62656 Federal Register / Vol. 79, No. 202 / Monday, October 20, 2014 / Notices 

B. Solicitation of Public Comment 

This notice is soliciting comments 

from members of the public and affected 

parties concerning the collection of 

information described in Section A on 

the following: 

(1) Whether the proposed collection 

of information is necessary for the 

proper performance of the functions of 

the agency, including whether the 

information will have practical utility; 

(2) The accuracy of the agency’s 

estimate of the burden of the proposed 

collection of information; 

(3) Ways to enhance the quality, 

utility, and clarity of the information to 

be collected; and 

(4) Ways to minimize the burden of 

the collection of information on those 

who are to respond; including through 

the use of appropriate automated 

collection techniques or other forms of 

information technology, e.g., permitting 

electronic submission of responses. 

HUD encourages interested parties to 

submit comment in response to these 

questions. 

Authority: Section 3507 of the Paperwork 

Reduction Act of 1995, 44 U.S.C. Chapter 35. 

Dated: October 10, 2014. 

Clifford Taffet, 

General Deputy Assistant Secretary for 

Community, Planning and Development. 

[FR Doc. 2014–24859 Filed 10–17–14; 8:45 am] 

BILLING CODE 4210–67–P 

DEPARTMENT OF HOUSING AND 

URBAN DEVELOPMENT 

[Docket No. FR–5763–N–10] 

Implementation of The Privacy Act of 

1974, as Amended; Amendment to 

Existing Systems of Records, 

Computerized Homes Underwriting 

Management System—Development of 

New System of Records, Loan 

Application Management System 

AGENCY: Office of the Chief Information 

Officer, HUD. 

ACTION: Amendment/New Systems of 

Records. 

SUMMARY: HUD is amending the 

Computerized Homes Underwriting 

Management System (CHUMS) to reflect 

changes to the following sections, which 

involve lenders and program 

administrators of Federal Housing 

Administrations (FHA) Mortgage 

Insurance Programs: first time 

homebuyers, Home Equity Conversion 

Mortgages for home owners, 203(k) for 

the rehabilitation of existing properties, 

Veteran Affairs certified FHA loans, and 

other FHA mortgage insurance 

programs. The changes to the amended 

system of records are to the ‘‘Purposes’’ 

and ‘‘Routine Uses of Records 

Maintained in the System’’ captions. 

Additionally, HUD proposes to provide 

notice of a new system, the Loan 

Application Management System 

(LAMS), which is expected to replace 

CHUMS. Both proposals reflect the 

present status of the information 

contained in the systems and new data 

sharing practices, as well as 

enhancements to improve program 

services. The existing scope, objectives, 

and business processes in place for this 

program remain unchanged. A more 

detailed description of the present 

system is contained in notice ‘‘Purpose’’ 

caption. This notice supersedes the 

previous notice published in the 

Federal Register for CHUMS on 

December 28, 2010 at 73 FR 81635. 

DATES: Effective Date: The proposed 

modification will be effective 

immediately, with the exception of the 

Department’s proposal to create a new 

system and revise its routine uses, 

which will become effective 30 days 

after publication of this notice, on 

November 19, 2014, unless comments 

are received that would result in a 

contrary determination. 

Comments Due Date: November 19, 

2014. 

ADDRESSES: Interested persons are 

invited to submit comments regarding 

this notice to the Rules Docket Clerk, 

Office of the General Counsel, 

Department of Housing and Urban 

Development, 451 Seventh Street SW., 

Room 10276, Washington, DC 20410– 

0500. Communication should refer to 

the above docket number and title. A 

copy of each communication submitted 

will be available for public inspection 

and copying between 8:00 a.m. and 5:00 

p.m. weekdays at the above address. 

FOR FURTHER INFORMATION CONTACT: 

Donna Robinson-Staton, Chief Privacy 

Officer, 451 Seventh Street SW., 

Washington, DC 20410 (Attention: 

Capitol View Building, 4th Floor), 

telephone number: (202) 402–8073. [The 

above telephone number is not a toll 

free number.] A telecommunications 

device for hearing- and speech-impaired 

persons (TTY) is available by calling the 

Federal Information Relay Service’s tollfree telephone number (800) 877–8339. 

SUPPLEMENTARY INFORMATION: This 

system of records is maintained by 

HUD’s Office of Single Family Housing 

and includes HUD employees’, program 

participants’, and business partners’ 

personally identifiable information that 

is retrieved by a name or unique 

identifier. Hence, this system of records 

encompasses programs and services of 

the Department’s data collection and 

management practices. Publication of 

this notice allows HUD to satisfy its 

reporting requirement and keep an upto-date accounting of its system of 

records publications. The amended and 

new systems will incorporate Federal 

privacy requirements and HUD policy 

requirements. The Privacy Act provides 

certain safeguards for an individual 

against an invasion of personal privacy 

by requiring Federal agencies to protect 

records contained in an agency system 

of records from unauthorized 

disclosure, by ensuring that information 

is current and collected only for its 

intended use, and by providing 

adequate safeguards to prevent misuse 

of such information. Additionally, this 

demonstrates the Department’s focus on 

industry best practices in protecting the 

personal privacy of the individuals 

covered by this system notification. This 

notice states the name and location of 

the record system, the authority for and 

manner of its operations, the categories 

of individuals that it covers, the type of 

records that it contains, the sources of 

the information for the records, the 

routine uses made of the records and the 

type of exemptions in place for the 

records. In addition, this notice includes 

the business address of the HUD 

officials who will inform interested 

persons of the procedures whereby they 

may gain access to and/or request 

amendments to records pertaining to 

them. 

This publication does meet the 

threshold requirements for a new and 

amended system and a report was 

submitted to the Office of Management 

and Budget (OMB), the Senate 

Committee on Homeland Security and 

Governmental Affairs, and the House 

Committee on Government Reform as 

instructed by Paragraph 4c of Appendix 

l to OMB Circular No. A–130, ‘‘Federal 

Agencies Responsibilities for 

Maintaining Records About 

Individuals,’’ July 25, 1994 (59 FR 

37914). 

Authority: 5 U.S.C. 552a; 88 Stat. 1896; 42 

U.S.C. 3535(d). 

Dated: October 3, 2014. 

Rafael C. Diaz, 

Chief Information Officer. 

SYSTEM OF RECORDS NO.: 

HSNG.SF/HUP.02. 

SYSTEM NAME: 

Computerized Homes Underwriting 

Management System (CHUMS)–F–17/ 

Loan Application Management System 

(LAMS)—P292. 

SYSTEM LOCATION: 

The HUD Data Center which houses 

CHUMS and LAMS is located at the 


tkelley on DSK3SPTVN1PROD with NOTICES
Federal Register / Vol. 79, No. 202 / Monday, October 20, 2014 / Notices 62657 

1http://portal.hud.gov/hudportal/documents/

huddoc?id=append2.pdf 

Hewlett Packard (HP) Facility at 2020 

Union Carbide Drive, South Charleston, 

West Virginia 25303–2734. HP is the 

designated records management facility 

for LAMS and the Atlanta Federal 

Records Center at 4712 Southpark 

Boulevard, Ellenwood, GA 30294 is the 

records management facility for CHUMS 

until LAMS is fully implemented. 

Additionally, HUD Headquarter staff 

and staff throughout the United States 

will or have access to CHUMS/LAMS 

through HUD’s standard 

telecommunications network from 

desktop workstations, and access by 

HUD’s business partners is granted via 

secure HTTPS through the HUD FHA 

Connection Portal. Internal and external 

HUD hosted locations are as follows: 

HUD headquarters building, 451 

Seventh Street SW., Washington, DC 

20410; the HUD owned and operated 

Field Offices and Home Ownership 

Centers 1, located in Atlanta, Denver, 

Philadelphia and Santa Ana. 

CATEGORIES OF INDIVIDUALS COVERED BY THE

SYSTEM: 

Individuals who have obtained a 

mortgage insured under HUD/FHA’s 

single family mortgage insurance 

programs and individuals who 

unsuccessfully applied for mortgage 

insured by FHA. Also, individuals 

involved in the HUD/FHA single-family 

underwriting process (builders, 

appraisers, inspectors, mortgagee staff 

underwriters) and HUD employees 

involved in the single family 

underwriting process (e.g., appraisers, 

mortgage credit examiners, architectural 

employees, receiving clerks, assignment 

clerks, commitment clerks, records 

clerks, and closing clerks). 

CATEGORIES OF RECORDS IN THE SYSTEM: 

Automated files contain the following 

categories of records: 

Mortgagors (Borrowers): name, 

address, social security number or other 

identification number, racial/ethnic 

background (if disclosed), and details 

about the mortgage loan, including loan 

application documentation. This 

information is supplied by lenders 

during the mortgage application and 

underwriting process. 

Builders, Appraisers and Inspectors: 

name, address, social security number 

or other identification number, territory, 

workload, and minority data including 

racial/ethnic background, Minority 

Business Enterprise (MBE) Code, and 

sex, for statistical tracking purposes. 

Mortgagee (Lender) Staff Appraisers 

and Underwriters: social security 

number or other identification number, 

territory and workload of the 

individuals. 

HUD Employees: name and social 

security number or other identifying 

number of employees involved in the 

single family underwriting process. This 

includes, but is not limited to: 

Homeownership Center managers, staff 

appraisers, architectural employees, 

receiving clerks, assignment clerks, 

commitment clerks, records clerks, and 

closing clerks. 

Note: Certain records contained in 

this system which pertain to individuals 

contain principally proprietary 

information concerning sole 

proprietorships may also reflect 

personal information, however, only the 

records reflecting personal information 

are subject to the Privacy Act. 

AUTHORITY FOR MAINTENANCE OF THE SYSTEM: 

Section 203, National Housing Act, 

Public Law 73–479. The information 

collection enables HUD/FHA to process 

applications for HUD mortgage 

insurance and respond to inquiries 

regarding applications and insured 

mortgages; 42 U.S.C. 3543—Sec. 3543. 

Social Security Numbers are collected to 

prevent fraud and abuse in Department 

of Housing and Urban Development 

programs (enacted as part of the 

Housing and Community Development 

Act of 1987). 

PURPOSE(S): 

The Fair Housing Administration 

(FHA) Office of Single Family Housing 

intends to modify the Computerized 

Homes Underwriting Management 

System (CHUMS) and create a new 

routine use exception to permit the 

sharing of information to third party 

servicers to improve HUD’s review and 

evaluation process for its mortgage 

insurance appraisal documentation. 

Additionally, a new Loan Application 

Management System (LAMS) is being 

developed to better assist FHA with its 

automated processing, analysis, and 

screening of the appraisal 

documentation. CHUMS supports FHA 

staff in the processing of appraisal 

documentation for single family 

mortgage insurance applications (From 

initial receipt through final 

endorsement). CHUMS processes loan 

applications for first time homebuyers, 

Home Equity Conversion Mortgages 

(HECM) for home owners, Section 

203(k) for the rehabilitation of existing 

properties, Veteran Affairs (VA) 

Certified FHA loans and other FHA 

approved mortgage insurance programs. 

CHUMS also provides automated 

assistance in mortgage credit evaluation, 

and FHA’s TOTAL Scorecard which is 

a standardized credit assessment tool. It 

supports the conditional commitment 

process from the Mortgagee’s request for 

property appraisal through issuance of a 

conditional commitment, firm 

commitment, endorsement, and the 

automated production of the Mortgage 

Insurance Certificate. 

The new LAMS tool is being created 

to become the eventual replacement 

system for CHUMS. The existing 

functionality in CHUMS will be moved 

into LAMS in stages over the next five 

years. In its initial release, LAMS will 

enable HUD to start collecting case 

binder data into an industry-wide 

electronic format that is acceptable to 

the mortgage industry (Mortgage 

Industry Standard Maintenance 

Organization) data standards. The 

improved enhancements will allow 

HUD to screen out errors in the 

appraisal and endorsement process 

more proficiently. In the past, HUD has 

identified far too late in the appraisal 

and endorsement process when a loan 

was at risk or in danger of fraud. 

Implementing the new LAMS tool and 

new evaluation process will allow HUD 

to better evaluate errors in the appraisal 

and endorsement process, and avoid 

endorsing unqualified loans. FHA 

believes that having the mortgage 

insurance documentation evaluated 

earlier on in the process will over time 

have a tremendous impact on the 

performance of HUD’s mortgage 

insurance programs. The existing HUD 

data collected on applications for single 

family mortgage insurance 

endorsements, includes electronic 

copies of mortgage documentation, 

along with the results of automated risk 

scoring and fraud validations, electronic 

copies of the lender submitted mortgage 

insurance appraisal records, the 

underlying data and metadata of 

documentation obtained in the 

application, underwriting, insuring and 

closing stages of the mortgage loan 

transaction will be used for risk 

management evaluation studies of the 

abovementioned mortgage insurance 

portfolios. 

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 other routine 

uses include: 

1. To other agencies; such as the 

Departments of Agriculture, Education 

and Veterans Affairs, and the Small 

Business Administration, for use of 

HUD’s Credit Alert Interactive Voice 

Response System (CAIVRS) to prescreen 

applicants for loans or loans guaranteed 


tkelley on DSK3SPTVN1PROD with NOTICES
62658 Federal Register / Vol. 79, No. 202 / Monday, October 20, 2014 / Notices 

2http://portal.hud.gov/hudportal/documents/

huddoc?id=append1.pdf 

by the Federal Government to ascertain 

if the applicant is delinquent in paying 

a debt owed to or insured by the 

Government. 

2. To the Federal Bureau of 

investigations (FBI) for investigation of 

possible fraud revealed in the 

underwriting, insuring or monitoring 

process. 

3. To the Department of Justice for 

prosecutions of fraud revealed in 

underwriting, insuring or monitoring 

process. 

4. To the General Accounting Office 

(GAO) for audit purposes. 

5. To Financial institutions, computer 

software companies and other federal 

agencies (including the Federal Reserve) 

for automated underwriting, credit 

scoring and other risk management 

evaluation studies. 

6. To other federal agencies (including 

the Federal Reserve) for purposes of 

statistical research not involving 

personally identifiable information, to 

evaluate program effectiveness in 

meeting the Department of Housing and 

Urban Development (HUD) FHA’s 

mission, and to inform policy makers on 

changes to effect program 

improvements. 

7. To the HUD Office of Policy 

Development and Research (PD&R) and 

its researchers for mortgage credit 

evaluations and statistical analysis. 

8. To contractors, grantees, experts, 

consultants, and the agents of thereof, 

and others performing or working on a 

contract, service, grant, cooperative 

agreement with HUD, when necessary to 

accomplish an agency function related 

to these system of records, limited to 

only those data elements considered 

relevant to accomplishing an agency 

function. Individuals provided 

information under this routine use is 

subject to the same Privacy Act 

requirements and limitations on 

disclosure as are applicable to HUD 

officers and employees. 

9. To contractors, experts, consultants 

with whom HUD has a contract, service 

agreement or other assignment of the 

Department, when necessary to utilize 

relevant data for purposes of testing new 

technology and systems designed to 

enhance program operations and 

performance. 

See also on HUD’s privacy Web site, 

Appendix 1 2 for discretionary routine 

uses that may in certain cases be 

applicable to CHUMS and LAMS. 

POLICIES AND PRACTICES FOR STORING, 

RETRIEVING, ACCESSING, RETAINING, AND

DISPOSING OF RECORDS IN THE SYSTEM: 

STORAGE: 

Records are stored on magnetic disc/ 

drum. There are no paper records 

maintained by this system. 

RETRIEVABILITY: 

Records are retrieved by case number, 

name, Social Security Number or other 

identification number. 

SAFEGUARDS: 

Electronic records are maintained in 

secured areas, and access is limited to 

authorized personnel. No paper records 

are maintained that require 

safeguarding. 

RETENTION AND DISPOSAL: 

Data is retained online for 13 months 

after the date of endorsement, or 13–18 

months for non-endorsed cases, and 

then archived. The archived data can be 

retrieved upon request. In archive data, 

CHUMS and LAMS retain case data 

indefinitely. The Records Retention 

Schedule for CHUMS/F17 and LAMS/

292 are listed in the HUD Records 

Disposition Schedules Handbook 

(2225.6) Appendix A—Single Family 

Home Mortgage Insurance Program 

Records. 

SYSTEM MANAGER(S) AND ADDRESS: 

Director, Office of Single Family 

Program Development, Department of 

Housing and Urban Development, 451 

Seventh Street SW., Washington, DC 

20410. 

NOTIFICATION AND RECORD ACCESS

PROCEDURES: 

For information, assistance, or 

inquiries about the existence of records, 

contact the Chief Privacy Officer, 

Department of Housing and Urban 

Development, 451 Seventh Street SW., 

Room 4156, Washington, DC 20410 

(Attention: Capitol View Building, 4th 

Floor), telephone number: (202) 402– 

8073. Verification of your identity must 

include original signature and be 

notarized. Written request must include 

the full name, Social Security Number, 

date of birth, current address, and 

telephone number of the individual 

making the request. 

CONTESTING RECORD PROCEDURES: 

The Department’s rules for contesting 

contents of records and appealing initial 

denials appear in 24 CFR part 16. 

Additional assistance may be obtained 

by contacting: U.S. Department of 

Housing and Urban Development, Chief 

Privacy Officer, 451 Seventh Street SW., 

Washington, DC 20410 (Attention: 

Capitol View Building, 4th Floor), 

telephone number: (202) 402–8073 or 

the HUD Departmental Privacy Appeals 

Officers, Office of General Counsel, 

Department of Housing and Urban 

Development, 451 Seventh Street SW., 

Washington DC 20410. 

RECORD SOURCE CATEGORIES: 

Mortgagors, appraisers, inspectors, 

builders, mortgagee staff appraisers, 

mortgagee staff underwriters, and HUD 

employees are the sources of data stored 

in the systems. 

SYSTEMS EXEMPTED FROM CERTAIN PROVISIONS

OF THE ACT: 

None. 

[FR Doc. 2014–24861 Filed 10–17–14; 8:45 am] 

BILLING CODE 4210–67–P 

DEPARTMENT OF HOUSING AND 

URBAN DEVELOPMENT 

[Docket No. FR–5763–N–12] 

Implementation of the Privacy Act of 

1974, as Amended; Modification to, 

Deletion of, and Creation of New 

System of Records—HUD Enforcement 

Management System (HEMS) 

AGENCY: Office of the Chief Information 

Officer, Housing and Urban 

Development. 

ACTION: Notice publication. 

SUMMARY: Pursuant to the Privacy Act of 

1974 (U.S.C. 552a (e)(4)), as amended, 

and Office of Management and Budget 

(OMB), Circular No. A–130, notice is 

hereby given that the Department of 

Housing and Urban Development 

(HUD), Office of General Counsel’s 

Departmental Enforcement Center 

(OGC/DEC) and the Office of Fair 

Housing and Equal Opportunity (FHEO) 

propose to delete the following systems 

of records and create a new system of 

records: the HUD Enforcement 

Management System (HEMS). HEMS is 

part of the Department’s efforts to 

streamline, consolidate, and automate 

the Department’s enforcement business 

processes. HEMS will replace three 

legacy HUD enforcement systems: (1) 

Title Eight Paperless Online Tracking 

System (FR–5386–N–04) which tracks 

and manages housing discrimination 

complaints for Fair Housing and Equal 

Opportunity, (2) Compliance Case 

Tracking System (HUD/EC–01) with 

tracks and manages HUD’s suspensions 

and debarements for HUD’s 

Enforcement Center, and (3) 

Departmental Tracking System (HUD/

EC–02) which tracks and manages 

timely processing and closure of 

physical, financial, and non-filer cases 

for HUD’s Enforcement Center. The 


tkelley on DSK3SPTVN1PROD with NOTICES