[Federal Register Volume 60, Number 36 (Thursday, February 23, 1995)]
[Notices]
[Pages 10102-10103]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-4361]



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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
[Docket No. N-95-3890; FR 3882-N-01]


Privacy Act of 1974; Notice of a Computer Matching Program

AGENCY: Office of the Secretary, HUD.

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

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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 
(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 
computer matching program with the Department of Veterans Affairs (DVA) 
to utilize a computer information system of HUD, the Credit Alert 
Interactive Voice Response System (CAIVRS), with DVA'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 DVA 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 the Social 
Security Numbers (SSNs) of HUD's delinquent debtors and defaulters and 
defaulted debtor records from the Departments of Veterans Affairs, 
Education, Agriculture, and the Small Business Administration, and 
verify that the loan applicant is not in default or delinquent on 
direct or guaranteed loans of participating Federal programs of either 
agency. Authorized users place a telephone call to the system. The 
system provides a recorded message followed by a series of 
instructions, one of which if a requirement for the SSN of the loan 
applicant. The system then reports audibly whether the SSN is related 
to delinquent or defaulted Federal obligations. 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, until an officer or employee of such agency has 
independently verified such information.

EFFECTIVE DATE: Computer matching is expected to begin at least 40 days 
from the date this computer matching notice is published, provided no 
comments are received which would result in a contrary determination. 
It will be accomplished 18 months from the beginning date.

ADDRESSES: Interested persons are invited to submit comments regarding 
this notice to the Rules Docket Clerk, Office of General Counsel, Room 
10276, Department of Housing and Urban Development, 451 7th 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 PRIVACY ACT INFORMATION CONTACT: Jeanette Smith, Departmental 
Privacy Act Officer, 451 7th Street SW., Room 4178, Washington, DC 
20410, telephone number (202) 708-2374. (This is not a toll-free 
number).

FOR FURTHER INFORMATION RECIPIENT AGENCY CONTACT: Mary C. Felton, 
Control and Analysis Division, Department of Housing and Urban 
Development, 451 7th Street SW., Washington, DC 20410, telephone number 
(202) 708-4256.

FOR FURTHER INFORMATION FROM SOURCE AGENCY CONTACT: Dan Osendorf, 
Director, VA Debt Management Center, Bishop Henry Whipple Federal 
Building, One Federal Drive, Ft. Snelling, MN 55111, telephone number 
(612) 725-1841. [These are not toll-free numbers.]

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, in 
duplicate, are being provided to the [[Page 10103]] Committee on 
Government Operations of the House of Representatives, the Committee on 
Governmental Affairs of the Senate, and the Office of Management and 
Budget.

Authority

    The matching program may 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.

Objectives To Be Met by the Matching Program

    The matching program will allow DVA 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 DVA 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 coborrowers 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 form 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 DVA will provide HUD with debtor files from two systems of 
records: 58VA 21/22/28, Compensation, Pension, Education and 
Rehabilitation Records-VA; and 55VA26, Loan Guaranty Home, Condominium 
and Manufactured Home Loan Applicant Records, specially Adapted Housing 
Applicant Records, and Vendee Loan Applicant Records-VA. HUD is 
maintaining DVA's records only as a ministerial action on behalf of 
DVA, not as a part of HUD's HUD/DEPT-2 system of records. DVA's data 
contain information on individuals who have defaulted on their 
guaranteed loans. The DVA 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 DVA's data.

Notice Procedures

    As a condition of matching, HUD has made modifications to the loan 
application forms for the participating programs to expand the Privacy 
Act statements on the individual application forms in the notation 
``that the information provided by the applicant can be used for 
computer matching purposes and to collect debts owed to the Federal 
government.'' Any deficiencies as to direct notice procedures to the 
individual for the matching program are cured by the indirect or 
constructive notice that will be afforded to the subjects when the 
public notice of the proposed match is published by HUD in the Federal 
Register as required by subsection (e)(12) of the Privacy Act.

Categories of Records/Individuals Involved

    The debtor records include these data elements: SSN, claim number, 
program code, and indication of indebtedness. Categories or 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) are sent to both Houses of 
Congress or at least 30 days from the date this Notice is published in 
the Federal Register, whichever is later, providing no comments are 
received which could result in a contrary determination.

    Issued at Washington, DC February 6, 1995.
Marilynn A. Davis,
Assistant Secretary for Administration.
[FR Doc. 95-4361 Filed 2-22-95; 8:45 am]
BILLING CODE 4210-32