Federal Register: October 28, 2009 (Volume 74, Number 207)
DOCID: fr28oc09-140 FR Doc E9-25897
DEPARTMENT OF THE TREASURY
Treasury Department
NOTICE: NOTICES
DOCID: fr28oc09-140
DOCUMENT ACTION: Final Notice of Proposed New Privacy Act System of Records for the Home Affordable Modification Program.
SUBJECT CATEGORY:
Departmental Offices; Privacy Act of 1974, as Amended
DATES: Confirmation of effective date: September 14, 2009.
DOCUMENT SUMMARY:
The U.S. Department of the Treasury proposed in August 2009 to establish a new System of Records under the Privacy Act known as ``Home Affordable Modification ProgramTreasury/DO.'' This system of records would be established primarily to administer the Home Affordable Modification Program and related homeownership preservation programs (``HAMP''). This notice is to inform the public that one submitter has provided comments in response to the proposed Privacy Act notice published on August 3, 2009, at 74 FR 38484, and that minor changes have been made to the proposed notice in light of these comments.
SUMMARY:
Privacy Act; Systems of Records
SUPPLEMENTAL INFORMATION
The Department established HAMP, pursuant to the Emergency Economic Stabilization Act of 2008 (Pub. L. 110343) (the ``EESA''), to enable eligible homeowners who have a record of making timely mortgage payments, but are experiencing hardships in doing so, to modify the principal amounts and interest rates of their mortgage loans. This new System of Records will provide Treasury and its Financial Agents with access to certain information about mortgage borrowers and their respective home mortgage loans that is necessary to administer the HAMP.
Comments were received from one submitter in response to the proposed Privacy Act notice. Minor changes have been made to the proposed Privacy Act Notice in light of these comments. The Department does not believe that these modifications impact the original effective date for this notice (September 14, 2009), or the active implementation of this System of Records. Accordingly, we are publishing this Final Notice of a Privacy Act System of Records. This Final Notice also includes several new HAMP production and backup system locations which are managed by or on behalf of the Federal National Mortgage Association (``Fannie Mae'') and the Federal Home Loan Mortgage Corporation (``Freddie Mac''), both of which have been designated as Financial Agents of the Department.
The Department received comments from one submitter concerning thirteen of the fifteen routine uses set forth in the proposed system of records, the ``Home Affordable Modification Program Records Treasury/DO.'' These comments generally expressed concern that the routine uses for the proposed System of Records were too broadly defined and would unduly invade the privacy of HAMP applicants. The submitter also suggested that the Department should seek express written consent from loan modification applicants before making any use of personally identifiable information (``PII'') in execution of the HAMP. No comments were received regarding routine uses (1), (8), (12) or (15).
In addressing these comments, it is important to note first that the HAMP is a Department program aimed at incentivizing mortgage servicers to modify borrower loans, thereby reducing the financial burden on millions of homeowners across the United States. The majority of the routine use clauses in this System of Records Notice are aimed at disclosing borrower information in an effort to effectively manage and appropriately monitor the performance of loan servicers in meeting their obligations under the HAMP program. Notably, in order to participate in the HAMP, all borrowers must agree to a mandatory consent provision which expressly authorizes the disclosure of information to Fannie Mae, Freddie Mac, the Department, and entities related to the HAMP program.
After careful consideration of the comments received, the Department concludes that routine uses (2), (4), (6), (7), (9), (11), and (14) will remain unchanged. The Department believes that these routine uses are consistent with the statutory authority of the Department of the Treasury to carry out the HAMP consistent with its mandate under the EESA. Additionally, routine use (4) is required by the Office of Management and Budget (``OMB'') for all agency systems of records, as set forth in OMB's supplementary guidance issued on November 21, 1975.
With regard to routine use (14), the Department believes that this
routine use is consistent with the policies and requirements
established by OMB in OMB Memorandum M0716, ``Safeguarding Against
and Responding to the Breach of Personally Identifiable Information
[PII],'' dated May 22, 2007. This OMB memorandum directs each federal
agency to develop and publish a routine use in order to be able to
disclose information regarding a breach to individuals affected by it,
as well as to persons and entities that are in a position to assist the
agency in preventing or minimizing any harm from a breach. The language
of routine use (14) is identical to the language set forth in OMB's
memorandum. In addition to publishing the routine use, agencies are
also required to implement the processes outlined in M0716 by
establishing an agency response team consisting of senior officials. We
also note that OMB Memorandum M0619, ``Reporting Incidents Involving
Personally Identifiable Information and Incorporating the Cost for
Security in Agency Information Technology Investments,'' instructs
agencies to report incidents involving PII to the U.S. Computer
Emergency Readiness Team within one hour of discovering the incident
and advises agencies not to distinguish between actual and suspected
incidents. The Department needs to be able to share information about a
breach with appropriate persons and entities in order to mitigate the
harmful effects of the unauthorized disclosure of confidential or private
[[Page 55622]]
information about an individual. Accordingly, the Department does not
believe that an amendment to this routine use is warranted. OMB
documents are available at: http://www.whitehouse.gov/omb/inforeg_ infopoltech/.
In response to public comments that expressed concern about the use of PII collected from homeowners under the HAMP, the Department has amended several routine uses in this System of Records Notice to ensure that it authorizes the dissemination of PII only where necessary to support the HAMP. The revisions are as follows:
Routine use (3) has been amended so as to authorize the disclosure of data only pursuant to a court order.
Routine use (5) has been modified so as to permit disclosure only if the investigation pertains to the HAMP program.
Routine use (10) has been modified to detail further the specific uses of the data collected and to harmonize routine uses (8) and (10) by stipulating that employees, agents, and contractors of Financial Agents, or contractors to the Department of the Treasury to whom information is disclosed, are each subject to the same or equivalent rules and regulations that apply to the Department's officers and employees under the Privacy Act.
Routine use (13) has been modified so as to permit disclosure to the Department of Housing and Urban Development and the Federal Housing Finance Agency in the absence of a complaint or inquiry.
The revised System of Records, entitled ``Home Affordable
Modification ProgramTreasury/DO .218,'' is published in its entirety below.
Dated: October 19, 2009.
Melissa Hartman,
Acting Deputy Assistant Secretary, Privacy and Treasury Records.
TREASURY/DO .218
FOR FURTHER INFORMATION CONTACT
Theodore R. Kowalsky, Manager, Data & Information Technology, Office of Fiscal & Financial Agents, Department of the Treasury, 1500 Pennsylvania Avenue, NW., Washington, DC 20220, 2029279445 or at Ted.Kowalsky@do.treas.gov.