[Federal Register Volume 82, Number 166 (Tuesday, August 29, 2017)]
[Notices]
[Pages 41044-41047]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-18228]


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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

[Docket No. FR-6009-N-03]


Privacy Act of 1974, Office of Native American Programs--Loan 
Origination System; System of Records

AGENCY: Office of Public and Indian Housing, HUD.

ACTION: Notice of New Privacy Act System of Records.

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SUMMARY: ONAP-LOS will automate and expedite the processes required to 
originate a loan guarantee under the Section 184 Indian Home Loan 
Guarantee Program. ONAP-LOS will enable lender institutions to register 
new Section 184 loans, request reservations of funds, and submit 
completed loan case binders to HUD electronically. replacing the hard 
copy files currently used by HUD's Office of Loan Guarantee (OLG) staff 
to endorse loans to receive the Section 184 Indian Home Loan Guarantee.

DATES: In accordance with 5 U.S.C. 552a(e)(4) and (11), the public is 
given a 30-day period in which to comment. Therefore, submit comments 
on or before September 28, 2017.

ADDRESSES: Interested persons are invited to submit comments regarding 
this notice to the Rules Docket Clerk, Office of General Counsel, 
Department of Housing and Urban Development, 451 Seventh Street SW., 
Room 10276, Washington, DC 20410. Communications should refer to the 
above docket number and title. Faxed comments are not accepted. A copy 
of each communication submitted will be available for public inspection 
and copying between 8 a.m. and 5 p.m. weekdays at the above address.

FOR FURTHER INFORMATION CONTACT: Marcus Smallwood, Acting Chief Privacy 
Officer, 451 Seventh Street SW., Room 10139, Washington, DC 20410, 
telephone number 202-708-9252 (this

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is not a toll-free number). Individuals who are hearing- and speech-
impaired may access this number via TTY by calling the Federal Relay 
Service at 800-877-8339 (this is a toll-free number).

SUPPLEMENTARY INFORMATION: None.
SYSTEM NAME AND NUMBER:
    Office of Native American Programs--Loan Origination System or 
ONAP-LOS. The system number is P304.

SECURITY CLASSIFICATION:
    Unclassified.

SYSTEM LOCATION:
    Records are maintained at the Department of Housing and Urban 
Development Headquarters, 451 Seventh Street SW., Room 4156, 
Washington, DC 20410. HUD staff have access to ONAP-LOS through HUD's 
standard telecommunications network from a web browser. Lender 
institutions will have access via the internet.

SYSTEM MANAGER(S):
    Tom Wright, System Owner, <a href="/cdn-cgi/l/email-protection#6c380403010d1f422f423b1e050b04182c041908420b031a"><span class="__cf_email__" data-cfemail="1a4e7275777b693459344d68737d726e5a726f7e347d756c">[email protected]</span></a>; Department of 
Housing and Urban Development Headquarters, 451 Seventh Street SW., 
Washington, DC 20410, 202-402-4978.

AUTHORITY FOR MAINTENANCE OF THE SYSTEM:
    42 U.S.C. 3543--Preventing fraud and abuse in Department of Housing 
and Urban Development Programs (enacted as part of the Housing and 
Community Development Act of 1987)-(a) Disclosure of social security 
account number. As a condition of initial or continuing eligibility for 
participation in any program of the Department of Housing and Urban 
Development involving loans, grants, interest or rental assistance of 
any kind, or mortgage or loan insurance, and to ensure that the level 
of benefits provided under such programs is proper, the Secretary of 
Housing and Urban Development may require that an applicant or 
participant (including members of the household of an applicant or 
participant) disclose his or her social security account number or 
employer identification number to the Secretary.
    Section 184 of the Housing and Community Development Act of 1992 
(Pub. L. 102-550, approved October 28, 1992), as amended by the Native 
American Housing Assistance and Self-Determination Act of 1996 (Pub. L. 
104-330, approved October 26, 1996) and 2013 Consolidated and Further 
Continuing Appropriations Act (Pub. L. 113-6, approved March 26, 2013), 
established the Section 184 program to provide access to sources of 
private mortgage financing to Indian families, Indian housing 
authorities, and Indian tribes. Congress established this program in 
1992 to facilitate homeownership and increase access to capital in 
Native American Communities. The Section 184 program addresses 
obstacles to mortgage financing on trust land and in other Indian and 
Alaska Native areas by giving HUD the authority to guarantee loans to 
eligible persons and entities to construct, acquire, refinance, or 
rehabilitate one- to four-family dwellings in these areas. ONAP-LOS is 
being developed to provide automated capabilities for the ONAP Office 
of Loan Guarantee. FR Doc. 2016-26331 Filed 10-31-16.

PURPOSE(S) OF THE SYSTEM:
    ONAP-LOS will automate and expedite the processes required to 
originate a loan guarantee under the Section 184 Indian Home Loan 
Guarantee Program. ONAP-LOS will enable lender institutions to register 
new Section 184 loans, request reservations of funds, and submit 
completed loan case binders to HUD electronically to support the loan 
endorsement process. In addition, the ONAP-LOS system will include a 
lender registration and re-certification capability. ONAP-LOS will 
allow for increased data collection on borrowers, properties, and 
transactions. Once fully implemented, ONAP-LOS will integrate loan 
performance data collection and analysis, loss mitigation efforts on 
delinquent loans, and default loan tracking. The system will enable the 
expansion of the credit model to include more econometric-, borrower- 
and transaction-level analysis to better model the program and overall 
risk. It will provide for better case tracking, reporting and program 
management, and analysis.

Categories of Individuals Covered by the System:
    The ONAP-LOS system, in support of the Section 184 Indian Home Loan 
Guarantee Program, will capture and maintain data across the following 
major information categories:
    a. Section 184 Direct Guarantee Lenders describe the lending 
institutions that register the loans, log property appraisals, reserve 
funds for obligation, and request endorsements of loans.
    b. Native American and Alaskan Native Borrowers and any Co-
Borrowers who have applied for and/or obtained a loan guarantee 
certificate under HUD's Section 184 Indian Home Loan Guarantee Program.
    c. Property and Appraisals associated with the Section 184 loans to 
be endorsed.
    d. Section 184 Loans.
    These information categories, particularly ``Primary Borrowers and 
Co-Borrowers'' will include personally identifiable information (PII).
    For ONAP-LOS, a unique case number is assigned to each Section 184 
loan and is used to identify and retrieve the loan information 
including the borrower/co-borrower SSN (see section above, ``AUTHORITY 
FOR MAINTENANCE OF THE SYSTEM''). To secure this information, ONAP-LOS 
data is transmitted electronically and is protected by the following 
electronic security systems: Password, encryption, user ID, 
authorization and authentication processes, Transport Layer Security 
(TLS), firewall, Public Key Infrastructure, and additional controls for 
internal users including Personal Identity Verification (PIV) Cards and 
Virtual Private Network (VPN).

Categories of Records in the System:
    The following are the categories of information that is collected 
and stored by ONAP-LOS. The information is used to verify factors 
necessary to ensure accurate and complete endorsement review and 
approval of Section 184 loans. A detailed data dictionary has been 
developed for ONAP-LOS and is available upon request.
    Native American and Alaskan Native Borrowers and any Co-Borrowers 
who have applied for and/or obtained a loan guarantee certificate under 
HUD's Section 184 Indian Home Loan Guarantee Program

    <bullet> Primary Borrower Identifier (system generated)
    <bullet> Primary Borrower First Name
    <bullet> Primary Borrower MI
    <bullet> Primary Borrower Last Name
    <bullet> Primary Borrower SSN
    <bullet> Primary Borrower Date of Birth
    <bullet> Primary Borrower Type
    <bullet> Primary Borrower Tribal Affiliation
    <bullet> Co-Borrower Identifier (system generated)
    <bullet> Co-Borrower First Name
    <bullet> Co-Borrower MI
    <bullet> Co-Borrower Last Name
    <bullet> Co-Borrower SSN
    <bullet> Co-Borrower Tribal Affiliation
    <bullet> Co-Borrower Date of Birth

    Section 184 Direct Guarantee Lenders describe the lending 
institutions that request to register the loans with HUD, reserve the 
funds for obligation, and request loan guarantee certificates. The 
following information will be captured in the initial release of ONAP-
LOS.

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Future releases will deliver lender registration and re-certification 
capabilities, which will expand the list of attributes collected.

    <bullet> Lender Identifier (system generated)
    <bullet> Lender Name
    <bullet> Lender Contact Name
    <bullet> Lender Email
    <bullet> Lender Phone
    <bullet> Lender Fax
    <bullet> Name of Loan Officer(s)
    <bullet> Name of Loan Underwriter(s)
    <bullet> Institution Address
    <bullet> Lender Tax ID Number
    <bullet> Broker Name
    <bullet> Broker Tax ID Number
    Property that is associated with the Section 184 loan to be 
endorsed

    <bullet> Address (Street, City, State, Zip)
    <bullet> County
    <bullet> Land Type Code
    <bullet> Number of Units
    <bullet> Bureau of Indian Affairs (BIA) Reservation #
    <bullet> BIA Track #
    <bullet> Contract Number (Tribal Status Report)
    <bullet> Number of Living Units
    <bullet> Lot #
    <bullet> Block #
    Section 184 Loan
    <bullet> Case Number
    <bullet> Case Assignment Date
    <bullet> Loan Type
    <bullet> Loan Purpose
    <bullet> Base Mortgage Amount
    <bullet> Upfront Fee Amount
    <bullet> Loan Amount with Fee
    <bullet> Loan Case Status
    <bullet> Prior Case Number (if applicable)
    <bullet> Prior Case Status (if applicable)
    <bullet> Cohort Number
    <bullet> Subsidy Rate
    <bullet> Interest Rate
    ONAP-LOS will include receipt of information from HUD's Pay.Gov 
Common Service (HPCS) Interface. For each loan endorsed by HUD, the 
ONAP-LOS system will use the HPCS interface to obtain the amount of the 
loan guarantee fee paid by the lender on behalf of the Native American 
borrower.

ROUTINE USES OF RECORDS MAINTAINED IN THE SYSTEM, INCLUDING CATEGORIES 
OF USERS AND PURPOSES OF SUCH USES:
    The records collected and contained in the ONAP-LOS system will not 
be shared outside the HUD firewall during the routine use of the 
system. However, in addition to those disclosures generally permitted 
under 5 U.S.C. Section 552a(b) of the Privacy Act, all or a portion of 
the records or information contained in this system may be disclosed 
outside HUD as a routine use pursuant to 5 U.S.C. 552a(b)(3) for the 
following exceptions:
    1. To appropriate agencies, entities, and persons to the extent 
such disclosures are compatible with the purpose for which the records 
in this system were collected, as set forth by Appendix I--HUD's 
Routine Use Inventory Notice published in the Federal Register.
    2. To appropriate agencies, entities, and persons when:
    a. HUD suspects or has confirmed that the security or 
confidentiality of information in a system of records has been 
compromised;
    b. HUD has determined that as a result of the suspected, or 
confirmed compromise there is a risk of harm to economic or property 
interests, identity theft or fraud, or harm to the security or 
integrity of systems or programs (whether maintained by HUD or another 
agency or entity) that rely upon the compromised information;
    c. 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 compromise and prevent, minimize, 
or remedy such harm for purposes of facilitating responses and 
remediation efforts in the event of a data breach.
    3. To the National Archives and Records Administration (NARA) or to 
the General Services Administration (GSA) for records having sufficient 
historical or other value to warrant continued preservation by the 
United States Government, or for inspection under Title 44 U.S.C. 2904 
and 2906.
    4. To another Federal agency or Federal entity, HUD will follow the 
Department's standard procedures in determining and then disseminating 
information from ONAP-LOS that 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 national security, resulting from a suspected or confirmed breach.
    5. To a congressional office from the record of an individual, in 
response to an inquiry from that congressional office made at the 
request of that individual.

POLICIES AND PRACTICES FOR STORAGE OF RECORDS:
    ONAP-LOS is adopting the Single-Family Home Mortgage Insurance 
Program records disposition schedule, which covers electronic 
management and references to Appendix 20 of the HUD Records Disposition 
Schedules Handbook (2225.6 Rev-1).
    Currently, HUD prints and builds the loan case binder which 
comprises all documentation associated with the loan. Each loan case 
binder is shipped and stored to a record storage contractors provide 
named Iron Mountain for the life of the loan (30 years, plus an 
additional 6 years, as is required in Schedule 20). With ONAP-LOS in 
production, the records management capabilities will retain/archive the 
documentation per this required period.
    Data stored electronically is protected by the following electronic 
security systems: Password, encryption, user ID, authorization and 
authentication processes, firewall, and TLS.

POLICIES AND PRACTICES FOR RETRIEVAL OF RECORDS:
    HUD retrieves system information by the individual's name, last 
four digits of his or her Social Security Number, and, if known, the 
system generated case identification number. Lender information would 
be retrieved by the Lender's legal name and Taxpayer Identification 
Number (TIN) and then similar individual information.

POLICIES AND PRACTICES FOR RETENTION AND DISPOSAL OF RECORDS:
    ONAP-LOS maintains records as needed under the NARA approved 
records schedule HUD Records Disposition Schedules Handbook (2225.6 
Rev-1), Appendix 20. The loan case binder will be maintained in ONAP-
LOS for the life of the loan (30 years, plus an additional 6 years, as 
is required in Schedule 20).

ADMINISTRATIVE, TECHNICAL, AND PHYSICAL SAFEGUARDS:
    ONAP-LOS has implemented a set of security controls to minimize the 
risk, including:
    <bullet> Passwords and Social Security Numbers are masked on the 
user input forms.
    <bullet> Strong access controls that are implemented in accordance 
with the principles of separations of duties and least privilege. 
External users only have access to the information that they have 
entered. The exception is some privileged users at external 
organizations that have access to all information their organization 
has entered.
    <bullet> The application logs the user out after 10 minutes of 
inactivity, hiding previously visible information.
    <bullet> Encrypting sensitive information in the ONAP-LOS database.
    <bullet> Data is stored internally, protected by a firewall and 
physical security controls provided by Azure.

[[Page 41047]]

    <bullet> HUD and Microsoft Azure implement physical security 
controls to protect stored electronic information.
    <bullet> Data is only shared internally or with the Department of 
Treasury. The information shared with Treasury is limited to the 
financial transactions for reserving funds (commitments) and 
endorsements of approved mortgage insurance applications (obligations). 
HUD has a shared service agreement with Treasury that covers 
transactions to ARC. The information in the financial transactions is 
transmitted to Department of Treasury via the daily ARC Report. See 
Section 6.1 for the list of transmitted information.
    <bullet> All database back-ups are saved per the OCIO secure 
operations procedures for enterprise systems.
    <bullet> Any printouts by OLG staff is used for administrative 
purposes and then destroyed.

RECORD ACCESS PROCEDURES:
    All information related to the Lender, Broker, Property, Appraisal, 
Appraiser, Borrower, Co-Borrower, Sponsor and the Loan is collected and 
entered by the external lending institution and provided to HUD via 
ONAP-LOS.
    Individuals desiring to determine whether this system of records 
contains information about them may do so in accordance with HUD's 
Privacy Act Web site: https://portal.hud.gov/hudportal/HUD?src=/program_offices/administration/hudclips/handbooks/admh/1325.1.
    Privacy Act Requests are to be sent to: Privacy Act Officer, 
Department of Housing and Urban Development, 451 7th St. SW., Room 
10139, Washington, DC 20410.
    Privacy Act notice procedures are referenced in the HUD Privacy Act 
Handbook.

CONTESTING RECORD PROCEDURES:
    Individuals desiring to contest records may refer to the HUD FOIA 
Reference Guide and refer to the FOIA notice procedures on the Web 
site: https://portal.hud.gov/hudportal/HUD?src=/program_offices/administration/foia/requests.
    The request should be submitted to the Department's FOIA office 
address below.
    U.S. Department of Housing and Urban Development, Freedom of 
Information Act Office, 451 7th Street SW., Room 10139, Washington, DC 
20410-3000, Facsimile: (202) 619-8365.

NOTIFICATION PROCEDURES:
    Individuals wishing to determine whether this system of records 
contains information about them may do so by contacting their lending 
institution or contacting HUD's Privacy Office or Freedom of 
Information Act Office at the addresses above.

EXEMPTIONS PROMULGATED FOR THE SYSTEM:
    None.

HISTORY:
    None.

    Dated: July 25, 2017.
Helen Goff Foster,
Chief Administrative Officer and Executive Secretary, Senior Agency 
Official for Privacy.
[FR Doc. 2017-18228 Filed 8-28-17; 8:45 am]
 BILLING CODE 4210-67-P


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