Privacy Act of 1974; System of Records
| Published date | 30 October 2023 |
| Record Number | 2023-23875 |
| Citation | 88 FR 74201 |
| Court | Housing And Urban Development Department |
| Section | Notices |
Federal Register, Volume 88 Issue 208 (Monday, October 30, 2023)
[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: http://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 http://www.regulations.gov. including any
personal information provided.
Docket: For access to the docket to read background documents or
comments received go to http://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
