Implementation of the Privacy Act of 1974, as Amended; System of Records Notice Amendment, Distributive Shares and Refunds Subsystem, 22293-22296 [2016-08774]

Download as PDF Federal Register / Vol. 81, No. 73 / Friday, April 15, 2016 / Notices asabaliauskas on DSK3SPTVN1PROD with NOTICES borrower on a delinquent or defaulted federal direct loan or federallyguaranteed loan. Federal agency personnel and authorized lenders must enter a user authorization code followed by either a SSN or EIN to access CAIVRS. Only the following information is returned or displayed: • Yes/No as to whether the holder of that SSN/EIN is in default on a Federal loan; and • If Yes, then CAIVRS provides to the lender: Æ Loan case number; Æ Record type (claim, default, foreclosure, or judgment); Æ Agency administering the loan program; Æ Phone number at the applicable Federal agency (to call to clear up the default); and Æ Confirmation Code associated with the query. Federal law mandates the suspension of the processing of applications for Federal credit benefits (such as government-insured loans) if the applicants are delinquent on Federal or Federally-guaranteed debt. Processing may continue only after the borrower satisfactorily resolves the debt (e.g., pays in full or renegotiates a new payment plan). To remove a CAIVRS sanction, the borrower must contact the Federal agency that reported their SSN or EIN to HUD/CAIVRS using the information provided. Records To Be Matched HUD will use records from the Single Family Default Monitoring System (SFDMS/F42D) (72 FR 65350, November 20, 2007, and Single Family Insurance System—Claims Subsystem, CLAIMS, A43C (79 FR 10825, February 26, 2014), as combined in CAIVRS to provide an up-to-date dataset to be used in records matching. SFDMS maintains data on mortgages that are 90 or more days delinquent. The Mortgagee or Servicer must submit a Monthly Delinquent Loan Report (HUD–92068–A) to HUD on a monthly basis until the mortgage status has been completed by all Mortgagees, or is otherwise terminated or deleted. Mortgagees and Servicers provide default data to HUD via Electronic Data Interchange (EDI) or using the Internet via FHA Connection, through which the data is sorted, pre-screened, key entered, edited, and otherwise processed. Reports are generated for HUD Headquarters and Field Offices to review. CLAIMS provides automated receipt, tracking and processing of form HUD– 27011, Single Family Application for Insurance Benefits. CLAIMS provides online update and inquiry capability to VerDate Sep<11>2014 17:27 Apr 14, 2016 Jkt 238001 Single Family Insurance and Claims databases, and to cumulative history files. Claims payments are made by Electronic Funds Transfer (EFT) via an HDS platform (IBM mainframe/Treasury interface) on a daily basis. For the actual data match, VA will use records from the system of records entitled ‘‘Accounts Receivable Records 88VA244.’’ Notice Procedures HUD and VA have separate procedures for notifying individuals that their records will be matched to determine whether they are delinquent or in default on a Federal debt. HUD will notify individuals at the time of application for a HUD/FHA mortgage, and VA will notify individuals at the time of application for a VA loan services. VA may disclose information from that application to other Federal agencies under published ‘‘routine use,’’ without the applicants’ consent, as permitted by law. HUD and VA published a notice concerning routine use disclosures in the Federal Register to inform individuals that a computer match may be performed to determine a loan applicant’s credit status with the Federal Government. The Privacy Act also requires that a copy of each Computer Matching Agreement entered into with a recipient agency shall be available upon request to the public. Categories of Records/Individuals Involved Data elements disclosed in computer matching governed by this Agreement are Personally Identifiable Information (PII) from the specified VA system of record. The data elements supplied by VA to CAIVRS are the following: • Borrower ID Number—The Social Security Number (SSN), Employer Identification. • Number (EIN) or Taxpayer Identification Number (TIN) of the borrower on a delinquent or defaulted Federal direct loan or Federally guaranteed loan. • Case Number—A reference number issued by the reporting agency for the delinquent or defaulted Federal direct loan or Federally guaranteed loan. • Agency Code—A code assigned to the reporting agency. • Type Code—A code that indicates the type of record—claim, default, foreclosure, or judgment. • Borrower ID Type—A code that indicates whether the Borrower ID Number is a SSN, EIN, or TIN. PO 00000 Frm 00086 Fmt 4703 Sfmt 4703 22293 Period of the Match Matching will begin at least 40 days from the date that copies of the Computer Matching Agreement, signed by HUD and VA DIBs, are sent to both Houses of Congress and OMB; or at least 30 days from the date this notice is published in the Federal Register, whichever is later, provided that no comments that would result in a contrary determination are received. The matching program will be in effect and continue for 18 months with an option to renew for 12 additional months unless one of the Parties to the Agreement advises the other in writing to terminate or modify the Agreement. Dated: April 6, 2016. Patricia A. Hoban-Moore, Chief Administrative Officer, Office of Administration. [FR Doc. 2016–08775 Filed 4–14–16; 8:45 am] BILLING CODE 4210–67–P 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 Office of Housing, HUD. System of records notice amendment. AGENCY: ACTION: 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 SUMMARY: E:\FR\FM\15APN1.SGM 15APN1 asabaliauskas on DSK3SPTVN1PROD with NOTICES 22294 Federal Register / Vol. 81, No. 73 / Friday, April 15, 2016 / Notices 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 VerDate Sep<11>2014 17:27 Apr 14, 2016 Jkt 238001 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 nonsubstantive 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 § 3543, titled ‘‘Preventing fraud and PO 00000 Frm 00087 Fmt 4703 Sfmt 4703 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 E:\FR\FM\15APN1.SGM 15APN1 Federal Register / Vol. 81, No. 73 / Friday, April 15, 2016 / Notices 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?’’ asabaliauskas on DSK3SPTVN1PROD with NOTICES 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 VerDate Sep<11>2014 17:27 Apr 14, 2016 Jkt 238001 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. 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, 1 http://portal.hud.gov/hudportal/documents/ huddoc?id=append1.pdf. PO 00000 Frm 00088 Fmt 4703 Sfmt 4703 22295 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. E:\FR\FM\15APN1.SGM 15APN1 22296 Federal Register / Vol. 81, No. 73 / Friday, April 15, 2016 / Notices 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 DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT [Docket No. FR–5939–N–01] Section 8 Housing Assistance Payments Program—Fiscal Year (FY) 2016 Inflation Factors for Public Housing Agency (PHA) Renewal Funding Office of the Assistant Secretary for Policy Development and Research, HUD. ACTION: Notice. AGENCY: asabaliauskas on DSK3SPTVN1PROD with NOTICES VerDate Sep<11>2014 17:27 Apr 14, 2016 Jkt 238001 I. Background Tables showing Renewal Funding Inflation Factors will be available electronically from the HUD data information page at: http:// www.huduser.gov/portal/datasets/rfif/ FY2016/FY2016_RFIF_FMR_AREA_ REPORT.pdf. Division L, Title II, Consolidated Appropriations Act, 2016 requires that the HUD Secretary, for the calendar year 2016 funding cycle, provide renewal funding for each public housing agency (PHA) based on validated voucher management system (VMS) leasing and cost data for the prior calendar year and by applying an inflation factor as established by the Secretary, by notice published in the Federal Register. This notice provides the FY 2016 inflation factors and describes the methodology for calculating them. II. Methodology The Consolidated Appropriations Act, 2016 requires that HUD apply ‘‘an inflation factor as established by the Secretary, by notice published in the Federal Register’’ to adjust FY 2016 renewal funding for the Tenant-based Rental Assistance Program or Housing Choice Voucher (HCV) Program of each PHA. HUD began using Renewal Funding Inflation Factors in FY 2012. These Renewal Funding SUMMARY: Inflation Factors incorporate economic indices to measure the expected change in per unit costs (PUC) for the HCV program. The methodology for FY 2016 is modified from what was used in FY 2015. DATES: Effective date: April 15, 2016. FOR FURTHER INFORMATION CONTACT: Miguel A. Fontanez, Director, Housing Voucher Financial Division, Office of Public Housing and Voucher Programs, Office of Public and Indian Housing, telephone number 202–402–4212; or Peter B. Kahn, Director, Economic and Market Analysis Division, Office of Policy Development and Research, telephone number 202–402–2409, for technical information regarding the development of the schedules for specific areas or the methods used for calculating the inflation factors, Department of Housing and Urban Development, 451 7th Street SW., Washington, DC 20410. Hearing- or speech-impaired persons may contact the Federal Relay Service at 800–877– 8339 (TTY). (Other than the ‘‘800’’ TTY number, the above-listed telephone numbers are not toll free.) SUPPLEMENTARY INFORMATION: The Department has focused on measuring the change in average per unit cost (PUC) as captured in HUD’s administrative data in VMS. In order to predict the likely path of PUC over time, HUD has implemented a model that uses three economic indices that capture key components of the economic climate and assist in explaining the changes in PUC. These economic components are the seasonally-adjusted unemployment rate (lagged twelve months), the Consumer PO 00000 Frm 00089 Fmt 4703 Sfmt 4703 Price Index from the Bureau of Labor Statistics, and the ‘‘wages and salaries’’ component of personal income from the National Income and Product Accounts from the Bureau of Economic Analysis. This model subsequently forecasts the expected annual change in average PUC from Calendar Year (CY) 2015 to CY 2016 for the voucher program on a national basis by incorporating comparable economic variables from the Administration’s economic assumptions. For reference, these economic assumptions are described in the FY 2016 Budget. The inflation factor for an individual geographic area is based on the annualized change in the area’s Fair Market Rent (FMR) between FY 2014 and FY 2016. These changes in FMR are then scaled such that the voucher-weighted average of all individual area inflation factors is equal to the expected annual change in national PUC from 2015 to 2016, and also such that no area has a factor less than one. HUD subsequently applies these calculated individual area inflation factors to eligible renewal funding for each PHA based on VMS leasing and cost data for the prior calendar year. The CY 2016 PHA HCV allocation uses 0.8 percent as the annual change in PUC. This figure was calculated by using VMS data through December of 2015 and actual performance of economic indices through December of 2015. III. The Use of Inflation Factors The inflation factors have been developed to account for relative differences in the changes of local rents so that HCV funds can be allocated among PHAs. In response to comments provided to HUD as requested in the 2015 Renewal Funding Inflation Factor notice, HUD has used the annualized change in FMRs measured between FY 2014 and FY 2016 in the apportionment of the national inflation rate to account for both the current change in rents but also the changes in rents experienced last year when the predicted inflation rate was negative. HUD anticipates that in 2017, the national inflation rate will be based on a new model of Per Unit Cost HUD is developing in response to comments that is based on independent forecasts of gross rents and tenant incomes without relying on historical values of Per Unit Cost, and will apportion this change based on the change in individual areas FMRs between FY 2016 and FY 2017. IV. Geographic Areas and Area Definitions Inflation factors based on renewal funding and area FMR changes are E:\FR\FM\15APN1.SGM 15APN1

Agencies

[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]


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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.
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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