[Federal Register Volume 90, Number 236 (Thursday, December 11, 2025)]
[Notices]
[Pages 57481-57483]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2025-22505]


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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

[Docket No. FR-7106-N-10]


Privacy Act of 1974; System of Records

AGENCY: Office of Single Family Program, Office of Housing, 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 the Housing and Urban Development (HUD) is 
issuing a public notice of its intent to modify the Office of Single-
Family Program Development Privacy Act system of records ``Credit Alert 
Verification Reporting System (CAIVRS).'' This System of Records Notice 
(SORN) is being modified to update the system location, categories of 
record, authority for maintenance of the system, and record source 
categories. The updates are explained in the SUPPLEMENTARY INFORMATION 
section of this notice.

DATES: Comments will be accepted on or before January 12, 2026. This 
proposed action will be 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; Shalanda Capehart, Acting Chief 
Privacy Officer; Office of 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: Shalanda Capehart; 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 is modifying the system of records 
notice (SORN) for the Credit Alert Verification Reporting System 
(CAIVRS).
    i. The ``System Location'' section has been updated to include 
Microsoft Azure Federal Cloud.
    ii. The ``Categories of Record'' section has been revised to 
accurately reflect CAIVRS data components. The following data elements 
in the previously published SORN are not contained in CAIVRS and have 
been removed: Full Name, Date of Birth, Email Address, Work Address, 
Home Address, Mother's Maiden Name, and FHA Case Number. Social 
Security Number, Taxpayer ID Number, and Employer Identification Number 
comprise all current data elements within CAIVRS and remain as 
categories of records.
    iii. The ``Authority for Maintenance'' section has been updated for 
accuracy. The following authorities have been removed: the Budget and 
Accounting Acts of 1921 and 1950, as amended; the Debt Collection Act 
of 1982, as amended; the Deficit Reduction Act of 1984, as amended, and 
the Debt Collection Improvement Act of 1996, as amended.
    iv. The ``Record Source Categories'' have been revised to 
accurately reflect the data interfaces with CAIVRS, and to list the 
agencies from which record sources originate.
SYSTEM NAME AND NUMBER:
    Credit Alert Verification Reporting System (CAIVRS)--HUD/HOU-04.

SECURITY CLASSIFICATION:
    Unclassified.

SYSTEM LOCATION:
    CAIVRS is located and operated at NASA's John C. Stennis Space 
Flight Center, located at 1100 Balch Boulevard, Stennis Space Center, 
MS 39529-0001, and Microsoft Azure Federal Cloud, US East Data Center 
in One Microsoft Way, Redmond, Washington 98052-6399.

SYSTEM MANAGER(S):
    C. Brian Faux, Director, Office of Single-Family Program 
Development, United States Department of Housing and Urban Development, 
451 7th St. SW, Washington, DC 20410-1000; Phone (202) 674-9348; Email: 
[email protected].

AUTHORITY FOR MAINTENANCE OF THE SYSTEM:
    Section 203, National Housing Act, Public Law 73-479 (12 U.S.C. 
1709); Section 255, National Housing Act, Public Law 73-479 (12 U.S.C. 
1701z-20); Section 165, Housing and Community Development Act of 1987, 
Public Law 100-242 (42 U.S.C. 3543); Section 31001, Debt Collection Act 
of 1996 as amended, Public Law 104-134 (31 U.S.C. 7701); Section 31001, 
Debt Collection Act of 1996 as amended, Public Law 104-134 (31 U.S.C. 
3720B); and Office of Management and Budget (OMB) Circulars A-129 
(Policies for Federal Credit Programs and Non-Tax Receivables).

PURPOSES(S) OF THE SYSTEM:
    The purpose of CAIVRS is to ensure participating Federal agencies 
and their authorized lenders will comply with the legal requirement to 
verify individuals applying for a federally backed loan, or other aid, 
are not presently delinquent on another Federal obligation. CAIVRS is a 
shared, inter-agency database managed by HUD where participating 
agencies are required to report delinquent federal debt.

[[Page 57482]]

CATEGORIES OF INDIVIDUALS COVERED BY THE SYSTEM:
    Individual borrowers who have applied for Federal housing loans and 
have fallen delinquent.

CATEGORIES OF RECORDS IN THE SYSTEM:
    Social Security Numbers, Taxpayer ID Numbers, and Employer 
Identification Numbers.

RECORD SOURCE CATEGORIES:
    A43C-SF Insurance System--Claims Subsystem, F71--Debt Collection 
and Asset Management System--Title I, F71A--Debt Collection and Asset 
Management System--Generic Debt, A75R--Financial Data Mart, P278--
Lender Electronic Assessment Portal, DOJ--Department of Justice, SBA--
Small Business Administration, USDA--United States Department of 
Agriculture, ED--Department of Education, VA--Department of Veterans 
Affairs.

ROUTINE USES OF RECORDS MAINTAINED IN THE SYSTEM, INCLUDING CATEGORIES 
OF USERS AND PURPOSES OF SUCH USES:
    (1) 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.
    (2) To Federal, State, and local agencies, their employees, and 
agents to conduct computer matching programs as regulated by the 
Privacy Act of 1974, as amended (5 U.S.C. 552a).
    (3) 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: (1) 
detection, prevention, and recovery of improper payments; (2) detection 
and prevention of fraud, waste, and abuse in major Federal programs 
administered by a Federal agency or non-Federal entity; (3) detection 
of fraud, waste, and abuse by individuals in their operations and 
programs; or (4) 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 the information shared is necessary and relevant to verify pre-
award and prepayment requirements before the release of Federal funds 
or 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.
    (4) 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, to otherwise support the 
Department's mission, or for other research and statistical purposes 
not otherwise prohibited by law or regulation. 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.
    (5) To contractors, grantees, experts, consultants and their 
agents, or others performing or working under a contract, service, 
grant, cooperative agreement, or other 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.
    (6) To contractors, experts, and consultants with whom HUD has a 
contract, service agreement, or other assignment of the Department, 
when necessary to utilize data to test new technology and systems 
designed to enhance program operations and performance.
    (7) 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.
    (8) 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.
    (9) 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 help to enforce civil or criminal 
laws and when such records, either alone or in conjunction with other 
information, indicate a violation or potential violation of law.
    (10) To a court, magistrate, administrative tribunal, or arbitrator 
while 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: (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 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.
    (11) 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

[[Page 57483]]

likely to affect HUD or any of its components.
    (12) To match system users for security purposes. User-provided PII 
may be shared with HUD departmental enforcement offices and other 
Federal, state, local or tribal law enforcement agencies if there is 
reason to believe that a user provided false information to obtain 
access to the system, and that providing such information would help 
enforce civil or criminal laws.
    (13) To the United States Department of Veterans Affairs (VA), to 
pre-screen applicants to determine if they are presently delinquent on 
any Federal debt reported by a participating agency, and to determine 
if they are eligible for a new federally backed loan or grant.
    (14) To the United States Small Business Administration (SBA) to 
pre-screen applicants to determine if they are presently delinquent on 
any Federal debt reported by a participating agency, and to determine 
if they are eligible for a new federally backed loan or grant.
    (15) To the United States Department of Education to pre-screen 
applicants to determine if they are presently delinquent on any Federal 
debt reported by a participating agency, and to determine if they are 
eligible for a new federally backed loan or grant.
    (16) To the United States Department of Agriculture (USDA) to pre-
screen applicants to determine if they are presently delinquent on any 
Federal debt reported by a participating agency, and to determine if 
they are eligible for a new federally backed loan or grant.
    (17) To the United States DOJ to pre-screen applicants to determine 
if they are presently delinquent on any Federal debt reported by a 
participating agency, and to determine if they are eligible for a new 
federally backed loan or grant.

POLICIES AND PRACTICES FOR STORAGE OF RECORDS:
    Electronic only.

POLICIES AND PRACTICES FOR RETRIEVAL OF RECORDS:
    Social Security Numbers, Taxpayer ID Numbers, and Employer 
Identification Numbers.

POLICIES AND PRACTICIES FOR RENTENTION AND DISPOSAL OF RECORDS:
    All records related to Federal Housing Administration (FHA) 
Mortgage Credit Alert report will be destroyed according to HUD 
Schedule Appendix 20 Single Family Home Mortgage Records, item 13B6 
which states the following, destroyed when superseded or obsolete.
    All records related to FHA Mortgage Credit Verification will be 
destroyed according to HUD Schedule Appendix 5 Technical Support 
Records, item 7 which states the following, destroy when superseded or 
obsolete.

ADMINISTRATIVE, TECHNICAL, AND PHYSICAL SAFEGUARDS:
    CAIVRS and its data are located on centralized servers within 
Federal facilities with access control in place. Physical controls 
include cypher and combination locks, key card-controlled 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, and regular monitoring of system 
users' behavior. Technical controls include encryption of Data at Rest 
and in Transit, firewalls at HUD and each reporting agency, role-based 
access controls, user IDs and passwords, Least Privileged access, 
elevated and/or administrative privileged access, PIV cards, intrusion 
detection systems. Additional measures to safeguard the system include 
role-based Privacy Act training required for HUD personnel responsible 
for CAIVRS system program management, IT security monitoring by the 
Department of Housing and Urban Development and the Department of 
Homeland 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 contesting the content of any record pertaining to 
the individual by the individual concerned is published in 24 CFR 16.8 
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:
    N/A.

HISTORY:
    Docket No. FR-7077-N-16, 88 FR 58595, August 28, 2023.

Shalanda Capehart,
Acting Chief Privacy Officer, Office of Administration.
[FR Doc. 2025-22505 Filed 12-10-25; 8:45 am]
BILLING CODE 4210-67-P