[Federal Register Volume 79, Number 79 (Thursday, April 24, 2014)]
[Notices]
[Pages 22826-22828]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-09433]


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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

[Docket No. FR-5763-N-05]


Implementation of the Privacy Act of 1974, as Amended; 
Republication To Terminate and Modify Privacy Act Systems of Records 
Streamlining Efforts Under the Lender Electronic Assessment Portal 
(LEAP)

AGENCY: Office of the Chief Information Officer, HUD.

ACTION: Notification.

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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, 
notice is hereby given that the Department of Housing and Urban 
Development (HUD), Office of the Chief Information Officer (OCIO) 
proposes to terminate and modify Privacy Act notifications previously 
published in the Federal Register. The Office of Single Family Housing 
is modifying its Lender Electronic Assessment Portal (LEAP) system of 
records to implement a series of new enhancements that will improve its 
overall capabilities and streamline the recertification process for its 
Federal Housing Administration approved lenders. Furthermore, the 
current HUD/HS-60: Institution Master File (IMF) system of records 
previously published in the Federal Register on August 25, 2009 at 74 
FR 42910 will be replaced in its entirety by LEAP. The migration of 
records to LEAP from IMF allows HUD approved Lenders to use LEAP to 
process its annual recertification, to manage institution/branch 
information and lender profiles, and its Cash Flow account setup 
activities. Where traditionally lenders were required to access 
multiple systems to complete the annual recertification process, LEAP 
will enable lenders to complete all the required recertification 
submissions in one system. The LEAP system of records notice 
``Categories of Record in the System'', ``Purpose'', and ``Routine 
Use'' captions are being updated to capture new functions for the LEAP 
system. Additionally, other captions of the SORN are updated to refine 
previously published information about the system in a clear and 
cohesive format. This notice supersedes the previous SORN published in 
the Federal Register for LEAP on November 16, 2011 at 76 FR 71067. The 
records contained in this system which pertain to individuals contain 
principally proprietary information concerning sole proprietorships. 
Some of the records in the system which pertain to individuals may 
reflect personal information, however, only the records reflecting 
personal information are subject to the Privacy Act.

DATES: Effective Date: May 27, 2014.
    Comments Due Date: May 27, 2014.

For Further Information or Submission of Comments 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 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 Information 
Relay Service's toll-free telephone number (800) 877-8339. For 
comments, please include the above reference docket number in your 
request.

SUPPLEMENTARY INFORMATION: These systems of records are those 
maintained by HUD's Office of Single Family Housing that includes 
personally identifiable information provided by Lender Institutions 
from which information is retrieved by a name or unique identifier. The 
system revisions encompass programs and services of the Department's 
data collection and management practices. This republication allows HUD 
to organize and re-publish up-to-date and accurate information about 
its systems of records. The system modification and termination 
proposal incorporate Federal privacy requirements, and HUD policy 
requirements. The Privacy Act provides certain safeguards for an 
individual against an invasion of personal privacy by requiring Federal 
agencies to protect records contained in an agency system of records 
from unauthorized disclosure, ensure that information is current for 
its intended use, and that adequate safeguards are provided to prevent 
misuse of such information. Additionally, the updates reflect the 
Department's focus on industry best practices in protecting the 
personal privacy of the individuals covered by this system 
notification. This notice for the amended system of records states the 
name and location of the record system, the authority for and manner of 
its operations, the categories of individuals that it covers, the type 
of records that it contains, the sources of the information for those 
records, the routine uses made of the systems records, and the system 
of records exemption types. In addition, the notice includes the 
business address of the HUD officials who will inform interested 
persons of the procedures whereby they may gain access to and/or 
request amendments to records pertaining to them. Some of the routine 
uses that apply to this publication are reiterated based on past 
publication to clearly communicate the ways in which HUD continues to 
conduct some of its business practices.
    Since this republication does meet the threshold requirements for a 
new or amended system, a 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 
as

[[Page 22827]]

instructed by Paragraph 4c of Appendix l to OMB Circular No. A-130, 
``Federal Agencies 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: April 18, 2014.
Kevin R. Cooke, Jr.,
Acting Chief Information Officer.
SYSTEM OF RECORDS NO.:
    HSNG.SF/HUL.01

SYSTEM NAME:
    Lender Electronic Assessment Portal (LEAP).

SYSTEM LOCATION:
    External hosting location at the HUD HITS Datacenter, 2020 Union 
Carbide Drive, South Charleston, WV 25303; Application management at 
the HUD Headquarters building, 451 7th Street SW., Washington, DC 
20410. In addition to the HUD Headquarters building, records for LEAP 
are also accessed at the following HUD Homeownership Centers: The Santa 
Ana Federal Building, 34 Civic Center Plaza, Room 7015 Santa Ana, CA 
92701, The Denver Regional Office, 1670 Broadway, 25th Floor, Denver, 
CO 80202, The Philadelphia Regional Office Wanamaker Building, 100 Penn 
Square East, Philadelphia, PA 19107, and The Atlanta Regional Office, 
Five Points Plaza, Building 40 Marietta Street, Atlanta, GA 30303.

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

CATEGORIES OF RECORDS IN THE SYSTEM:
    Information for lender approval Status: (lender name; lender 
corporate address; lender corporate information [Federal Tax 
Identification, affiliation with home builders, business type, 
institution type, regulator type]; lender financial characteristics 
[including assets, liabilities and net worth]; lender corporate officer 
information [including individual name and SSN]; and, background credit 
information on the lending institution and the corporate officers); 
Information for lender management (lender DE and LI status; geographic 
approvals; lender branch information [including name and SSN of branch 
officers]: lender cash account management for claims and premium 
activity; FHA compliance information; FHA annual recertification 
information [including lender financial characteristics], tracking of 
notices of violation and material events; and, ad hoc query and 
reporting features).

AUTHORITY FOR MAINTANANCE OF THE SYSTEM:
    The National Housing Act (12 U.S.C. 1701 et. seq.) and the 
Department of Housing and Urban Development Act (42 U.S.C. 3531 et 
seq.); 24 CFR Parts 202, 203, 206, 241 and 266; and, 42 U.S.C. 3543-
Sec. 3543, which authorizes the collection of Social Security Numbers.

PURPOSE(S):
    LEAP's purpose is to obtain information from lending institutions 
and the principals or officers of those institutions seeking approval 
or already approved to originate, service or hold single family and/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 for (1) suitability and verification purposes (including 
institution creditworthiness, prior lending history with FHA, 
outstanding legal, regulatory or compliance issues, outstanding federal 
debts or penalties and similar individual experience with corporate 
officers); (2) to ensure conformance to FHA Title I and Title II 
authorities (including documented instances of deviations from or 
violations of FHA lending policy on FHA-insured loans and the existence 
and amount of indemnifications and loan loss offsets to FHA); (3) to 
identify specific individuals and roles at lending institutions, for 
communication, outreach, planning and previous FHA lending experience. 
The system contains all documents and related data required for a 
lender's application and for ongoing operational management of lender's 
relationship with FHA. LEAP is utilized by HUD as a single system, 
built on the Siebel Partner Relationship Manager platform. LEAP is 
maintained over HUD's internal network. The system provides different 
``views'' into data tables, and is more flexible and customizable than 
many legacy systems. ``Tabs'' are used in Siebel as shortcuts to 
specific data tables or to accelerate specific actions within the 
system. There are no separate ``modules'' for this system, and tabs 
should not be confused with modules. The Siebel PRM is a robust system 
that can host many different actions for different sets of users 
simultaneously across the agency.
    While LEAP is expanding to cover this new functionality, this 
functionality currently exists within other systems in the Office of 
Lender Activities and Program Compliance. No functionality new to the 
Government is contained in this system. The consolidation onto LEAP 
provides greater efficiency and cost savings to the Government. LEAP 
does not contain any loan level data about an individual. It only 
contains information about the FHA lender.

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. 
552 a(b) of the Privacy Act of 1974, 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 
for a HUD initiative or in response to DOJ's request for the 
information, after either HUD or DOJ determine that such information is 
relevant to DOJ's representatives of the United States or any other 
components in legal proceedings before a court or adjudicative body, 
provided that, in each case, the agency also determines prior to 
disclosure that disclosure of the records to the DOJ is a use of the 
information contained in the records that is compatible with the 
purpose for which HUD collected the records;
    (c) HUD on its own may disclose records in this system of records 
in legal proceeding before a court or administrative body after 
determining that the disclosure of the records to the court of 
administrative body is a use of the information contained in the 
records that is compatible with the purpose for which HUD collected the 
records;
    (d) 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;
    (e) 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: a) HUD suspects or has confirmed 
that the security or confidentiality of information in a system of 
records has been compromised; b) HUD has determined that as a result of 
the

[[Page 22828]]

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 systems or programs (whether maintained by HUD 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 HUD's efforts to 
respond to the suspected or confirmed compromise and prevent, minimize, 
or remedy such harm for purposes of facilitating responses and 
remediation efforts in the event of a data breach;
    (f) To a commercial or consumer reporting agency to use in 
obtaining credit reports on individuals and credit and background 
reports on entities;
    (g) To a recipient who has provided the agency with advance 
adequate written assurance that the record will be used solely as a 
statistical research or reporting record, and the record is to be 
transferred in a form that is not individually identifiable; and
    (h) To contractors, grantees, experts, consultants, Federal 
agencies, and non-Federal entities including but not limited to state 
and local governments, and other research institutions or their parties 
entities and their agents with whom HUD has a contract, service 
agreement, grant, cooperative agreement with HUD, when necessary to 
accomplish an agency function related to a system of records for the 
purposes of statistical analysis and research in support of program 
operations, management, performance monitoring, evaluation, risk 
management, and policy development, or to otherwise support the 
Department's mission. Records under this routine use may not be used in 
whole or in part to make decisions that affect the rights, benefits or 
privileges of specific individuals. The results of the matched 
information may not be disclosed in identifiable form.
    See also Appendix 1 \1\ for discretionary routine uses that may be 
applicable to this system of records.
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    \1\ http://portal.hud.gov/hudportal/documents/huddoc?id=append1.pdf.
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POLICIES ANDA PRACTICES FOR STORING, RETRIEVING, ACCESSING, RETAINING, 
AND DISPOSING OF RECORDS IN THE SYSTEM:
STORAGE:
    Electronic data is stored on servers at the HUD HITS Datacenter, 
and backup files are stored on tapes. Electronic data is replicated at 
a disaster recovery offsite location in case of loss of computing 
capability or other emergency at the primary facility. LEAP uses no 
paper records.

RETRIEVABILITY:
    Records are retrieved by Institution Name, Tax ID , FHA 
Lender ID , various tracking ID 's, Individual name 
and individual SSN.

SAFEGUARDS:
    Access to electronic records is granted by user ID and password to 
users who have a need to know such records. In addition to the 
safeguards provided by the access controls, physical access to the HUD 
HITS Datacenter is highly restricted and protected. Additionally, paper 
records are no longer used by the system.

RETENTION AND DISPOSAL:
    Records are held in accordance with HUD's Records Disposition 
Schedules Handbook (2225.6) Appendix 20 (Single Family Home Mortgage 
Insurance Program Records) and Appendix 21 (Financial Management 
Information Systems). Paper records are not in use. Electronic records 
are held consistent with standards for paper records. Archival tape 
media is kept for 7 years and tapes are in rotation. Tapes that are 
faulty and need to be disposed of follow HUD's IT Security Handbook 
(2400.25), pursuant to MIST SP 800-88 guidelines section 2.1.

SYSTEM MANAGER(S) AND ADDRESS:
    Director, Office of Lender Activities and Program Compliance, 451 
7th Street SW., Room B-133--P3214, Washington, DC 20410.

NOTIFICATION AND RECORDS ACCESS PROCEDURES:
    For Information, assistance, or inquiries 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. Verification of your identity must include original signature 
and be notarized. Written request 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:
    The Department's rules for contesting contents of records and 
appealing initial denials appear in 24 CFR part 16. Additional 
assistance may be obtained by contacting: U.S. Department of Housing 
and Urban Development, Chief Privacy Officer, 451 Seventh Street SW., 
Washington, DC 20410 or the HUD Departmental Privacy Appeals Officers, 
Office of General Counsel, Department of Housing and Urban Development, 
451 Seventh Street SW., Washington, DC 20410.

RECORD SOURCE CATEGORIES:
    Source information is received from financial institution 
principals, from commercial third parties such as consumer and 
commercial credit reporting agencies, from CAIVRS, from Pay.Gov for any 
fee payment information, and lastly from internal users in the Office 
of Lender Activities and Program Compliance.

SYSTEMS EXEMPTED FROM CERTAIN PROVISIONS OF THE ACT:
    None.

[FR Doc. 2014-09433 Filed 4-23-14; 8:45 am]
BILLING CODE 4210-67-P