[Federal Register Volume 81, Number 73 (Friday, April 15, 2016)]
[Notices]
[Pages 22293-22296]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-08774]
-----------------------------------------------------------------------
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
[Docket No. FR-5921-N-04]
Implementation of the Privacy Act of 1974, as Amended; System of
Records Notice Amendment, Distributive Shares and Refunds Subsystem
AGENCY: Office of Housing, HUD.
ACTION: System of records notice amendment.
-----------------------------------------------------------------------
SUMMARY: HUD is proposing to amend information published in the Federal
Register about one of its system of records, Distributive Shares and
Refunds Subsystem (DSRS). The revision implemented under this
republication reflects administrative changes to the system of records
location, authority, purpose, and records retention statements to
refine previously published information, and incorporates a new coding
structure to easily differentiate this system of records notice (SORN)
from other program specific SORNs. This update improves previously
published details in a clear and cohesive format. A more detailed
description of the present systems status is republished under this
notice. This notice deletes and supersedes prior notice published in
the Federal Register at 72 FR 40890 on July 25, 2007. The scope and
functional purpose in place for this system remain unchanged.
DATES: This action shall become effective immediately upon publication
of this notice April 15, 2016.
ADDRESSES: Interested persons are invited to submit comments regarding
[[Page 22294]]
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. 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: Frieda B. Edwards, Acting Chief
Privacy Officer, 451 Seventh Street SW., Room 10139, Washington, DC
20410, telephone number 202-402-6828 (this 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 telephone number at 800-
877-8339 (this is a toll-free number).
SUPPLEMENTARY INFORMATION: Publication of this notice allows the
Department to satisfy its reporting requirement and keep an up-to-date
accounting of its SORN publications. The amended SORN proposal will
incorporate Federal privacy requirements and the Department's policy
requirements. The Privacy Act provides individuals with certain
safeguards against an invasion of their personal privacy by requiring
Federal agencies to protect records contained in an agency system of
records from unauthorized disclosure, by ensuring that the information
collected is current and collected only for its intended use, and by
providing adequate safeguards to prevent misuse of such information. In
addition, this notice demonstrates the Department's focus on following
industry best practices to protect the personal privacy of the
individuals covered by this SORN. This SORN 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 those
records, the routine uses made of the records and the type of exemption
in place for the records. This notice includes the business address of
Department 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 not meet the threshold requirements
established by the Office of Management and Budget (OMB) for filing a
report to OMB, the Senate Committee on Homeland Security and
Governmental Affairs, and the House Committee on Oversight and
Government Reform as instructed by Paragraph 4c of Appendix l to OMB
Circular No. A-130, ``Federal Agencies Responsibilities for Maintaining
Records About Individuals,'' November 28, 2000. Accordingly, this
notice is being revised to provide non-substantive changes that clarify
text published under the prior notice location, purpose, and retention
and disposal of records sections.
Authority: 5 U.S.C. 552a; 88 Stat. 1896; 42 U.S.C. 3535(d).
Dated: April 8, 2016.
Patricia A. Hoban-Moore,
Senior Agency Official for Privacy.
HSNG.SF/FB.01
System of Records No.: HSNG.SF/FB.01
System Name:
Distributive Shares and Refunds Subsystem (DSRS)-A80D.
System Location:
Department of Housing and Urban Development, 470 L'Enfant Plaza
East, Room 3119, Washington, DC 20026; HUD Information Technology
Systems Production Data Center in South Charleston, West Virginia, and
Lanham, Maryland; and at the location of the service providers under
contract with HUD.
Categories of Individuals Covered by the System:
Homeowners (Mortgagors) who had Federal Housing Administration
(FHA) mortgage insured loans and may be eligible for an upfront
mortgage insurance premium (UFMIP) or distributive shares refund.
Categories of Records in the System:
Homeowners (Mortgagors) information is made up of the following
elements: Borrower and/or co-borrower names, Social Security number
(SSN), mailing address, property address, FHA case number, loan
endorsement and termination dates, homeowners distributive shares
refunds amount due, correspondence actions, including the number of
times it was mailed to the homeowner, type of correspondence sent, and
status of issued refund check.
Authority for Maintenance of the System:
The National Housing Act and Section 7(d) of the Department of
Housing and Urban Development Act, section 203; Public Law 89-174; 24
CFR 5.210, 24 CFR 200.1101; 24 CFR 203.35; Debt Collection Act of 1982,
Public Law 97-365; Housing and Community Development Act of 1987, 42
U.S.C Sec. 3543, titled ``Preventing fraud and abuse in Department of
Housing and Urban Development programs'' and enacted as part of the
Housing and Community Development Act of 1987, which permits the
collection of SSN.
Purpose(s):
The DSRS was designed in response to a Congressional mandate,
wherein HUD established a new method for collecting and processing FHA
UFMIP refunds or distributive share payments. The DSRS maintains
records on individuals that are entitled to either two types of
payments: (1) An UFMIP refund, or (2) a distributive share payment. The
system is operated by the Department's Office of Single Family
Insurance Operations to service unclaimed terminated loan transactions,
should a homeowner terminate their mortgage insurance prior to loan
maturity, entitling the homeowner to a premium refund. The DSRS
records, controls, and tracks appropriations data for all terminations,
disbursements, transfers, transactions, and produces daily, weekly,
monthly, quarterly, and annual reports on these transactions. The
system gives the Department's operating areas access to their own cash
data, provides management access to all the cash data in prescribed
formats, produces appropriation reports in accordance with the Federal
Credit Reform Act of 1990, 2 U.S.C. 661 et.1 seq., produces and
transmits monthly cash reconciliation to the Department's accountants,
and processes returned checks, check tracer actions, and related
correspondence for distribution to homeowners.
DSRS interfaces with the following systems to facilitate payment
and refund transactions:
(1) Single Family Insurance System (SFIS)--to calculate the
unearned portion of the UFMIP for eligible cases, to send refund data
to the DSRS for distribution of payments to the homeowner for the
unearned portions of the UFMIP or distributive shares.
(2) Single Family Premium Collection Subsystems (SFPCS) Upfront,
and the Single Family Premium Collection Subsystems for Periodic
(SFPCS-P)--to receive refund data from DSRS to generate the UFMIP
refund or distributive share payments.
a. Equally important, the Department utilizes the DSRS to generate
correspondence actions to attempt to notify each unpaid mortgagor of
their FHA insurance refund for a period of 2 years. This process occurs
once the Department receives notification of a mortgage insurance
termination. After this 2-year hold, the Department makes available to
the general public a
[[Page 22295]]
cumulative listing of any unpaid refund that remains unpaid. The
information includes the homeowner's name, last known address, FHA case
number, termination data, and refund amount. This information is also
made available to the public by HUD's refund database, ``Does HUD Owe
You a Refund?''
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.
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) as follows:
(1) To authorized requesters or third party tracers who request
access to UFMIP and distributive shares homeowner refund information,
when such information is unavailable on HUD's FOIA reading room or
refunds database Web sites. This information is releasable under FOIA.
Third party release of this material may require authorized consent of
the homeowner to whom the records belong, and must adhere to all HUD
procedures prior to release.
(2) To the U.S. Department of the Treasury for collection and
disbursement of check transactions.
(3) To the recorders' offices for recording legal documents and
responses to offsets (i.e., child support) or other legal responses
required during the servicing of the insured loan to allow HUD to
release mortgage liens, and respond to bankruptcies or deaths of
mortgagors to protect the interest of the Secretary of HUD.
(4) To the Office of Inspector General to investigate possible
fraud revealed in servicing homeowners refunds to allow HUD to protect
the interest of the Secretary.
(5) To contractors, grantees, experts, consultants and their
agents, or others performing or working under a contract, service,
grant, or cooperative agreement with HUD, when necessary to accomplish
an agency function related to a system of records. Disclosure
requirements are limited to only those data elements considered
relevant to accomplishing an agency function. Individuals provided
information under this routine use conditions are subject to Privacy
Act requirements and disclosure limitations imposed on the Department.
(6) 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; and
(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.
(7) To appropriate agencies, entities, and persons to the extent
that such disclosures are compatible with the purpose for which records
in this system were collected, as set forth by Appendix I \1\--HUD's
Library of Routine Uses published in the Federal Register.
---------------------------------------------------------------------------
\1\ http://portal.hud.gov/hudportal/documents/huddoc?id=append1.pdf.
---------------------------------------------------------------------------
Policies and Practices for Storing, Retrieving, Accessing, Retaining,
and Disposing of Records in the System:
Storage:
Electronic records are maintained on the mainframe and on CD and
DVD. Paper records are maintained in locked file cabinets and destroyed
immediately after electronic imaging and payment verification has
occurred. This is usually done within 30 days of receipt.
Retrievability:
Records are retrieved by FHA case number and by an individual's
name. Paper records are not retrieved from the system.
Safeguards:
CDs and DVDs are maintained in secured office space and secure file
rooms to which access is limited to those personnel who service the
records. Access to electronic records is granted by user ID and
password and to users who have a need to access such records. Paper
records are maintained in locked file cabinets and destroyed
immediately after electronic imaging and payment verification has
occurred.
Retention and Disposal:
DSRS records are maintained in accordance with HUD's Deposition
General Records Schedule 1.1, Financial Management and Reporting
Records, Item 010. Paper records do not require storage by the Federal
Records Center. Paper records consist of the HUD form, HUD-27050-B
(Application for Premium Refund or Distributive Share Payment), which
is transferred to electronic media, and then destroyed immediately
after electronic imaging and payment verification has occurred. Paper
records are destroyed by shredding. Paper records are maintained for a
period not to exceed 30 days. CD and DVD images of records are
maintained for 40 years after which they are destroyed as instructed by
guidelines outlined in HUD's IT Security Handbook (2400.25), pursuant
to NIST Special Publication 800-88 ``Guidelines for Media
Sanitization.''
System Manager(s) and Address:
Department of Housing and Urban Development, Office of Single
Family Insurance Operations Division, Chief, Disbursements and Customer
Service Branch, 470 L'Enfant Plaza East, Room 3119, Washington, DC
20026.
Notification and Record Access Procedures:
For Information, assistance, or inquiries about the existence of
records contact Frieda B. Edwards, Acting Chief Privacy Officer, 451
Seventh Street SW., Room 10139, Washington, DC 20410, telephone number
202-402-6828. When seeking records about yourself from this system of
records or any other HUD system of records, your request must conform
with the Privacy Act regulations set forth in 24 CFR part 16. You must
first verify your identity by providing your full name, current
address, and date and place of birth. You must sign your request, and
your signature must either be notarized or submitted under 28 U.S.C.
1746, a law that permits statements to be made under penalty of perjury
as a substitute for notarization. In addition, your request should:
(1) Explain why you believe HUD would have information on you.
(2) Identify which HUD office you believe has the records about
you.
(3) Specify when you believe the records would have been created.
(4) Provide any other information that will help the Freedom of
Information Act (FOIA) staff determine which HUD office may have
responsive records.
If you are is seeking records pertaining to another living
individual, you must obtain a statement from that individual certifying
their agreement for you to access their records. Without the above
information, the HUD FOIA Office may not be able to conduct an
effective search, and your request may be denied due to lack of
specificity or lack of compliance with applicable regulations.
[[Page 22296]]
Contesting Records Procedures:
The Department's rules for contesting contents of records and
appealing initial denials appear in 24 CFR part 16, Procedures for
Inquiries. Additional assistance may be obtained by contacting Frieda
B. Edwards, Acting Chief Privacy Officer, 451 Seventh Street, SW., Room
10139, Washington, DC 20410, or the HUD Departmental Privacy Appeals
Officers, Office of General Counsel, Department of Housing and Urban
Development, 451 Seventh Street, SW., Room 10110 Washington DC 20410.
Record Source Categories:
The records maintained by the system are provided directly by the
homeowners, by completion of the Uniform Residential Loan Application
(form HUD-92900-A). Information is also collected by the mortgagees
(lenders), who collect the personal information from the homeowner and
enters the information into the HUD Single Family Computerized Home
Underwriting Management System (CHUMS). After the case is endorsed,
CHUMS sends case data to SFIS, which is maintained in SFIS until the
case is terminated (non-claim, claim, or other type of cancellation).
Once the case is non-claim terminated, termination data is sent to the
DSRS.
Exemptions From Certain Provisions of the Act:
None.
[FR Doc. 2016-08774 Filed 4-14-16; 8:45 am]
BILLING CODE 4210-67-P