[Federal Register Volume 81, Number 140 (Thursday, July 21, 2016)]
[Notices]
[Pages 47403-47404]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-17255]


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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

[Docket No. FR- 5921-N-09]


Privacy Act of 1974; Notice of a Computer Matching Program 
Between the Department of Housing and Urban Development (HUD) and the 
Department of Education (ED)

AGENCY: Office of Administration, HUD.

ACTION: Notice of a Computer Matching Program between HUD and ED.

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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 ED for the 
purpose of incorporating ED 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 August 22, 2016, or at least 40 days from the date that copies of 
the Computer Matching Agreement, signed by both HUD and ED 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: August 22, 2016.

ADDRESSES: Interested persons are invited to submit comments regarding 
this notice to the Rules Docket Clerk, Office of General Counsel, 
Department of Housing and Urban Development, 451 Seventh Street, Room 
10110, 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: Contact the ``Recipient Agency'' 
Acting Departmental Privacy Officer, Department of Housing and Urban 
Development, 451 Seventh Street SW., Room 10139, Washington, DC 20410, 
telephone number (202) 402-6147 or the ``Source Agency'' Department of 
Education, Federal Student Aid/Borrower Services, 830 First Street NE., 
Room UCP-41F2, Washington, DC 20202, telephone number (202) 377-3436. 
[These are not a toll-free numbers.] A telecommunication device for 
hearing- and speech-impaired individuals (TTY) is available at (800) 
877-8339 (Federal Relay Service).

SUPPLEMENTARY INFORMATION: HUD's CAIVRS database includes delinquent 
debt information from the Departments of Education (ED), Veteran's 
Affairs (VA), Justice (DOJ), the Small Business Administration (SBA), 
and the U.S. Department of Agriculture (USDA). 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 institution 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. The Department of Education (ED) oversees 
and manages Federal student aid programs pursuant to the Higher 
Education Act of 1965, as amended, 20 U.S.C. 1001 et seq. This 
computer matching will be conducted pursuant to Pub. L. 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 Pub. L. 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 
pre-existing 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 ED'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. ED expects that its participation in CAIVRS will further 
other Federal agencies' efforts to reduce credit risks through loan 
prescreening, and prompt student loan defaulters, who are denied credit 
by other Federal agencies, to make arrangements to repay their 
defaulted student loans.
    Under this computer matching program, HUD/CAIVRS receives limited 
information on borrowers who have defaulted on loans administered by

[[Page 47404]]

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 a SSN 
or EIN to access CAIVRS. Only the following information is returned or 
displayed:
    [cir] Yes/No as to whether the holder of that SSN/EIN is in default 
on a Federal loan; and
    [cir] 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 (72 FR65348 November 
20, 2007)), 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 (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 Electronic Data Interchange (EDI) or using the 
Internet via FHA Connection, through which the data is sorted, pre-
screened, 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. Claim 
payments are made by Electronic Funds Transfer (EFT) via an HDS 
platform (IBM mainframe/Treasury interface) on a daily basis.
    For the actual data match, ED will use records from the system of 
records entitled ``Title IV Program Files'' (18-11-05), originally 
published in the Federal Register on June 4, 1999 (64 FR 30163), and 
subsequently amended on December 27, 1999 (64 FR 72407). However, the 
ED records from which the match information is compiled are maintained 
in the ``Student Financial Assistance Collection Files'' system of 
records (18-11-07), 64 FR 30166 (June 4, 1999), as amended, 64 FR 72407 
(December 27, 1999). The ED routine use for this match is published as 
``routine use number one'' in the system of records notice for the 
``Student Financial Assistance Collection Files'' (18-11-07), which 
permits disclosures of the pertinent information to HUD.

Notice Procedures

    HUD and ED 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 ED will notify 
individuals at the time of application for Title IV, Higher Education 
Act (HEA) Federal student loan. The application for Title IV, HEA 
program assistance explains that as part of the application process, ED 
may disclose information from that application to other Federal 
agencies under a published ``routine use'' without the applicants' 
consent, as permitted by law. HUD and ED published a notice 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 Personally Identifiable Information (PII) from the 
specified ED system of record. The data elements supplied by ED to 
CAIVRS are the following:
     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.
     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, EIN, or 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 ED DIBs, are sent to 
both Houses of Congress and 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: June 22, 2016.
Patricia A. Hoban-Moore,
Chief Administrative Officer.
[FR Doc. 2016-17255 Filed 7-20-16; 8:45 am]
 BILLING CODE 4210-67-P