[Federal Register Volume 62, Number 163 (Friday, August 22, 1997)]
[Notices]
[Pages 44712-44713]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-22276]


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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

[Docket No. FR-3918-N-13]


Privacy Act of 1974; Notice of a Computer Matching Program

AGENCY: Department of Housing and Urban Development (HUD).

ACTION: Notice of a Computer Matching Program--HUD and Department of 
Veterans Affairs (VA).

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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, as 
amended, (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,'' the Department of Housing and Urban 
Development (HUD) is issuing a public notice of its intent to conduct a 
recurring computer matching program with the Department of Veterans 
Affairs (VA) to utilize a computer information system of HUD, the 
Credit Alert Interactive Voice Response System (CAIVRS), with VA's 
debtor files. This match will allow prescreening of applicants for 
loans or loans guaranteed by the Federal Government to ascertain if the 
applicant is delinquent in paying a debt owed to or insured by the 
Federal Government for HUD or VA direct or guaranteed loans. Before 
granting a loan, the lending agency and/or the authorized lending 
institution will be able to interrogate the CAIVRS debtor file which 
contains delinquent debt information from the Departments of 
Agriculture, Education, Veterans Affairs, the Small Business 
Administration and judgment lien data from the Department of Justice, 
and verify that the loan applicant is not in default on a Federal 
judgment or delinquent on direct or guaranteed loans of participating 
Federal programs. This match will allow prescreening of applicants for 
debts owed or loans guaranteed by the Federal Government to ascertain 
if the applicant is delinquent in paying a debt owed to or insured by 
the Federal Government.
    Authorized users do a prescreening of CAIVRS to determine a loan 
applicant's credit status with the Federal Government. As a result of 
the information produced by this match, the authorized users may not 
deny, terminate, or make a final decision of any loan assistance to an 
applicant or take other adverse action against such applicant, until an 
officer or employee of such agency has independently verified such 
information.

EFFECTIVE DATE: Computer matching is expected to begin 40 days after 
publication of this notice (October 1, 1997), unless comments are 
received which will result in a contrary determination, or 40 days from 
the date a computer matching agreement is signed, whichever is later.

DATE: Comments due by October 1, 1997.

ADDRESSES: Interested persons are invited to submit comments regarding 
this notice to the Rule Docket Clerk, Office of General Counsel, Room 
10276, Department of Housing and Urban Development, 451 Seventh Street, 
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 7:30 a.m. and 5:30 p.m. weekdays at the 
above address.

FOR FURTHER INFORMATION FROM RECIPIENT AGENCY CONTACT:
Jeanette Smith, Departmental Privacy Act Officer, Department of Housing 
and Urban Development, 451 7th St., SW, Room 4178, Washington, DC 
20410, telephone number (202) 708-2374. (This is not a toll-free 
number.)

FOR FURTHER INFORMATION FROM SOURCE AGENCY CONTACT: Mark Gottsacker, 
Debt Management Center, Department of Veterans Affairs, Bishop Henry 
Whipple Federal Building, 1 Federal Drive, Room 156, Fort Snelling, 
Minnesota 55111-4050, telephone number (612) 725-1843. (This is not a 
toll-free number.)

Reporting

    In accordance with Pub. L. 100-503, the Computer Matching and 
Privacy Protection Act of 1988, as amended, and Office of Management 
and Budget 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 Committee on Government Reform and Oversight of the 
House of Representatives, the Committee on Governmental Affairs of the 
Senate, and the Office of Management and Budget.

Authority

    The matching program will be conducted pursuant to Pub. L. 100-503, 
``The Computer Matching and Privacy Protection Act of 1988,'' as 
amended, and Office of Management and Budget (OMB) Circulars A-129 
(Managing Federal Credit Programs) and A-70 (Policies and Guidelines 
for Federal Credit Programs). One of the purposes of all Executive 
departments and agencies--including HUD--is to implement efficient 
management practices for Federal credit programs. OMB Circulars A-129 
and A-70 were 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; and, the Deficit 
Reduction Act of 1984, as amended.

[[Page 44713]]

Objectives To Be Met by the Matching Program

    The matching program will allow VA access to a system which permits 
prescreening of applicants for loans or loans guaranteed by the Federal 
Government to ascertain if the applicant is delinquent in paying a debt 
owed to or insured by the Government. In addition, HUD will be provided 
access to VA debtor data for prescreening purposes.

Records To Be Matched

    HUD will utilize its system of records entitled HUD/DEPT-2, 
Accounting Records. The debtor files for HUD programs involved are 
included in this system of records. HUD's debtor files contain 
information on borrowers and co-borrowers who are currently in default 
(at least 90 days delinquent on their loans); or who have any 
outstanding claims paid during the last three years on Title II insured 
or guaranteed home mortgage loans; or individuals who have defaulted on 
Section 312 rehabilitation loans; or individuals who have had a claim 
paid in the last three years on a Title I loan. For the CAIVRS match, 
HUD/DEPT-2, System of Records, receives its program inputs from HUD/
DEPT-28, Property Improvement and Manufactured (Mobile) Home Loans--
Default; HUD/DEPT-32, Delinquent/Default/Assigned Temporary Mortgage 
Assistance Payments (TMAP) Program; and HUD/CPD-1, Rehabilitation 
Loans-Delinquent/Default.
    The VA will provide HUD with debtor files contained in its system 
of records entitled SS-VA26, Loan Guaranty Systems of Records. Central 
Accounts Receivable On Line System is a subsidiary of SS-VA26. HUD is 
maintaining VA's records only as a ministerial action on behalf of VA, 
not as a part of HUD's HUD/DEPT-2 system of records. VA's data contain 
information on individuals who have defaulted on their guaranteed 
loans. The VA will retain ownership and responsibility for their 
systems of records that they place with HUD. HUD serves only as a 
record location and routine use recipient for VA's data.

Notice Procedures

    HUD and the VA will notify individuals at the time of application 
(ensuring that routine use appears on the application form) for 
guaranteed or direct loans that their records will be matched to 
determine whether they are delinquent or in default on a Federal debt. 
HUD and the VA will also publish notices 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.

Categories of Records/Individuals Involved

    The debtor records include these data elements from HUD's systems 
of records, HUD/Dept-2; SSN, claim number, program code, and indication 
of indebtedness. Categories of records include: Records of claims and 
defaults, repayment agreements, credit reports, financial statements, 
and records of foreclosures.
    Categories of individuals include former mortgagors and purchasers 
of HUD-owned properties, manufactured (mobile) home and home 
improvement loan debtors who are delinquent or in default on their 
loans, and rehabilitation loan debtors who are delinquent or in default 
on their loans.

Period of the Match

    Matching will begin at least 40 days from the date copies of the 
signed (by both Data Integrity Boards) computer matching agreements are 
sent to both Houses of Congress or at least 40 days from the date this 
Notice is published in the Federal Register, whichever is later, 
providing no comments are received which would result in a contrary 
determination. 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.

    Issued at Washington, DC August 13, 1997.
Steven M. Yohai,
Chief Information Officer.
[FR Doc. 97-22276 Filed 8-21-97; 8:45 am]
BILLING CODE 4210-32-M