[Federal Register Volume 88, Number 192 (Thursday, October 5, 2023)]
[Notices]
[Pages 69215-69219]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-22175]


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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

[Docket No. FR-7077-N-22]


Privacy Act of 1974; System of Records

AGENCY: Single Family Acquired Asset Branch, Office of Housing, HUD.

ACTION: Notice of a modified system of records.

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SUMMARY: Under the provision of the Privacy Act of 1974, as amended, 
the Department of Housing and Urban Development (HUD), Single Family 
Acquired Asset Branch, is modifying system of records titled ``Single 
Family Acquired Assets Management System (SAMS).'' The Single Family 
Acquired Asset Management System (SAMS) handles Management and 
accounting functions for HUD's inventory of HUD owned single-family 
properties for sale, or maintained as, Real Estate Owned (REO) 
properties. This system of records is being revised to make clarifying 
changes within: System Location, System Manager, Record Authority for 
Maintenance of the System, Purpose of the System, Categories of 
Individuals Covered by the System, Categories of Records in the System, 
Records Source Categories, Routine Uses of Records Maintained in the 
System, Retrieval of Records, and Retention and Disposal of Records, 
and make general updates to the remaining sections to accurately 
reflect management of the system of records in accordance with the 
Office of Management and Budget (OMB) Circular A108, Federal Agency 
Responsibilities for Review, Reporting, and Publication under the 
Privacy Act.

DATES: Comments will be accepted on or before November 6, 2023. This 
proposed action will be effective immediately upon publication. Routine 
uses 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: <a href="/cdn-cgi/l/email-protection#68181a011e090b1128001d0c460f071e"><span class="__cf_email__" data-cfemail="2252504b5443415b624a57460c454d54">[email protected]</span></a>.
    Mail: Attention: Privacy Office; LaDonne White, 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.

[[Page 69216]]


FOR FURTHER INFORMATION CONTACT: LaDonne White; 451 Seventh Street SW, 
Room 10139; Washington, DC 20410; 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 Acquired Asset Branch, 
maintains the Single Family Acquired Asset Management System (SAMS). 
HUD is publishing this revised notice to reflect new and modified 
routine uses, and new source protocols implemented to support HUD's 
move to cloud services. Additionally, administrative updates are being 
added to the remaining SORN sections to reflect the system in its 
current state. The change to the system of records will have no undue 
impact on the privacy of individuals and updates are consistent with 
the records collected. Specific changes to the SORN include:
    Security Classification: Added systems of record classification 
status.
    System Location: Replaced former data center location in West 
Virginia with new locations in Virginia, Mississippi, and Washington, 
DC.
    System Manager: Identified new system manager expected to operate 
under this system of records.
    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.
    Purpose of the System: Updated to make clarifying changes to the 
system's purpose.
    Categories of Individuals Covered by the System: Reorganized this 
section to group and clarify individuals according to their program 
responsibilities.
    Categories of Records in the System: Updated this section to 
clarify the records collected.
    Records Source Categories: Updated with record sources for internal 
and external systems, with source updates to: (1) responsibility for 
the initial receipt/upload of HUD REO disbursements, collections and 
Name and Address Identification Numbers (NAIDs) information was 
transferred from HUD's Single Family Acquired Asset Branch--SAMS to the 
Office of Single Family Asset Management (OSFAM)--Asset Disposition and 
Management System (ADAMS). Financial transaction and documents are now 
submitted and created in ADAMS, and then sent to SAMS to capture and 
process core financial transactions, and (2) the SAMS Web cloud-based 
solution was implemented for uploading, transmitting, storing forms and 
PDF attachments for program automated reporting.
    Routine Use of Records in System: HUD will make new and modified 
disclosures from this system of records to authorized agencies and 
participants as described below. The disclosures will enable HUD to 
resolve disputes, implement remedial actions, test new technology, work 
with researchers, and respond to investigation actions. To keep track 
of legal, reporting, hearing, and procedural processes related to these 
documents, HUD may maintain summaries or details on these disclosures 
in this system. HUD's responsiveness to records maintained by this 
system of records makes these disclosures appropriate.
    New Routine Uses: Routine Use (1) was added to help resolve 
disputes between HUD and persons making FOIA requests; Routine Use (2) 
was added to help with congressional inquiries made at the request of 
that individual; Routine Use (3) was added to let researchers access 
HUD data as needed; Routine Use (4) was added to allow support from 
contractors, and others when necessary to accomplish a HUD mission 
function; Routine Use (6) was added to allow for disclosures made to 
Treasury Bureau of Fiscal Service (BFS) and others for collections and 
payments services; Routine Use (9) was added to allow testing new 
program technology and services; Routine Uses (10) and (11) were added 
to meet the requirements of OMB M-17-12; Routine Use (12) was added to 
help enforce civil or criminal laws; and Routine Uses (13) and (14) 
were added to let HUD to litigate as needed and receive effective 
representation by its representatives (such as the Department of 
Justice).
    Updated Routine Use: Routine Use (5) was modified to clarify the 
purpose for reporting 1099 miscellaneous form to Treasury IRS, and (7) 
was modified to clarify disclosures made to the relevant REO entity, 
and purposes for reporting accounting transactions and tax compliance 
requirements.
    Records Retention and Disposition: Updated this section to describe 
current retention and disposal requirements in a simplified format. 
Added existing NARA approved general records schedules the agency 
generally uses to dispose of program related records.
    Policy and Practice for Retrieval of Records: Updated to include 
minor changes and format. Removed the FHA Case Number since it was not 
a personal identifier, and the property address, purchaser name since 
these records were not used as a retrieval practice.

SYSTEM NAME AND NUMBER:
    Single Family Acquired Asset Management System HUD/HOU-01.

SECURITY CLASSIFICATION:
    Unclassified.

SYSTEM LOCATION:
    National Center for Critical Information Processing and Storage in 
Mississippi and Virgina; HUD Headquarters, 451 Seventh Street SW, 
Washington, DC 20410-0001; Accounting files are located at the 
management and marketing contractors' site, which fall under the HUD's 
REO Servicing Office, Office of Single Family Asset Management, at 
various locations throughout the United States.

SYSTEM MANAGER(S):
    Kirk Mensah, Director, Single Family Assets Management Division, 
451 Seventh Street SW, Room 6242, Washington, DC 20410, telephone 
number (202) 402-3092.

AUTHORITY FOR MAINTENANCE OF THE SYSTEM:
    The National Housing Act, Public Law 73-479, 48 Stat. 1246, 12 
U.S.C. 1701 et seq., Departments of Veterans Affairs and Housing and 
Urban Development, and Independent Agencies Appropriations Act, 1997, 
Public Law 104-204, 110 Stat. 2894, 12 U.S.C. 1715z-11a, The Housing 
and Community Development Act of 1987, Public Law 100-242, title I, 
Sec.  165, 101 Stat. 1864, The Housing Community Development Act of 
1987, 42 U.S.C. 3543(a), The Debt Collection Act of 1982, Public Law 
97-365, title 24 Code of Federal Regulations, part 291, Disposition of 
HUD-Acquired and Owned Single-Family Property, HUD Handbook 4000.1 (FHA 
Single Family Housing Policy Handbook).

PURPOSES OF THE SYSTEM:
    SAMS is a management and accounting system for HUD Federal Housing 
Administration (FHA)-owned single-family properties for sale, or 
maintained as, Real Estate Owned (REO) custodial home, that HUD 
acquires when a lender forecloses on a property and conveys the title 
to HUD. SAMS supports HUD staff at Headquarters, Homeownership Centers 
(HOCs), and HUD's Management and Marketing

[[Page 69217]]

(M&M) contractors in tracking single-family properties from their 
acquisition by HUD through the steps necessary to resell the 
properties. SAMS captures and processes all financial transactions 
related to repairing, leasing, listing, and selling the properties, 
including payments for contractor services, taxes, and homeowner 
association and condominium fees.

CATEGORIES OF INDIVIDUALS COVERED BY THE SYSTEM:
    Purchasers, successful bidders of Federal Housing Administration 
(FHA) Single-Family owned homes; Approved business partners of FHA's 
REO program for collections and payments resulting from their 
participation as a REO loan originator, loan servicer, claims servicer, 
real estate brokers, title company, appraiser, property manager, 
lessee; Mortgagors, including Business and Homebuyers of Real Estate 
Owned properties (REO); Borrowers, who have defaulted on a HUD loan; 
HUD Single Family Property Disposition Program Management and Marketing 
(M&M) contractors; and HUD employees and contractors involved with REO 
property functions.

CATEGORIES OF RECORDS IN THE SYSTEM:
    Full Name, Social Security Number (SSN), Address (Work and 
Personal), Date of Birth, Employer Identification Number, Email Address 
(Work and Personal), Employee Identification Number; Financial 
Information (bank account numbers, lender ids), Legal Documents 
(foreclosure, deed-in-lieu agreements), Name and Address Identification 
Number (NAID), Phone Number (Work and Personal), Race/Ethnicity, Salary 
(income certification), Taxpayer ID including taxing authority profile, 
Telephone number, Fax number, and User Ids.

RECORD SOURCE CATEGORIES:
    On-line data entry by HUD staff via SAMS Web and exchanged from 
sources (i.e., purchasers, lender originators, lender servicers, 
brokers, homeowner association, appraisers, title companies, HUD 
employees, contractors). Internal and External data exchanges from the 
following systems:
    <bullet> Office of Single-Family Housing.
    [cir] Computerized Homes Underwriting Management System (CHUMS)
    [cir] Lender Electronic Assessment Portal (LEAP).
    <bullet> Office of Finance and Budget.
    [cir] Single Family Insurance Subsystem (SFIS-CLAIMS)
    [cir] Home Equity Reverse Mortgage Information Technology (HERMIT)
    [cir] Electronic Data Interface System (EDIS)
    <bullet> Office of Single-Family Asset Management.
    [cir] Asset Disposition and Management System (ADAMS)
    <bullet> Office of the Chief Information Officer
    [cir] Digital Identity and Access Management System (DIAMS).
    <bullet> U.S. Department of the Treasury
    [cir] Bureau of the Fiscal Service: Lockbox Network Systems, Intra-
Governmental Payment and Collection Cross Servicing, Treasury Offset 
Program
    [cir] Internal Revenue Service (IRS): FIRE tax compliance program.

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, 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.
    (5) To Department of Treasury Internal Revenue Service (IRS) for 
the purpose of reporting miscellaneous income on form 1099-MISC for 
HUD' business transactions with Management and Marketing (M&M) 
Contractors, tax year reporting, in connection with their services 
performed in the maintenance of HUD REO homes.
    (6) To the Department of Treasury, Bureau of the Fiscal Service, 
their agents, entities and banking institutions (not related to taxes) 
that provide payment and collection services for HUD: (1) 
Administrative (Payment Services): Issuing payments and other 
remittance services for payments certified to authorized contractors, 
vendors, tax authorities, and others authorized on HUD's behalf. (2) 
Cross-Servicing (Collection Services): Pursuing financial transactions 
for payments owed to HUD from buyers, mortgagors, settlement agents, 
closing agents, lender servicers and other authorized collections due.
    (7) To financial institutions, vendors, mortgagees, management and 
marketing contractors, and their authorizing officials, as well as 
affiliates and other parties required, in connection with HUD's REO 
Office of Single-Family Asset Management, disclosures are made: (1) To 
maintain, process, inspect, market, and respond to business payee 
transactions, inquiries, errors, and corrections related to HUD REO 
properties. (2) To provide a listing of REO asset sales, along with 
their associated commissions, to the relevant selling brokers.
    (8) To Financial Control Contractors for processing data input for 
SAMS system that is written in proprietary code.
    (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 appropriate agencies, entities, and persons when (1) HUD 
suspects or has confirmed that there has been a breach of the system of 
records,[middot] (2) HUD has determined that as a result of the 
suspected or confirmed breach there is a risk of harm to individuals, 
[the agency] (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

[[Page 69218]]

breach or to prevent, minimize, or remedy such harm.
    (11) To another Federal agency or Federal entity, when [the agency] 
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.
    (12) 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 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 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:
    Records are retrieved by Social Security Number and Name.

POLICIES AND PRACTICIES FOR RETENTION AND DISPOSAL OF RECORDS:
    Records in this system are retained and disposed of in accordance 
with the National Archives and Records Administration, General Records 
Schedule 1.1, Financial Management and Reporting Records; GRS 3.1, 
Information Technology Development Records; GRS 3.2, Information 
Security Records; 4.2 Information Access and Protection Records; and 
5.2, Transitory and Intermediary Records. General records are 
maintained for periods of 1-6 years unless a longer retention period is 
deemed necessary for investigative purposes or business use. Electronic 
records will be destroyed in accordance with systems disposal and NIST 
800-88 Guidelines.

ADMINISTRATIVE, TECHNICAL, AND PHYSICAL SAFEGUARDS:
    Administrative Controls: Backups Secured Off-Site; Methods to 
Ensure Only Authorized Personnel Access to PII; Periodic Security 
Audits; Regular Monitoring of Users' Security Practices; FIPS 199 
determination. HUD access is safeguarded according to rules and 
policies, including all applicable automated processes according to 
security and privacy safeguard policies. HUD has imposed strict 
controls to minimize the risk of compromising the information being 
stored. Primary and recovery facilities control physical access to 
information system output devices to prevent unauthorized individuals 
from obtaining the output. Back-ups are secured off-site, periodic 
security audits are performed, and regular monitoring of user's 
security practices are enforced.
    Technical Controls: Firewall; Role-Based Access Controls; Virtual 
Private Network (VPN); Least Privilege Access; User Identification and 
Password; and PIV Card. The system incorporates role-based access 
controls, least privilege access controls, and virtual private access 
controls. Access is limited to authorized personnel and requires a 
password and user ID before system access is granted. Records are 
maintained in a secured computer network behind HUD's firewall. The 
system sends and receives data through HUD Security File Transfer 
Protocol (SFTP), which encrypts the data. SSNs are encrypted during 
transmission to protect session information.
    Physical Controls: Key cards; Security Guards; and Identification 
badges. Secure physical methods are used to ensure only authorized 
users have access to PII or HUD and its approved facilities. Access is 
controlled by key card, controlled access, security guards, and 
identification badges. Periodic security audits, regular monitoring of 
system users' behavior is conducted; Primary and recovery facilities 
control physical access to information system output devices to prevent 
unauthorized individuals from obtaining the output. Hard copies are 
stored in locked file cabinets in secured rooms with restricted access.

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:
    None.

HISTORY:
    This is a revision to the previously published notice published in 
the Federal Modification to Docket No. 88 FR 45239 (July 14, 2023); 
Docket No. 71

[[Page 69219]]

FR 35443 (June 20, 2006); Document No.79 FR 10825 (February 26, 2014).

LaDonne White,
Chief Privacy Officer, Office of Administration.
[FR Doc. 2023-22175 Filed 10-4-23; 8:45 am]
BILLING CODE 4210-67-P


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