[Federal Register Volume 81, Number 2 (Tuesday, January 5, 2016)]
[Notices]
[Pages 248-249]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-33195]



[[Page 248]]

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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

[Docket No. FR-5843-N-12]


Privacy Act of 1974; Notice of a Computer Matching Program 
Between the U.S. Department of Housing and Urban Development (HUD) and 
the U.S. Small Business Administration (SBA)

AGENCY: Office of Administration, HUD.

ACTION: Notice of a Computer Matching Program between U.S. Department 
of Housing and Urban Development and the U.S Small Business 
Administration (SBA).

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SUMMARY: In accordance with the Privacy Act of 1974 (5 U.S.C. 552a), as 
amended by the Computer Matching and Privacy Protection Act of 1988 
(Pub. L. 100-503), and the Office of Management and Budget (OMB) 
Guidelines on the Conduct of Matching Programs (54 FR 25818 (June 19, 
1989); and OMB Bulletin 89-22, ``Instructions on Reporting Computer 
Matching Programs to the Office of Management and Budget (OMB), 
Congress and the Public,'' HUD is issuing a public notice of its intent 
to conduct a recurring computer matching program with SBA for the 
purpose of incorporating SBA debtor files into the Credit Alert 
Verification Reporting System (CAIVRS), which is a HUD computer 
information system.

DATES: Effective Date: The effective date of the matching program shall 
begin February 4, 2016, or at least 40 days from the date that copies 
of the Computer Matching Agreement, signed by both HUD and SBA Data 
Integrity Boards (DIBs), are sent to OMB and Congress, whichever is 
later, provided that no comments that would result in a contrary 
determination are received.
    Comments Due Date: February 4, 2016.

ADDRESSES: Interested persons are invited to submit comments regarding 
this notice to the Rules Docket Clerk, Office of General Counsel, U.S. 
Department of Housing and Urban Development, 451 Seventh Street SW., 
Room 10110, 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 a.m. and 
5 p.m. weekdays at the above address.

FOR FURTHER INFORMATION CONTACT: The ``Recipient Agency,'' Acting 
Departmental Privacy Officer, U.S. Department of Housing and Urban 
Development, 451 7th Street SW., Washington, DC 20410-0001; telephone 
number 202-402-6147, or the ``Source Agency'' U.S. Small Business 
Administration, 409 Third Street SW., Suite 8300, Washington, DC, 
telephone number 202-205-7736. (These are not a toll-free numbers). 
Persons who are deaf or hard hard hearing and person with speech 
impairments can assess these numbers through TTY by calling the Federal 
Relay Service at 800-877-8339 (This is a toll free number).

SUPPLEMENTARY INFORMATION: HUD's CAIVRS database includes delinquent 
debt information from the U.S. Departments of Veteran's Affairs (VA), 
Education (ED), Justice (DOJ), Agriculture (USDA) and the Small 
Business Administration (SBA). This data match will allow the 
prescreening of applicants for Federal direct loans or federally 
guaranteed loans, for the purpose of determining the applicant's credit 
worthiness, by ascertaining whether the applicant is delinquent or in 
default on a loan owed directly to, or federally guaranteed by, the 
Federal Government. Lending Federal agencies and authorized private 
lending institutions will be able to use the CAIVRS debtor file to 
verify that the loan applicant is not in default, or delinquent on a 
Federal direct or federally guaranteed loan, prior to granting the 
applicant a loan. The CAIVRS database contains Personally Identifiable 
Information (PII) contributed by participating Federal agencies, 
including Social Security numbers (SSNs) and other records of borrowers 
delinquent or in default on debts owed to, or guaranteed by HUD and 
other Federal agencies. Authorized users may not deny, terminate, or 
make a final decision concerning any loan assistance to an applicant or 
take other adverse action against such applicant based on the 
information produced by data matches conducted under CAIVRS, until such 
authorized users have independently verified such adverse information.

Reporting of Matching Program

    In accordance with Public Law 100-503, the Computer Matching and 
Privacy Protection Act of 1988 as amended, and OMB Bulletin 89-22, 
``Instructions on Reporting Computer Matching Programs to the Office of 
Management and Budget (OMB), Congress and the Public,'' copies of this 
notice and report are being provided to the U.S. House Committee on 
Oversight Government Reform, the U.S. Senate Homeland Security and 
Governmental Affairs Committee, and OMB.

Authority

    HUD has authority to collect and review mortgage data pursuant to 
the National Housing Act, as amended, 12 U.S.C. 1701 et seq., and 
related laws. This computer matching will be conducted pursuant to 
Public Law 100-503, ``The Computer Matching and Privacy Protection Act 
of 1988,'' as amended, and OMB Circulars A-129 (Managing Federal Credit 
Programs). One of the purposes of all Executive departments and 
agencies is to implement efficient management practices for Federal 
credit programs. OMB Circular A-129 was issued under the authority of 
the Budget and Accounting Act of 1921, as amended; the Budget and 
Accounting Act of 1950, as amended; the Debt Collection Act of 1982, as 
amended by the Debt Collection Improvement Act of 1996; section 2653 of 
Public Law 98-369; the Federal Credit Reform Act of 1990, as amended; 
the Federal Debt Collection Procedures Act of 1990, the Chief Financial 
Officers Act of 1990, as amended; Executive Order 8248; the Cash 
Management Improvement Act Amendments of 1992; and preexisting common 
law authority to charge interest on debts and to offset payments to 
collect debts administratively.

Objectives To Be Met by the Matching Program

    The objective of this matching program is to give program agencies 
access to a system that allows them to prescreen applicants for loans 
made or loans guaranteed by the Federal Government, to ascertain if the 
applicant is delinquent in paying a debt owed to or guaranteed by the 
Federal Government. As part of this process, HUD will be provided 
access to SBA's debtor data, for prescreening purposes.
    The use of CAIVRS will allow HUD to better monitor its credit 
programs and to reduce the credit extended to individuals with 
outstanding delinquencies on debts owed to HUD and other Federal 
agencies. SBA expects to achieve savings through risk reduction and 
debt recovery. By the very nature of debt prevention, expected savings 
must be the subject of some assumptions, including the anticipated 
behavior of the matching subjects. SBA also participates in CAIVRS as a 
cooperative effort in a Governmentwide credit plan that may benefit 
other agencies as much, if not more, than SBA.
    Under this computer matching program, HUD/CAIVRS receives limited 
information on borrowers who have defaulted on loans administered by

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participating Federal agencies each month. The information includes: 
Borrower ID Number--The Social Security Number (SSN), Employer 
Identification Number (EIN) or Taxpayer Identification Number (TIN) of 
the borrower on a delinquent or defaulted Federal direct loan or 
federally guaranteed loan. Federal agency personnel and authorized 
lenders must enter a user authorization code followed by either an SSN 
or EIN to access CAIVRS. Only the following information is returned or 
displayed:
     Yes/No as to whether the holder of that SSN/EIN is in 
default on a Federal loan; and
     If Yes, then CAIVRS provides to the lender:
    [cir] Loan case number;
    [cir] Record type (claim, default, foreclosure, or judgment);
    [cir] Agency administering the loan program;
    [cir] Phone number at the applicable Federal agency (to call to 
clear up the default); and
    [cir] Confirmation code associated with the query.
    Federal law mandates the suspension of the processing of 
applications for Federal credit benefits (such as Government-insured 
loans) if the applicants are delinquent on Federal or federally 
guaranteed debt. Processing may continue only after the borrower 
satisfactorily resolves the debt (e.g., pays in full or renegotiates a 
new payment plan). To remove a CAIVRS sanction, the borrower must 
contact the Federal agency that reported their SSN or EIN to HUD/
CAIVRS, using the information provided.

Records To Be Matched

    HUD will use records from the Single Family Default Monitoring 
System (SFDMS/F42D) (72 FR 65350, November 20, 2007, and Single Family 
Insurance System--Claims Subsystem, CLAIMS, A43C (79 FR 10825, February 
26, 2014), as combined in CAIVRS to provide an up-to-date dataset to be 
used in records matching. SFDMS maintains data on mortgages that are 90 
or more days delinquent. The mortgagee or servicer must submit a 
Monthly Delinquent Loan Report (form HUD-92068-A) to HUD on a monthly 
basis until the mortgage status has been completed by all mortgagees, 
or is otherwise terminated or deleted. Mortgagees and servicers provide 
default data to HUD via the Electronic Data Interchange (EDI) or using 
the Internet via FHA Connection, through which the data is sorted, 
prescreened, key entered, edited, and otherwise processed. Reports are 
generated for HUD Headquarters and field offices to review.
    CLAIMS provides automated receipt, tracking, and processing of form 
HUD-27011, ``Single Family Application for Insurance Benefits.'' CLAIMS 
provides online update and inquiry capability to Single Family 
Insurance and Claims databases, and to cumulative history files. Claims 
payments are made by Electronic Funds Transfer (EFT), via a Hitachi 
Data Systems (HDS) platform (IBM mainframe/Treasury interface), on a 
daily basis.
    For the actual data match, SBA will use records from the system of 
records entitled Disaster Loan Case File (SBA 20) and the Loan System 
(SBA 21).

Notice Procedures

    HUD and SBA have separate procedures for notifying individuals that 
their records will be matched to determine whether they are delinquent 
or in default on a Federal debt. HUD will notify individuals at the 
time of application for a HUD/FHA mortgage, and SBA will notify 
individuals at the time of application for SBA loan services. SBA may 
disclose information from the applications to other Federal agencies 
under a published ``routine use,'' without the applicants' consent, as 
permitted by law.
    HUD and SBA published notices concerning routine use disclosures in 
the Federal Register to inform individuals that a computer match may be 
performed to determine a loan applicant's credit status with the 
Federal Government. The Privacy Act also requires that a copy of each 
computer matching agreement entered into with a recipient agency shall 
be available, upon request, to the public.

Categories of Records/Individuals Involved

    Data elements disclosed in computer matching governed by this 
Agreement are PII from the specified SBA system of record. The data 
elements supplied by SBA to CAIVRS are the following:
     Borrower ID Number--The SSN, EIN, or TIN of the borrower 
on a delinquent or defaulted Federal direct loan or Federally 
guaranteed loan.
     Case Number--A reference number issued by the reporting 
agency for the delinquent or defaulted Federal direct loan or federally 
guaranteed loan.
     Agency Code--A code assigned to the reporting agency.
     Type Code--A code that indicates the type of record claim, 
default, foreclosure, or judgment.
     Borrower ID Type--A code that indicates whether the 
Borrower ID Number is a SSN, an EIN, or a TIN.

Period of the Match

    Matching will begin at least 40 days from the date that copies of 
the computer, matching agreement, signed by HUD and SBA Data Integrity 
Boards, are sent to both Houses of Congress and to OMB or at least 30 
days from the date this notice is published in the Federal Register, 
whichever is later, provided that no comments that would result in a 
contrary determination are received. The matching program will be in 
effect and continue for 18 months, with an option to renew for 12 
additional months, unless one of the Parties to the Agreement advises 
the other in writing to terminate or modify the Agreement.

    Dated: December 28, 2015.
Patricia A. Hoban-Moore,
Chief Administrative Officer.
[FR Doc. 2015-33195 Filed 1-4-16; 8:45 am]
 BILLING CODE 4210-67-P