[Federal Register Volume 78, Number 142 (Wednesday, July 24, 2013)]
[Notices]
[Pages 44583-44585]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2013-17780]


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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

[Docket No. FR-5693-N-04]


Implementation of the Privacy Act of 1974, as Amended; Action To 
Modify and Terminate an Existing System of Records Publication

AGENCY: Office of the Chief Information Officer, HUD.

ACTION: Notice Modification and Termination.

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SUMMARY: Pursuant to the Privacy Act of 1974 (U.S.C. 552a(e)(4)), as 
amended, and Office of Management and Budget (OMB), Circular No. A-130, 
the Department of Housing and Urban Development (HUD), Office of Assets 
Sales provides notice that it wishes to alter the ``Delinquent/Default/
Assigned/Temporary Mortgage Assistance Payments Program'' system of 
records publication. Subsequent modifications include a system name 
change to ``Federal Housing Administration Loan Sale File'', the 
removal and addition of new data disclosure requirements, and 
refinement to the categories of: ``Individuals Covered by the System'' 
and ``Records Maintained by the System''. Consequent changes meet the 
threshold requirements for filing a report with OMB and Congress. All 
revisions are conducted to reflect the present status of the 
information contained in this system. This notice supersedes and 
terminates the ``Delinquent/Default/Assigned/Temporary Mortgage 
Assistance Payments Program'' system of records. The record system will 
continue to be utilized in the marketing of housing assets, to identify 
qualified potential purchasers, and to solicit bids for assets.
    This system supports HUD's FHA Single Family Asset Sales 
liquidation functions. As such, potential investors will be granted 
preview rights to sample mortgage records pursuant to an executed 
agreement. A more detailed description of the purpose of the system is 
contained in the purpose section of this notice.

DATES: Effective Date: This notice shall become effective, without 
further notice August 23, 2013, unless comments are received during or 
before this period which would result in a contrary determination.
    Comments Due Date: August 23, 2013.

FOR FURTHER INFORMATION CONTACT: Donna Robinson-Staton, Chief Privacy 
Officer, 451 Seventh Street SW., Washington, DC 20410 (Attention: 
Capitol View Building, 4th Floor), telephone number: (202) 402-8073. 
[The

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above telephone number is not a toll free number.] A telecommunications 
device for hearing- and speech-impaired persons (TTY) is available by 
calling the Federal Relay Service's toll-free telephone number (800) 
877-8339.

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

    Dated: July 12, 2013.
Barbara Elliott,
Acting Chief Information Officer.

SYSTEM OF RECORDS NO.: SFH/HWS.1

SYSTEM NAME:
    Federal Housing Administration Loan Sale File--Replacement for the 
Delinquent/Default/Assigned/Temporary Mortgage Assistance Payments 
Program.

SYSTEM LOCATION:
    451 Seventh Street SW., Washington, DC 20410. Debt Exchange, Inc., 
133 Federal Street, 10th Floor, Boston, MA 02110 will maintain some 
records on the loan sale program, and NARA for archival purposes.

CATEGORIES OF INDIVIDUALS COVERED BY THE SYSTEM:
    Mortgagors with HUD/FHA insured single-family mortgages that are 
delinquent or in default; mortgagors seeking assistance to prevent 
foreclosures; and mortgagors whose mortgages are held by HUD.

CATEGORIES OF RECORDS IN THE SYSTEM:
    Records in this system consist of the following information which 
is provided to HUD by mortgage servicing entities that include: 
Mortgage loan origination information and servicing histories, loss 
mitigation and payment histories, notices of delinquent mortgages, FHA 
case numbers, current unpaid principal balance, current scheduled 
principal and interest payment, current interest rate, day month and 
year through which the mortgage is paid, date of last payment, amount 
of last payment, payments in last 12 months, escrow balance, mortgage 
rate, origination date, original balance, first payment date, maturity 
date, original term, remaining months to maturity, payment frequency, 
date of last modification, manner in which title held, subordinate 
liens and lien priority, original appraised value, original loan to 
value ratio, borrower credit scores and date of credit report, 
borrowers' current income, mortgage debt to income ratios, borrower 
employment status, date foreclosure initiated, borrower bankruptcies, 
date loan referred for foreclosure, date of complaint or petition for 
foreclosure, date of foreclosure sales, deeds of trust; and related 
correspondence. In addition, records in the system will include loan 
payment performance information and information pertaining to the 
history of the servicing of the loan, which include the number of 
default episodes, the length of the between loan origination and the 
first default episode, and information pertaining to prior loan 
modifications files.

AUTHORITY FOR MAINTENANCE OF THE SYSTEM:
    The authority for maintenance of the system: Sec. 204(g) of the 
National Housing Act 12 U.S.C. 1710(g).

PURPOSE(s):
    The Federal Housing Administration (``FHA'') Loan Sale File is used 
to make financial information available to prospective investors 
purchasing defaulted FHA-insured loans. The FHA insures mortgages on 
single-family homes and pays insurance claims to lenders upon the 
mortgagor's default. After paying an insurance claim submitted by a 
lender on a defaulted mortgage loan, the FHA must utilize various 
disposition strategies to reduce claim costs and maximize recoveries to 
the mortgage insurance funds. One such disposition strategy is the FHA 
Loan Sale Program, which offers pools of defaulted single-family loan 
for competitive bid at auction. Investors purchase the loans based on 
their determination of potential returns following acquisition. In 
order to maximize recovery to FHA and enable prospective purchasers to 
calculate pricing, FHA makes due diligence information available to 
prospective bidders. This information consists of detailed loan-level 
information, which is reviewed by bidders to evaluate investment 
potential. The availability of this due diligence information enhances 
pricing, improves returns, reduces claim costs and maximizes recovery 
to the FHA insurance funds.

ROUTINE USES OF RECORDS MAINTAINED IN THE SYSTEM, INCLUDING CATEGORIES 
OF USERS AND THE PURPOSES OF SUCH:
    In addition to those disclosures generally permitted under 5 U.S.C. 
552a(b) of the Privacy Act. In addition to those disclosures generally 
permitted under 5 U.S.C. 552a(b) of the Privacy Act, HUD may disclose 
information contained in this system of records without the consent of 
the subject individual in accordance with its discretionary 
disclosures, when such disclosure is compatible with the purpose for 
which the record was collected providing that approval is obtained from 
the HUD's system manager, only after satisfactory justification has 
been provided to the system manager, records may be disclosed. Please 
refer to HUD discretionary blanket routine uses \1\ to see those uses 
that may be applicable to this system. Other routine uses applying to 
this system are as follows:
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    \1\ http://portal.hud.gov/hudportal/documents/huddoc?id=append1.pdf.
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    (a) To the Internal Revenue Service for the purpose of 
administering tax reporting requirements.
    (b) To General Accounting Office for the purpose of performing 
audit for investigations, or oversight of operations as authorized by 
law, but only such information as is necessary and relevant to such 
audit or oversight function.
    (c) To HUD loan sale contractors to assist in the marketing and 
sale of loans, real estate, or other assets held by the HUD; due 
diligence information provided by prospective bidders will be granted 
pursuant to an executed confidentiality agreement.
    (d) To prospective purchasers (or any other individual or entities) 
who have signed an executed confidentiality agreement.
    (e) To consumer reporting agencies: Disclosure pursuant to 5 U.S.C. 
552a(b)(12). Pursuant to 5 U.S.C. 552a(b)(12), disclosures may be made 
to a consumer reporting agency as defined in the Fair Reporting Act (15 
U.S.C. 1681a(f) or the Federal Claims Collection Act of 1966 31 U.S.C. 
3701(a)(3).

POLICIES AND PRACTICES FOR STORING, RETRIEVING, ACCESSING, RETAINING, 
AND DISPOSING OF RECORDS IN THE SYSTEM:
STORAGE:
    In file folders, desks and on computer server, magnetic tapes, 
drums, and discs, and NARA for archival purposes.

RETRIEVABILITY:
    Name; case file number, property address.

SAFEGUARDS:
    Records are maintained in lockable file cabinets; access to 
automated systems is by passwords and code identification cards access 
limited to authorized personnel. Access to due diligence information by 
prospective purchasers is subject to execution of a Confidentiality 
Agreement including specific requirements for the safeguarding of 
Personally Identifiable Information.

RETENTION AND DISPOSAL:
    All electronic due diligence files received and posted by FHA 
contractors are returned to FHA's Asset Sales Office

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at the expiration of the contract term. Electronic data files returned 
to HUD by contractors are maintained in accordance with HUD's Records 
Disposition Schedule, Handbook 2225.6, 7.1-10; Retain, archive, destroy 
as designated by schedule. Records can be destroyed when the 
destruction date is reached. As such, manual records will be destroyed 
by shredding or burning; electronic records will be disposed in 
accordance with IT Security Handbook 2400.25, 4.7.6.

SYSTEM MANAGER(S) AND ADDRESS:
    Director, Asset Sales Office, Department of Housing and Urban 
Development, 451 Seventh Street SW., insert room number, Washington, DC 
20410.

NOTIFICATION AND ACCESS PROCEDURES:
    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., Room 4156, Washington, DC 
20410. (Attention: Capitol View Building, 4th Floor). Provide 
verification of your identity by providing two proofs of official 
identification. Your verification of identity must include your 
original signature and must be notarized. The Department's rules for 
providing access to records to the individual concerned appear in 24 
CFR Part 16.

CONTESTING RECORDS PROCEDURES:
    The Department's rules for contesting the contents of records and 
appealing initial denials, by the individual concerned, appear in 24 
CFR Part 16. If additional information or assistance is needed, it may 
be obtained by contacting:
    (i) In relation to contesting contents of records, the Privacy Act 
Officer at the appropriate location.
    (ii) In relation to appeals of initial denials, the HUD 
Departmental Privacy Appeals Officer, Office of General Counsel, 
Department of Housing and Urban Development, 451 Seventh Street SW., 
Washington, DC 20410.

RECORD SOURCE CATEGORIES:
    The source of records are subject individual; other individuals; 
current or previous employers; credit bureaus; financial institutions; 
other corporations or firms; Federal Government agencies; non-federal 
government (including foreign, state and local) agencies; law 
enforcement agencies.

SYSTEM EXEMPTED FROM CERTAIN PROVISIONS OF THE ACT:
    None.

[FR Doc. 2013-17780 Filed 7-23-13; 8:45 am]
BILLING CODE 4210-67-P