[Federal Register Volume 89, Number 33 (Friday, February 16, 2024)]
[Notices]
[Pages 12368-12371]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-03313]
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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
[Docket No. FR-7092-N-21]
Privacy Act of 1974; System of Records
AGENCY: Office of Housing, Single Family Insurance Operations Division,
HUD.
ACTION: Notice of a modified system of records.
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SUMMARY: Pursuant to the provisions of the Privacy Act of 1974, as
amended, the Department of Housing and Urban Development (HUD), Office
of Housing, Single Family Operations Division is modifying a system of
records titled ``Distributive Shares and Refund Subsystem (DSRS)''. The
DSRS serves as the Federal Housing Administration (FHA) repository for
verifying mortgage insurance premium refunds and distributive share
payments which are issued to eligible homeowners (mortgagors) who had
an FHA mortgage insured loan. This system of records is being revised
to make clarifying changes within: Authority for Maintenance of the
System, System Location, Purpose of the System, Categories of
Individuals Covered by the System, Categories of Records in the System,
Records Source Category, Routine Uses of Records Maintained, Retention
and Disposal of Records, Record Access Procedures, Contesting Record
Procedures, and Notification Procedures. The modifications are outlined
in the SUPPLEMENTARY INFORMATION section.
DATES: Comments will be accepted on or before March 18, 2024. The SORN
becomes effective immediately, while the routine uses become effective
after the comment period immediately upon publication except for the
routine uses, which will become effective on the date following the end
of the comment period unless comments are received which result in a
contrary determination.
ADDRESSES: You may submit comments, identified by docket number or by
one of the following methods:
Federal e-Rulemaking Portal: http://www.regulations.gov. Follow the
instructions provided on that site to submit comments electronically.
Fax: 202-619-8365.
Email: [email protected].
Mail: Attention: Privacy Office; LaDonne White, Chief Privacy
Officer; The Executive Secretariat; 451 Seventh Street SW, Room 10139;
Washington, DC 20410-0001.
Instructions: All submissions received must include the agency name
and docket number for this rulemaking. All comments received will be
posted without change to http://www.regulations.gov including any
personal information provided.
Docket: For access to the docket to read background documents or
comments received go to http://www.regulations.gov.
FOR FURTHER INFORMATION CONTACT: LaDonne White; 451 Seventh Street SW,
Room 10139; Washington, DC 20410-0001; telephone number 202-708-3054
(this is not a toll-free number). HUD welcomes and is prepared to
receive calls from individuals who are deaf or hard of hearing, as well
as individuals with speech or communication disabilities. To learn more
about how to make an accessible telephone call, please visit https://www.fcc.gov/consumers/guides/telecommunications-relay-service-trs.
SUPPLEMENTARY INFORMATION: HUD, Single Family Insurance Operations
Division (SFIOD), maintains the DSRS system. HUD is publishing this
revised notice to reflect modifications to routine uses, and the system
authorities. In accordance with the DSRS system of records, the SFIOD
will implement a new Part B Online Application to provide homeowners
with a convenient method to submit applications online. Additionally,
administrative updates are being added to the remaining SORN
[[Page 12369]]
sections to reflect the system in its current state. The modification
of the system of records will have no undue impact on the privacy of
individuals and updates are consistent with the records collected.
The following are updates since the previous SORN publication:
Purpose of the System: Added information pertaining to the
new Part B Online Application to facilitate same-day request, homeowner
application submission, and refund disbursement.
Record Source Category: Added existing sources information
for U.S Department of Treasury, and New Part B Online Application web
page.
Authority for Maintenance of the System: Updated with
existing authorities that permit the maintenance of the system's
records by clarifying citations, correcting errors, and including
relevant citations to the Code of Federal Register. Statutes and
regulations are listed below.
Categories of Records in the System: Updated the section
with clarifying details and incorporated the Individual Tax
Identification Number (ITIN), and related documents for certain non-
residents and residents' aliens, spouses and dependents from other
countries who do not have SSNs. The records are captured by records
under ``Identification and Verification'' documents.
Routine Use of Records in System: HUD will make modified
disclosures from this system of records to authorized agencies and
participants as described below. These modifications will enable HUD to
issue payments and refunds and continue to test new technology.
Additionally, the organization of the routine use section has changed
from letters to numbers.
Modified routine use (9)--(Changed from I) to refine and
limit the scope of records shared for testing new technology to enhance
program technology and services. This modification limits the scope of
the prior record sharing activities.
Modified routine use (6)--(Changed from F) to explain each
Treasury disclosure type, the Treasury organization (The Bureau of the
Fiscal Service), and additional details under Treasury collection
services.
Records Retention and Disposition: Updated this section by
clarifying the general records schedules (GRS) by GRS Item Numbers,
rather than down to the program level. Additionally, new GRS have been
incorporated into the process.
SYSTEM NAME AND NUMBER:
Distributive Shares and Refund Subsystem (DSRS) HUD/HOU-03.
SECURITY CLASSIFICATION:
Unclassified.
SYSTEM LOCATION:
National Center for Critical Information Processing and Storage,
located in Mississippi and Virginia; the HUD Headquarter Building at
451 Seventh Street SW, Room 3238, Washington DC 20410-1000; Pyramid
Systems at 2677 Prosperity Avenue, Fairfax Virginia 22031; M&M IT
Solutions at 11750 Beltsville Drive, Beltsville MD, 20705-3194; Falon
Sourcing Solutions at 9028 Prince William Street, Manassas, Virginia
20110-5664.
SYSTEM MANAGER(S):
Silas Vaughn, System Manager, Single Family Insurance Operations
Division, Department of Housing and Urban Development, 451 Seventh
Street SW, Second floor, Washington, DC 20410-0001; telephone number,
202-708-2438.
AUTHORITY FOR MAINTENANCE OF THE SYSTEM:
Section 203(a) of the National Housing Act of 1934 (12 U.S.C.
1709(a)); 24 CFR 203.35. Section 7(d) of the Department of Housing and
Urban Development Act of 1965 (42 U.S.C. 3535(d)); 24 CFR 5.210; 24 CFR
200.1101. The Housing Community Development Act of 1987, 42 U.S.C.
3543(a). Section 4 of the Debt Collection Act of 1982, 31 U.S.C.
7701(b). Section 31001 of the Debt Collection Improvement Act of 1996,
31 U.S.C. 3711(g)(9). FHA Single Family Housing Policy Handbook 4000.1.
PURPOSES OF THE SYSTEM:
Distributive Shares and Refund Subsystem (DSRS) maintains detailed
records for single family non-claim terminated case activities to
ensure that the proper homeowner associated with the FHA guaranteed
loan is identified. Upon non-claim termination (i.e., prepayment,
assignment, assumption, or refinance), the borrower may be eligible for
a refund of any unearned upfront mortgage insurance premium (UFMIP)
paid at closing or a distributive share payment. The ``Does HUD Owe You
a Refund? '' website is used in conjunction with DSRS to allow
homeowners to determine if they are eligible for an upfront mortgage
insurance premium refund or distributive share payment. In addition,
DSRS utilizes the Premium Refund Application Upload web page component
to provide another option for homeowners to securely send the required
documents to HUD to complete the homeowner refund process, and the Part
B Online Application web page to support homeowners in securely
submitting the application online, with the aim of enhancing HUD's
responsiveness (Under Review). SFIOD staff can request disbursement of
lender and homeowner refunds due, and DSRS will certify that the
requests are valid.
CATEGORIES OF INDIVIDUALS COVERED BY THE SYSTEM:
(1) Homeowners (Mortgagors) who had Federal Housing Administration
(FHA) mortgage insured loans and may be eligible for a mortgage
insurance premium refund or distributive share payment; (2) FHA
approved Business Partners and Third-Party Representatives who are
sources of mortgagor information, (3) Non-residents and residents'
aliens, and dependents from other countries and (4) DSRS personnel (HUD
users and authorized contractors) responsible for refund and share
functions.
CATEGORIES OF RECORDS IN THE SYSTEM:
Name (Individual/Business), Social Security Number (SSN), Date of
Birth, Phone Number, Address (Individual/Business), Email Address, and
User ID, Related Premium Refund/Payment Correspondence (borrower name,
address, email address, phone and fax number), including the homeowner
representative and lender information, and Supporting Documentation
(borrower identification and verification document copies): Birth,
Death, Marriage, Religion, Civil Union, Naturalization, Citizenship
Certificate, US Passport or Passport Card, Green Card, Change-of-
Address (form CNL107 provided as proof), Driver's license, Dependent,
Military, State, Federal ID with photo, or similar identification,
Bank, Motor Vehicle, Mortgage, Credit Card, Tax, Utility, Doctor,
Hospital Company Bill, Medicaid, Medicare Statement, Social Security
Administration, Pension, Retirement Benefit Statement, Veteran
Discharge or Separation Papers, Medical Card, W-2, 1099, DD-214 form
(for SSN verification purposes), Pay Statement, Vehicle, Voters
Registration, Legal documents (mortgage, deed, will, loan, rental
contracts and statements, gender, name change) or similar document.
Information on Supporting documents may include State were issued, SSN,
Birthdate, Gender, Sex, Affiliation, Marital, Financial, Retirement,
Pay, Employment, Medical, Account Number, Individual Tax Identification
Number (ITIN), Employer Identification Number and related documents
(IRS 147C EIN letter, IRS Payment coupon, IRS EIN Issuance Notice).
[[Page 12370]]
RECORD SOURCE CATEGORIES:
Homeowners, HUD employees and contractors, third party businesses,
and authorized representatives of the homeowners that complete the form
application for premium refund. Internal and External data exchanges
from the following systems:
Housing Office of Finance and Budget.
[ssquf] Single Family Insurance System (SFIS).
[ssquf] The Does HUD Owe You a Refund? '' website.
[ssquf] Premium Refund Application Upload web page.
[ssquf] The Part B Online Application web page.
[ssquf] Automated Mailing System Generation.
Office of the Chief Information Officer.
[ssquf] Digital Identity and Access Management System (DIAMS).
The Department of the Treasury, Bureau of the Fiscal
Services.
ROUTINE USES OF RECORDS MAINTAINED IN THE SYSTEM, INCLUDING CATEGORIES
OF USERS AND PURPOSES OF SUCH USES:
(1) To the National Archives and Records Administration, Office of
Government Information Services (OGIS), to the extent necessary to
fulfill its responsibilities in 5 U.S.C. 552(h), to review
administrative agency policies, procedures, and compliance with the
Freedom of Information Act (FOIA), and to facilitate OGIS's offering of
mediation service to resolve disputes between persons making FOIA
requests and administrative agencies.
(2) 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.
(3) 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, and entities and their agents with whom HUD has a contract,
service agreement, grant, cooperative agreement, or other agreement 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.
(4) To contractors, grantees, experts, consultants and their
agents, or others performing or working under a contract, service,
grant, or cooperative agreement with HUD, when necessary to accomplish
an agency function related to a system of records. Disclosure
requirements are limited to only those data elements considered
relevant to accomplishing an agency function.
(5) To authorized requesters or third-party tracers who request
access to Upfront Mortgage Insurance Premiums homeowner refund and
distributive share payment information, when such information is
unavailable on HUD's FOIA reading room or Does HUD Owe You a Refund?
websites. This information is releasable under FOIA. Third party
release of this material may require authorized consent of the
homeowner to whom the records belong and must adhere to all HUD
procedures prior to release.
(6) To the U.S. Department of the Treasury for disbursement,
refund, and collection transactions:
(a) For upfront and monthly mortgage insurance premiums lender
refunds; homeowner refunds; and distributive shares payments.
(b) For facilitating Treasury Administrative Offset (Debt
Collection): Offsets Federal tax refund payments and non-tax payments
certified for disbursement to the debtor to recover a delinquent debt;
and Cross-servicing (Debt Collection): pursues recovery of delinquent
debts on behalf of Federal agencies using debt collection tools
authorized by statute, such as private collection agencies,
administrative wage garnishment, or public dissemination of an
individual's delinquent indebtedness; or any other legitimate debt
collection purpose.
(7) To the general public when, after two-years of attempting to
contact each unpaid mortgagor of their FHA insurance refund, the
Department makes available a cumulative listing by state of any unpaid
refund that remains unpaid. The information includes mortgagor full
name(s), property address, insurance refund or share amount, insurance
cancellation date and refund date, and loans FHA Case Number. This
information is available to the public on HUD's refund database ``Does
HUD Owe You A Refund? ''. Individuals who search the database using an
FHA Case Number or the name of the mortgagor can access this
information before the two years of attempted contact has passed.
(8) To the recorders' offices for recording legal documents and
responses to offsets (i.e., child support) or other legal responses
required during the servicing of the insured loan to allow HUD to
release mortgage liens and respond to bankruptcies or deaths of
mortgagors to protect the interest of the Secretary of HUD.
(9) To contractors, experts and consultants with whom HUD has a
contract, service agreement, or other assignment of the Department,
when necessary to utilize relevant data for the purpose of testing new
technology and systems designed to enhance program operations and
performance.
(10) To another Federal agency or Federal entity, when HUD
determines that information from this system of records is reasonably
necessary to assist the recipient agency or entity in (1) responding to
a suspected or confirmed breach or (2) preventing, minimizing, or
remedying the risk of harm to individuals, the recipient agency or
entity (including its information systems, programs, and operations),
the Federal Government, or national security, resulting from a
suspected or confirmed breach.
(11) To appropriate agencies, entities, and persons when: (1) HUD
suspects or has confirmed that there has been a breach of the system of
records; (2) HUD has determined that as a result of the suspected or
confirmed breach there is a risk of harm to individuals, HUD (including
its information systems, programs, and operations), the Federal
Government, or national security; and (3) 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
breach or to prevent, minimize, or remedy such harm.
(12) To appropriate Federal, State, local, tribal, or governmental
agencies or multilateral governmental organizations responsible for
investigating or prosecuting the violations of, or for enforcing or
implementing, a statute, rule, regulation, order, or license, where HUD
determines that the information would assist in the enforcement of
civil or criminal laws, when such records, either alone or in
conjunction with other information, indicate a violation or potential
violation of law.
(13) To a court, magistrate, administrative tribunal, or arbitrator
in the course of presenting evidence, including disclosures to opposing
counsel or witnesses in the course of civil discovery, litigation,
mediation, or settlement negotiations, or in connection with criminal
law proceedings; when HUD determines that use of such records is
relevant and necessary to the litigation and when any of the following
is a party to the litigation or have an interest in such litigation:
(1) HUD, or any component
[[Page 12371]]
thereof; or (2) any HUD employee in his or her official capacity; or
(3) any HUD employee in his or her individual capacity where HUD has
agreed to represent the employee; or (4) the United States, or any
agency thereof, where HUD determines that litigation is likely to
affect HUD or any of its components.
(14) To any component of the Department of Justice or other Federal
agency conducting litigation or in proceedings before any court,
adjudicative, or administrative body, when HUD determines that the use
of such records is relevant and necessary to the litigation and when
any of the following is a party to the litigation or have an interest
in such litigation: (1) HUD, or any component thereof; or (2) any HUD
employee in his or her official capacity; or (3) any HUD employee in
his or her individual capacity where the Department of Justice or
agency conducting the litigation has agreed to represent the employee;
or (4) the United States, or any agency thereof, where HUD determines
that litigation is likely to affect HUD or any of its components.
POLICIES AND PRACTICES FOR STORAGE OF RECORDS:
Paper and electronic.
POLICIES AND PRACTICES FOR RETRIEVAL OF RECORDS:
Name, SSN, and Property Address.
POLICIES AND PRACTICIES FOR RETENTION AND DISPOSAL OF RECORDS:
General records are maintained for periods of Disposition is
Temporary--1-6 years unless a longer retention period is deemed
necessary for investigative purposes or business use. If necessary,
Paper records are either burned or shredded, and electronic and media
records are erased.
ADMINISTRATIVE, TECHNICAL, AND PHYSICAL SAFEGUARDS:
Administrative Controls: Backups Secured Off-Site, Methods to
Ensure Only Authorized Personnel Access to PII, Periodic Security
Audits, and Regular Monitoring of User's Security Practices.
Technical Controls: Encryption of Data at Rest, Firewall, Role-
Based Access Controls, Virtual Private Network (VPN), Encryption of
Data in Transit, Least Privilege Access, User Identification and
Password, PIV Card, Intrusion Detection System (IDS).
Physical Safeguards: Combination locks, Key Cards, Security Guards,
Identification badges, and all paper records that contain PII and
sensitive information are locked in file rooms.
RECORD ACCESS PROCEDURES:
Individuals requesting records of themselves should address written
inquiries to the Department of Housing Urban and Development 451 7th
Street SW, Washington, DC 20410-0001. For verification, individuals
should provide their full name, current address, and telephone number.
In addition, the requester must provide either a notarized statement or
an unsworn declaration made under 24 CFR 16.4.
CONTESTING RECORD PROCEDURES:
The HUD rule for accessing, contesting, and appealing agency
determinations by the individual concerned are published in 24 CFR part
16.8.
NOTIFICATION PROCEDURES:
Individuals requesting notification of records of themselves should
address written inquiries to the Department of Housing Urban
Development, 451 7th Street SW, Washington, DC 20410-0001. For
verification purposes, individuals should provide their full name,
office or organization where assigned, if applicable, and current
address and telephone number. In addition, the requester must provide
either a notarized statement or an unsworn declaration made under 24
CFR part 16.
EXEMPTIONS PROMULGATED FOR THE SYSTEM:
None.
HISTORY:
Docket No. 87 FR 61618 (October 12, 2022), 81 FR 22292 (April 15,
2016), and 72 FR 40890 (July 25, 2007).
Ladonne White,
Chief Privacy Officer, Office of Administration.
[FR Doc. 2024-03313 Filed 2-15-24; 8:45 am]
BILLING CODE 4210-67-P