Implementation of the Privacy Act of 1974, as Amended; Notice Amendment for Computerized Homes Underwriting Management System/Loan Application Management System, 71750-71755 [2016-25177]

Download as PDF 71750 Federal Register / Vol. 81, No. 201 / Tuesday, October 18, 2016 / Notices Lhorne on DSK30JT082PROD with NOTICES comments in connection with the 60day notice. DATES: The purpose of this notice is to allow an additional 30 days for public comments. Comments are encouraged and will be accepted until November 17, 2016. This process is conducted in accordance with 5 CFR 1320.10. ADDRESSES: Written comments and/or suggestions regarding the item(s) contained in this notice, especially regarding the estimated public burden and associated response time, must be directed to the OMB USCIS Desk Officer via email at oira_submission@ omb.eop.gov. Comments may also be submitted via fax at (202) 395–5806. All submissions received must include the agency name and the OMB Control Number [1615—NEW]. You may wish to consider limiting the amount of personal information that you provide in any voluntary submission you make. For additional information please read the Privacy Act notice that is available via the link in the footer of https://www.regulations.gov. FOR FURTHER INFORMATION CONTACT: USCIS, Office of Policy and Strategy, Regulatory Coordination Division, Samantha Deshommes, Chief, 20 Massachusetts Avenue NW., Washington, DC 20529–2140, Telephone number (202) 272–8377 (comments are not accepted via telephone message). Please note contact information provided here is solely for questions regarding this notice. It is not for individual case status inquiries. Applicants seeking information about the status of their individual cases can check Case Status Online, available at the USCIS Web site at https:// www.uscis.gov, or call the USCIS National Customer Service Center at (800) 375–5283; TTY (800) 767–1833. SUPPLEMENTARY INFORMATION: Comments You may access the information collection instrument with instructions, or additional information by visiting the Federal eRulemaking Portal site at: https://www.regulations.gov and enter USCIS–2016–0004 in the search box. Written comments and suggestions from the public and affected agencies should address one or more of the following four points: (1) Evaluate 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) Evaluate the accuracy of the agency’s estimate of the burden of the proposed collection of information, VerDate Sep<11>2014 13:19 Oct 17, 2016 Jkt 241001 including the validity of the methodology and assumptions used; (3) Enhance the quality, utility, and clarity of the information to be collected; and (4) Minimize the burden of the collection of information on those who are to respond, including through the use of appropriate automated, electronic, mechanical, or other technological collection techniques or other forms of information technology, e.g., permitting electronic submission of responses. Overview of This Information Collection (1) Type of Information Collection Request: New Collection. (2) Title of the Form/Collection: Application for Employment Authorization for Abused Nonimmigrant Spouse. (3) Agency form number, if any, and the applicable component of the DHS sponsoring the collection: I–765V; USCIS. (4) Affected public who will be asked or required to respond, as well as a brief abstract: Primary: Individuals or households. Form I–765V, Application for Employment Authorization for Abused Nonimmigrant Spouse, will be used to collect information that is necessary to determine if an applicant is eligible for an initial Employment Authorization Document (EAD), a new EAD, or an interim EAD as a qualifying abused nonimmigrant spouse. (5) An estimate of the total number of respondents and the amount of time estimated for an average respondent to respond: The estimated total number of respondents for the information collection Form I–765V is 1,000 and the estimated hour burden per response is 3 hours to complete the form, 1 hour for biometrics and .50 hours to obtain passport-style photographs. (6) An estimate of the total public burden (in hours) associated with the collection: The total estimated annual hour burden associated with this collection is 4,500 hours. (7) An estimate of the total public burden (in cost) associated with the collection: The estimated total annual cost burden associated with this collection of information is $265,000. Dated: October 11, 2016. Samantha Deshommes, Chief, Regulatory Coordination Division, Office of Policy and Strategy, U.S. Citizenship and Immigration Services, Department of Homeland Security. [FR Doc. 2016–25101 Filed 10–17–16; 8:45 am] BILLING CODE 9111–97–P PO 00000 Frm 00062 Fmt 4703 Sfmt 4703 DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT [Docket No. FR–5921–N–17] Implementation of the Privacy Act of 1974, as Amended; Notice Amendment for Computerized Homes Underwriting Management System/Loan Application Management System Office of Housing, HUD. Notice Amendment. AGENCY: ACTION: The Department is publishing a notice advising of a system of records amendment for system of records: Computerized Homes Underwriting Management System—Development of New System of Records, Loan Application Management System, published in the Federal Register on October 20, 2014 at 79 FR 62656–62658. The Department discovered that information under the original notice had been omitted and reissues this notice to incorporate omitted information. In addition, the revised notice introduces a new method used by the system to collect and process new records and establishes new routine use instances. This notice adds back to the notice previously omitted information maintained by the systems on nonborrowing spouses, incorporates new records pertaining to housing counselor efforts, establishes new routine uses, and refines current record keeping procedures, the authority, and purpose statements. A detailed description of the systems updates and the new functions are contained in the SUPPLEMENTARY INFORMATION section. FOR FURTHER INFORMATION CONTACT: Helen Goff Foster, Chief Privacy Officer/ Senior Agency Official for Privacy, 451 Seventh Street SW., Room 10139, Washington, DC 20410, telephone number 202–402–6836 (this is not a tollfree 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: Amendments to this notice: HUD published in the Federal Register system of records notice for Computerized Homes Underwriting Management System—Development of New System of Records, Loan Application Management System on October 20, 2014, at 79 FR 62656– 62658, and amendments are being proposed to this notice, as follows: Page 62657, in the first column, under the system of records caption ‘‘CATEGORIES OF INDIVIDUALS COVERED BY THE SYSTEM’’ this SUMMARY: E:\FR\FM\18OCN1.SGM 18OCN1 Lhorne on DSK30JT082PROD with NOTICES Federal Register / Vol. 81, No. 201 / Tuesday, October 18, 2016 / Notices section is being updated to read: Individuals who have applied for a mortgage insured under HUD/Federal Housing Administration’s single-family mortgage insurance programs, including any non-borrowing spouse(s) associated with a Home Equity Conversion Mortgage (HECM) transaction. Also, HUD business partners (appraisers, inspectors, mortgagee staff underwriters) and HUD employees (appraisers, mortgage credit examiners, architectural employees, receiving clerks, assignment clerks, commitment clerks, records clerks, and closing clerks) involved in the HUD/FHA single-family underwriting process, and new records on individuals who pass the HUD Certified Housing Counselor examination whether or not they become certified; individuals seeking HUD certified housing of new records. Page 62657, in the first column, under the system of records captions ‘‘CATEGORIES OF RECORDS IN THE SYSTEM’’ this section is being updated to read: Automated files contain the following categories of records: • Mortgagors (Borrowers): name, address, Social Security number (SSN) or other identification number, racial/ ethnic background (if disclosed), date of birth, credit scores (often referred to as FICO® Scores), marital status, and details about the mortgage loan, including loan application documentation. This information is supplied by lenders during the mortgage application and underwriting process. • Non-Borrowing Spouses: name, SSN or other identification number, date of birth, and details about the mortgage loan, including loan application documentation. This information is supplied by lenders during the mortgage application and underwriting process on specific loan types to acknowledge in writing that the non-borrowing spouse has protections under the law to remain in the home after the death of their borrowing spouse or an indication that the non-borrowing spouse is not a borrower and not required to sign the loan contract and the property does not serve as their primary residence. • Appraisers and Inspectors: name, address, SSN 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, 203k Consultants, and HECM Counselors: SSN or other identification number, territory and workload of the individuals. VerDate Sep<11>2014 13:19 Oct 17, 2016 Jkt 241001 • HUD Employees: name and SSN 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. • Individuals registering to access the HUD Housing Counselor Certification Examination: legal first and last name, mailing address, telephone number, email address, fax number (if applicable), SSN, and employer’s HUD Housing Counseling System (HCS) number (if registrant’s employer is a housing counseling agency participating in HUD’s Housing Counseling Program). Registrants have the option of providing demographic information: race, ethnicity, gender and languages in which counseling services are offered. HUD is collecting information on languages to assess the number of examinees that might benefit from certification examination training materials being available in other languages. Information for fee payment will be collected by a third party vendor and will include credit card number, expiration date, and security code. • Individuals registering for HUD Certified Housing Counselor status or for Agency Application Coordinator for FHA Connection: legal first and last name, mailing address, telephone number, email address, fax number (if applicable), SSN, HUD Housing Counselor Certification System ID number, mother’s maiden name, and employer’s HUD Housing Counseling System (HCS) ID number, and verification of employing agency’s name. • Examination Information: scores from housing counselor certification examination list of all test-takers who pass the certification examination. • Client Certificate of Housing Counseling: legal first and last name and address of the housing counseling client receiving counseling services from an agency participating in HUD’s Housing Counseling Program; legal first and last name and the Counselor ID number of the counselor completing the client certificate of housing counseling; name, address, telephone number, Employer Identification Number (EIN), and HCS ID number of the agency participating in HUD’s Housing Counseling Program; date and type of counseling service received; fees collected or waived; and whether counseling or education occurred in-person or remotely (telephone or Internet). PO 00000 Frm 00063 Fmt 4703 Sfmt 4703 71751 • NOTE: Certain records contained in this system which pertain to individuals contain principally proprietary information concerning sole proprietorships that may also reflect personal information, however, only the records reflecting personal information are subject to the Privacy Act. Page 62658, in the second column, under the system of records caption ‘‘RETENTION AND DISPOSAL’’ this section is being amended to read: Current Procedures: Data is retained online for 13 months after the date of endorsement, or 13–18 months for nonendorsed cases, and then archived. The archived data can be retrieved upon request. In archive data, CHUMS retains case data indefinitely. The Records Retention Schedule for CHUMS/F17 is listed in the HUD Records Disposition Schedules Handbook (2225.6) Appendix A—Single Family Home Mortgage Insurance Program Records. In addition, processes are being put in place to align all practices where information will be retained and disposed of in accordance with HUD Records Disposition Schedule Handbook (2225.6), which has been approved by the National Archives and Records Administration. According to Records Management Office and Schedule 20 of HUD’s Record Retention Schedule, the requirement is to retain for 6 years after the term of the loan. In some cases, this may be up to 36 years, at which time the information should be transferred to NARA. The transfer of the data would eliminate the concern of not having access to the information if needed in the future. According to GRS 1.2 DAA–GRS– 2013–0008–0001, records collected and stored for HUD Certified Housing Counselor Certification and/or Client Housing Counseling Certificates that reside in the systems will be kept for a minimum 10 years after the final action is taken on the file, document, and/or transaction. Longer retention is authorized if required for business use (Reference: GRS 1.2 DAA–GRS–2013– 0008–0001). After the record retention requirements have been met (a minimum of 10 years), the data and records can be purged or deleted from the system. If paper records are generated from the system, they can be archived at the local Federal Records Center after the final action or transaction has taken place. Page 62658, in the first column is being updated to identify new disclosure requirements related to Federal Housing Administration’s Office of Housing, by adding routine use (7) to clarify that records from this SORN may be disclosed to Government Sponsored E:\FR\FM\18OCN1.SGM 18OCN1 71752 Federal Register / Vol. 81, No. 201 / Tuesday, October 18, 2016 / Notices Enterprises and other authorized entities to enhance HUD’s programs operations and performance through automated underwriting, credit scoring, and risk management, and records related to counseling certification requirements, by adding routine use (11) to clarify that records will be disclosed from the system to third party fee collection service for payment of examination fees, and routine use (11) to clarify that non-PII records will be made available to the general public from the system. Pursuant to the Privacy Act and the Office of Management and Budget (OMB) guidelines, the amended notices meets threshold requirements for having to transmit 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. Authority: 5 U.S.C. 552a; 88 Stat. 1896; 42 U.S.C. 3535(d). Dated: October 12, 2016. Helen Goff Foster, Chief Privacy Officer/Senior Agency Official for Privacy. SYSTEM OF RECORDS NO: HSNG.SF/HUP.02. SYSTEM NAMES: Computerized Homes Underwriting Management System (CHUMS) F17/ Loan Application Management System (LAMS) P292)). Lhorne on DSK30JT082PROD with NOTICES SYSTEM LOCATION: The CHUMS and LAMS system is hosted at the 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, staff in HUD Headquarters and throughout the country access CHUMS and LAMS through HUD’s standard telecommunications network from desktop work stations, and access by both HUD employees and business partners is granted via secure HTTP 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 Home VerDate Sep<11>2014 13:19 Oct 17, 2016 Jkt 241001 Ownership Centers, located in Atlanta, GA; Denver, CO; Philadelphia, PA; and Santa Ana, CA; and the sixty-one (61) HUD owned and operated Field Offices 1 in various locations across the country. CATEGORIES OF INDIVIDUALS COVERED BY THE SYSTEM: Individuals who have applied for a mortgage insured under HUD/FHA’s single-family mortgage insurance programs, including any non-borrowing spouses associated with the transaction. Also, HUD business partners (appraisers, inspectors, mortgagee staff underwriters), HUD employees (appraisers, mortgage credit examiners, architectural employees, receiving clerks, assignment clerks, commitment clerks, records clerks, and closing clerks) involved in the HUD/FHA single-family underwriting process; individuals who pass the HUD Certified Housing Counselor examination whether or not they become certified, individuals seeking HUD certified housing counselor certification, or housing counseling clients receiving housing counseling from an agency participating in HUD’s Housing Counseling Program. CATEGORIES OF RECORDS IN THE SYSTEM: Automated files contain the following categories of records: • Mortgagors (Borrowers): name, address, Social Security number (SSN) or other identification number, racial/ ethnic background (if disclosed), date of birth, credit scores (often referred to as FICO® Scores), marital status, and details about the mortgage loan, including loan application documentation. This information is supplied by lenders during the mortgage application and underwriting process. • Non-Borrowing Spouses: name, SSN or other identification number, date of birth, and details about the mortgage loan, including loan application documentation. This information is supplied by lenders during the mortgage application and underwriting process on specific loan types to acknowledge in writing that the non-borrowing spouse has protections under the law to remain in the home after the death of their borrowing spouse or an indication that the non-borrowing spouse is not a borrower and not required to sign the loan contract and the property does not serve as their primary residence. • Appraisers and Inspectors: name, address, SSN or other identification 1 https://portal.hud.gov/hudportal/documents/ huddoc?id=append2.pdf. PO 00000 Frm 00064 Fmt 4703 Sfmt 4703 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: SSN or other identification number, territory and workload of the individuals. • HUD Employees: name, SSN 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. • Individuals registering to access the HUD Housing Counselor Certification Examination: Legal first and last name, mailing address, telephone number, email address, fax number (if applicable), SSN, and employer’s HUD Housing Counseling System (HCS) number (if registrant’s employer is a housing counseling agency participating in HUD’s Housing Counseling Program). Registrants have the option of providing demographic information: Race, ethnicity, gender and languages in which counseling services are offered. HUD is collecting information on languages to assess the number of examinees that might benefit from certification examination training materials being available in other languages. Information for fee payment will be collected by a third party vendor and will include credit card number, expiration date, and security code. • Individuals registering for HUD Certified Housing Counselor status or for Agency Application Coordinator for FHA Connection: Legal first and last name, mailing address, telephone number, email address, fax number (if applicable), SSN, HUD Housing Counselor Certification System ID number, mother’s maiden name, and employer’s HUD Housing Counseling System (HCS) ID number, and verification of employing agency’s name. • Examination Information: Scores from housing counselor certification examination list of all test-takers who pass the certification examination. • Client Certificate of Housing Counseling: Legal first and last name and address of the housing counseling client receiving counseling services from an agency participating in HUD’s Housing Counseling Program, legal first and last name and the Counselor ID number of the counselor completing the client certificate of housing counseling, name, address, telephone number, E:\FR\FM\18OCN1.SGM 18OCN1 Federal Register / Vol. 81, No. 201 / Tuesday, October 18, 2016 / Notices Employer Identification Number (EIN), and HCS ID number of the agency participating in HUD’s Housing Counseling Program, date and type of counseling service received, fees collected or waived and whether counseling or education occurred inperson or remotely (telephone or Internet). 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, enables HUD/FHA to process applications for HUD mortgage insurance and respond to inquiries regarding applications and insured mortgages; The Housing and Community Development Act of 1987, 42 U.S.C. 3543, authorizes HUD to collect SSNs Social Security numbers for FHA Connect users are collected to ensure mortgagee eligibility requirements are met, 12 U.S.C. § 1708(d)); Subtitle D of title XIV of the Dodd-Frank Wall Street Reform and Consumer Protection Act, Public Law 111–203, 124 Stat. 1376 (July 21, 2010); Section 106 of the Housing and Urban Development Act of 1968, 12 U.S.C. 1701x. Lhorne on DSK30JT082PROD with NOTICES PURPOSE(S): The Loan Application Management System (LAMS) is developed to better assist FHA with its automated processing, analysis, and screening of the appraisal documentation. CHUMS is developed to support lenders and HUD staff in the processing of insurance applications for single-family mortgages, from the initial loan application all the way through endorsement. Various mortgage loan types are processed through CHUMS, including loans for First Time Homebuyers, Home Equity Conversion Mortgages (HECM), Section 184 Indian Home Loan Guarantee, and 203K rehabilitation loans. CHUMS provides HUD field office staff functionality for tracking and processing cases, and allows monitoring of workloads by field office management. CHUMS also contains the FHA TOTAL (Technology Open to Approved Lenders) Scorecard, which evaluates the overall creditworthiness of mortgage loan applications submitted through Automated Underwriting Systems based on a number of credit variables, and determines the associated level of risk for loans submitted for FHA insurance. VerDate Sep<11>2014 13:19 Oct 17, 2016 Jkt 241001 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 Mortgage Industry Standard Maintenance Organization (MISMO) 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. The purpose for collecting the new records that will be maintained by this system is to verify the participating agency’s compliance with HUD’s Housing Counseling Program requirements. Other statutory changes to improve the effectiveness of housing counseling include increasing the breadth of counseling services so that they are comprehensive with respect to homeownership and rental counseling and issuing client Certificates of Housing Counseling to verify counseling requirements for FHA and other Federal, State, and local programs, as applicable. HUD’s Housing Counseling Program currently provides comprehensive homeownership and rental counseling. As noted in the proposed rule published on September 13, 2013, an individual counselor, in contrast to multiple counseling agencies, will have to show competency PO 00000 Frm 00065 Fmt 4703 Sfmt 4703 71753 (through passage of an examination) in identifying and understanding the breadth of homeownership and rental counseling services. Currently, a potential homebuyer or homeowner is likely to seek a housing counseling agency that specializes in a specific area and receive comprehensive counseling by a counselor in that specific area. As a result of increasing the breadth of counseling service knowledge, a housing counselor providing counseling on a specific area requested by the client would also be trained to identify crosscutting issues that a client may not have identified when seeking out a specific counselor or during the intake process by the housing counseling agency. In addition, certifying individual counselors may further enhance the high regard of agencies and counselors participating in HUD’s Housing Counseling Program. 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 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,2 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. HUD determines that 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 of security. 3. To a congressional office from the record of an individual in response to 2 https://portal.hud.gov/hudportal/documents/ huddoc?id=routine_use_inventory.pdf. E:\FR\FM\18OCN1.SGM 18OCN1 Lhorne on DSK30JT082PROD with NOTICES 71754 Federal Register / Vol. 81, No. 201 / Tuesday, October 18, 2016 / Notices an inquiry from that congressional office made at the request of the individual to whom the record pertains. 4. To the Federal Bureau of Investigations for investigations of possible fraud revealed in FHA underwriting, insuring or monitoring process for mortgage insurance. 5. To the Department of Justice for prosecutions of fraud revealed in FHA underwriting, insuring or monitoring process for mortgage insurance. 6. To the General Accounting Office (GAO) for audit purposes. 7. To financial institutions (including Government Sponsored Enterprises), computer software companies and other Federal agencies (including the Federal Reserve) to enhance program operations and performance through automated underwriting, credit scoring and risk management. 8. To other federal agencies (including the Federal Reserve) for purposes of research not involving personally identifiable information, to evaluate program effectiveness in meeting HUD’s/FHA’s mission, or to inform policy makers on changes to effect program improvements. 9. To the Department’s Office of Policy Development Research and its researchers for mortgage credit evaluations and statistical analysis. 10. To contractors, grantees, experts, consultants, and the agents 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. 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. 11. To third party fee collection service when needed for payment of certified housing counselor examination fees. Only legal name, address for credit card billing, and telephone number will be released. 12. To the general public to verify if a certified housing counselor identification number is valid. Only certified housing counselor first and last name and housing counseling agency(ies) that employ this counselor will be released under this be routine VerDate Sep<11>2014 13:19 Oct 17, 2016 Jkt 241001 use for valid certified housing counselor identification numbers. The information will be released to any interested person only through a specific Web page on either www.hud.gov or the HUD Exchange designated by HUD. POLICIES AND PRACTICES FOR STORING, RETRIEVING, ACCESSING, RETAINING, AND DISPOSING OF RECORDS IN THE SYSTEM: STORAGE: Records in this system are stored on magnetic tape/disc/drum. If paper records are generated, they will be stored from unauthorized use and stored at the Federal Records facility. RETRIEVABILITY: Electronic/paper records are retrieved by case number, name, social security number housing counselor ID number, or other identification number. Office of Housing Counseling Staff will be able to retrieve counselor employment history for specific time periods. The general public will be able to verify if a counselor is currently certified by HUD through a public access Web page on HUD.gov or HUD Exchange. The public search will identify the name of the housing counselor and agency(ies) the counselor is employed by. Full access to HUD Certified Housing Counselor Database information in CHUMS will be limited to a few individuals on an asneeded basis for compliance purposes. SAFEGUARDS: Electronic records are maintained in secure areas, and access is limited to authorized personnel. RETENTION AND DISPOSAL: Current Procedures: Data is retained online for 13 months after the date of endorsement, or 13–18 months for nonendorsed cases, and then archived. The archived data can be retrieved upon request. In archive data, CHUMS retains case data indefinitely. The Records Retention Schedule for CHUMS/F17 is listed in the HUD Records Disposition Schedules Handbook (2225.6), Schedule 20,3 and Single Family Home Mortgage Insurance Program Records. FUTURE PROCEDURES: Processes are being put in place to align all practices where information will be retained, archived, then destroyed in accordance with HUD approved Records Disposition Schedule Handbook (2225.6), Schedule 20. According to Records Management Office and Schedule 20 of HUD’s Record Retention Schedule, records will be retained, archived, and destroyed a 3 https://portal.hud.gov/hudportal/documents/ huddoc?id=22256x20admh-1.pdf. PO 00000 Frm 00066 Fmt 4703 Sfmt 4703 minimum of 6 years after the term of the mortgage. In some cases, this may be up to 36 years, at which time the information should be transferred to NARA. The transfer of the data would eliminate the concern of not having access to the information if needed in the future. The records collected and stored for HUD Certified Housing Counselor Certification and/or Client Housing Counseling Certificates that reside in the systems will be kept for a minimum 10 years after the final action is taken on the file, document, and/or transaction. Longer retention is authorized if required for business use (Reference: GRS 1.2 DAA–GRS–2013– 0008–0001). After the record retention requirements have been met (a minimum of 10 years), the data and records can be purged or deleted from the system. Backup and Recovery digital media will be destroyed or otherwise rendered irrecoverable per NIST SP 800–88 ‘‘Guidelines for Media Sanitization’’ (September 2006). This complies with all Federal regulations. 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 Helen Goff Foster, Chief Privacy Officer/Senior Agency Official for Privacy, 451 Seventh Street SW., Room 10139, Washington, DC 20410, telephone number 202–402–6836 (this is not a toll-free number). 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 ‘‘Procedures for Inquiries’’. 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 FOIA staff determine E:\FR\FM\18OCN1.SGM 18OCN1 Federal Register / Vol. 81, No. 201 / Tuesday, October 18, 2016 / Notices which HUD office may have responsive records. If you are 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 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. CONTESTING RECORD 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 Helen Goff Foster, Chief Privacy Officer/Senior Agency Official for Privacy, 451 Seventh Street SW., Room 10139, Washington, DC 20410, or the HUD Departmental Privacy Appeals Officer, Office of General Counsel, Department of Housing and Urban Development, 451 Seventh Street SW., Room 10110, Washington, DC 20410. RECORD SOURCE CATEGORIES: Records in the system are obtained from: Mortgagors, appraisers, inspectors, mortgagee staff appraisers, mortgagee staff underwriters, housing counselors, individuals that pass the HUD Certified Housing Counselor examination, HUD Housing Counseling Program clients that receive education and counseling from a HUD participating housing counseling agency, and HUD employees. SYSTEMS EXEMPTED FROM CERTAIN PROVISIONS OF THE ACT: None. [FR Doc. 2016–25177 Filed 10–17–16; 8:45 am] BILLING CODE 4210–67–P A. Overview of Information Collection DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT [Docket No. FR–5909–N–72] 30-Day Notice of Proposed Information Collection: HOME Investment Partnership Program Office of the Chief Information Officer, HUD. ACTION: Notice. AGENCY: HUD is seeking approval from the Office of Management and Budget (OMB) for renewal of the information collection described below. In accordance with the Paperwork Reduction Act, HUD is requesting comment from all interested parties on the proposed collection of information. Lhorne on DSK30JT082PROD with NOTICES SUMMARY: VerDate Sep<11>2014 13:19 Oct 17, 2016 Jkt 241001 The purpose of this notice is to allow for 60 days of public comment. DATES: Comments Due Date: November 17, 2016. ADDRESSES: Interested persons are invited to submit comments regarding this proposal. Comments should refer to the proposal by name and/or OMB Control Number and should be sent to: Anna P. Guido, Reports Management Officer, QDAM, Department of Housing and Urban Development, 451 7th Street SW., Room 4176, Washington, DC 20410–5000; telephone 202–402–5535 (this is not a toll-free number) or email at Anna.P.Guido@hud.gov for a copy of the proposed forms or other available information. Persons with hearing or speech impairments may access this number through TTY by calling the tollfree Federal Relay Service at (800) 877– 8339. FOR FURTHER INFORMATION CONTACT: Anna P. Guido, Reports Management Officer, QDAM, Department of Housing and Urban Development, 451 7th Street SW., Washington, DC 20410; email Anna P. Guido at Anna.P.Guido@ hud.gov or telephone 202–402–5535. This is not a toll-free number. Persons with hearing or speech impairments may access this number through TTY by calling the toll-free Federal Relay Service at (800) 877–8339. Copies of available documents submitted to OMB may be obtained from Ms. Guido. SUPPLEMENTARY INFORMATION: This notice informs the public that HUD is seeking approval from OMB for renewal of the information collection described in Section A. The Federal Register notice that solicited public comment on the information collection for a period of 60 days was published on July 22, 2016 at 81 FR 47815. Title of Information Collection: HOME Investment Partnerships Program (HOME). OMB Control Number: 2506–0171. Type of Request: Extension of currently approved collection. Form Number: HUD 40093, SF 1199A, HUD 27055, HUD 40107, HUD 4010. Description of the need for the information and proposed use: The information collected through HUD’s Integrated Disbursement and Information System (IDIS) (24 CFR 92.502) is used by HUD Field Offices, HUD Headquarters, and HOME Program Participating Jurisdictions (PJs). The information on program funds committed and disbursed is used by HUD to track PJ performance and to PO 00000 Frm 00067 Fmt 4703 Sfmt 4703 71755 determine compliance with the statutory 24-month commitment deadline and the regulatory 5-year expenditure deadline (§ 92.500(d)). The project-specific property, tenant, owner, and financial data is used to compile annual reports to Congress required at Section 284(b) of the HOME Investment Partnerships Act, as well as to make program management decisions about how well program participants are achieving the statutory objectives of the HOME Program. Program management reports are generated by IDIS to provide data on the status of program participants’ commitment and disbursement of HOME funds. These reports are provided to HUD staff as well as to HOME PJs. Management reports required in conjunction with the Annual Performance Report (§ 92.509) are used by HUD Field Offices to assess the effectiveness of locally designed programs in meeting specific statutory requirements and by Headquarters in preparing the Annual Report to Congress. Specifically, these reports permit HUD to determine compliance with the requirement that PJs provide a 25 percent match for HOME funds expended during the Federal fiscal year (Section 220 of the Act) and that program income be used for HOME eligible activities (Section 219 of the Act), as well as the Women and Minority Business Enterprise requirements (§ 92.351(b)). Financial, project, tenant and owner documentation is used to determine compliance with HOME Program cost limits (Section 212(e) of the Act), eligible activities (§ 92.205), and eligible costs (§ 92.206), as well as to determine whether program participants are achieving the income targeting and affordability requirements of the Act (Sections 214 and 215). Other information collected under Subpart H (Other Federal Requirements) is primarily intended for local program management and is only viewed by HUD during routine monitoring visits. The written agreement with the owner for long-term obligation (§ 92.504) and tenant protections (§ 92.253) are required to ensure that the property owner complies with these important elements of the HOME Program and are also reviewed by HUD during monitoring visits. HUD reviews all other data collection requirements during monitoring to assure compliance with the requirements of the Act and other related laws and authorities. HUD tracks PJ performance and compliance with the requirements of 24 CFR parts 91 and 92. PJs use the required information in the execution of E:\FR\FM\18OCN1.SGM 18OCN1

Agencies

[Federal Register Volume 81, Number 201 (Tuesday, October 18, 2016)]
[Notices]
[Pages 71750-71755]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-25177]


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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

[Docket No. FR-5921-N-17]


Implementation of the Privacy Act of 1974, as Amended; Notice 
Amendment for Computerized Homes Underwriting Management System/Loan 
Application Management System

AGENCY: Office of Housing, HUD.

ACTION: Notice Amendment.

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SUMMARY: The Department is publishing a notice advising of a system of 
records amendment for system of records: Computerized Homes 
Underwriting Management System--Development of New System of Records, 
Loan Application Management System, published in the Federal Register 
on October 20, 2014 at 79 FR 62656-62658. The Department discovered 
that information under the original notice had been omitted and 
reissues this notice to incorporate omitted information. In addition, 
the revised notice introduces a new method used by the system to 
collect and process new records and establishes new routine use 
instances. This notice adds back to the notice previously omitted 
information maintained by the systems on non-borrowing spouses, 
incorporates new records pertaining to housing counselor efforts, 
establishes new routine uses, and refines current record keeping 
procedures, the authority, and purpose statements. A detailed 
description of the systems updates and the new functions are contained 
in the SUPPLEMENTARY INFORMATION section.

FOR FURTHER INFORMATION CONTACT:  Helen Goff Foster, Chief Privacy 
Officer/Senior Agency Official for Privacy, 451 Seventh Street SW., 
Room 10139, Washington, DC 20410, telephone number 202-402-6836 (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 at 800-877-8339 (this is a toll-free number).

SUPPLEMENTARY INFORMATION: Amendments to this notice: HUD published in 
the Federal Register system of records notice for Computerized Homes 
Underwriting Management System--Development of New System of Records, 
Loan Application Management System on October 20, 2014, at 79 FR 62656-
62658, and amendments are being proposed to this notice, as follows:
    Page 62657, in the first column, under the system of records 
caption ``CATEGORIES OF INDIVIDUALS COVERED BY THE SYSTEM'' this

[[Page 71751]]

section is being updated to read: Individuals who have applied for a 
mortgage insured under HUD/Federal Housing Administration's single-
family mortgage insurance programs, including any non-borrowing 
spouse(s) associated with a Home Equity Conversion Mortgage (HECM) 
transaction. Also, HUD business partners (appraisers, inspectors, 
mortgagee staff underwriters) and HUD employees (appraisers, mortgage 
credit examiners, architectural employees, receiving clerks, assignment 
clerks, commitment clerks, records clerks, and closing clerks) involved 
in the HUD/FHA single-family underwriting process, and new records on 
individuals who pass the HUD Certified Housing Counselor examination 
whether or not they become certified; individuals seeking HUD certified 
housing of new records.
    Page 62657, in the first column, under the system of records 
captions ``CATEGORIES OF RECORDS IN THE SYSTEM'' this section is being 
updated to read: Automated files contain the following categories of 
records:
     Mortgagors (Borrowers): name, address, Social Security 
number (SSN) or other identification number, racial/ethnic background 
(if disclosed), date of birth, credit scores (often referred to as 
FICO[supreg] Scores), marital status, and details about the mortgage 
loan, including loan application documentation. This information is 
supplied by lenders during the mortgage application and underwriting 
process.
     Non-Borrowing Spouses: name, SSN or other identification 
number, date of birth, and details about the mortgage loan, including 
loan application documentation. This information is supplied by lenders 
during the mortgage application and underwriting process on specific 
loan types to acknowledge in writing that the non-borrowing spouse has 
protections under the law to remain in the home after the death of 
their borrowing spouse or an indication that the non-borrowing spouse 
is not a borrower and not required to sign the loan contract and the 
property does not serve as their primary residence.
     Appraisers and Inspectors: name, address, SSN 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, 203k Consultants, and HECM Counselors: SSN 
or other identification number, territory and workload of the 
individuals.
     HUD Employees: name and SSN 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.
     Individuals registering to access the HUD Housing 
Counselor Certification Examination: legal first and last name, mailing 
address, telephone number, email address, fax number (if applicable), 
SSN, and employer's HUD Housing Counseling System (HCS) number (if 
registrant's employer is a housing counseling agency participating in 
HUD's Housing Counseling Program). Registrants have the option of 
providing demographic information: race, ethnicity, gender and 
languages in which counseling services are offered. HUD is collecting 
information on languages to assess the number of examinees that might 
benefit from certification examination training materials being 
available in other languages. Information for fee payment will be 
collected by a third party vendor and will include credit card number, 
expiration date, and security code.
     Individuals registering for HUD Certified Housing 
Counselor status or for Agency Application Coordinator for FHA 
Connection: legal first and last name, mailing address, telephone 
number, email address, fax number (if applicable), SSN, HUD Housing 
Counselor Certification System ID number, mother's maiden name, and 
employer's HUD Housing Counseling System (HCS) ID number, and 
verification of employing agency's name.
     Examination Information: scores from housing counselor 
certification examination list of all test-takers who pass the 
certification examination.
     Client Certificate of Housing Counseling: legal first and 
last name and address of the housing counseling client receiving 
counseling services from an agency participating in HUD's Housing 
Counseling Program; legal first and last name and the Counselor ID 
number of the counselor completing the client certificate of housing 
counseling; name, address, telephone number, Employer Identification 
Number (EIN), and HCS ID number of the agency participating in HUD's 
Housing Counseling Program; date and type of counseling service 
received; fees collected or waived; and whether counseling or education 
occurred in-person or remotely (telephone or Internet).
     NOTE: Certain records contained in this system which 
pertain to individuals contain principally proprietary information 
concerning sole proprietorships that may also reflect personal 
information, however, only the records reflecting personal information 
are subject to the Privacy Act.
    Page 62658, in the second column, under the system of records 
caption ``RETENTION AND DISPOSAL'' this section is being amended to 
read: Current Procedures: 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 retains case data indefinitely. The Records 
Retention Schedule for CHUMS/F17 is listed in the HUD Records 
Disposition Schedules Handbook (2225.6) Appendix A--Single Family Home 
Mortgage Insurance Program Records. In addition, processes are being 
put in place to align all practices where information will be retained 
and disposed of in accordance with HUD Records Disposition Schedule 
Handbook (2225.6), which has been approved by the National Archives and 
Records Administration. According to Records Management Office and 
Schedule 20 of HUD's Record Retention Schedule, the requirement is to 
retain for 6 years after the term of the loan. In some cases, this may 
be up to 36 years, at which time the information should be transferred 
to NARA. The transfer of the data would eliminate the concern of not 
having access to the information if needed in the future.
    According to GRS 1.2 DAA-GRS-2013-0008-0001, records collected and 
stored for HUD Certified Housing Counselor Certification and/or Client 
Housing Counseling Certificates that reside in the systems will be kept 
for a minimum 10 years after the final action is taken on the file, 
document, and/or transaction. Longer retention is authorized if 
required for business use (Reference: GRS 1.2 DAA-GRS-2013-0008-0001).
    After the record retention requirements have been met (a minimum of 
10 years), the data and records can be purged or deleted from the 
system. If paper records are generated from the system, they can be 
archived at the local Federal Records Center after the final action or 
transaction has taken place.
    Page 62658, in the first column is being updated to identify new 
disclosure requirements related to Federal Housing Administration's 
Office of Housing, by adding routine use (7) to clarify that records 
from this SORN may be disclosed to Government Sponsored

[[Page 71752]]

Enterprises and other authorized entities to enhance HUD's programs 
operations and performance through automated underwriting, credit 
scoring, and risk management, and records related to counseling 
certification requirements, by adding routine use (11) to clarify that 
records will be disclosed from the system to third party fee collection 
service for payment of examination fees, and routine use (11) to 
clarify that non-PII records will be made available to the general 
public from the system.
    Pursuant to the Privacy Act and the Office of Management and Budget 
(OMB) guidelines, the amended notices meets threshold requirements for 
having to transmit 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.

    Authority: 5 U.S.C. 552a; 88 Stat. 1896; 42 U.S.C. 3535(d).

    Dated: October 12, 2016.
Helen Goff Foster,
Chief Privacy Officer/Senior Agency Official for Privacy.

SYSTEM OF RECORDS NO:
    HSNG.SF/HUP.02.

SYSTEM NAMES:
    Computerized Homes Underwriting Management System (CHUMS) F17/Loan 
Application Management System (LAMS) P292)).

SYSTEM LOCATION:
    The CHUMS and LAMS system is hosted at the 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, staff in HUD Headquarters and 
throughout the country access CHUMS and LAMS through HUD's standard 
telecommunications network from desktop work stations, and access by 
both HUD employees and business partners is granted via secure HTTP 
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 Home 
Ownership Centers, located in Atlanta, GA; Denver, CO; Philadelphia, 
PA; and Santa Ana, CA; and the sixty-one (61) HUD owned and operated 
Field Offices \1\ in various locations across the country.
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    \1\ https://portal.hud.gov/hudportal/documents/huddoc?id=append2.pdf.
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CATEGORIES OF INDIVIDUALS COVERED BY THE SYSTEM:
    Individuals who have applied for a mortgage insured under HUD/FHA's 
single-family mortgage insurance programs, including any non-borrowing 
spouses associated with the transaction. Also, HUD business partners 
(appraisers, inspectors, mortgagee staff underwriters), HUD employees 
(appraisers, mortgage credit examiners, architectural employees, 
receiving clerks, assignment clerks, commitment clerks, records clerks, 
and closing clerks) involved in the HUD/FHA single-family underwriting 
process; individuals who pass the HUD Certified Housing Counselor 
examination whether or not they become certified, individuals seeking 
HUD certified housing counselor certification, or housing counseling 
clients receiving housing counseling from an agency participating in 
HUD's Housing Counseling Program.

CATEGORIES OF RECORDS IN THE SYSTEM:
    Automated files contain the following categories of records:
     Mortgagors (Borrowers): name, address, Social Security 
number (SSN) or other identification number, racial/ethnic background 
(if disclosed), date of birth, credit scores (often referred to as 
FICO[supreg] Scores), marital status, and details about the mortgage 
loan, including loan application documentation. This information is 
supplied by lenders during the mortgage application and underwriting 
process.
     Non-Borrowing Spouses: name, SSN or other identification 
number, date of birth, and details about the mortgage loan, including 
loan application documentation. This information is supplied by lenders 
during the mortgage application and underwriting process on specific 
loan types to acknowledge in writing that the non-borrowing spouse has 
protections under the law to remain in the home after the death of 
their borrowing spouse or an indication that the non-borrowing spouse 
is not a borrower and not required to sign the loan contract and the 
property does not serve as their primary residence.
     Appraisers and Inspectors: name, address, SSN 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: SSN 
or other identification number, territory and workload of the 
individuals.
     HUD Employees: name, SSN 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.
     Individuals registering to access the HUD Housing 
Counselor Certification Examination: Legal first and last name, mailing 
address, telephone number, email address, fax number (if applicable), 
SSN, and employer's HUD Housing Counseling System (HCS) number (if 
registrant's employer is a housing counseling agency participating in 
HUD's Housing Counseling Program). Registrants have the option of 
providing demographic information: Race, ethnicity, gender and 
languages in which counseling services are offered. HUD is collecting 
information on languages to assess the number of examinees that might 
benefit from certification examination training materials being 
available in other languages. Information for fee payment will be 
collected by a third party vendor and will include credit card number, 
expiration date, and security code.
     Individuals registering for HUD Certified Housing 
Counselor status or for Agency Application Coordinator for FHA 
Connection: Legal first and last name, mailing address, telephone 
number, email address, fax number (if applicable), SSN, HUD Housing 
Counselor Certification System ID number, mother's maiden name, and 
employer's HUD Housing Counseling System (HCS) ID number, and 
verification of employing agency's name.
     Examination Information: Scores from housing counselor 
certification examination list of all test-takers who pass the 
certification examination.
     Client Certificate of Housing Counseling: Legal first and 
last name and address of the housing counseling client receiving 
counseling services from an agency participating in HUD's Housing 
Counseling Program, legal first and last name and the Counselor ID 
number of the counselor completing the client certificate of housing 
counseling, name, address, telephone number,

[[Page 71753]]

Employer Identification Number (EIN), and HCS ID number of the agency 
participating in HUD's Housing Counseling Program, date and type of 
counseling service received, fees collected or waived and whether 
counseling or education occurred in-person or remotely (telephone or 
Internet).


    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, enables HUD/
FHA to process applications for HUD mortgage insurance and respond to 
inquiries regarding applications and insured mortgages; The Housing and 
Community Development Act of 1987, 42 U.S.C. 3543, authorizes HUD to 
collect SSNs Social Security numbers for FHA Connect users are 
collected to ensure mortgagee eligibility requirements are met, 12 
U.S.C. Sec.  1708(d)); Subtitle D of title XIV of the Dodd-Frank Wall 
Street Reform and Consumer Protection Act, Public Law 111-203, 124 
Stat. 1376 (July 21, 2010); Section 106 of the Housing and Urban 
Development Act of 1968, 12 U.S.C. 1701x.

PURPOSE(S):
    The Loan Application Management System (LAMS) is developed to 
better assist FHA with its automated processing, analysis, and 
screening of the appraisal documentation. CHUMS is developed to support 
lenders and HUD staff in the processing of insurance applications for 
single-family mortgages, from the initial loan application all the way 
through endorsement. Various mortgage loan types are processed through 
CHUMS, including loans for First Time Homebuyers, Home Equity 
Conversion Mortgages (HECM), Section 184 Indian Home Loan Guarantee, 
and 203K rehabilitation loans. CHUMS provides HUD field office staff 
functionality for tracking and processing cases, and allows monitoring 
of workloads by field office management. CHUMS also contains the FHA 
TOTAL (Technology Open to Approved Lenders) Scorecard, which evaluates 
the overall creditworthiness of mortgage loan applications submitted 
through Automated Underwriting Systems based on a number of credit 
variables, and determines the associated level of risk for loans 
submitted for FHA insurance.
    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 Mortgage 
Industry Standard Maintenance Organization (MISMO) 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. The purpose for collecting the new 
records that will be maintained by this system is to verify the 
participating agency's compliance with HUD's Housing Counseling Program 
requirements. Other statutory changes to improve the effectiveness of 
housing counseling include increasing the breadth of counseling 
services so that they are comprehensive with respect to homeownership 
and rental counseling and issuing client Certificates of Housing 
Counseling to verify counseling requirements for FHA and other Federal, 
State, and local programs, as applicable. HUD's Housing Counseling 
Program currently provides comprehensive homeownership and rental 
counseling. As noted in the proposed rule published on September 13, 
2013, an individual counselor, in contrast to multiple counseling 
agencies, will have to show competency (through passage of an 
examination) in identifying and understanding the breadth of 
homeownership and rental counseling services. Currently, a potential 
homebuyer or homeowner is likely to seek a housing counseling agency 
that specializes in a specific area and receive comprehensive 
counseling by a counselor in that specific area. As a result of 
increasing the breadth of counseling service knowledge, a housing 
counselor providing counseling on a specific area requested by the 
client would also be trained to identify cross-cutting issues that a 
client may not have identified when seeking out a specific counselor or 
during the intake process by the housing counseling agency. In 
addition, certifying individual counselors may further enhance the high 
regard of agencies and counselors participating in HUD's Housing 
Counseling Program.

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 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,\2\ published in the Federal Register.
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    \2\ https://portal.hud.gov/hudportal/documents/huddoc?id=routine_use_inventory.pdf.
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    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. HUD determines that 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 
of security.
    3. To a congressional office from the record of an individual in 
response to

[[Page 71754]]

an inquiry from that congressional office made at the request of the 
individual to whom the record pertains.
    4. To the Federal Bureau of Investigations for investigations of 
possible fraud revealed in FHA underwriting, insuring or monitoring 
process for mortgage insurance.
    5. To the Department of Justice for prosecutions of fraud revealed 
in FHA underwriting, insuring or monitoring process for mortgage 
insurance.
    6. To the General Accounting Office (GAO) for audit purposes.
    7. To financial institutions (including Government Sponsored 
Enterprises), computer software companies and other Federal agencies 
(including the Federal Reserve) to enhance program operations and 
performance through automated underwriting, credit scoring and risk 
management.
    8. To other federal agencies (including the Federal Reserve) for 
purposes of research not involving personally identifiable information, 
to evaluate program effectiveness in meeting HUD's/FHA's mission, or to 
inform policy makers on changes to effect program improvements.
    9. To the Department's Office of Policy Development Research and 
its researchers for mortgage credit evaluations and statistical 
analysis.
    10. To contractors, grantees, experts, consultants, and the agents 
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. 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.
    11. To third party fee collection service when needed for payment 
of certified housing counselor examination fees. Only legal name, 
address for credit card billing, and telephone number will be released.
    12. To the general public to verify if a certified housing 
counselor identification number is valid. Only certified housing 
counselor first and last name and housing counseling agency(ies) that 
employ this counselor will be released under this be routine use for 
valid certified housing counselor identification numbers. The 
information will be released to any interested person only through a 
specific Web page on either www.hud.gov or the HUD Exchange designated 
by HUD.

POLICIES AND PRACTICES FOR STORING, RETRIEVING, ACCESSING, RETAINING, 
AND DISPOSING OF RECORDS IN THE SYSTEM:
STORAGE:
    Records in this system are stored on magnetic tape/disc/drum. If 
paper records are generated, they will be stored from unauthorized use 
and stored at the Federal Records facility.

RETRIEVABILITY:
    Electronic/paper records are retrieved by case number, name, social 
security number housing counselor ID number, or other identification 
number. Office of Housing Counseling Staff will be able to retrieve 
counselor employment history for specific time periods. The general 
public will be able to verify if a counselor is currently certified by 
HUD through a public access Web page on HUD.gov or HUD Exchange. The 
public search will identify the name of the housing counselor and 
agency(ies) the counselor is employed by. Full access to HUD Certified 
Housing Counselor Database information in CHUMS will be limited to a 
few individuals on an as-needed basis for compliance purposes.

SAFEGUARDS:
    Electronic records are maintained in secure areas, and access is 
limited to authorized personnel.

RETENTION AND DISPOSAL:
    Current Procedures: 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 retains case data indefinitely. The Records Retention 
Schedule for CHUMS/F17 is listed in the HUD Records Disposition 
Schedules Handbook (2225.6), Schedule 20,\3\ and Single Family Home 
Mortgage Insurance Program Records.
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    \3\ https://portal.hud.gov/hudportal/documents/huddoc?id=22256x20admh-1.pdf.
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FUTURE PROCEDURES:
    Processes are being put in place to align all practices where 
information will be retained, archived, then destroyed in accordance 
with HUD approved Records Disposition Schedule Handbook (2225.6), 
Schedule 20. According to Records Management Office and Schedule 20 of 
HUD's Record Retention Schedule, records will be retained, archived, 
and destroyed a minimum of 6 years after the term of the mortgage. In 
some cases, this may be up to 36 years, at which time the information 
should be transferred to NARA. The transfer of the data would eliminate 
the concern of not having access to the information if needed in the 
future. The records collected and stored for HUD Certified Housing 
Counselor Certification and/or Client Housing Counseling Certificates 
that reside in the systems will be kept for a minimum 10 years after 
the final action is taken on the file, document, and/or transaction. 
Longer retention is authorized if required for business use (Reference: 
GRS 1.2 DAA-GRS-2013-0008-0001). After the record retention 
requirements have been met (a minimum of 10 years), the data and 
records can be purged or deleted from the system. Backup and Recovery 
digital media will be destroyed or otherwise rendered irrecoverable per 
NIST SP 800-88 ``Guidelines for Media Sanitization'' (September 2006). 
This complies with all Federal regulations.

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 Helen Goff Foster, Chief Privacy Officer/Senior Agency 
Official for Privacy, 451 Seventh Street SW., Room 10139, Washington, 
DC 20410, telephone number 202-402-6836 (this is not a toll-free 
number). 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 
``Procedures for Inquiries''. 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 FOIA staff 
determine

[[Page 71755]]

which HUD office may have responsive records.
    If you are 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 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.

CONTESTING RECORD 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 Helen 
Goff Foster, Chief Privacy Officer/Senior Agency Official for Privacy, 
451 Seventh Street SW., Room 10139, Washington, DC 20410, or the HUD 
Departmental Privacy Appeals Officer, Office of General Counsel, 
Department of Housing and Urban Development, 451 Seventh Street SW., 
Room 10110, Washington, DC 20410.

RECORD SOURCE CATEGORIES:
    Records in the system are obtained from: Mortgagors, appraisers, 
inspectors, mortgagee staff appraisers, mortgagee staff underwriters, 
housing counselors, individuals that pass the HUD Certified Housing 
Counselor examination, HUD Housing Counseling Program clients that 
receive education and counseling from a HUD participating housing 
counseling agency, and HUD employees.

SYSTEMS EXEMPTED FROM CERTAIN PROVISIONS OF THE ACT:
    None.

[FR Doc. 2016-25177 Filed 10-17-16; 8:45 am]
 BILLING CODE 4210-67-P
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