[Federal Register Volume 79, Number 202 (Monday, October 20, 2014)]
[Notices]
[Pages 62656-62658]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-24861]
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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.
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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
toll-free 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
up-to-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
[[Page 62657]]
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.
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\1\ http://portal.hud.gov/hudportal/documents/huddoc?id=append2.pdf
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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
[[Page 62658]]
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.
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\2\ http://portal.hud.gov/hudportal/documents/huddoc?id=append1.pdf
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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