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[Federal Register Volume 87, Number 98 (Friday, May 20, 2022)]
[Notices]
[Pages 30947-30949]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-10798]

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FEDERAL HOUSING FINANCE AGENCY

[No. 2022-N-6]

Privacy Act of 1974; System of Records

AGENCY: Federal Housing Finance Agency.

ACTION: Notice of a new system of records.

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SUMMARY: In accordance with the requirements of the Privacy Act of 
1974, as amended, (Privacy Act), the Federal Housing Finance Agency 
(FHFA or Agency) gives notice of a new proposed Privacy Act system of 
records entitled ``Fair Lending Oversight Data System'' (FHFA-27). The 
new system will be used to store, maintain, and analyze information for 
fair lending oversight.

DATES: In accordance with 5 U.S.C. 552a(e)(4) and (11), this system of 
records will go into effect without further notice on May 20, 2022, 
unless otherwise revised pursuant to comments received. New routine 
uses will go into effect on June 21, 2022. Comments must be received on 
or before June 21, 2022. FHFA will publish a new notice if the 
effective date is delayed in order for the Agency to review the 
comments or if changes are made based on comments received.

ADDRESSES: Submit comments to FHFA, identified by ``2022-N-6,'' using 
any one of the following methods:
     Agency Website: https://www.fhfa.gov/open-for-comment-or-input.
     Federal eRulemaking Portal: https://www.regulations.gov. 
Follow the instructions for submitting comments. If you submit your 
comment to the Federal eRulemaking Portal, please also send it by email 
to FHFA at [email protected] to ensure timely receipt by FHFA. 
Please include ``Comments/No. 2022-N-6'' in the subject line of the 
message.
     Hand Delivered/Courier: The hand delivery address is: 
Clinton Jones, General Counsel, Attention: Comments/No. 2022-N-6, 
Federal Housing Finance Agency, 400 Seventh Street SW, Washington, DC 
20219. The package should be delivered to the Seventh Street entrance 
Guard Desk, First Floor, on business days between 9 a.m. and 5 p.m., 
EST.
     U.S. Mail, United Parcel Service, Federal Express, or 
Other Mail Service: The mailing address for comments is: Clinton Jones, 
General Counsel, Attention: Comments/No. 2022-N-6, Federal Housing 
Finance Agency, 400 Seventh Street SW, Washington, DC 20219. Please 
note that all mail sent to FHFA via the U.S. Postal Service is routed 
through a national irradiation facility, a process that may delay 
delivery by approximately two weeks. For any time-sensitive 
correspondence, please plan accordingly.
    See SUPPLEMENTARY INFORMATION for additional information on 
submission and posting of comments.

FOR FURTHER INFORMATION CONTACT: James Wylie, Associate Director, 
[email protected] or (202) 649-3209; Stacy Easter, Privacy Act 
Officer, [email protected] or (202) 649-3803; or Tasha Cooper, Senior 
Agency Official for Privacy, [email protected] or (202) 649-3091 (not 
toll-free numbers), Federal Housing Finance Agency, 400 Seventh Street 
SW, Washington, DC 20219. For TTY/TRS users with hearing and speech 
disabilities, dial 711 and ask to be connected to any of the contact 
numbers above.

SUPPLEMENTARY INFORMATION: 

I. Comments

    FHFA seeks public comments on a new system of records and will take 
all comments into consideration. See 5 U.S.C. 552a(e)(4) and (11). In 
addition to referencing ``Comments/No. 2022-N-6,'' please reference 
``FHFA-27, Fair Lending Oversight Data System.''
    FHFA will make all comments timely received available for 
examination by the public through the electronic comment docket for 
this notice, which is located on the FHFA website at http://www.fhfa.gov. All comments received will be posted without change and 
will include any personal information you provide, such as name, 
address (mailing and email), telephone numbers, and any other 
information you provide.

II. Introduction

    This notice informs the public of FHFA's proposal to establish and 
maintain a new system of records. This notice satisfies the Privacy 
Act's requirement that an agency publish a system of records notice in 
the Federal Register when establishing a new or making a significant 
change to an agency's system of records. Congress has recognized that 
application of all requirements of the Privacy Act to certain 
categories of records may have an undesirable and often unacceptable 
effect upon agencies in the conduct of necessary public business. 
Consequently, Congress established general exemptions and specific 
exemptions that can be used to exempt records from provisions of the 
Privacy Act. Congress also mandates that exempting records from 
provisions of the Privacy Act requires the head of an agency to publish 
a determination to exempt a record from the Privacy Act in accordance 
with the Administrative Procedure Act. Records and information in this 
system of records are not exempt from the requirements of the Privacy 
Act.
    As required by the Privacy Act, 5 U.S.C. 552a(r), and pursuant to 
section

[[Page 30948]]

7 of OMB Circular No. A-108, Federal Agency Responsibilities for 
Review, Reporting, and Publication under the Privacy Act, (81 FR 94424 
(Dec. 23, 2016)), prior to publication of this notice, FHFA submitted a 
report describing the system of records covered by this notice to the 
OMB, the Committee on Oversight and Government Reform of the House of 
Representatives, and the Committee on Homeland Security and 
Governmental Affairs of the Senate.
    The proposed new system of records described above is set forth in 
its entirety below.

SYSTEM NAME AND NUMBER:
    Fair Lending Oversight Data System, FHFA-27.

SECURITY CLASSIFICATION:
    Unclassified.

SYSTEM LOCATION:
    Federal Housing Finance Agency, 400 Seventh Street SW, Washington, 
DC 20219, and any alternate work site used by employees of FHFA, 
including contractors assisting agency employees.

SYSTEM MANAGER(S):
    Office of Fair Lending Oversight, Associate Director, (202) 649-
3209, Federal Housing Finance Agency, 400 Seventh Street SW, 
Washington, DC 20219, and any alternate work site utilized by employees 
of FHFA or by individuals assisting such employees.

AUTHORITY FOR MAINTENANCE OF THE SYSTEM:
    The system is established and maintained pursuant to 12 U.S.C. 
4511, 4514, 4517, 4544, 4561, and section 4562 of the Federal Housing 
Enterprises Financial Safety and Soundness Act (Safety and Soundness 
Act) as amended by section 1125 of the Housing and Economic Recovery 
Act of 2008 (12 U.S.C. 4544(c)); 42 U.S.C. 3608(d) of the Fair Housing 
Act; Executive Order No. 12892; FHFA Order Nos. 2021-OR-FHLMC-2 and 
2021-OR-FNMA-2; and the Final Redesigned Uniform Residential Loan 
Application Status Under Regulation B, 12 CFR 1002.5(b) through (d).

PURPOSE(S) OF THE SYSTEM:
    The Fair Lending Oversight Data System is a collection of 
information about borrowers, property, and loan applications. The 
system is being established by FHFA to store, maintain, and analyze 
information for fair lending oversight of the Federal National Mortgage 
Association (Fannie Mae) and the Federal Home Loan Mortgage Corporation 
(Freddie Mac). The system will be used to analyze compliance with the 
Fair Housing Act, the Equal Credit Opportunity Act, and the Safety and 
Soundness Act.
    The system will also be used to share information with federal 
agencies for fair lending and fair housing research, investigation, 
supervision, and enforcement.

CATEGORIES OF INDIVIDUALS COVERED BY THE SYSTEM:
    Borrowers of Fannie Mae or Freddie Mac mortgages, applicants for 
mortgages reported pursuant to the Home Mortgage Disclosure Act, 
applicants for mortgages that have been reviewed by Fannie Mae and 
Freddie Mac's automated underwriting system, individuals involved in 
activities being reviewed for fair lending purposes, appraisers 
providing appraisals to Fannie Mae or Freddie Mac, and individuals 
making complaints related to fair lending.

CATEGORIES OF RECORDS IN THE SYSTEM:
    Records maintained in the system may include but are not limited 
to: (1) Borrower and loan characteristics such as credit score, closing 
costs, interest rates, income, race, ethnicity, age, gender, debt 
ratio, and loan amount; (2) loan transactions including mortgage loan 
originator identification numbers, origination lender identifiers, and 
seller identifiers; (3) loan payment history; (4) property 
characteristics; (5) appraiser name and license number; (6) multifamily 
property transactions including information about parties involved in 
the transaction such as name, property address, and transaction 
underwriting characteristics; and (7) real-estate owner property 
information such as appraised values, condition, repair status, and 
property address.

RECORD SOURCE CATEGORIES:
    Records in the system are obtained from the Federal Home Loan 
Banks, United States Department of Housing and Urban Development, 
Consumer Financial Protection Bureau, FHFA systems, Fannie Mae, and 
Freddie Mac.

ROUTINE USES OF RECORDS MAINTAINED IN THE SYSTEM, INCLUDING CATEGORIES 
OF USERS AND THE PURPOSES OF SUCH USES:
    In addition to those disclosures generally permitted under 5 U.S.C. 
552a(b) of the Privacy Act, these records or information contained 
therein may specifically be disclosed outside of FHFA as a routine use 
pursuant to 5 U.S.C. 552a(b)(3) as follows, to the extent such 
disclosures are compatible with the purposes for which the information 
is collected:
    (1) To appropriate agencies, entities, and persons when--(a) FHFA 
suspects or has confirmed that there has been a breach of the system of 
records; (b) FHFA has determined that as a result of a suspected or 
confirmed breach there is a risk of harm to individuals, FHFA 
(including its information systems, programs, and operations), the 
Federal Government, or national security; and (c) the disclosure is 
made to agencies, entities, and persons as reasonably necessary to 
assist with FHFA's efforts to (i) respond to a suspected or confirmed 
breach; or (ii) prevent, minimize, or remedy harm caused by such 
breach.
    (2) To a federal agency or federal entity, when FHFA determines 
information from the system of records 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 to national security, resulting from a suspected or 
confirmed breach.
    (3) When there is an indication of a violation or potential 
violation of law (whether civil, criminal, or regulatory in nature or 
whether arising by general statute or particular program statute or by 
regulation, rule, or order issued pursuant thereto), the relevant 
records in the system of records may be referred, as a routine use, to 
the appropriate agency (e.g., federal, state, local, tribal, foreign or 
a financial regulatory organization) charged with the responsibility of 
investigating or prosecuting such violation or charged with enforcing 
or implementing a statute, rule, regulation or order issued pursuant 
thereto.
    (4) To any individual during the course of any inquiry or 
investigation conducted by FHFA, or in connection with civil 
litigation, if FHFA has reason to believe the individual to whom the 
record is disclosed may have further information about the matters 
related thereto, and those matters appeared to be relevant and 
necessary at the time to the subject matter of the inquiry.
    (5) To any contractor, agent, or other authorized individual 
performing work on a contract, service, cooperative agreement, job, or 
other activity on behalf of FHFA who has a need to access the 
information in the performance of their official duties or activities.
    (6) To members of advisory committees created by FHFA or by 
Congress to render advice and recommendations to FHFA or to Congress, 
to be used solely in

[[Page 30949]]

connection with their official, designated functions.
    (7) To a Congressional office in response to an inquiry from the 
Congressional office made at the request of and on behalf of the 
Congressional Offices' constituents included in the system.
    (8) To the Office of Management and Budget, Department of Justice 
(DOJ), Department of Labor, Office of Personnel Management, Equal 
Employment Opportunity Commission, Office of Special Counsel, Merit 
Systems Protection Board, or other federal agencies to obtain advice 
regarding statutory, regulatory, policy, and other requirements related 
to fair lending oversight.
    (9) To appropriate third parties contracted by FHFA to facilitate 
mediation or other dispute resolution procedures or programs.
    (10) To outside counsel contracted by FHFA, DOJ (including United 
States Attorney Offices), or other federal agencies conducting 
litigation or in proceedings before any court, adjudicative or 
administrative body, when it is relevant and necessary to the 
litigation and one of the following is a party to the litigation or has 
an interest in such litigation:
    a. FHFA;
    b. Any employee of FHFA in his/her official capacity;
    c. Any employee of FHFA in his/her individual capacity when DOJ or 
FHFA has agreed to represent the employee; or
    d. The United States, or any agency thereof, is a party to the 
litigation or has an interest in such litigation, and FHFA determines 
that the records are both relevant and necessary to the litigation.
    (11) To the National Archives and Records Administration or other 
federal agencies pursuant to records management inspections being 
conducted under the authority of 44 U.S.C. 2904 and 2906.
    (12) To an agency, organization, or individual for the purpose of 
performing audit or oversight operations as authorized by law, but only 
such information as relevant and necessary to such audit or oversight 
functions.
    (13) To federal agencies for fair lending and fair housing 
research, investigation, supervision, and enforcement purposes.
    (14) To a regulated entity or party during fair lending supervision 
or investigation when relevant and necessary to: (a) Verify 
information; (b) provide information; or (c) respond to information.

POLICIES AND PRACTICES FOR STORAGE OF RECORDS:
    Records are maintained in electronic or paper format. Electronic 
records are stored on FHFA's secured network, FHFA-authorized cloud 
service providers and FHFA-authorized contractor networks located 
within the continental United States. Paper records are stored in 
locked offices, locked file rooms, and locked file cabinets or safes.

POLICIES AND PRACTICES FOR RETRIEVAL OF RECORDS:
    Records may be retrieved by name, property address, loan identifier 
or professional licensing identifier.

POLICIES AND PRACTICIES FOR RETENTION AND DISPOSAL OF RECORDS:
    Records are retained and disposed of in accordance with FHFA's 
Comprehensive Record Schedule, Item 2.2 (N1-543-11-1, as approved on 
01/11/2013), and reflects Transmittal No. 31 General Records Schedules 
Authorities, 04/2020.

ADMINISTRATIVE, TECHNICAL, AND PHYSICAL SAFEGUARDS:
    Records are maintained in controlled access areas. Electronic 
records are protected by restricted access procedures, including user 
identifications and passwords. Only FHFA staff (and FHFA contractors 
assisting such staff) whose official duties require access can view, 
administer, and control these records.

RECORD ACCESS PROCEDURES:
    See ``Notification Procedures'' Below.

CONTESTING RECORD PROCEDURES:
    See ``Notification Procedures'' Below.

NOTIFICATION PROCEDURES:
    Individuals seeking notification of any records about themselves 
contained in this system should address their inquiry to the Privacy 
Act Officer, via email to [email protected] or by mail to the Federal 
Housing Finance Agency, 400 Seventh Street SW, Washington, DC 20219, or 
in accordance with the procedures set forth in 12 CFR part 1204. Please 
note that all mail sent to FHFA via the U.S. Postal Service is routed 
through a national irradiation facility, a process that may delay 
delivery by approximately two weeks. For any time-sensitive 
correspondence, please plan accordingly.

EXEMPTIONS PROMULGATED FOR THE SYSTEM:
    None.

HISTORY:
    None.

Clinton Jones,
General Counsel, Federal Housing Finance Agency.
[FR Doc. 2022-10798 Filed 5-19-22; 8:45 am]
BILLING CODE 8070-01-P
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