approval Files'' to New Lender 
Electronic Assessment Portal

AGENCY: Office of the Chief Information Officer, HUD.

ACTION: Notification to Delete and Create a New System of Records.

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SUMMARY: HUD is providing public notice that it proposes to design a 
new system, the Lender Electronic Assessment Portal (LEAP), and revise 
and delete information published in the Federal Register (FR) about one 
of its existing Privacy Act system of records. The creation of the new 
system is to facilitate migration and streamline efforts for record 
collection activities under the Federal Housing Administration (FHA) 
lender approval and recertification process. The new system LEAP will 
take full custody over the records currently maintained by HUD's Lender 
Approval Files System of Records Notice (SORN) and will fully automate 
the manual records process for these records. The HUD/FHA Lender 
Approval Files SORN contains information pertaining to individuals who 
are principals or officers of financial institutions seeking approval 
or approved to originate, service, or hold FHA single family or 
multifamily insured mortgages, or Title I and Title II insured loans. 
Fully automating and streamlining HUD's lender approval and 
recertification process enables HUD's Office of FHA to efficiently 
perform the workflow operation and the assessments required to 
ascertain a financial institution's eligibility and/or qualification to 
participating under a FHA-insured mortgage, or Title I and Title II 
insured loans. Subsequent changes that have occurred for the previously 
published notice involve: Changes to the Categories of Individuals 
Covered by the System, Categories of Records in the System, Purposes of 
the System, and Routine Uses of Records Maintained in the System, 
Including Categories of Users and Purposes of Such Users. This notice 
serves to update, replace and delete the prior SORN reference published 
in the Federal Register on August 22, 1999 for HUD/FHA Lender Approval 
Files.

DATES: Effective Date: This proposal shall become effective, without 
further notice, December 16, 2011, unless comments are received during 
or before this period which would result in a contrary determination.
    Comments Due Date: December 16, 2011.

ADDRESSES: Interested persons are invited to submit comments regarding 
this notice to the Rules Docket Clerk, Office of General Counsel, 
Department of Housing and Urban Development, 451 Seventh Street SW., 
Room 10276, Washington, DC 20410. Communications should refer to the 
above docket number and title. FAX comments are not acceptable. A copy 
of each communication submitted will be available for public inspection 
and copying between 8 a.m. and 5 p.m., weekdays at the above address.

FOR FURTHER INFORMATION CONTACT: For Privacy Act inquiries contact 
Harold Williams, Acting Departmental Privacy Act Officer, Department of 
Housing and Urban Development, 451 Seventh Street SW., Washington, DC 
20410, telephone number (202) 402-8087. Regarding records maintained in 
Washington, DC 20410 for the Office of Housing, contact the Director, 
Lender Approval and Recertification Division, Department of Housing and 
Urban Development, 451 Seventh Street SW., Washington, DC 20410, 
telephone number (202) 402-8214. [The above are not toll free numbers.] 
A telecommunications device for hearing- and speech-impaired persons 
(TTY) is available at 1-(800) 877-8339 (Federal Information Relay 
Services).

SUPPLEMENTARY INFORMATION: Title 5 U.S.C. 552a(e)(4) and (11) provides 
that the public be afforded a 30-day period in which to comment on the 
amended record system. The system report was submitted to the Office of 
Management and Budget (OMB), the Senate Committee on Homeland Security 
and Governmental Affairs and the House Committee on Government Reform 
pursuant to Paragraph 4c of Appendix l to OMB Circular No. A-130, 
``Federal Agencies Responsibilities for Maintaining Records About 
Individuals,'' dated July 25, 1993 (58 FR 36075, July 2, 1993).
    Accordingly, this notice deletes prior publication for the HUD/FHA 
Lender Approval Files SORN and creates a new notice for the HUD's FHA 
Housing program administrators and accompanying information to be 
submitted and accessed in the management of HUD's FHA Housing programs 
by the Office of Housing.

    Authority:  5 U.S.C. 552a; 88 Stat. 1896; 42 U.S.C. 3535(d).


[[Page 71068]]


    Dated: November 8, 2011.
Jerry E. Williams,
Chief Information Officer.
HUD/SF01.2502

SYSTEM NAME:
    Lender Electronic Assessment Portal (LEAP/P278), formerly ``HUD/FHA 
Lender Approval Files.''

SYSTEM LOCATION:
    LEAP is hosted on HUD servers located in Charleston, West Virginia.

CATEGORIES OF INDIVIDUALS COVERED BY THE SYSTEM:
    Individuals covered by the system are principals or officers (i.e. 
director's managers and owners) of financial institutions that seek 
approval or are approved to originate service or hold single family or 
multifamily FHA-insured mortgages, or Title I and Title II insured 
loans.

CATEGORIES OF RECORDS IN THE SYSTEM:
    All documents and related data required for a lender's application; 
including entity-level information such as lender institution name and 
address, business email address, and telephone number, tax 
identification number, corporate financial and organizational document, 
licenses and corporate credit reports. Other LEAP information include 
individual personal information on lending institution officials such 
as names, social security numbers, credit reports; background 
investigation documents types, excluded party report and individual 
resumes, and financial statements.

AUTHORITY FOR MAINTENANCE OF THE SYSTEM:
    Title I and Title II of the National Housing Act; 12 U.S.C. 1703, 
1709 and 1751b; 42 U.S.C. 1436a and 3535(d).

PURPOSES:
    To obtain information from lenders and the principals or officers 
of financial institutions seeking approval or approved to originate, 
service or hold single family or multifamily FHA-insured mortgages, or 
Title I and Title II insured loans. The information in this record 
system enables HUD/FHA to process applications received for (1) 
Suitability and verification purposes; (2) to ensure conformance to FHA 
Title I and Title II authorities; (3) to identify specific individuals 
and roles at lending institutions, permitting correspondence to be 
addressed to individuals rather than job titles.
    Currently, lenders seeking authority to issue FHA-insured mortgages 
or Title I and Title insured loans must manually submit a paper-based 
application package, which is analyzed and reviewed by HUD staff. This 
review ensures the applicant's capability to adhere to the requirements 
of FHA's mortgage insurance programs. LEAP has been developed to 
streamline the application process by migrating to electronic 
transmission of the requisite package.

ROUTINE USES OF RECORDS MAINTAINED IN THE SYSTEM, INCLUDING CATEGORIES 
OF USERS AND THE PURPOSES OF SUCH USES:
In addition to those disclosures generally permitted under 5 U.S.C. 
552a(b) of the Privacy Act, other routine uses include:
    (a.) To the FBI during the course of investigating possible fraud 
in the FHA mortgage insurance, underwriting, insuring or monitoring 
process, to the extent necessary to obtain information pertinent to the 
investigation,
    (b.) To the Department of Justice (DOJ) when seeking legal advice 
or for use in any proceeding, or in preparation for any proceeding, 
when HUD or any component thereof discloses information to DOJ during 
the course of an investigation to the extent necessary to obtain 
information pertinent to the investigation under the FHA Mortgage 
Insurance Program,
    (c.) To HUD contractors, lenders and financial institutions for the 
purpose of conducting oversight and monitoring of program operations to 
determine compliance with applicable laws and regulations, and 
financial reporting requirements,
    (d.) Additional Disclosure for Purposes of Facilitating Responses 
and Remediation Efforts in the Event of a Data Breach. A record from a 
system of records maintained by HUD may be disclosed to appropriate 
agencies, entities, and persons when:
    (1.) The Department suspects or has confirmed that the security or 
confidentiality of information in a system of records has been 
compromised,
    (2.) 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 HUD or another agency or entity) that rely upon the 
compromised information,
    (3.) the disclosure made to such agencies, entities, and persons is 
reasonably necessary to assist in connection with the HUD's efforts to 
respond to the suspected or confirmed compromise and prevent, minimize, 
or remedy such harm, and
    (e.) To a commercial or consumer reporting agency to use in 
obtaining credit reports on individuals and credit and background 
reports on entities.

POLICIES AND PRACTICES FOR STORING, RETRIEVING, ACCESSING, RETAINING, 
AND DISPOSING OF RECORDS IN THE SYSTEM:
Storage:
    Automated records are stored on magnetic tape/disc/drum and will be 
maintained on HUD secure servers. Paper records will no longer 
collected or used by the system.

Retrievability:
    Records are retrieved by name, social security number or other 
identification number.

Safeguards:
    Automated records are maintained in secured areas. Access is 
limited to authorized personnel with a need-to-know. Paper records are 
no longer used by the system.

Retention and Disposal:
    The electronic records in LEAP will be maintained in accordance 
with Schedule 20 of the NARA General Records Schedule. By reference, 
retention policies will also mirror Appendix 20 (``Single Family Home 
Mortgage Program'') of HUD Handbook 2225.6 REV-1 CHG-53.

SYSTEM MANAGER(s) AND ADDRESS:
    Director, Lender Approval and Recertification Division, Department 
of Housing and Urban Development, 451 Seventh Street SW., Washington, 
DC 20410. Notification procedure: For information, assistance, or 
inquiry about existence of records, contact the Acting Departmental 
Privacy Act Officer identified above.

NOTIFICATION AND ACCESS PROCEDURES:
    Include the following standard language: ``For information, 
assistance, or inquiry about the existence of records, contact Harold 
Williams, Acting Departmental Privacy Act Officer at the Department of 
Housing and Urban Development, 451 Seventh Street SW., Washington, DC 
20410, telephone number (202) 402-8087. Written requests must include 
the full name, social security number, date of birth, current address, 
and telephone number of the individual making the request.''

CONTESTING RECORD PROCEDURES:
    Include the following standard language: Procedures for the 
amendment or correction of records, and for applicants who want to 
appeal initial agency determinations appear in 24 CFR part 16. If 
additional

[[Page 71069]]

information or assistance is needed, it may be obtained by contacting:
    (i) In relation to contesting contents of records, the Acting 
Departmental Privacy Act Officer at HUD, 451 Seventh Street SW., Room 
4178, Washington, DC 20410; and,
    (ii) In relation to appeals of initial denials, the HUD 
Departmental Privacy Appeals Officer, Office of General Counsel, HUD, 
451 Seventh Street SW., Washington, DC 20410.

RECORD SOURCE CATEGORIES:
    Source information is received from financial institution 
principals, and can include corporate documents like articles of 
incorporation and financial statements.

EXEMPTION:
    None.

[FR Doc. 2011-29522 Filed 11-15-11; 8:45 am]
BILLING CODE 4210-67-P