Privacy Act of 1974; System of Records, 12368-12371 [2024-03313]

Agencies

• DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

[Federal Register Volume 89, Number 33 (Friday, February 16, 2024)]
[Notices]
[Pages 12368-12371]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-03313]


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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

[Docket No. FR-7092-N-21]


Privacy Act of 1974; System of Records

AGENCY: Office of Housing, Single Family Insurance Operations Division, 
HUD.

ACTION: Notice of a modified system of records.

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SUMMARY: Pursuant to the provisions of the Privacy Act of 1974, as 
amended, the Department of Housing and Urban Development (HUD), Office 
of Housing, Single Family Operations Division is modifying a system of 
records titled ``Distributive Shares and Refund Subsystem (DSRS)''. The 
DSRS serves as the Federal Housing Administration (FHA) repository for 
verifying mortgage insurance premium refunds and distributive share 
payments which are issued to eligible homeowners (mortgagors) who had 
an FHA mortgage insured loan. This system of records is being revised 
to make clarifying changes within: Authority for Maintenance of the 
System, System Location, Purpose of the System, Categories of 
Individuals Covered by the System, Categories of Records in the System, 
Records Source Category, Routine Uses of Records Maintained, Retention 
and Disposal of Records, Record Access Procedures, Contesting Record 
Procedures, and Notification Procedures. The modifications are outlined 
in the SUPPLEMENTARY INFORMATION section.

DATES: Comments will be accepted on or before March 18, 2024. The SORN 
becomes effective immediately, while the routine uses become effective 
after the comment period immediately upon publication except for the 
routine uses, which will become 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:
    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 Insurance Operations 
Division (SFIOD), maintains the DSRS system. HUD is publishing this 
revised notice to reflect modifications to routine uses, and the system 
authorities. In accordance with the DSRS system of records, the SFIOD 
will implement a new Part B Online Application to provide homeowners 
with a convenient method to submit applications online. Additionally, 
administrative updates are being added to the remaining SORN

[[Page 12369]]

sections to reflect the system in its current state. The modification 
of the system of records will have no undue impact on the privacy of 
individuals and updates are consistent with the records collected.
    The following are updates since the previous SORN publication:
     Purpose of the System: Added information pertaining to the 
new Part B Online Application to facilitate same-day request, homeowner 
application submission, and refund disbursement.
     Record Source Category: Added existing sources information 
for U.S Department of Treasury, and New Part B Online Application web 
page.
     Authority for Maintenance of the System: Updated with 
existing authorities that permit the maintenance of the system's 
records by clarifying citations, correcting errors, and including 
relevant citations to the Code of Federal Register. Statutes and 
regulations are listed below.
     Categories of Records in the System: Updated the section 
with clarifying details and incorporated the Individual Tax 
Identification Number (ITIN), and related documents for certain non-
residents and residents' aliens, spouses and dependents from other 
countries who do not have SSNs. The records are captured by records 
under ``Identification and Verification'' documents.
     Routine Use of Records in System: HUD will make modified 
disclosures from this system of records to authorized agencies and 
participants as described below. These modifications will enable HUD to 
issue payments and refunds and continue to test new technology. 
Additionally, the organization of the routine use section has changed 
from letters to numbers.
     Modified routine use (9)--(Changed from I) to refine and 
limit the scope of records shared for testing new technology to enhance 
program technology and services. This modification limits the scope of 
the prior record sharing activities.
     Modified routine use (6)--(Changed from F) to explain each 
Treasury disclosure type, the Treasury organization (The Bureau of the 
Fiscal Service), and additional details under Treasury collection 
services.
     Records Retention and Disposition: Updated this section by 
clarifying the general records schedules (GRS) by GRS Item Numbers, 
rather than down to the program level. Additionally, new GRS have been 
incorporated into the process.

SYSTEM NAME AND NUMBER:
    Distributive Shares and Refund Subsystem (DSRS) HUD/HOU-03.

SECURITY CLASSIFICATION:
    Unclassified.

SYSTEM LOCATION:
    National Center for Critical Information Processing and Storage, 
located in Mississippi and Virginia; the HUD Headquarter Building at 
451 Seventh Street SW, Room 3238, Washington DC 20410-1000; Pyramid 
Systems at 2677 Prosperity Avenue, Fairfax Virginia 22031; M&M IT 
Solutions at 11750 Beltsville Drive, Beltsville MD, 20705-3194; Falon 
Sourcing Solutions at 9028 Prince William Street, Manassas, Virginia 
20110-5664.

SYSTEM MANAGER(S):
    Silas Vaughn, System Manager, Single Family Insurance Operations 
Division, Department of Housing and Urban Development, 451 Seventh 
Street SW, Second floor, Washington, DC 20410-0001; telephone number, 
202-708-2438.

AUTHORITY FOR MAINTENANCE OF THE SYSTEM:
    Section 203(a) of the National Housing Act of 1934 (12 U.S.C. 
1709(a)); 24 CFR 203.35. Section 7(d) of the Department of Housing and 
Urban Development Act of 1965 (42 U.S.C. 3535(d)); 24 CFR 5.210; 24 CFR 
200.1101. The Housing Community Development Act of 1987, 42 U.S.C. 
3543(a). Section 4 of the Debt Collection Act of 1982, 31 U.S.C. 
7701(b). Section 31001 of the Debt Collection Improvement Act of 1996, 
31 U.S.C. 3711(g)(9). FHA Single Family Housing Policy Handbook 4000.1.

PURPOSES OF THE SYSTEM:
    Distributive Shares and Refund Subsystem (DSRS) maintains detailed 
records for single family non-claim terminated case activities to 
ensure that the proper homeowner associated with the FHA guaranteed 
loan is identified. Upon non-claim termination (i.e., prepayment, 
assignment, assumption, or refinance), the borrower may be eligible for 
a refund of any unearned upfront mortgage insurance premium (UFMIP) 
paid at closing or a distributive share payment. The ``Does HUD Owe You 
a Refund? '' website is used in conjunction with DSRS to allow 
homeowners to determine if they are eligible for an upfront mortgage 
insurance premium refund or distributive share payment. In addition, 
DSRS utilizes the Premium Refund Application Upload web page component 
to provide another option for homeowners to securely send the required 
documents to HUD to complete the homeowner refund process, and the Part 
B Online Application web page to support homeowners in securely 
submitting the application online, with the aim of enhancing HUD's 
responsiveness (Under Review). SFIOD staff can request disbursement of 
lender and homeowner refunds due, and DSRS will certify that the 
requests are valid.

CATEGORIES OF INDIVIDUALS COVERED BY THE SYSTEM:
    (1) Homeowners (Mortgagors) who had Federal Housing Administration 
(FHA) mortgage insured loans and may be eligible for a mortgage 
insurance premium refund or distributive share payment; (2) FHA 
approved Business Partners and Third-Party Representatives who are 
sources of mortgagor information, (3) Non-residents and residents' 
aliens, and dependents from other countries and (4) DSRS personnel (HUD 
users and authorized contractors) responsible for refund and share 
functions.

CATEGORIES OF RECORDS IN THE SYSTEM:
    Name (Individual/Business), Social Security Number (SSN), Date of 
Birth, Phone Number, Address (Individual/Business), Email Address, and 
User ID, Related Premium Refund/Payment Correspondence (borrower name, 
address, email address, phone and fax number), including the homeowner 
representative and lender information, and Supporting Documentation 
(borrower identification and verification document copies): Birth, 
Death, Marriage, Religion, Civil Union, Naturalization, Citizenship 
Certificate, US Passport or Passport Card, Green Card, Change-of-
Address (form CNL107 provided as proof), Driver's license, Dependent, 
Military, State, Federal ID with photo, or similar identification, 
Bank, Motor Vehicle, Mortgage, Credit Card, Tax, Utility, Doctor, 
Hospital Company Bill, Medicaid, Medicare Statement, Social Security 
Administration, Pension, Retirement Benefit Statement, Veteran 
Discharge or Separation Papers, Medical Card, W-2, 1099, DD-214 form 
(for SSN verification purposes), Pay Statement, Vehicle, Voters 
Registration, Legal documents (mortgage, deed, will, loan, rental 
contracts and statements, gender, name change) or similar document. 
Information on Supporting documents may include State were issued, SSN, 
Birthdate, Gender, Sex, Affiliation, Marital, Financial, Retirement, 
Pay, Employment, Medical, Account Number, Individual Tax Identification 
Number (ITIN), Employer Identification Number and related documents 
(IRS 147C EIN letter, IRS Payment coupon, IRS EIN Issuance Notice).

[[Page 12370]]

RECORD SOURCE CATEGORIES:
    Homeowners, HUD employees and contractors, third party businesses, 
and authorized representatives of the homeowners that complete the form 
application for premium refund. Internal and External data exchanges 
from the following systems:
     Housing Office of Finance and Budget.
    [ssquf] Single Family Insurance System (SFIS).
    [ssquf] The Does HUD Owe You a Refund? '' website.
    [ssquf] Premium Refund Application Upload web page.
    [ssquf] The Part B Online Application web page.
    [ssquf] Automated Mailing System Generation.
     Office of the Chief Information Officer.
    [ssquf] Digital Identity and Access Management System (DIAMS).
     The Department of the Treasury, Bureau of the Fiscal 
Services.

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's offering of 
mediation service 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, 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, or to otherwise support the 
Department's mission. 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.
    (4) 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.
    (5) To authorized requesters or third-party tracers who request 
access to Upfront Mortgage Insurance Premiums homeowner refund and 
distributive share payment information, when such information is 
unavailable on HUD's FOIA reading room or Does HUD Owe You a Refund? 
websites. 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.
    (6) To the U.S. Department of the Treasury for disbursement, 
refund, and collection transactions:
    (a) For upfront and monthly mortgage insurance premiums lender 
refunds; homeowner refunds; and distributive shares payments.
    (b) For facilitating Treasury Administrative Offset (Debt 
Collection): Offsets Federal tax refund payments and non-tax payments 
certified for disbursement to the debtor to recover a delinquent debt; 
and Cross-servicing (Debt Collection): pursues recovery of delinquent 
debts on behalf of Federal agencies using debt collection tools 
authorized by statute, such as private collection agencies, 
administrative wage garnishment, or public dissemination of an 
individual's delinquent indebtedness; or any other legitimate debt 
collection purpose.
    (7) To the general public when, after two-years of attempting to 
contact each unpaid mortgagor of their FHA insurance refund, the 
Department makes available a cumulative listing by state of any unpaid 
refund that remains unpaid. The information includes mortgagor full 
name(s), property address, insurance refund or share amount, insurance 
cancellation date and refund date, and loans FHA Case Number. This 
information is available to the public on HUD's refund database ``Does 
HUD Owe You A Refund? ''. Individuals who search the database using an 
FHA Case Number or the name of the mortgagor can access this 
information before the two years of attempted contact has passed.
    (8) 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.
    (9) To contractors, experts and consultants with whom HUD has a 
contract, service agreement, or other assignment of the Department, 
when necessary to utilize relevant data for the purpose of testing new 
technology and systems designed to enhance program operations and 
performance.
    (10) 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.
    (11) 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 (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 HUD's efforts to respond to the suspected or confirmed 
breach or to prevent, minimize, or remedy such harm.
    (12) To appropriate Federal, State, local, tribal, or 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, when such records, either alone or in 
conjunction with other information, indicate a violation or potential 
violation of law.
    (13) To a court, magistrate, administrative tribunal, or arbitrator 
in the course of presenting evidence, including disclosures to opposing 
counsel or witnesses in the course of civil discovery, litigation, 
mediation, or settlement negotiations, or in connection with criminal 
law proceedings; when HUD determines that 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

[[Page 12371]]

thereof; or (2) any HUD employee in his or her official capacity; or 
(3) any HUD employee in his or her individual capacity where HUD 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.
    (14) 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.

POLICIES AND PRACTICES FOR STORAGE OF RECORDS:
    Paper and electronic.

POLICIES AND PRACTICES FOR RETRIEVAL OF RECORDS:
    Name, SSN, and Property Address.

POLICIES AND PRACTICIES FOR RETENTION AND DISPOSAL OF RECORDS:
    General records are maintained for periods of Disposition is 
Temporary--1-6 years unless a longer retention period is deemed 
necessary for investigative purposes or business use. If necessary, 
Paper records are either burned or shredded, and electronic and media 
records are erased.

ADMINISTRATIVE, TECHNICAL, AND PHYSICAL SAFEGUARDS:
    Administrative Controls: Backups Secured Off-Site, Methods to 
Ensure Only Authorized Personnel Access to PII, Periodic Security 
Audits, and Regular Monitoring of User's Security Practices.
    Technical Controls: Encryption of Data at Rest, Firewall, Role-
Based Access Controls, Virtual Private Network (VPN), Encryption of 
Data in Transit, Least Privilege Access, User Identification and 
Password, PIV Card, Intrusion Detection System (IDS).
    Physical Safeguards: Combination locks, Key Cards, Security Guards, 
Identification badges, and all paper records that contain PII and 
sensitive information are locked in file rooms.

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 accessing, contesting, and appealing agency 
determinations by the individual concerned are published in 24 CFR part 
16.8.

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 part 16.

EXEMPTIONS PROMULGATED FOR THE SYSTEM:
    None.

HISTORY:
    Docket No. 87 FR 61618 (October 12, 2022), 81 FR 22292 (April 15, 
2016), and 72 FR 40890 (July 25, 2007).

Ladonne White,
Chief Privacy Officer, Office of Administration.
[FR Doc. 2024-03313 Filed 2-15-24; 8:45 am]
BILLING CODE 4210-67-P