[Federal Register Volume 78, Number 8 (Friday, January 11, 2013)]
[Notices]
[Pages 2418-2421]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2013-00460]


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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

[Docket No. FR-5613-N-12]


Privacy Act; Notification of New Privacy Act System of Records, 
Pre-Purchase Homeownership Counseling Demonstration and Impact 
Evaluation Random Assignment and Service Tracking (RAST) System

AGENCY: Office of the Chief Information Officer, HUD.

ACTION: Establishment of a new Privacy Act System of Records.

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SUMMARY: The Department of Housing and Urban Development (HUD) proposes 
to establish a new record system to add to its inventory of systems of 
records subject to the Privacy Act of 1974 (5 U.S.C. 552a), as amended. 
The proposed new system of record is the Pre-Purchase Homeownership 
Counseling Demonstration and Impact Evaluation Random Assignment and 
Service Tracking (RAST) System. This system will be used by HUD's 
Office of Policy Development and Research (PD&R) and its contractors to 
conduct a random assignment and impact evaluation study of the impact 
that different types of pre-purchase counseling have on mortgage 
preparedness, homeowner outcomes, and loan performance for prospective 
low-to-moderate income, first-time homebuyers. Refer to the ``Purpose'' 
section to obtain detailed information about the purpose of this study.

DATES: Effective Date: This action shall be effective without further 
notice on February 11, 2013 unless comments are received that would 
result in a contrary determination.
    Comments Due Date: February 11, 2013.

ADDRESSES: Interested persons are invited to submit comments regarding 
this notice to the Rules Docket Clerk, Office of General Counsel, Room 
10276, Department of Housing and Urban Development, 451 Seventh Street 
SW., Washington, DC 20410. Communications should refer to the above 
docket number and title. A copy of each communication submitted will be 
available for public inspection and copying between 8:00 a.m. and 5:00 
p.m. weekdays at the above address.

FOR FURTHER INFORMATION CONTACT: Donna Robinson-Staton, Chief Privacy 
Officer, Department of Housing and Urban Development, 451 Seventh 
Street SW., (Attention: Capitol View Building, 4th Floor), Washington, 
DC 20410, Telephone Number (202) 402-8073. (This is not a toll-free 
number.) A telecommunication device for hearing-and speech-impaired 
individuals (TTY) is available at 1-800-877-8339 (Federal Information 
Relay Service).

SUPPLEMENTARY INFORMATION: Pursuant to the Privacy Act of 1974 (5 
U.S.C. 552a), as amended notice is given that HUD proposes to establish 
a new system of records as identified as Pre-Purchase Homeownership 
Counseling Demonstration and Impact Evaluation Random Assignment and 
Service Tracking (RAST) System. Title 5 U.S.C. 552a (e)(4) and (11) 
provide that the public be afforded a 30-day period in which to comment 
on the new system of records, and require published notice of the 
existence and character of the system of records. The new system report 
was submitted to the Office of Management and Budget (OMB), the Senate 
Committee on Governmental Affairs, and the House Committee on 
Government Reform pursuant to paragraph 4c of Appendix 1 to OMB 
Circular No. A-130, ``Federal Agency Responsibilities for Maintaining 
Records About Individuals,'' July 25, 1994; 59 FR 37914.

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

    Dated: December 11, 2012.
Jerry E. Williams,
Chief Information Officer.
PDR/RRE.01

System name:
    Pre-Purchase Homeownership Counseling Demonstration and Impact 
Evaluation Random Assignment and Service Tracking (RAST) System.

System location:
    Pre-Purchase Homeownership Counseling Demonstration and Impact 
Evaluation data files are to be located at Abt Associates Inc., 55 
Wheeler Street, Cambridge, MA 02138; Abt Associates Inc., 4550 
Montgomery Avenue, Bethesda, MD 20814; Abt Associates Inc., 275 Seventh 
Avenue, Suite 2700, New York, NY 10001; Sage Computing Inc., 11491 
Sunset Hills Road, Suite 350, Reston, VA 20190; HUD Office of Policy 
Development and Research, 451 7th Street SW., Rm. 8120, Washington, DC 
20410; HUD Records Management Facility, 451 7th Street SW., Rm. B229, 
Washington, DC 20410.

Categories of individuals covered by the system:
    Households enrolled in the Pre-Purchase Homeownership Counseling 
Demonstration and Impact Evaluation.

[[Page 2419]]

Categories of records in the system:
    The categories of records in the RAST system are as follows:

Study Participant Intake Data:
    Name; Social Security Number; study identifier; birth date; contact 
information (home address, telephone numbers, email address); co-
borrower(s) on home loan; demographic characteristics of the household 
(e.g., race/ethnicity, gender, marital status); number of children and 
other adults in the household; income sources and total family income; 
employment and earnings for the household; co-borrower name and contact 
information; veteran's status, educational level; first-time homebuyer 
status; early-stage borrower status; reliable access to transportation; 
language competency (English or Spanish); prior experience completing 
pre-purchase counseling or education; regular access to a computer and 
Internet; the stage in the home purchase process and preparedness for 
home purchase (e.g., the extent of respondents' home search prior to 
pre-qualification, intended down payment amount, expected timeline for 
home purchase); financial characteristics (e.g., income sources and 
total family income, financial literacy, non-housing savings/debts, 
budgeting activities, and employment and earnings, learning and 
planning preferences); participant's experience with the study's 
recruitment and enrollment process; random assignment of counseling 
services and whether or not study participants sought and received 
them; opinions on the pre-purchase counseling and education services 
study participants may have received; contact information for him or 
herself and the first and last name of a family members or friends.

Co-borrower(s) Intake Data:
    Name, Social Security Number

Lender Intake Data:
    Lender's Name; MSA/City/Branch; Data Transfer Date; Client's First 
Name; Client's Last Name; Address, City, State, Zip; Preferred Phone 
Number; Alternative Phone Number; Email; Date of Birth; Date customer 
gave consent for contact information to be sent to the study team; Date 
customer first contacted lender about home loan; Unique Customer 
Identifier; First-time homebuyer status; Presence of a co-borrower; 
Name and first-time homebuyer status of co-borrower(s);

Lender Origination and Loan Performance Data:
    Loan number; Date of closing; Purchase price; Monthly income; Back 
end ratio; Front end ratio; Down payment; Initial LTV; Mortgage type; 
Mortgage terms; Interest rate (initial and information on any fixed 
period or adjustment caps for ARMs); Closing costs and fees; Ever 30 
days delinquent; Ever 90 days delinquent; Prepayment; Foreclosure; 
Bankruptcy; Updated mortgage balance; recruitment call outcomes and 
dispositions; recruitment call experiences;

HUD Administrative Data:
    Loan number; Date of closing; Purchase price; Monthly income; Back 
end ratio; Front end ratio; Down payment; Initial LTV; Mortgage type; 
Mortgage terms; Interest rate (initial and information on any fixed 
period or adjustment caps for ARMs); Closing costs and fees; Ever 30 
days delinquent; Ever 90 days delinquent; Prepayment; Foreclosure; 
Bankruptcy; Updated mortgage balance;

Pre-Purchase Counseling and Education Data:
    First contact date with counseling agency; date of first online 
pre-purchase education session, how many times a study participant 
signs into online education system to complete all pre-purchase 
modules; length of time spent completing each module; if pre-purchase 
online education module was started, but not completed; date completed 
online pre-purchase education modules; test scores of online pre-
purchase modules; date(s) of group education session(s); length of time 
of session(s); how many participants in group education/workshop; how 
many household members attended; date of first telephone counseling 
session; length of time for telephone counseling session; date of in-
person counseling session; length of time for in-person counseling 
session; topics covered during counseling session; counselor's name and 
position at agency; action steps before or during counseling session, 
recommendations to study participants; counseling and education 
outcomes; general information about housing counseling agency (mission, 
lead agency, budget, partnerships, target population); staff 
requirements, number of staff, training for staff; contacting study 
participants; type of pre-purchase education delivered; topics covered; 
type of pre-purchase counseling delivered; topics covered; collecting 
service tracking data; and experience participating in study.

Equifax Data:
    Risk scores (Vantage Score and Beacon 09/FICO); Total non-housing 
debt balance; Sum of balances for all open auto finance accounts on 
file with update within the last 3 months; Sum of balances for all open 
bankcard accounts on file with update within the last 3 months; Sum of 
balances for all open personal finance/student loan accounts on file 
with update within the last 3 months; Total monthly payment non-housing 
debt; Total monthly payment auto debt; Total monthly payment credit 
card debt; Total monthly payment student loan debt; Individual's 
monthly housing expenses (for numerator of front-end-ratio); 
Individual's monthly debt payments (for numerator of back-end-ratio); 
Indicator for loan type (e.g. FHA, VA, conventional); Indicator for 
whether a home was purchased since enrollment; Date of home purchase/
closing if home was purchased since enrollment; Total housing debt 
balance; Total monthly payment on housing debt; Housing debt from first 
mortgage; Monthly payment on housing debt from first mortgage; Housing 
debt from subordinate mortgage(s); Monthly payment on housing debt from 
subordinate mortgage(s); Total HELOC balance; HELOC balance on first 
mortgage; HELOC balance on subordinate mortgages; Total HELOC monthly 
payment; HELOC monthly payment on first mortgage; HELOC monthly payment 
on subordinate mortgages; Indicator for whether a mortgage was 
refinanced; Indicator for presence of a subordinate mortgage; Ever 30 
days past due on mortgage payment within the past 12 months; Ever 60 
days past due on mortgage payment within the past 12 months; Ever 90 
days past due on mortgage payment within the past 12 months; Ever 120 
days past due on mortgage payment within the past 12 months; Number of 
first mortgage accounts on file with any of the following within the 
last 24 months: charge off, bankruptcy, internal collection (i.e. 
collection being handled by original creditor and not a third party); 
Number of home equity line accounts on file with any of the following 
ever: charge off, bankruptcy, internal collection (i.e. collection 
being handled by original creditor and not a third party); Experienced 
bankruptcy since enrollment; and Experienced foreclosure since 
enrollment.

Authority for maintenance of the system:
    Sec. 501, 502, Housing and Urban Development Act of 1970 (Pub. L. 
91-609), 12 U.S.C. 1701z-1, 1701z-2. 12 U.S.C. 1701z-2(g) provides the 
authority to request social security numbers from individuals 
interested in participating in a research study.

[[Page 2420]]

Purpose:
    The Pre-purchase Homeownership Counseling Demonstration and Impact 
Evaluation will examine the impact that different types of pre-purchase 
counseling have on mortgage preparedness, homeowner outcomes, and loan 
performance for prospective low-to moderate income, first-time 
homebuyers. Clients participating in the study will be asked to 
complete an eligibility assessment and baseline survey at the time they 
are enrolled in the study. Additionally, some study participants will 
be asked to participate in semi-structured follow-up interviews that 
seek to learn about participants' experiences with enrollment and 
interaction with participating counseling agencies. Participating 
counseling agencies' staff will be asked to participate in semi-
structured interviews that seek to understand provision of counseling 
in each jurisdiction and provide the study team information on 
counseling and education services that study participants receive. 
Staff at lenders will be asked to participate in semi-structured 
interviews that seek to understand the recruitment process and provide 
the study team a weekly outcome report for recruitment calls through to 
the enrollment and intervention period to determine the impact of two 
different pre-purchase education and counseling interventions through a 
randomized experimental design. A computer program will be used to 
randomly assign program participants to one of the two interventions or 
the control group: (1) Home buyers will receive education and 
counseling in person at local agency; and (2) Home buyers will receive 
education and counseling over the Internet and telephone; and (3) 
Control group homebuyers will not receive any counseling. The purpose 
of these data collection activities is to collect the information 
needed to evaluate the impact of pre-purchase housing counseling. 
Specifically, this evaluation will recruit 7,000 low-to-moderate 
income, first-time homebuyers who have pre-qualified for a home 
purchase loan. Upon study enrollment, study participants will be 
randomly assigned to one of three research groups: two treatment groups 
(one for each intervention type) and a control group that will not 
receive any pre-purchase counseling services. The collection of data 
received from study participants, lenders, counseling agencies, and 
other entities is vital to understand where potential borrowers begin 
in the process, how they are affected by pre-purchase education and 
counseling, and if their behaviors have changed as a result of the 
evaluation. To collect and organize the data required to perform the 
analyses, the RAST System will serve as the central collection point 
for maintaining participant's data and generating the reports needed 
for analysis. Conducting this study will allow HUD to provide reliable 
counseling and better monitory the performance and services provided by 
HUD-approved and HUD-funded counseling agencies.

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.
    1. To authorized Abt SRBI researchers to collect the data from 
study participants to match these primary study data with other 
datasets for tracking (e.g., matching with change of address 
databases); to track and locate study participants throughout the study 
and to manage the data collection process; for statistical analysis and 
to develop findings for this research study to allow HUD and 
researchers to understand the impact of pre-purchase homeownership 
counseling on a range of outcomes for low-to-moderate and middle- 
income, first-time homebuyers; and link data from one phase of data 
collection to another or to match primary study data with other 
datasets for data collection purposes in order to ascertain the impact 
of pre-purchase counseling on homebuyer outcomes. The production of 
aggregate statistical data will be without any personal identifiers, 
which will not be used to make decisions concerning the rights, 
benefits, or privileges of specific individuals under any HUD loan 
program.
    2. To make public use of file in non-identifiable form for 
disclosure to authorized researchers for additional statistical 
analysis.
    3. To Credit Bureaus to obtain credit report data on study 
participants.
    4. To Local and National organizations (counseling agencies) to 
enroll study participants in different pre-purchase education and 
counseling intervention group.
    5. To FHA Approved lenders to determine participant's enrollment 
after the study and to track information received from lenders 
participating in the study.
    Discretionary disclosures that may be applicable to this system of 
records notice are found on the Department Privacy Web site under 
Appendix 1.\1\
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    \1\ http://portal.hud.gov/hudportal/documents/huddoc?id=append1.pdf.
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Policies and practices for storing, retrieving, accessing, retaining, 
and disposing of records in the system:
Storage:
    Pre-Purchase Homeownership Counseling Demonstration and Impact 
Evaluation data files are to be located at Abt Associates Inc., 55 
Wheeler Street, Cambridge, MA; Abt Associates Inc., 4550 Montgomery 
Avenue, Bethesda, MD; Abt SRBI Inc., 275 Seventh Avenue, Suite 2700, 
New York, NY 10001; Sage Computing Inc., 11491 Sunset Hills Road, Suite 
350, Reston, VA 20190, HUD Records Management Facility, 451 7th St. 
SW., Rm. B229, Washington, DC 20410. Three years after satisfactory 
close of project, per the Records Disposition Schedule, 67 Federal 
Records Center, 4205 Suitland Road, Suitland, MD 20746-8001. Back-up 
data is stored offsite at: Abt Associates Inc., 55 Wheeler St., 
Cambridge, MA 02138; Iron Mountain Storage: Bethesda: 8928 McGaw Court, 
Columbia, MD 21045; Cambridge: 21 Terry Ave., Burlington, MA 01803; 75 
Bearfoot Road, Northboro, MA 01532; 96 High Street, Billerica, MA 
01821. All hard copy forms with personal identifying data (the 
participant agreement/informed consent form) will be stored securely in 
a locked cabinet that can only be accessed by authorized individuals 
working on the data. The locked cabinet will be stored in a locked 
office in a limited-access building. All electronic files: Data files 
used for analysis will be stored in a separate location from files with 
identifying information to minimize the risk that an unauthorized user 
could use the unique identification number to link de-identified files 
with the identifiers. Access rights to the data are granted to limited 
researchers on a need-to-know basis, and the level of access provided 
to each researcher is based on the minimal level required that 
individual to fulfill his research role.

Retrievability:
    Records within the random assignment data file will be retrieved by 
name, Social Security Number, study identification number, or date of 
birth.

Safeguards:
    Safeguards: Electronic files: All personal data will be encrypted 
and maintained on a secure workstation or server that is protected 
during the storage, retrieval, access, and disposal

[[Page 2421]]

process that is firewall protected and a complex password in a 
directory that can only be accessed by the network administrators and 
the analysts actively working on the data. Access rights to the data 
are granted to limited researchers on a need-to-know basis, and the 
level of access provided to each researcher is based on the minimal 
level required that individual to fulfill his research role. All data 
users will be aware of and trained on their responsibilities to protect 
participants' personal information, including the limitations on uses 
and disclosures of data. Backup media will be encrypted. Data will 
never be stored on a laptop or on a movable media such as CDs, 
diskettes, or USB flash drives without encryption. Hardcopy files: All 
hard copy forms with personal identifying data (the participant 
agreement/informed consent form) will be stored securely in a locked 
cabinet that can only be accessed by authorized individuals working on 
the data. The locked cabinet will be stored in a locked office in a 
limited-access building, (e.g. Study team interviewers will securely 
store any hard copy documents with personal protected information, such 
as tracking letters.)

Retention and Disposal Process:
    Records Disposition Schedule,\2\ 2225.6, REV-1, Appendix 67, Policy 
Development and Research Records, provides disposition instructions for 
Headquarters and Field Office records produced in connection with 
activities conducted under Title V of the Housing and Urban Development 
Act of 1970 (Pub. L. 91-609, 84 Stat. 1784; 12 U.S.C. 17Dlz-1). Per the 
Records Disposition Schedule 67, project case files reflecting a 
complete history of each project from initiation through research, 
development, design, testing, and demonstration, records should retire 
to Federal Records Center 3 years after satisfactory close of project 
that volume warrants. Destroy 6 years after satisfactory close of 
project. (NARA Job NCl-207-78-6, item 5). In accordance with the 
Records Disposition Schedule, the Contractor will return all electronic 
and hard copy study records to PD&R under the retention period for 
records. Hard copy forms that are no longer needed for the study will 
be shredded. The data will not be used after the final acceptance of 
the report by HUD. Upon request of the agency, Abt Associates will 
permanently destroy all electronic personally-identifiable information 
on the system using the methods described by the NIST SP 800-88 
``Guidelines for Media Sanitization'' (September 2006). Encrypted 
versions of the data may remain on backup media for a longer period of 
time, but will be similarly permanently destroyed.
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    \2\ http://www.hud.gov/offices/adm/hudclips/handbooks/admh/2225.6/index.cfm.
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System manager(s) and address:
    Carol Star, Director of the Program Evaluation Division, Office of 
Policy Development and Research, Department of Housing and Urban 
Development, 451 Seventh Street SW., Washington, DC 20410, Telephone 
Number (202) 402-6139.

Notification procedure:
    For information, assistance, or inquiry about the existence of 
records, contact the Chief Privacy Officer, Department of Housing and 
Urban Development, 451 Seventh Street SW. (Attention: Capitol View 
Building, 4th Floor), Washington, DC 20721. 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:
    Procedures for the amendment or correction of records and for 
applicants who want to appeal initial agency determination appear in 24 
CFR part 16.
    (i) In relation to contesting contents of records, the Chief 
Privacy Officer at HUD, 451 Seventh Street SW., (Attention: Capitol 
View Building, 4th Floor), Washington, DC 20410; and,
    (ii) In relation to appeals of initial denials, HUD, Departmental 
Privacy Appeals Officer, Office of General Counsel, 451 Seventh Street 
SW., Washington, DC 20410.

Record source categories:
    Original data collected directly from study participants, study 
participant lenders and counseling agencies, third party data (e.g. 
National Change of Address database, credit bureaus) and administrative 
data from HUD.

Exemptions from certain provisions of the Act:
    None.

[FR Doc. 2013-00460 Filed 1-10-13; 8:45 am]
BILLING CODE 4210-67-P