[Federal Register Volume 79, Number 73 (Wednesday, April 16, 2014)]
[Notices]
[Pages 21458-21461]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-08566]


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FEDERAL HOUSING FINANCE AGENCY

[No. 2014-N-03]


Privacy Act of 1974; System of Records

AGENCY: Federal Housing Finance Agency.

ACTION: Notice of revision to an existing system of records; Request 
for comments.

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SUMMARY: In accordance with the requirements of the Privacy Act of 
1974, as amended, 5 U.S.C. 552a (Privacy Act), the Federal Housing 
Finance Agency (FHFA) gives notice of and requests comments on 
revisions to an existing system of records. The proposed revisions are 
to the system of records entitled ``National Mortgage Database 
Project'' (FHFA-21). The system of records covers the National Mortgage 
Database and the National Survey of Mortgage Borrowers.

DATES: To be assured of consideration, comments must be received on or 
before May 16, 2014. The revisions to the existing system will become 
effective on May 27, 2014 unless comments necessitate otherwise. FHFA 
will publish a new notice if, in order to review comments, the 
effective date is delayed or if changes are made based on comments 
received.

ADDRESSES: Submit comments, identified by ``2014-N-03,'' using only one 
of the following methods:
     Email: Comments to Alfred M. Pollard, General Counsel, may 
be sent by email to [email protected]. Please include ``2014-N-03'' 
in the subject line of the message.
     Federal eRulemaking Portal: http://www.regulations.gov. 
Follow the instructions for submitting comments. If you submit your 
comment to the Federal eRulemaking Portal, please also send it by email 
to FHFA at [email protected] to ensure timely receipt by FHFA. 
Please include ``2014-N-03'' in the subject line of the message.
     U.S. Mail, United Parcel Service, Federal Express, or 
Other Mail Service: The mailing address for comments is: Alfred M. 
Pollard, General Counsel, Attention: Comments/2014-N-03, Federal 
Housing Finance Agency, 400 Seventh Street SW., Washington, DC 20024. 
Please note that all mail sent to FHFA via the U.S. Postal Service is 
routed through a national irradiation facility, a process that may 
delay delivery by approximately two weeks. For any time-sensitive 
correspondence, please plan accordingly.
     Hand Delivered/Courier: The hand delivery address is: 
Alfred M. Pollard, General Counsel, Attention: Comments/2014-N-03, 
Federal Housing Finance Agency, 400 Seventh Street SW., Washington, DC 
20024. To ensure timely receipt of hand delivered package, please 
ensure that the package is delivered to the Seventh Street entrance 
Guard Desk, First Floor, on business days between 9 a.m. to 5 p.m.

See SUPPLEMENTARY INFORMATION for additional information on submission 
and posting of comments.

FOR FURTHER INFORMATION CONTACT: Forrest Pafenberg, Program Manager, 
National Mortgage Database Project, [email protected] or (202) 
649-3129; Stacy Easter, Privacy Act Officer, [email protected] or (202) 
649-3803; or David A. Lee, Senior Agency Official for Privacy, 
[email protected] or (202) 649-3803 (not toll-free numbers), Federal 
Housing Finance Agency, Eighth Floor, 400 Seventh Street SW., 
Washington, DC 20024. The telephone number for the Telecommunications 
Device for the Deaf is 800-877-8339.

SUPPLEMENTARY INFORMATION: 

I. Comments

    FHFA seeks public comments on the revised system of records, and 
will take all comments into consideration. See 5 U.S.C. 552a(e)(4) and 
(11). In addition to referencing ``Comments/2014-N-03,'' please 
reference ``National Mortgage Database Project'' (FHFA-21).
    All comments received will be posted without change on the FHFA Web 
site at http://www.fhfa.gov, and will include any personal information 
provided, such as name, address (mailing and email), and telephone 
numbers. In addition, copies of all comments received will be available 
without change for public inspection on business days between the hours 
of 10 a.m. and 3 p.m., at the Federal Housing Finance Agency, 400 
Seventh Street SW., Washington, DC 20024. To make an appointment to 
inspect comments, please call the Office of General Counsel at (202) 
649-3804.

II. Introduction

    This notice satisfies the Privacy Act requirement that an agency 
publish a system of records notice in the Federal Register when there 
is an addition or change to the agency's systems of records. Congress 
has recognized that application of all requirements of the Privacy Act 
to certain categories of records may have an undesirable and often 
unacceptable effect upon agencies in the conduct of necessary public 
business. Consequently, Congress

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established general exemptions and specific exemptions that could be 
used to exempt records from provisions of the Privacy Act. Congress 
also required that exempting records from provisions of the Privacy Act 
would require the head of an agency to publish a determination to 
exempt a record from the Privacy Act as a rule in accordance with the 
Administrative Procedure Act. The Director of FHFA has determined that 
records and information in this system of records are not exempt from 
the requirements of the Privacy Act.
    As required by the Privacy Act, 5 U.S.C. 552a(r), and pursuant to 
paragraph 4c of Appendix I to OMB Circular No. A-130, ``Federal Agency 
Responsibilities for Maintaining Records About Individuals,'' dated 
February 8, 1996 (61 FR 6427, 6435 February 20, 1996), FHFA has 
submitted a report describing the system of records covered by this 
notice 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.

III. Revised System of Records

    The revised system of records, ``National Mortgage Database 
Project'' (FHFA-21), will contain records related to loan-level 
information on first lien single-family mortgages in existence at any 
point in time from January 1998 to the present (and continuing on into 
the future). It is designed to be a nationally representative random 
sample (1-in-20) rather than a universal registry. The National 
Mortgage Database Project will be built from representative credit 
repository data and data from other administrative data sources, 
including the National Survey of Mortgage Borrowers.
    The revised system of records notice is set out in its entirety and 
described in detail below. The revisions expand the category of records 
that will be collected, maintained, and stored in the system as well as 
make minor clarifications and editorial changes.
FHFA-21

SYSTEM NAME:
    National Mortgage Database Project.

SECURITY CLASSIFICATION:
    Sensitive but unclassified.

SYSTEM LOCATION:
    Federal Housing Finance Agency, 400 Seventh Street SW., Washington, 
DC 20024, and Experian Information Solutions Inc., 475 Anton Blvd., 
Costa Mesa, CA 92626.

CATEGORIES OF INDIVIDUALS COVERED BY THE SYSTEM:
    Individuals who have records in one or more credit bureaus or 
consumer reporting agencies.

CATEGORIES OF RECORDS IN THE SYSTEM:
    Records include loan-level data in five dimensions: Mortgage 
record, real estate transaction, household demographic data on the 
borrower, physical characteristics of the house and neighborhood, and 
performance data on the mortgage and all credit lines (i.e. credit 
cards, student loans, auto loans, and other loans reported to credit 
bureaus) of the mortgage borrower and all those associated with the 
mortgage. Records in the system may include without limitation: (1) 
Borrower/co-borrower information (name, address, zip code, telephone 
numbers, date of birth, race/ethnicity, gender, language, religion, 
social security number, education records, military status/records, 
employment status/records); (2) Financial Information (account number, 
financial events in the last few years, life events in the last few 
years, other assets/wealth); (3) Mortgage Information (current balance, 
current monthly payment, delinquency grid, monthly payment, refinanced 
amount, bankruptcy information); (4) Credit card/other loan information 
(account type, credit amount, account balance amount, account past due 
amount, account minimum payment amount, account actual payment amount, 
account high balance amount, account charge off amount, second 
mortgage); (5) Household composition (single male, single female, etc., 
presence of children by various age categories, number of wage earners 
in household, household income, credit score(s) of borrower/co-borrower 
at origination (Vantage Score), deceased indicator, marital status); 
(6) Property Attributes (property type, number of bedrooms and 
bathrooms, square footage, lot size, year built/age of structure, units 
in structure, most recent assessed value (per tax roll), year of most 
recent assessed value, effective age of structure, assessor's parcel 
number, neighborhood name, and project name); (7) Real Estate 
Transaction Attributes (sales price, down payment, occupancy status 
(own, rent), new versus existing home, county, census tract/block, 
latitude/longitude and date purchased); (8) Mortgage Characteristics 
Attributes (mortgage product and purpose, origination date, acquisition 
date, amount of mortgage, refinanced amount, amount of down payment, 
term of mortgage, interest rate of mortgage, source of mortgage/
mortgage channel, mortgage insurance type, loan to value at 
origination, origination amount/credit limit, originator, current 
servicer, debt to income ratio at origination, number of borrowers, 
number of units in mortgage, presence of prepayment penalty, 
origination points paid by borrower, discount points paid by borrower, 
balloon payment date/amount, percent of down payment, secondary market 
indicator); and (9) information collected from consumers as part of 
surveys, randomized controlled trials, or through other mechanisms.

AUTHORITY FOR MAINTENANCE OF THE SYSTEM:
    12 U.S.C. 4511, 4513, 4543, and section 1324 of the Federal Housing 
Enterprises Financial Safety and Soundness Act as amended by section 
1125 of the Housing and Economic Recovery Act of 2008 (HERA) (12 U.S.C. 
4544 and 4544(c)).

 PURPOSE(S):
    The records in this system of records are collected and maintained 
in order to facilitate mandatory reporting under HERA as well as to 
conduct research, performance modeling, and examination monitoring. In 
most cases, records will not contain personal identifiers. Records with 
personal identifiers will be used solely for purposes of matching the 
records with other datasets, which will better enable FHFA to perform 
the statutory functions identified above. After the matching is 
complete, a de-identified copy of the matched dataset will be used for 
conducting research and analysis. FHFA will use the personal 
identifiers after the matching only for the purpose of performing 
similar matches on future data acquisitions.

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, these records or information contained 
therein may specifically be disclosed outside FHFA as a routine use 
pursuant to 5 U.S.C. 552a(b)(3) as follows:
    (1) When (a) it is suspected or confirmed that the security or 
confidentiality of information in the system of records has been 
compromised; (b) FHFA 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 FHFA or another agency or entity) that rely upon the 
compromised information; and (c) the

[[Page 21460]]

disclosure is made to such agencies, entities, and persons who are 
reasonably necessary to assist in connection with FHFA's efforts to 
respond to the suspected or confirmed compromise and prevent, minimize, 
or remedy such harm.
    (2) Where there is an indication of a violation or potential 
violation of law, whether civil, criminal or regulatory in nature, and 
whether arising by general statute or particular program statute, or by 
regulation, rule or order issued pursuant thereto, the relevant records 
in the system of records may be referred, as a routine use, to the 
appropriate agency, whether federal, state, local, tribal, foreign or a 
financial regulatory organization, including the Financial Crimes 
Enforcement Network and other law enforcement and government entities, 
as determined by FHFA to be appropriate and that are charged with the 
responsibility of investigating or prosecuting such violation or 
charged with enforcing or implementing a statute, or rule, regulation 
or order issued pursuant thereto.
    (3) To any individual during the course of any inquiry or 
investigation conducted by FHFA, or in connection with civil 
litigation, if FHFA has reason to believe that the individual to whom 
the record is disclosed may have further information about the matters 
related therein, and those matters appeared to be relevant at the time 
to the subject matter of the inquiry.
    (4) To any individual with whom FHFA contracts to reproduce, by 
typing, photocopy or other means, any record within this system for use 
by FHFA and its employees in connection with their official duties or 
to any individual who is utilized by FHFA to perform clerical or 
stenographic functions relating to the official business of FHFA.
    (5) To members of advisory committees that are created by FHFA or 
by Congress to render advice and recommendations to FHFA or to 
Congress, to be used solely in connection with their official, 
designated functions.
    (6) To a Congressional office from the record of an individual in 
response to an inquiry from the Congressional office made at the 
request of that individual.
    (7) To contractor personnel, grantees, volunteers, interns, and 
others performing or working on a contract, service, grant, cooperative 
agreement, or project for FHFA.
    (8) 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, or in connection with criminal law 
proceedings, or in response to a subpoena from a court of competent 
jurisdiction.
    (9) To the Office of Management and Budget, Department of Justice 
(DOJ), Department of Labor, Office of Personnel Management, Equal 
Employment Opportunity Commission, Office of Special Counsel, 
Department of Homeland Security, or other Federal agencies to obtain 
advice regarding statutory, regulatory, policy, and other requirements 
related to the purpose for which FHFA collected the records.
    (10) To DOJ, (including United States Attorney Offices), or other 
Federal agencies conducting litigation or in proceedings before any 
court, adjudicative or administrative body, when it is necessary to the 
litigation and one of the following is a party to the litigation or has 
an interest in such litigation:
    1. FHFA;
    2. Any employee of FHFA in his/her official capacity;
    3. Any employee of FHFA in his/her individual capacity where DOJ or 
FHFA has agreed to represent the employee; or
    4. The United States or any agency thereof, is a party to the 
litigation or has an interest in such litigation, and FHFA determines 
that the records are both relevant and necessary to the litigation and 
the use of such records is compatible with the purpose for which FHFA 
collected the records.
    (11) To the National Archives and Records Administration or other 
Federal agencies pursuant to records management inspections being 
conducted under the authority of 44 U.S.C. 2904 and 2906.
    (12) To a Federal agency, organization, or individual for the 
purpose of performing audit or oversight operations as authorized by 
law, but only such information as is necessary and relevant to such 
audit or oversight function.
    (13) To a regulated entity.
    (14) With the Consumer Finance Protection Bureau in order to 
facilitate reporting under the Dodd-Frank Wall Street Reform and 
Consumer Protection Act (Pub. L. 111-203), as well as to conduct 
research, performance modeling, and examination monitoring.

DISCLOSURE TO CONSUMER REPORTING AGENCIES:
    None.

POLICIES AND PRACTICE FOR STORING, RETRIEVING, ACCESSING, RETAINING AND 
DISPOSING OF RECORDS IN THE SYSTEM:
STORAGE:
    Records are maintained in electronic format, paper form, and 
magnetic disk or tape. Electronic records are stored in computerized 
databases. Paper and magnetic disk, or tape records are stored in 
locked file rooms, locked file cabinets, or locked safes.

RETRIEVABILITY:
    Records may be retrieved by a database-specific constructed loan 
identifier or encrypted personal identification number.

SAFEGUARDS:
    Records are safeguarded in a secured environment. Buildings where 
records are stored have security cameras and 24-hour security guard 
service. Computerized records are safeguarded through use of access 
codes and other information technology security measures. Paper records 
are safeguarded by locked file rooms, locked file cabinets, or locked 
safes. Access to the records is restricted to those individuals who 
require access to the records in the performance of official duties 
related to the purposes for which the system is maintained.

RETENTION AND DISPOSAL:
    Records are maintained in accordance with National Archives and 
Records Administration and FHFA retention schedules. Records are 
disposed of according to accepted techniques.

SYSTEM MANAGER(S) AND ADDRESS:
    Project Manager, National Mortgage Database Project, Federal 
Housing Finance Agency, 400 Seventh Street SW., Washington, DC 20024.

NOTIFICATION PROCEDURES:
    Direct inquiries as to whether this system contains a record 
pertaining to an individual to the Privacy Act Officer. Inquiries may 
be mailed to the Privacy Act Officer, Federal Housing Finance Agency, 
400 Seventh Street SW., Washington, DC 20024, or can be submitted 
electronically at http://www.fhfa.gov/Default.aspx?Page=236 in 
accordance with the procedures set forth in 12 CFR part 1204.

RECORD ACCESS PROCEDURES:
    Direct requests for access to the Privacy Act Officer. Requests may 
be mailed to the Privacy Act Officer, Federal Housing Finance Agency, 
400 Seventh Street SW., Washington, DC 20024, or can be submitted 
electronically at http://www.fhfa.gov/Default.aspx?Page=236 in 
accordance with the procedures set forth in 12 CFR part 1204.

CONTESTING RECORD PROCEDURES:
    Direct requests to contest or appeal an adverse decision for a 
record to the

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Privacy Act Appeals Officer. Requests may be mailed to the Privacy Act 
Appeals Officer, Federal Housing Finance Agency, 400 Seventh Street 
SW., Washington, DC 20024, or can be submitted electronically at http://www.fhfa.gov/Default.aspx?Page=236 in accordance with the procedures 
set forth in 12 CFR part 1204.

RECORD SOURCE CATEGORIES:
    The information is obtained from individuals who respond to the 
National Survey of Mortgage Borrowers, credit repository files, other 
FHFA systems of records, other Federal government systems of records, 
commercial data aggregators, or other commercial entities.

EXEMPTIONS CLAIMED FOR THE SYSTEM:
    None.

    Dated: April 7, 2014.
Melvin L. Watt,
Director, Federal Housing Finance Agency.
[FR Doc. 2014-08566 Filed 4-15-14; 8:45 am]
BILLING CODE 8070-01-P