[Federal Register Volume 89, Number 108 (Tuesday, June 4, 2024)]
[Notices]
[Pages 47978-47981]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-12178]


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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

[Docket No. FR-7092-N-30]


Privacy Act of 1974; System of Records

AGENCY: Office of Single-Family Program Development, Office of Housing, 
HUD.

ACTION: Notice of a modified system of records.

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SUMMARY: Under the Privacy Act of 1974, as amended, the Department of 
Housing and Urban Development (HUD), Office Single-Family Program 
Development, is issuing a public notice of its intent to modify the 
system of records for the ``Single Family Mortgage Insurance 
Origination System (SFMIOS)''. SFMIOS combines the features of the: 
Computerized Homes Underwriting Management System (CHUMS)/Loan 
Application Management System (LAMS), Federal Housing Administration 
(FHA) and Connection (FHAC). The purpose of these modifications is to 
update the system of records name, systems manager, authority for 
maintenance of the system and routine uses. This notice also includes 
record source categories, which were erroneously omitted from the prior 
notice. The updates are explained in the Supplementary Infomation 
section of this notice.

DATES: Comments will be accepted on or before July 5, 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; Mr. 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: Mr. 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 amends system of records notice (SORN) 
for the Computerized Homes Underwriting Management System (CHUMS)/Loan 
Application Management System (LAMS) and Federal Housing Administration 
(FHA) Connection (FHAC), to include these substantive changes 
reflecting the new and modified items listed below:
    i. Systems Manager: Updated to reflect personnel changes.
    ii. Authority for Maintenance of the System: Updated to add a new 
citation for the Payment Integrity Information Act of 2019 in 
conjunction with a new routine use (P) supporting a new computer 
matching program between CHUMS and the United States Department of the 
Treasury Department's ``Do Not Pay'' system.
    iii. Record Source Categories: This section was erroneously omitted 
in the prior notice published July 12, 2023, at 88 FR 44386-44389 
(Agency Docket No. FR-7077-N-12).
    iv. Routine Uses of Records Maintained in the System, Including 
Categories of Users and Purposes of Such Uses: Item (L) covering the 
routine use for a computer matching interface between CHUMS and the 
Social Security Administration is being revised. HUD is revising the 
statement in parentheses that reads ``(This use is specific to CHUMS 
data)''.
    The new routine use shall read: ``To the Social Security 
Administration (SSA) through a computer matching program to verify the 
eligibility of program participants and applicants in FHA's housing 
finance programs. (This computer matching program is conducted by an 
interface between

[[Page 47979]]

CHUMS and the SSA Enumeration Verification System (EVS).)''
    A new routine use (P) is being added to cover a new computer 
matching program conducted by an interface between CHUMS and the US 
Department of Treasury's Do Not Pay system. The new routine use shall 
read: ``To the US Department of Treasury through a computer matching 
program interface between CHUMS and Treasury's Do Not Pay (DNP) system 
for the purposes of preventing and recovering improper payments and to 
verify borrower eligibility to participate in FHA's mortgage insurance 
programs per the Payments Integrity Information Act of 2019.''

SYSTEM NAME AND NUMBER:
    Single Family Mortgage Insurance Origination System (SFMIOS), HUD/
HSNG-03.

SECURITY CLASSIFICATION:
    Unclassified.

SYSTEM LOCATIONS:
    The core CHUMS system is in HUD Headquarters, 451 7th Street SW, 
Washington, DC 20410-1000, and Microsoft Azure Federal Cloud US East 
Data Center in One Microsoft Way, Redmond, Washington 98052-6399. The 
Technology Open to Approved Lenders (TOTAL) Scorecard and CHUMS, FHAC 
and LAMS remain at the National Center for Critical Information 
Processing and Storage located at NASA's Shared Services Center, 
Building 1111, Stennis Space Center, MS 39529-6000.

SYSTEMS MANAGER(S):
    Brian Faux, Director, Office of Single-Family Program Development, 
HUD Headquarters, 451 Seventh Street SW, Washington, DC 20410; 
telephone (800) 225-5342; email; [email protected].

AUTHORITY FOR MAINTENANCE OF THE SYSTEMS:
    Title I, section 2 of the National Housing Act (12 U.S.C. 1703). 
Section 202 of the National Housing Act (12 U.S.C. 1708). Section 203 
of the National Housing Act (12 U.S.C. 1709). Section 255 of the 
National Housing Act (12 U.S.C. 1715z-20). 31 U.S.C. 7701. 42 U.S.C. 
3543. 42 U.S.C. 3543, 24 CFR part 200, subpart U, 24 CFR 203.35 and 31 
U.S.C. 3351-3358.

PURPOSE(S) OF THE SYSTEM:
    Federal Housing Administration (FHA) Connection (FHAC) is 
integrated with HUD's security infrastructure to assign user roles and 
permissions based on business needs. FHAC's function as a security and 
access management portal includes web pages to collect legal first and 
last names, Social Security Numbers (SSNs), dates of birth (DOB), 
mother's maiden name, work telephone number and email address. All data 
collected by FHAC for security and access management is stored in 
Computerized Homes Underwriting Management System (CHUMS).
    CHUMS supports HUD and its approved business partners with 
processing and underwriting applications for single-family mortgages 
insurance under the National Housing Act. CHUMS provides functionality 
for tracking and processing cases and managing workloads by HUD field 
office management. CHUMS also provides functionality to assist lenders 
and HUD in determining eligibility for participation in HUD's Single 
Family mortgage insurance program. CHUMS enables lenders to use 
automated underwriting systems (AUS) provided by mortgage financial 
institutions by granting authorized AUS providers access to FHA's 
Technology Open to Approved Lenders (TOTAL) Scorecard. TOTAL Scorecard 
is an automated scorecard tool in CHUMS that is owned and maintained by 
HUD that must be used in combination with an authorized AUS to evaluate 
the overall creditworthiness of mortgage loan applications based on a 
number of credit variables and determines the associated level of risk 
for all loans submitted for FHA mortgage insurance with the exception 
of Streamline Refinances and Home Equity Conversion Mortgage (commonly 
referred to as reverse mortgage) loans.
    Loan Application Management System (LAMS) supports the Federal 
Housing Administration (FHA) mortgage insurance program by providing 
automated processing, analysis, and screening of appraisal 
documentation. LAMS receives and stores appraisal data from the 
Electronic Appraisal Delivery (EAD) portal in a Mortgage Industry 
Standards Maintenance Organization (MISMO) Extensible Markup Language 
(XML) format tailored to HUD specifications. LAMS passes certain data 
elements onto FHAC and CHUMS to ensure data integrity and provide 
valuable time savings to lenders by reducing the burden of paper-based 
delivery and manual data entry processes. LAMS provides a limited user 
interface consisting pre-formatted (canned) reports used by HUD to 
monitor system activity and to monitor appraiser compliance to HUD 
requirements. LAMS data is shared outside of HUD pursuant to Routine 
Use ``N'' below.

CATEGORIES OF INDIVIDUALS COVERED BY THE SYSTEM:
    System Users, HUD business partners (appraisers, inspectors, 
mortgagee staff underwriters), HUD employees and contractors, 
Mortgagors (Borrowers), Individuals who applied for a mortgage insured 
under HUD/FHA's single family mortgage insurance programs, including 
Home Equity Conversion Mortgages (HECM) Non-Borrowing Spouses, 
Appraisers (both applicants and Appraisers listed on the HUD Appraiser 
Roster), 203k Consultants (both applicants and 203k Consultants listed 
on the HUD 203k Consultant Roster), Mortgagee (Lender) Staff including, 
but not limited to, loan originators, appraisers, underwriters, 
processors and file clerks, Individuals registering for access to the 
HUD Housing Counselor Certification Examination, whether or not they 
become certified, Individuals registering for HUD Certified Housing 
Counselor certification or housing counseling clients receiving housing 
counseling from an agency participating in HUD's Housing Counseling 
Clients.

CATEGORIES OF RECORDS IN THE SYSTEM:
    Full name, Social Security Number (SSN), IRS Employer 
Identification Number (EIN), Taxpayer ID, Appraiser Roster ID number, 
203k Consultant ID number, License Number, Date of Birth (DOB), 
mother's maiden name, home and/or work telephone number, email address, 
mailing address (home and/or work) and Agency or organization 
affiliation, Lender ID, racial/ethnic background (if disclosed), sex 
(if disclosed), credit scores (FICO[supreg] scores), Non-borrowing 
Spouse status (HECM loans only), mortgage loan terms, including 
documents used by the lender when underwriting the loan (including, but 
not limited to paystubs, bank statements, tax returns), Appraiser's 
license/expiration date, and address, email address, demographic data, 
Minority Business Enterprise (MBE) Code, 203K Consultant ID number, 
203K license number (if applicable), Roster termination date for 
Appraisers, 203k Consultants, Housing Counselors), business territory/
participation state, Nationwide Mortgage Licensing System (NMLS) 
number, transaction history and/or workload of the individuals using 
the system, Housing Counseling System (HCS) number, preferred language, 
and subject property addresses.

RECORD SOURCE CATEGORIES:
    Mortgagors, Appraisers, 203k Consultants, Mortgagees and their 
employees and service providers (loan originators, processors, 
underwriters),

[[Page 47980]]

Housing Counselors, Individuals that pass the HUD Certified Housing 
Counselor examination, HUD Housing Counseling Program clients that 
receive education and counseling from a HUD participating housing 
counseling agency, and HUD employees and contractors.

ROUTINE USES OF RECORDS MAINTAINED IN THE SYSTEM, INCLUDING CATEGORIES 
OF USERS AND PURPOSES OF SUCH:
    A. To appropriate agencies, entities, and persons when: (a) HUD 
suspects or has confirmed that there has been a breach of the system of 
records; (b) 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 (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 
breach or to prevent, minimize, or remedy such harm.
    B. To another Federal agency or Federal entity, when HUD determines 
that information from this system of record is reasonably necessary to 
assist the recipient agency or entity in (a) responding to a suspected 
or confirmed breach or (b) 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.
    C. To a congressional office from the record of an individual in 
response to an inquiry from that congressional office made at the 
request of the individual to whom the record pertains.
    D. To the General Accounting Office (GAO) for audit purposes.
    E. To contractors, grantees, experts, consultants, and the agents 
thereof, and others performing or working on a contract, service, 
grant, cooperative agreement, or other agreement with HUD, when 
necessary to accomplish an agency function related to these systems of 
records, limited to only those data elements considered relevant to 
accomplishing an agency function.
    F. To the general public through rosters maintained and published 
by HUD to look up Appraisers, 203k Consultants, Housing Counselors, and 
HECM Counselors. The information will be released to any interested 
person only through a specific web page on either www.hud.gov or the 
HUD Exchange designated by HUD. Such disclosures are limited to name, 
contact information, licensing, and certification status.
    G. To Federal agencies, non-Federal entities, their employees, and 
agents (including contractors, their agents or employees; employees or 
contractors of the agents or designated agents); or contractors, their 
employees or agents with whom HUD has a contract, service agreement, 
grant, cooperative agreement, or computer matching agreement for: (a) 
detection, prevention, and recovery of improper payments; (b) detection 
and prevention of fraud, waste, and abuse in major Federal programs 
administered by a Federal agency or non-Federal entity; (c) detection 
of fraud, waste, and abuse by individuals in their operations and 
programs; (d) for the purpose of establishing or verifying the 
eligibility of, or continuing compliance with statutory and regulatory 
requirements by, applicants for, recipients or beneficiaries of, 
participants in, or providers of services with respect to, cash or in-
kind assistance or payments under Federal benefits programs or 
recouping payments or delinquent debts under such Federal benefits 
programs. Records under this routine use may be disclosed only to the 
extent that the information shared is necessary and relevant to verify 
pre-award and pre-payment requirements prior to the release of Federal 
funds, or to prevent and recover improper payments for services 
rendered under programs of HUD or of those Federal agencies and non-
Federal entities to which HUD provides information under this routine 
use.
    H. To Federal agencies, and non-Federal entities, including, but 
not limited to contractors, grantees, experts, consultants, 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 analysis and research to support 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.
    I. To appropriate Federal, State, local, tribal, or other 
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 help in the 
enforcement of civil or criminal laws and when such records, either 
alone or in conjunction with other information, indicate a violation or 
potential violation of law.
    J. To a court, magistrate, administrative tribunal, or arbitrator 
in the course of presenting evidence, including disclosures to opposing 
counsel or witnesses in 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: (a) 
HUD, or any component thereof; or (b) any HUD employee in his or her 
official capacity; or (c) any HUD employee in his or her individual 
capacity where HUD has agreed to represent the employee; or (d) the 
United States, or any agency thereof, where HUD determines that 
litigation is likely to affect HUD or any of its components.
    K. 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: (a) HUD, or any component thereof; or (b) any HUD 
employee in his or her official capacity; or (c) 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 (d) the United States, or any agency thereof, where HUD determines 
that litigation is likely to affect HUD or any of its components.
    L. To the Social Security Administration (SSA) through a computer 
matching program to verify the eligibility of program participants and 
applicants in FHA's housing finance programs. (This computer matching 
program conducted by an interface between CHUMS and the SSA Enumeration 
Verification System (EVS).)
    M. To HUD authorized AUS providers and software companies involved 
in providing access to TOTAL Scorecard including but not limited to 
Government Sponsored Enterprises (GSEs) Fannie Mae and Freddie Mac, 
financial institutions, and software

[[Page 47981]]

companies to respond to requests for assistance with individual cases 
submitted to TOTAL Scorecard and for the purposes of research and 
analysis to enhance program operations and performance through 
automated underwriting, credit scoring and risk management. PII data 
used for research and analysis including the results of the research 
and analysis must be de-identified and aggregated and may not be 
disclosed or published. (This use is specific to CHUMS data.)
    N. To other Federal agencies, (including but not limited to the 
Federal Housing Finance Agency (FHFA) and the Consumer Financial 
Protection Bureau), and their contractor/s through data sharing and 
other agreements for the purposes of research and analysis of automated 
underwriting, credit enhance oversight of the mortgage market, inform 
rulemaking, assess program effectiveness, and to publish de-identified 
aggregate data and results of research and analysis. (This use is 
specific to CHUMS data.)
    O. To Federal financial regulators, Fair Lending enforcement 
agencies, and financial institutions (including, but not limited to the 
Federal Housing Finance Agency (FHFA), Government Sponsored Enterprises 
(GSEs) Fannie Mae and Freddie Mac, Veterans Administration, US 
Department of Agriculture Rural Development Agency, Consumer Financial 
Protection Bureau, the Federal Reserve, and the Appraisal Subcommittee) 
through data sharing agreements and other agreements for the purposes 
of analysis and research to assess program compliance and risks 
associated with real estate appraisal and other property valuation 
methods used in Federal housing finance transactions. Recipients may 
use the data, including analysis and research, in conducting 
investigations and taking enforcement action (including cases and 
administrative proceedings) for violations of laws, rules, or 
regulations, and for coordinated policy development and implementation. 
(This routine use is specific to LAMS data.)
    P. To the US Department of Treasury through a computer matching 
program interface between CHUMS and Treasury's Do Not Pays (DNP) system 
for the purposes of preventing and recovering improper payments and to 
verify borrower eligibility to participate in FHA's mortgage insurance 
programs per the Payments Integrity Information Act of 2019.

POLICIES AND PRACTICES FOR STORAGE OF RECORDS:
    Electronic only.

POLICIES AND PRACTICES FOR RETRIEVAL OF RECORDS:
    Records are retrieved by Name and Social Security Number.

POLICIES AND PRACTICES FOR RETENTION AND DISPOSAL OF RECORDS:
    Per HUD Schedule Appendix 20 Single Family Home Mortgage Insurance 
Program Records, item 13B6, and HUD Schedule Appendix 5, Technical 
Support Records, all records in FHAC, CHUMS and LAMS will be destroyed 
when superseded or obsolete. Per General Record Schedule 5.2, Item 20, 
all FHAC, CHUMS and LAMS records are temporary and are to be destroyed 
upon verification of successful creation of the final document or file, 
or when no longer needed for business use, whichever is later.

ADMINISTRATIVE, TECHNICAL, AND PHYSICAL SAFEGUARDS:
    Administrative Safeguards: The core CHUMS system and all data are 
maintained simultaneously across multiple data centers within the 
Microsoft Azure Federal cloud, which are located within FedRAMP 
security approved facilities. For technical reasons, certain CHUMS 
databases, FHAC and LAMS are located and backed up on servers housed 
within secure Federal data facilities and not in the cloud.
    Physical Safeguards: Controls to secure the data and protect 
electronic records, buildings, and related infrastructure against 
threats associated with their physical environment include, but are not 
limited to, using cypher and combination locks, key cardcontrolled 
access, security guards, closed circuit TV, identification badges, and 
safes. Administrative controls include encryption of back-up data, 
back-ups secured off-site, methods to ensure only authorized users have 
access to PII, periodic security audits, regular monitoring of system 
users' behavior and users' Security Practices.
    Technical Safeguards: Controls for the systems include, but are not 
limited to, encryption of Data at Rest and in Transit, firewalls at 
HUD, user ID, password protection, role-based access controls, Least 
Privileged access, elevated and/or administrative privileged access, 
Personal Identify Verification cards, intrusion detection systems. 
Unauthorized access is controlled by application-level security.

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 or may be obtained from the system manager.

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 16.4.

EXEMPTIONS PROMULGATED FOR THE SYSTEM:
    None.

HISTORY:
    Docket No. FR-7077-N-12, 88-FR-44386, July 12, 2023; Docket No. FR-
5921-N-17, 81-FR-71750, October 18, 2016.

LaDonne White,
Chief Privacy Officer, Office of Administration.
[FR Doc. 2024-12178 Filed 6-3-24; 8:45 am]
BILLING CODE 4210-67-P