Privacy Act of 1974; System of Records, 63686-63692 [2023-20055]

Agencies

• DEPARTMENT OF VETERANS AFFAIRS

[Federal Register Volume 88, Number 178 (Friday, September 15, 2023)]
[Notices]
[Pages 63686-63692]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-20055]


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DEPARTMENT OF VETERANS AFFAIRS


Privacy Act of 1974; System of Records

AGENCY: Veterans Benefits Administration, Department of Veterans 
Affairs (VA).

ACTION: Notice of a modified system of records.

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SUMMARY: Pursuant to the Privacy Act of 1974, notice is hereby given 
that VA is modifying the system of records entitled, ``Loan Guaranty 
Home, Condominium and Manufactured Home Loan Applicants Records, 
Specially

[[Page 63687]]

Adapted Housing Applicant Records, and Vendee Loan Applicant Records--
VA'' (55VA26). This system is used to identify potential liability to 
the Federal Government for exposure to loans guaranteed by VA; to 
maintain data to accurately provide information pursuant to annual 
congressional reporting obligations; to conduct oversight over the loan 
process and review loans issued by lenders for compliance to credit 
underwriting policies; and to allow for the review of eligibility and 
entitlements for Veteran applicants as well as compliance to policies 
by the program participants (which would include lenders, servicers, 
appraisers, builders, staff appraiser reviewer (SARs), underwriters, 
compliance inspectors, and other requesters. VA is republishing the 
system notice in its entirety.

DATES: Comments on this modified system of records must be received no 
later than 30 days after date of publication in the Federal Register. 
If no public comment is received during the period allowed for comment 
or unless otherwise published in the Federal Register by VA, the 
modified system of records will become effective a minimum of 30 days 
after date of publication in the Federal Register. If VA receives 
public comments, VA shall review the comments to determine whether any 
changes to the notice are necessary.

ADDRESSES: Comments may be submitted through www.Regulations.gov or 
mailed to VA Privacy Service, 810 Vermont Avenue NW, (005X6F), 
Washington, DC 20420. Comments should indicate that they are submitted 
in response to Loan Guaranty Home, Condominium, Manufactured Home Loan 
Applicant Records, Specially Adapted Housing Applicant Records, and 
Vendee Loan Applicant Records--VA (55VA26). Comments received will be 
available at regulations.gov for public viewing, inspection, or copies.

FOR FURTHER INFORMATION CONTACT: Robert Colin Deaso, 202-632-8796, 
Assistant Director, PMDI, Loan Guaranty Service (26), VA Central 
Office, Washington, DC 20420.

SUPPLEMENTARY INFORMATION: VA is modifying the system of records by 
making revisions to the following sections: System Location; Authority 
for Maintenance of the System; Purpose; Categories of Individuals 
Covered by the System; Categories of Records in the System; Record 
Source Categories; Policies and Practices for Storage of Records; 
Policies and Practices for Retrieval of Records; Policies and Practices 
for Retention and Disposal of Records; Record Access Procedures; 
Contesting Record Procedures; Notification Procedures; and History. The 
Routine Uses of Records Maintained in the System section is also being 
updated. Specifically, the first 11 routine uses are standard across 
most VA Systems of Records and were either modified and/or added. The 
routine uses are otherwise the same or minorly edited for consistency 
and clarity.
    The Report of Intent to Amend a System of Records Notice and an 
advance copy of the system notice have been sent to the appropriate 
Congressional committees and to the Director of the Office of 
Management and Budget (OMB) as required by 5 U.S.C. 552a(r) (Privacy 
Act) and guidelines issued by OMB (65 FR 77677), December 12, 2000.

Signing Authority

    The Senior Agency Official for Privacy, or designee, approved this 
document and authorized the undersigned to sign and submit the document 
to the Office of the Federal Register for publication electronically as 
an official document of the Department of Veterans Affairs. Kurt D. 
DelBene, Assistant Secretary for Information and Technology and Chief 
Information Officer, approved this document on August 7, 2023 for 
publication.

SYSTEM NAME AND NUMBER:
    Loan Guaranty Home, Condominium and Manufactured Home Loan 
Applicant Records, Specially Adapted Housing Applicant Records, and 
Vendee Loan Applicant Records--VA (55VA26).

SECURITY CLASSIFICATION:
    Unclassified.

SYSTEM LOCATION:
    Records are maintained in the VA information systems, VA Central 
Office, Regional Offices, Regional Loan Centers, VA offices and VA data 
processing centers having jurisdiction over the geographic area in 
which the property securing a VA-guaranteed, insured, or direct loan or 
on which a specially adapted housing grant has been issued is located. 
Records may be temporarily transferred between fields stations or to 
the VA Central Office for necessary appeals, reviews, or quality 
control reviews. Address locations are listed in VA Appendix I.

SYSTEM MANAGER(S):
    R. Colin Deaso, Assistant Director, PMDI, Loan Guaranty Service 
(26), VA Central Office, Washington, DC 20420.

AUTHORITY FOR MAINTENANCE OF THE SYSTEM:
    38 U.S.C. 501; 38 U.S.C. Ch. 21; 38 U.S.C. Ch. 37.

PURPOSE(S) OF THE SYSTEM:
    The purpose of this system is to identify potential liability to 
the Federal Government for exposure to loans guaranteed by VA; to 
maintain data to accurately provide information pursuant to annual 
congressional reporting obligations; to conduct oversight over the loan 
process and review loans issued by lenders for compliance to credit 
underwriting policies; and to allow for the review of eligibility and 
entitlements for Veteran applicants as well as compliance to policies 
by the program participants (which would include lenders, servicers, 
appraisers, builders, staff appraiser reviewer (SARs), underwriters, 
compliance inspectors, and other requesters.

CATEGORIES OF INDIVIDUALS COVERED BY THE SYSTEM:
    The following categories of individuals will be covered by this 
system:
    (1) Disabled Veterans who have applied for and received specially 
adapted housing assistance under title 38 U.S.C. Ch. 21;
    (2) Veterans, their spouses or unmarried surviving spouses who have 
applied for and received VA housing credit assistance under title 38 
U.S.C. Ch. 37;
    (3) Person(s) applying to purchase VA owned properties (vendee 
loans);
    (4) Transferee owners of properties encumbered by a VA-guaranteed, 
insured, direct or vendee loan (e.g., individuals who have assumed a 
VA-guaranteed loan and those who have purchased property directly from 
VA); and
    (5) Individuals other than those identified above who may have 
applied for loan guaranty benefits from VA.

CATEGORIES OF RECORDS IN THE SYSTEM:
    Records (or information contained in records) may include the 
following:
    (1) Military service information from a Veteran's discharge 
certificate (DD Form 214, 215) which specifies name, service number, 
date of birth, rank, period of service, length of service, branch of 
service, pay grade, and other information relating to a Veteran's 
military service (e.g., character of service, assigned separation 
reason code, whether a Veteran is out of the service);
    (2) Medical records containing specific information regarding a 
Veteran's physical disability (e.g., blindness, paraplegic condition, 
loss of

[[Page 63688]]

limbs) which is used to determine eligibility and need for specially 
adapted housing;
    (3) Adjudication records relating to: (a) Medical determinations by 
VA that a Veteran is eligible and needs specially adapted housing; or 
(b) VA determinations for Veterans who have received an Other than 
Honorable discharge might be eligible for VA credit assistance 
benefits;
    (4) Applications for certificates of eligibility (these 
applications generally contain information from a Veteran's military 
service records except for character of discharge);
    (5) Applications for FHA Veterans' low-down payment loans (these 
applications generally contain information from a Veteran's military 
service records including whether or not a Veteran is in the service);
    (6) Applications for a guaranteed or direct loan, applications for 
release of liability, applications for substitutions of VA entitlement 
and applications for specially adapted housing (these applications 
generally contain information relating to employment, income, credit, 
personal data; e.g., social security number, marital status, number and 
identity of dependents; assets and liabilities at financial 
institutions, profitability data concerning business of self-employed 
individuals, information relating to an individual Veteran's loan 
account and payment history on a VA-guaranteed, direct, or vendee loan 
on an acquired property, medical information when specially adapted 
housing is sought, and information regarding whether a Veteran owes a 
debt to the United States) and may be accompanied by other supporting 
documents which contain the above information;
    (7) Applications for the purchase of a VA acquired property (e.g., 
vendee loans--these applications generally contain personal and 
business information on a prospective purchaser such as social security 
number, credit, income, employment history, payment history, business 
references, personal information and other financial obligations and 
may be accompanied by other supporting documents which contain the 
above information);
    (8) Loan instruments including deeds, notes, installment sales 
contracts, and mortgages;
    (9) Property management information, e.g., condition and value of 
property, inspection reports, notices of value, correspondence and 
other information regarding the condition of the property (occupied, 
vandalized), and a legal description of the property, including 
geographic identifying information including, but not limited to, 
latitude and longitude coordinates, and FIPS or Block ID codes;
    (10) Information regarding VA loan servicing activities regarding 
default, repossession and foreclosure procedures, assumable loans, 
payment of taxes and insurance, filing of judgments (liens) with State 
or local authorities and other related matters in connection with 
active and/or foreclosed loans; and
    (11) Information regarding the status of a loan (i.e., approved, 
pending, or rejected by VA).

RECORD SOURCE CATEGORIES:
    The VA records in this system are obtained from the applicant; 
lenders; brokers and builder/sellers; an applicant's credit sources; 
depository institutions and employers; hazard insurance companies; 
taxing authorities; title companies; fee personnel; other VA records; 
other Federal, State and local agencies; and other parties of interest 
involving VA-guaranteed, insured, vendee or direct loans or specially 
adapted housing.

ROUTINE USES OF RECORDS MAINTAINED IN THE SYSTEM, INCLUDING CATEGORIES 
OF USERS AND PURPOSES OF SUCH USES:
    1. Congress
    To a Member of Congress or staff acting upon the Member's behalf 
when the Member or staff requests the information on behalf of, and at 
the request of, the individual who is the subject of the record.
    2. Data Breach Response and Remediation, for VA
    To appropriate agencies, entities, and persons when (1) VA suspects 
or has confirmed that there has been a breach of the system of records, 
(2) VA has determined that as a result of the suspected or confirmed 
breach there is a risk of harm to individuals, VA (including its 
information systems, programs, and operations), the Federal Government, 
or national security; and (3) the disclosure made to such agencies, 
entities, and persons is reasonably necessary to assist in connection 
with VA's efforts to respond to the suspected or confirmed breach or to 
prevent, minimize, or remedy such harm.
    3. Data Breach Response and Remediation, for Another Federal Agency
    To another Federal agency or Federal entity, when VA determines 
that information from this system of records is reasonably necessary to 
assist the recipient agency or entity in (1) responding to a suspected 
or confirmed breach or (2) preventing, minimizing, or remedying the 
risk of harm to individuals, the recipient agency or entity (including 
its information systems, programs, and operations), the Federal 
Government, or national security, resulting from a suspected or 
confirmed breach.
    4. Law Enforcement
    To a Federal, state, local, territorial, tribal, or foreign law 
enforcement authority or other appropriate entity charged with the 
responsibility of investigating or prosecuting such violation or 
charged with enforcing or implementing such law, provided that the 
disclosure is limited to information that, either alone or in 
conjunction with other information, indicates a violation or potential 
violation of law, whether civil, criminal, or regulatory in nature. The 
disclosure of the names and addresses of veterans and their dependents 
from VA records under this routine use must also comply with the 
provisions of 38 U.S.C. 5701.
    5. DoJ, Litigation, Administrative Proceeding
    To the Department of Justice (DoJ), or in a proceeding before a 
court, adjudicative body, or other administrative body before which VA 
is authorized to appear, when:
    (a) VA or any component thereof;
    (b) Any VA employee in his or her official capacity;
    (c) Any VA employee in his or her individual capacity where DoJ has 
agreed to represent the employee; or
    (d) The United States, where VA determines that litigation is 
likely to affect the agency or any of its components is a party to such 
proceedings or has an interest in such proceedings, and VA determines 
that use of such records is relevant and necessary to the proceedings.
    6. Contractors
    To contractors, grantees, experts, consultants, students, and 
others performing or working on a contract, service, grant, cooperative 
agreement, or other assignment for VA, when reasonably necessary to 
accomplish an agency function related to the records.
    7. OPM
    To the Office of Personnel Management (OPM) in connection with the 
application or effect of civil service laws, rules, regulations, or OPM 
guidelines in particular situations.
    8. EEOC
    To the Equal Employment Opportunity Commission (EEOC) in connection 
with investigations of alleged or possible discriminatory practices, 
examination of Federal affirmative employment programs, or other 
functions of the Commission as authorized by law.
    9. FLRA

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    To the Federal Labor Relations Authority (FLRA) in connection with 
the investigation and resolution of allegations of unfair labor 
practices, the resolution of exceptions to arbitration awards when a 
question of material fact is raised, matters before the Federal Service 
Impasses Panel, and the investigation of representation petitions and 
the conduct or supervision of representation elections.
    10. MSPB
    To the Merit Systems Protection Board (MSPB) in connection with 
appeals, special studies of the civil service and other merit systems, 
review of rules and regulations, investigation of alleged or possible 
prohibited personnel practices, and such other functions promulgated in 
5 U.S.C. 1205 and 1206, or as authorized by law.
    11. NARA
    To the National Archives and Records Administration (NARA) in 
records management inspections conducted under 44 U.S.C. 2904 and 2906, 
or other functions authorized by laws and policies governing NARA 
operations and VA records management responsibilities.
    12. Credit Underwriting
    To credit reporting agencies, companies extending credit, 
depository institutions, utility companies, investors, insurance 
companies, governmental agencies, lenders, and employers to enable such 
parties to provide VA with information regarding income, credit, assets 
and liabilities information on applicants, mortgagors, or obligors and 
to provide VA with information regarding the status of obligations, 
payment records, employment histories, assets for closing fees and 
other assets and liabilities.
    13. Asset Verification
    To a prospective mortgagee proposing to make a guaranteed loan on 
the Veteran applicant's behalf, provided that VA discloses Information 
on the application for a guaranteed or direct loan, and on the 
certificate of reasonable value and information verifying an 
applicant's employment and/or amount of deposit in a financial 
institution.
    14. Commitment Denial
    To a prospective lender regarding the status (i.e., approved, 
pending, or rejected) of an application for VA loan benefits or for a 
loan account and the reasons for rejection. When VA has rejected a loan 
application, the information disclosed may include information from 
another VA record such as a debt which the Veteran owes to the United 
States or information from a claims file relating to a Veteran's 
ability to discharge an obligation.
    15. Commitment Status
    To a seller, a spouse of a seller, or the spouse of the Veteran-
applicant who is an actual party in interest to the guaranteed, insured 
or direct loan transaction in order to inform such party of the status 
of the loan application, provided that only the fact that the loan has 
been approved, rejected, or is pending may be disclosed. However, a 
statement of the reason for rejection of the loan may also be provided 
to the spouse of the Veteran-applicant if the spouse is a joint 
applicant for the loan or would be jointly liable on the loan.
    16. Acquired Properties
    To a broker aiding in the sale of a VA-acquired property in order 
for the broker to assist the prospective purchaser in completing his or 
her application, provided that the information disclosed is about the 
application for a VA-acquired property (vendee loan) concerning a 
prospective purchaser. Such information may include an explanation of 
specific loan document discrepancies or specific information on income 
or credit.
    17. Loan Status
    To persons or organizations extending credit or providing services 
or other benefits to the obligor, or persons or organizations 
considering the extension of credit, services or other benefits to the 
potential obligor provided the name, address, or other information 
necessary to identify the obligor is given beforehand by the requester, 
and that information disclosed is about the status (i.e., the payment 
record), of a guaranteed, insured, direct, or VA-acquired property 
(vendee) loan account(s).
    18. Hazard Insurance, Real Estate Taxing Authorities
    To hazard insurance companies and real estate taxing authorities to 
obtain billings and to authorize payments of such obligations as they 
become due from the direct and vendee (portfolio) loan escrow accounts, 
provided that disclosed information is the name and address of an 
obligor (e.g., an individual who has obtained a VA-guaranteed loan or 
purchased a VA property), and the account number (insurance, tax 
number).
    19. Substitution of Entitlement Release of Liability
    To parties presently liable on a VA loan, loan guaranty or loan 
insurance agreement, provided that disclosed information is about 
Information as to the acceptability or nonacceptability of a 
prospective purchaser preparing to assume liability to VA under a 
mortgage contract or of a prospective purchaser preparing to substitute 
loan guaranty entitlement for the party presently obligated. In 
addition, the acceptability or nonacceptability of a transferee owner 
may be disclosed to parties presently liable on a VA loan, loan 
guaranty or loan insurance agreement, for the purpose of releasing the 
original Veteran borrower, or a Veteran who substituted loan guaranty 
entitlement for the original Veteran borrower, from liability. The 
reason(s) for nonacceptability of the prospective loan assumer or 
transferee or of a purchaser/transferee (e.g., poor credit history, 
insufficient income and/or debts owed the U.S.) may also be disclosed 
to parties presently liable on a VA loan, loan guaranty or loan 
insurance agreement in order to inform the parties presently liable of 
the reasons for the nonacceptability.
    20. Delinquent Loan
    To prior owners remaining contingently liable for indebtedness to 
permit prior owners to take necessary action(s) to protect their 
interest where loan liquidation is indicated and to prevent a possible 
debt to the Government which may be placed against the prior owner, 
provided that disclosure is of the default status of a delinquent loan 
account (e.g., amount of payments in arrears, number of months in 
arrears, what efforts VA has taken to service the loan, condition of 
the property, repayment schedule, and total amount of debt).
    21. Liquidate Defaulted Loans
    To the U.S. Department of Justice or United States Attorneys in 
order for the Department of Justice of U.S. Attorneys to liquidate a 
defaulted loan by judicial process and take title on the foreclosed 
property in accordance with State law. Any information in this system 
may also be disclosed to the Department of Justice or U.S. Attorneys in 
order for the foregoing parties to prosecute or defend litigation 
involving or pertaining to the United States. Any relevant information 
in this system may also be disclosed to other Federal agencies upon 
their request in connection with review of administrative tort claims 
and potential tort claims filed under the Federal Tort Claims Act, 28 
U.S.C. 2672, the Military Claims Act, 10 U.S.C. 2733, and other similar 
claims statutes.
    22. Loan Data
    To the General Accounting Office (GAO) to enable the GAO to pursue 
necessary collection activities and obtain a judgment against the 
obligor(s), provided that disclosed information is loan account 
information (e.g., loan account number, property condition, legal 
description of property, date loan issued, amount of loan and amount in 
arrears), current credit reports containing name and address of an

[[Page 63690]]

obligor and the cause and date(s) of default may be disclosed.
    23. Vendee Loan Data
    To active investors purchasing or considering the purchase of VA 
direct or vendee loans from VA or from a previous investor, provided 
that information disclosed is from a direct or vendee loan account 
record. Such information will be furnished to active prospective 
investors to provide a basis for their submitting an offer to purchase 
loans and to actual investors in order that they may establish loan 
accounts on purchased loans. Such information may also be disclosed to 
financial advisors to assist VA in developing strategies for marketing 
these loans, and to investment bankers, bond rating agencies, other 
government agencies, private mortgage insurance companies, bonding 
companies, master servicers, and others involved in the marketing or 
sale of vendee loans, including legal counsel, accountants and auditors 
for such entities.
    24. Federal Employee Obligations
    To a debtor's Federal employing agency or commanding officer so 
that the debtor-employee may be counseled by his or her federal 
employer or commanding officer and to assist in the collection of 
unpaid financial obligations owed the U.S., provided that information 
is about the nature and amount of a financial obligation. This purpose 
is consistent with 5 U.S.C. 5514, 4 CFR 102.5, and section 206 of 
Executive Order 11222 of May 8, 1965 (30 FR 6469).
    25. Guardians Ad Litem, for Representation
    To a fiduciary or guardian ad litem in relation to his or her 
representation of a claimant in any legal proceeding as relevant and 
necessary to fulfill the duties of the fiduciary or guardian ad litem.
    26. Locate Contact Information for Debt Collection
    To other Federal agencies, State probate courts, State driver's 
license bureaus, and State automobile title and license bureaus in 
order for VA to obtain current name, address, locator and credit report 
assistance in the collection of unpaid financial obligations owed to 
the United States. This purpose is consistent with the Federal Claims 
Collection Act of 1966 (Pub. L. 89-508, 31 U.S.C. 951-953 and 4 CFR 
parts 101-105), and the disclosure is authorized by 38 U.S.C. 
3301(b)(6).
    27. Disclose Contact for Debt Collection
    To fee attorneys, fee appraisers, management brokers, process 
servers, subordinate lien holders, title companies, abstractors and VA 
attorneys for the purposes of loan approval or loan termination of 
direct or vendee loans by judicial or nonjudicial means; to obtain 
possession of VA property in cases of default or foreclosure to issue 
and post Demands for Possession or Notices to Quit; to file judgments 
(liens) in accordance with State and local law and to carry out all 
other necessary VA program responsibilities. VA fee attorneys may 
disclose record information contained therein to title insurance 
companies and title agents, for Trustee's sale advertisements, and to 
subordinate lien holders.
    28. Obligor's Personal Information
    To appropriate State and local authorities in order to conform to 
State and local law requirements and to assist VA and State and local 
authorities in identifying VA judgment debtors on State and local 
judgment records, provided that disclosure is limited to an obligor's 
social security number and other information regarding the filing of 
judgments (liens).
    29. Veteran's Competency
    To a lender or prospective lender extending credit or proposing to 
extend credit on behalf of a Veteran in order for VA to protect 
Veterans that are unable to manage their finances from entering into 
unsound financial transactions which might deplete the resources of the 
Veteran and to protect the interests of the Government giving credit 
assistance to a Veteran, provided that information disclosed is 
relating to the adjudication of incompetency of a Veteran either by a 
court of competent jurisdiction or by VA.
    30. Fraudulently Obtained Benefits
    To any third party, except consumer reporting agencies, in 
connection with any proceeding for the collection of any amount owed to 
the United States, provided that information disclosed is concerning 
the Veteran's indebtedness to the United States by virtue of a person's 
participation in a benefits program administered by VA, including 
personal information obtained from other Federal agencies through 
computer matching programs. Purposes of these disclosures may be (a) to 
assist VA in collection of title 38 benefit overpayments, overdue 
indebtedness, and/or costs of services provided individuals not 
entitled to such services, and (b) to initiate legal actions for 
prosecuting individuals who willfully or fraudulently obtained title 38 
benefits without entitlement.
    31. Consumer Reporting Agencies
    To a consumer reporting agency for purposes of reporting 
delinquencies, defaults and indebtedness and assisting in the 
collection of such indebtedness, provided that information disclosed is 
the name and address of an obligor, as well as other information that 
is reasonably necessary to identify the person, including personal 
information obtained from other Federal agencies through computer or 
other matching programs, and any information concerning such person's 
delinquency or default on a loan made or guaranteed by VA.
    32. VA Inquiry to Other Federal Agencies
    To a federal agency in order for VA to obtain information relevant 
to the making, insuring, or guaranteeing of a loan under 38 U.S.C. 
Chapter 37, except for the name and address of a Veteran. The name and 
address of a Veteran may be disclosed to a federal agency under this 
routine use if they are required by the Federal agency to respond to 
the VA inquiry.
    33. Federal Debt Notice to IRS
    To the Department of Treasury, Internal Revenue Service, for the 
collection of 38 U.S.C. benefit overpayments, overdue indebtedness, 
and/or costs of services provided to an individual not entitled to such 
services, by the withholding of all or a portion of the person's 
Federal income tax refund. Examples of information of information that 
can be disclosed are the name of a Veteran, other beneficiary, or other 
information as is reasonably necessary to identify such individual, and 
any other information concerning the individual's indebtedness by 
virtue of a person's participation in a benefits program administered 
by VA.
    34. Abandonment or Foreclosure of Property
    To the Department of the Treasury, Internal Revenue Service, where 
required by law, including the borrower's name, address, social 
security or taxpayer identification number, amount of interest paid, 
and information relating to any abandonment or foreclosure of a 
property.
    35. VA Acquired Properties
    To prospective purchasers and their representatives in order to 
assist VA in the timely disposal of its acquired properties. Such 
information may include: the name of the purchaser and purchaser's 
sales agent; price and terms of the successful offeror's, along with 
the reason(s) for selecting such offer over any other competing offer; 
loan number; property address; property survey; title limitations/
policy; termite inspections; existing warranties; repairs made by VA 
and items still requiring repair; and dues payable to and services

[[Page 63691]]

provided by homeowner or condominium associations.
    36. Closing Fees
    To the lender or holder of a VA, guaranteed loan, or their 
attorneys, in support of a decision by VA to reject a claim under 
guaranty, demand reimbursement for a claim previously paid, or in the 
course of settlement negotiations. When a demand for reimbursement will 
be made against a party other than the lender or holder, such as the 
real estate broker, fee appraiser or seller of the property, the 
information may be disclosed to the party and its attorneys.
    37. VA Data Provided to HUD
    To the Department of Housing and Urban Development (HUD) for 
inclusion in its Credit Alert Interactive Voice Response System 
(CAIVRS), all participating agencies, and lenders who participate in 
those agencies' programs to enable them to verify information provided 
by new loan applicants and evaluate the creditworthiness of applicants. 
Information disclosed under this routine use includes VA guaranteed and 
portfolio loans which fall under one of the following categories:
    (a) The accounts are not current;
    (b) There has been a foreclosure; or
    (c) The Department has paid a claim.
    These records may also be disclosed as part of an ongoing computer 
matching program to accomplish these purposes.
    38. Vendors
    To any individual, organization, or other entity with whom VA has a 
contract or agreement under which that entity will perform services to 
assist VA in the administration of the Loan Guaranty Program, provided 
that information disclosed is relevant loan guaranty record 
information. The information that may be disclosed under this routine 
use is limited to that which is necessary to permit the contractor to 
perform the services required under the contract or agreement.
    39. Prior Loan Information
    To an active VA lender, lender's agent, mortgage broker, or other 
program participant in response to a request from that individual or 
entity if that information is necessary in connection with the 
origination of a VA-guaranteed Interest Rate Reduction Refinancing Loan 
(IRRRL). In order to obtain information under this routine use, the 
party requesting the information must establish the fact that it is a 
participant in the VA home loan program through the use of a VA lender 
identification number. The requester must also provide the Veteran's 
name and social security number and the month and year of the loan 
being refinanced or the 12-digit VA loan number.
    40. Servicemembers Loan Status
    To a service member's commanding officer or designee if VA 
determines that sharing this information is necessary in order to reach 
a service member who has otherwise not responded to VA to attempt to 
assist in curing a default or resolving a foreclosure or eviction of a 
VA-guaranteed or direct loan.

POLICIES AND PRACTICES FOR STORAGE OF RECORDS:
    VA-guaranteed, insured, direct and vendee loan records information 
are maintained at LGY Regional Loan Centers and VA LGY Central Office. 
Loan records may be located in individual folders on paper documents.

POLICIES AND PRACTICES FOR RETRIEVAL OF RECORDS:
    Records are retrieved by name and VA loan file number. Automated 
records are indexed for statistical purposes by a file number, field 
station and county code number and lender identification number. 
However, an individual loan record in automated format may only be 
retrieved by name or loan number.

POLICIES AND PRACTICES FOR RETENTION AND DISPOSAL OF RECORDS:
    Records in this system are retained and disposed of in accordance 
with the schedule approved by the Archivist of the United States, 
Records Control Schedule VB-1, Part II, 2-23; 2-3; 2-24.

ADMINISTRATIVE, TECHNICAL, AND PHYSICAL SAFEGUARDS:
    Access to VA working spaces and record file storage areas is 
restricted to VA employees on a ``need to know'' basis. Generally, VA 
file areas are locked after normal duty hours and are protected from 
outside access by the Federal Protective Service or other VA security 
personnel. Loan and property security instruments are stored in 
separate fire-resistant locked files. VA employee loan file records and 
other files which, in the opinion of VA, are, or may become, sensitive 
are stored in separate locked files. Access to electronic VA 
information is managed through identity and access manager controls. 
Information in the system may be accessed from authorized terminals in 
the VA network. Terminal locations include VA Central Office and 
regional offices. Access to terminals is by authorization controlled by 
the site security officer. The security officer is assigned 
responsibility for privacy-security measures, especially for review of 
violations logs, information logs and control of password and badge 
readers and audible alarms. Electronic keyboard locks are activated on 
security errors. Also, beginning in 1986, sensitive files were 
established using the social security numbers of the VA Veterans 
Benefits Administration employees and other prominent individuals to 
prevent indiscriminate access to their automated records.
    Access to programs is controlled at three levels: Programming, 
auditing, and operations. Access to data processing centers is 
generally restricted to center employees, custodial personnel, Federal 
Protective Service and other security personnel. Access to computer 
rooms is restricted to authorized operational personnel through 
electronic locking devices.
    LGY operates at VA's FedRAMP authorized Amazon Web Services (AWS) 
GovCloud data centers. AWS data centers are highly restricted for both 
physical and logical access. Physical access controls are inherited 
from AWS to all GovCloud customers. VA's AWS environment is logically 
restricted to support VA operations only. Further, LGY's AWS 
environment is logically restricted to LGY authorized operations 
personnel whose duties require management of LGY systems.
    LGY follows VA's data security requirements to protect VA, LGY, and 
Veteran's data at rest. LGY's servers utilize FIPS 140-2 compliant 
encryption methods to protect the confidentiality of data at rest at 
the operating system (OS) level and for data storage. VA authorized 
baselines are used to build LGY servers and are configured with FIPS 
mode enabled by default. Similarly, LGY virtual storage devices such as 
AWS Elastic Block Store Volumes (EBS) and S3 are encrypted by default 
using Amazon Key Management Service (KMS) for protection of data at 
rest. These methods ensure that LGY data is protected in real-time as 
it's stored within the LGY security boundary. The S3 environment stores 
the LGY electronic data indefinitely till LGY Central Office provides 
disposition requirements.

RECORD ACCESS PROCEDURES:
    Individuals seeking information on the existence and content of 
records in this system pertaining to them should contact the system 
manager in writing as indicated above. A request for access to records 
must contain the requester's full name, address, telephone number, be 
signed by the requester, and describe the records sought in sufficient 
detail to enable VA personnel to locate them with a reasonable amount 
of effort. However, some of the records in this system are exempt from 
the record access requirements under 5 U.S.C.

[[Page 63692]]

552a(k). To the extent that records in this system of records are not 
subject to exemption, the records are subject to access procedures.

CONTESTING RECORD PROCEDURES:
    Individuals seeking to contest or amend records in this system 
pertaining to them should contact the system manager in writing as 
indicated above. A request to contest or amend records must state 
clearly and concisely what record is being contested, the reasons for 
contesting it, and the proposed amendment to the record. However, some 
of the records in this system are exempt from the record contesting 
requirements under 5 U.S.C. 552a(k). To the extent that records in this 
system of records are not subject to exemption, the records are subject 
to contesting procedures.

NOTIFICATION PROCEDURES:
    Generalized notice is provided by the publication of this notice. 
For specific notice, see Record Access Procedure, above.

EXEMPTIONS PROMULGATED FOR THE SYSTEM:
    The Department of Veterans Affairs has exempted this system of 
records from the following provisions of the Privacy Act of 1974, as 
permitted by 5 U.S.C. 552a(k)(2).

    5 U.S.C. 552a(c)(3)
    5 U.S.C. 552a(d)
    5 U.S.C. 552a(e)(1)
    5 U.S.C. 552a(e)(4)(G), (H) and (I)
    5 U.S.C. 552a(f)

    Reasons for exemptions: The exemption of information and material 
in this system of records is necessary in order to accomplish the law 
enforcement functions of the Loan Guaranty Service to prevent subjects 
of internal audit investigations for potential fraud and abuse in the 
VA Loan Guaranty Program from frustrating the investigatory process, to 
fulfill commitments made to protect the confidentiality of sources, to 
maintain access to sources of information and to avoid endangering 
these sources.

HISTORY:
    67 FR 72721 (December 6, 2002); 77 FR 74282 (December 13, 2012); 
and 79 FR 3922 (January 23, 2014).

    Dated: September 12, 2023.
Amy L. Rose,
Government Information Specialist, VA Privacy Service, Office of 
Compliance, Risk and Remediation, Office of Information and Technology, 
Department of Veterans Affairs.
[FR Doc. 2023-20055 Filed 9-14-23; 8:45 am]
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