Privacy Act of 1974; System of Records, 74201-74204 [2023-23875]

Agencies

• DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

[Federal Register Volume 88, Number 208 (Monday, October 30, 2023)]
[Notices]
[Pages 74201-74204]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-23875]


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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

[Docket No. FR-7077-N-21]


Privacy Act of 1974; System of Records

AGENCY: Office of Single-Family Housing, Office of Housing, HUD.

ACTION: Notice of a modified system of records.

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SUMMARY: HUD Single Family Asset Management relies on the Single-Family 
Mortgage Asset Recovery Technology (SMART) System to provide various 
loan servicing functions including generating payoffs and processing 
payments for HUD FHA Insured Title II Secretary held loans. Pursuant to 
the Privacy Act of 1974, as amended, the Department of Housing and 
Urban Development (HUD), Office of Single-Family Housing, is modifying 
system of records, the Single-Family Mortgage Asset Recovery Technology 
(SMART) System. The modification will clarify the categories of system 
location, system manager, authority for maintenance, purpose of the 
system, record source categories, routine uses of records maintained in 
the system, storage, retention and disposal, safeguards.

DATES: Comments will be accepted on or before November 29, 2023. This 
proposed action will be effective on the date following the end of the 
comment period unless comments are received which result in a contrary 
determination.

ADDRESSES: You may submit comments, identified by docket number or by 
one of the following methods:

[[Page 74202]]

    Federal e-Rulemaking Portal: https://www.regulations.gov. Follow the 
instructions provided on that site to submit comments electronically.
    Fax: 202-619-8365.
    Email: [email protected].
    Mail: Attention: Privacy Office; LaDonne White, Chief Privacy 
Officer; The Executive Secretariat; 451 Seventh Street SW, Room 10139; 
Washington, DC 20410-0001.
    Instructions: All submissions received must include the agency name 
and docket number for this rulemaking. All comments received will be 
posted without change to https://www.regulations.gov. including any 
personal information provided.
    Docket: For access to the docket to read background documents or 
comments received go to https://www.regulations.gov.

FOR FURTHER INFORMATION CONTACT: LaDonne White 451 Seventh Street SW, 
Room 10139; Washington, DC 20410-0001; telephone number 202-708-3054 
(this is not a toll-free number). HUD welcomes and is prepared to 
receive calls from individuals who are deaf or hard of hearing, as well 
as individuals with speech or communication disabilities. To learn more 
about how to make an accessible telephone call, please visit https://www.fcc.gov/consumers/guides/telecommunications-relay-service-trs.

SUPPLEMENTARY INFORMATION: HUD Single Family Asset Management relies on 
the Single-Family Asset Recovery Technology (SMART) System to provide 
various loan servicing functions including generating payoffs and 
processing for HUD FHA Insured Title II forward Secretary held loans. 
HUD is publishing this revised notice to update system location, 
manager, purpose, categories, routine uses, storage, retention and 
disposal, safeguards to mirror updated information in the sections 
being modified. The revision of system records will have no unnecessary 
impact on the individual's privacy and updates follow the records 
collected.
    1. Location-Added the new location of backup records.
    2. System Manager-Identified the new system manager operating this 
system of records.
    3. Purpose-Expanded to include detailed loan servicing information.
    4. Record Source Categories-Updated to cover all electronic and 
manual record sources for internal and external systems to HUD.
    5. Routine Uses-Amended to cover routine uses that are new, 
modified or removed.
    a. Added Routine Use (1) to address disclosures to the National 
Archives and Records Administration, Office of Government Information 
Services, to review administrative agency policies, procedures in 
compliance with FOIA and to facilitate the resolution of disputes 
between individuals making FOIA requests and administrative agencies.
    b. Added Routine Use (2) for disclosures made to congressional 
office from the record of an individual, in response to an inquiry from 
the congressional office completed at the request of that individual.
    c. Added Routine Use (3) to cover contractors who require access to 
the system in order to perform an agency function.
    d. Added Routine Use (4) to address disclosures for Federal 
agencies, non-Federal entities, their employees, agents (including 
contractors, their agents, or employees) for detecting, preventing 
improper payments, fraud, waste, and abuse in Federal programs.
    e. Added Routine Use (5) for disclosures made to contractors, 
grantees, experts, consultants, Federal agencies, and non-Federal 
entities conducting research and statistical analysis on HUD programs.
    f. Added Routine Use (6) to cover disclosures related to using new 
technology including system designs to improve overall program 
performance.
    g. Added Routine Use (7) and (8) for disclosures made to agencies, 
entities, and persons to assist HUD in responding to alleged or 
confirmed breaches of system records or other Federal agencies where 
HUD determines information from system records is needed to assist the 
agency in responding to an alleged or confirmed breach.
    h. Added Routine Use (9) to address disclosures to Federal, State, 
local, tribal, or other governmental agencies or multilateral 
governmental organizations in authority of investigating or prosecuting 
the violations of, or for enforcing or implementing, a criminal or 
civil statue, rule, regulation, order, or license.
    i. Added Routine Use (10) covering disclosures related to any area 
of the Department of Justice or other Federal agency overseeing 
litigation or related proceedings.
    j. Previously published Routine Uses (a) and (b) have been 
renumbered to (11) and (12), but otherwise remain unchanged.
    k. Added a note to allow for disclosures pursuant to 5 U.S.C. 
552a(b)(12) to cover consumer reporting agency related disclosures on 
attempts of the agency to collect claims owed on behalf of the 
government.
    6. Storage-Simplified the information regarding storage.
    7. Retention and Disposal-Added additional disposition details.
    8. Safeguards- Included more detail on updates to safeguard 
procedures.

SYSTEM NAME AND NUMBER:
    Single-Family Mortgage Asset Recovery Technology (SMART), HUD/HOU-
58.

SECURITY CLASSIFICATION:
    Unclassified.

SYSTEM LOCATION:
    Digital records are maintained at the Amazon Web Services (AWS) 
Simple Technology Solutions Inc, 1775 I Street NW, Suite 1150, 
Washington, DC 2006-2402. Active paper records are kept at ISN 
Corporation, 2000 N Classen Blvd., Suite 3200, Oklahoma City, OK 73106.

SYSTEM MANAGER(S):
    Office of Single-Family Housing, Julia Rogers, Director, National 
Servicing Center, 301 NW, 6th Street, Suite 200, Oklahoma City, OK 
73102, Telephone Number (405) 609-8414.

AUTHORITY FOR MAINTENANCE OF THE SYSTEM:
    Sec. 204, National Housing Act, 12 U.S.C. 1710(a).

PURPOSE(S) OF THE SYSTEM:
    The Single Family Mortgage Asset Recovery Technology (SMART) System 
is a specialized servicing web-application that is used to service and 
track servicing activities for the Secretary Held portfolio including 
235 insured, Asset Control Area Program (ACA), Emergency Home Loan 
Program (EHLP), Good Neighbor Next Door Program (GNND), Hope for 
Homeowners (H4H), Nehemiah Program, Partial Claim (PC), Purchase Money 
Mortgage (PMM). SMART provides automated business processes to perform 
comprehensive loan servicing for loan programs that are under the 
jurisdiction of the National Servicing Center.

CATEGORIES OF INDIVIDUALS COVERED BY THE SYSTEM:
    Mortgagors.

CATEGORIES OF RECORDS IN THE SYSTEM:
    Full Name, Social Security Number, Date of Birth, Email work 
Address, Financial Information, Home Address, Phone Number, Spouse 
Name, Lender Loan Number, FHA Case Number.

RECORD SOURCE CATEGORIES:
    Records are initiated from HUD employees and their contractors. 
Information is also received from Single

[[Page 74203]]

Family Insurance System (CLAIMS Subsystem), Asset Disposition and 
Management System, HUD FHA Resource Center Customer Relationship 
Management System (CRM).

ROUTINE USES OF RECORDS MAINTAINED IN THE SYSTEM, INCLUDING CATEGORIES 
OF USERS AND PURPOSES OF SUCH USES:
    (1) To the National Archives and Records Administration, Office of 
Government Information Services (OGIS), to the extent necessary to 
fulfill its responsibilities in 5 U.S.C. 552(h), to review 
administrative agency policies, procedures and compliance with the 
Freedom of Information Act (FOIA), and to facilitate OGIS' offering of 
mediation services to resolve disputes between persons making FOIA 
requests and administrative agencies.
    (2) To a congressional office from the record of an individual, in 
response to an inquiry from the congressional office made at the 
request of that individual.
    (3) To contractors, grantees, experts, consultants and their 
agents, or others performing or working under a contract, service, 
grant, cooperative agreement, or other 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.
    (4) To Federal agencies, non-Federal entities, their employees, and 
agents (including contractors, their agents or employees; employees or 
contractors of the agents or designated agents); or contractors, their 
employees or agents with whom HUD has a contract, service agreement, 
grant, cooperative agreement, or computer matching agreement for the 
purpose of: (1) detection, prevention, and recovery of improper 
payments; (2) detection and prevention of fraud, waste, and abuse in 
major Federal programs administered by a Federal agency or non-Federal 
entity; (3) detection of fraud, waste, and abuse by individuals in 
their operations and programs; or (4) for the purpose of establishing 
or verifying the eligibility of, or continuing compliance with 
statutory and regulatory requirements by, applicants for, recipients or 
beneficiaries of, participants in, or providers of services with 
respect to, cash or in-kind assistance or payments under Federal 
benefits programs or recouping payments or delinquent debts under such 
Federal benefits programs. Records under this routine use may be 
disclosed only to the extent that the information shared is necessary 
and relevant to verify pre-award and prepayment requirements prior to 
the release of Federal funds, prevent and recover improper payments for 
services rendered under programs of HUD or of those Federal agencies 
and non-Federal entities to which HUD provides information under this 
routine use.
    (5) contractors, grantees, experts, consultants, Federal agencies, 
and non-Federal entities, including, but not limited to, State and 
local governments and other research institutions or their parties, and 
entities and their agents with whom HUD has a contract, service 
agreement, grant, cooperative agreement, or other agreement for the 
purposes of statistical analysis and research in support of program 
operations, management, performance monitoring, evaluation, risk 
management, and policy development, to otherwise support the 
Department's mission, or for other research and statistical purposes 
not otherwise prohibited by law or regulation. Records under this 
routine use may not be used in whole or in part to make decisions that 
affect the rights, benefits, or privileges of specific individuals. The 
results of the matched information may not be disclosed in identifiable 
form.
    (6) To contractors, experts, and consultants with whom HUD has a 
contract, service agreement, assignment, or other agreement, when 
necessary, to utilize relevant data for the purpose of testing new 
technology and systems designed to enhance program operations and 
performance.
    (7) To appropriate agencies, entities, and persons when (1) HUD 
suspects or has confirmed that there has been a breach of the system of 
records; (2) HUD has determined that as a result of the suspected or 
confirmed breach there is a risk of harm to individuals, HUD, 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 HUD's efforts to respond to the suspected or 
confirmed breach to prevent, minimize, or remedy such harm.
    (8) To another Federal agency or Federal entity, when HUD 
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.
    (9) To appropriate Federal, State, local, Tribal, or other 
governmental agencies or multilateral governmental organizations 
responsible for investigating or prosecuting the violations of, or for 
enforcing or implementing, a statute, rule, regulation, order, or 
license, where HUD determines that the information would assist in the 
enforcement of civil or criminal laws and when such records, either 
alone or in conjunction with other information, indicate a violation or 
potential violation of law.
    (10) To any component of the Department of Justice or other Federal 
agency conducting litigation or in proceedings before any court, 
adjudicative, or administrative body, when HUD determines that the use 
of such records is relevant and necessary to the litigation and when 
any of the following is a party to the litigation or have an interest 
in such litigation: (1) HUD, or any component thereof; or (2) any HUD 
employee in his or her official capacity; or (3) any HUD employee in 
his or her individual capacity where the Department of Justice or 
agency conducting the litigation has agreed to represent the employee; 
or (4) the United States, or any agency thereof, where HUD determines 
that litigation is likely to affect HUD or any of its components.
    (11) To the U.S. Treasury for disbursements and adjustments.
    (12) To the IRS for reporting of discharge indebtedness.

POLICIES AND PRACTICES FOR STORAGE OF RECORDS:
    Electronic and paper records.

POLICIES AND PRACTICES FOR RETRIEVAL OF RECORDS:
    Records are retrieved by mortgagor name, FHA Case Number, or 
property address.

POLICIES AND PRACTICIES FOR RETENTION AND DISPOSAL OF RECORDS:
    In accordance with HUD records disposition schedule 2225.6, 
Appendix 20. records are destroyed upon successful creation of the 
final document or file, or when no longer needed for business use, 
whichever is later. Backup and recovery digital media will be destroyed 
or otherwise rendered irrecoverable per NIST SP 800-88 ``Guidelines for 
Media Sanitization.'' GRS 5.2, Item 20, DAA-GRS2017-0003-0002. 
Temporary. Destroy upon verification of successful creation of the 
final document or file, or when no longer needed for business use, 
whichever is later.

[[Page 74204]]

ADMINISTRATIVE, TECHNICAL, AND PHYSICAL SAFEGUARDS:
    Administrative Safeguards: When first gaining access to SMART and 
annually, all users must agree to the systems ``Rules of Behavior'' 
which specify handling of personal information and any physical 
records.
    Technical Safeguards: Controls for the system include, but are not 
limited to, username identification, password protection, multi-factor 
authentication, firewalls, virtual private network, encryption, and is 
limited to authorized users.
    Physical Safeguards: Controls to secure the data and protect paper 
records are maintained and locked in file cabinets. The original 
collateral documents (hard copy) are stored at the contractor's office 
site for all open loans and the closed documents are stored at a 
secured offsite document storage facility. All hard copy files are 
stored within a secured room within the contractor's secured office 
suite when not in use. Background screening, limited authorizations, 
and access, with access limited to authorized personnel and technical 
restraints employed regarding accessing the records, access to 
automated systems by authorized users by username and passwords.

RECORD ACCESS PROCEDURES:
    Individuals requesting records of themselves should address written 
inquiries to the Department of Housing Urban and Development 451 7th 
Street SW, Washington, DC 20410-0001. For verification, individuals 
should provide their full name, current address, and telephone number. 
In addition, the requester must provide either a notarized statement or 
an unsworn declaration made under 24 CFR 16.4.

CONTESTING RECORD PROCEDURES:
    The HUD rule for contesting the content of any record pertaining to 
the individual by the individual concerned is published in 24 CFR 16.8 
or may be obtained from the system manager.

NOTIFICATION PROCEDURES:
    Individuals requesting notification of records of themselves should 
address written inquiries to the Department of Housing Urban 
Development, 451 7th Street SW, Washington, DC 20410-0001. For 
verification purposes, individuals should provide their full name, 
office or organization where assigned, if applicable, and current 
address and telephone number. In addition, the requester must provide 
either a notarized statement or an unsworn declaration made under 24 
CFR 16.4.

EXEMPTIONS PROMULGATED FOR THE SYSTEM:
    None.

HISTORY:
    Docket No. FR-5386-N-05, 75 FR 34755, June 18, 2010.

LaDonne White,
Chief Privacy Officer, Office of Administration.
[FR Doc. 2023-23875 Filed 10-27-23; 8:45 am]
BILLING CODE 4210-67-P