IPA Document

U.S. Department of Housing and

Urban Development

Office of Single Family Housing

Single Family FHA MIP, Escrow, Customer Service, Fees, and 235’s

2502-0583

Privacy Impact Assessment

February, 2012

Document Endorsement

I have carefully assessed the Privacy Impact Assessment (PIA) for Loan Servicing for Performing Loans; MIP Processing, Escrow Administration, Customer Service, Servicing Fees and 235 Loans. This document has been completed in accordance with the requirement set forth by the E-Government Act of 2002 and OMB Memorandum 03-22 which requires that "Privacy Impact Assessments" (PIAs) be conducted for all new and/ or significantly altered IT Systems, and Information Collection Requests.

ENDORSEMENT SECTION

Please check the appropriate statement.

	The document is accepted.
	The document is accepted pending the changes noted.
	The document is not accepted.

Based on our authority and judgment, the data captured in this document is current and accurate.

System Owner		Date
IVERY HIMES, DIRECTOR, OFFICE OF SINGLE FAMILY ASSET MANAGEMENT
Program Area Manager		Date
TOM KUMI, Director, Single Family Asset Management Division
Departmental Privacy Advocate		Date
Office of the Chief Information Officer
U. S. Department of Housing and Urban Development
Departmental Privacy Act Officer		Date
Office of the Chief Information Officer
U. S. Department of Housing and Urban Development

table of contents

Document Endorsement 2

ENDORSEMENT SECTION 2

table of contents 3

SECTION 1: BACKGROUND 4

Importance of Privacy Protection – Legislative Mandates: 4

What is the Privacy Impact Assessment (PIA) Process? 5

Who Completes the PIA? 5

When is a Privacy Impact Assessment (PIA) Required? 5

What are the Privacy Act Requirements? 6

Why is the PIA Summary Made Publicly Available? 6

SECTION 2 – COMPLETING A PRIVACY IMPACT ASSESSMENT 7

Question 1: Provide a brief description of what personal information is collected. 7

Question 2: Will any of the personally identifiable information be accessed remotely or physically removed? 8

Question 3: Type of electronic system or information collection. 9

Question 4: Why is the personally identifiable information being collected? How will it be used? 10

Question 5: Will you share the information with others? (e.g., another agency for a programmatic purpose or outside the government)? 11

Question 6: Can individuals “opt-out” by declining to provide personal information or by consenting only to particular use (e.g., allowing their financial information to be used for basic rent eligibility determination, but for not for sharing with other government agencies)? 12

Question 6: How will the privacy of the information be protected/ secured? What are the administrative and technological controls? 12

Question 7: If privacy information is involved, by what data element(s) is it retrieved from the system? 13

SECTION 3: DETERMINATION BY HUD PRIVACY ACT OFFICER 13

U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

PRIVACY IMPACT ASSESSMENT (PIA) FOR:

LOAN SERVICING FOR PERFORMING LOANS; MIP PROCESSING, ESCROW ADMINISTRATION, CUSTOMER SERVICE, SERVICING FEES AND 235 LOANS

OMB Unique Identifier #: for IT Systems: n/a

and PCAS #: n/a – not WC funded

February, 2012

NOTE: See Section 2 for PIA answers and Section 3 for Privacy Act Officer’s determination.

SECTION 1: BACKGROUND

Importance of Privacy Protection – Legislative Mandates:

HUD is responsible for ensuring the privacy and confidentiality of the information it collects on members of the public, beneficiaries of HUD programs, business partners, and its own employees. These people have a right to expect that HUD will collect, maintain, use, and disseminate identifiable personal information only as authorized by law and as necessary to carry out agency responsibilities.

The information HUD collects is protected by the following legislation and regulations:

• Privacy Act of 1974, as amended affords individuals the right to privacy in records that are maintained and used by Federal agencies. (See http://www.usdoj.gov/foia/privstat.htm; see also HUD Handbook1325.1 at www.hudclips.org);

• Computer Matching and Privacy Protection Act of 1988 is an amendment to the Privacy Act that specifies the conditions under which private information may (or may not) be shared among government agencies. (See http://www.usdoj.gov/foia/privstat.htm);

• Freedom of Information Act of 1966, as amended (http://www.usdoj.gov/oip/foia_updates/Vol_XVII_4/page2.htm) provides for the disclosure of information maintained by Federal agencies to the public, while allowing limited protections for privacy. See also HUD’s Freedom of Information Act Handbook (HUD Handbook 1327.1 at www.hudclips.org);

• E-Government Act of 2002 requires Federal agencies to conduct Privacy Impact Assessments (PIAs) on its electronic systems. (See http://frwebgate.access.gpo.gov/cgi-bin/getdoc.cgi?dbname=107_cong_public_laws&docid=f:publ347.107.pdf; see also the summary of the E-Government Act at http://www.whitehouse.gov/omb/egov/pres_state2.htm);

• Federal Information Security Management Act of 2002 (which superceded the Computer Security Act of 1987) provides a comprehensive framework for ensuring the effectiveness of information security controls over information resources that support Federal operations and assets, etc. See also the codified version of Information Security regulations at Title 44 U.S. Code chapter 35 subchapter II (http://uscode.house.gov/search/criteria.php); and

• OMB Circular A-130, Management of Federal Information Resources, Appendix I (http://www.whitehouse.gov/omb/circulars/a130/appendix_i.pdf) defines Federal Agency responsibilities for maintaining records about individuals.

Access to personally identifiable information will be restricted to those staff that has a need to access the data to carry out their duties; and they will be held accountable for ensuring privacy and confidentiality of the data.

What is the Privacy Impact Assessment (PIA) Process?

The Privacy Impact Assessment (PIA) is a process that evaluates issues related to the privacy of personally identifiable information in electronic systems. See background on PIAs and the 7 questions that need to be answered, at: http://www.hud.gov/offices/cio/privacy/pia/pia.cfm. Personally identifiable information is defined as information that actually identifies an individual, e.g., name, address, social security number (SSN), or identifying number or code; or other personal/ sensitive information such as race, marital status, financial information, home telephone number, personal e-mail address, etc. Of particular concern is the combination of multiple identifying elements. For example, knowing name + SSN + birth date + financial information would pose more risk to privacy than just name + SSN alone.

The PIA:

• Identifies the type of personally identifiable information in the system (including any ability to combine multiple identifying elements on an individual);

• Identifies who has access to that information (whether full access or limited access rights); and

• Describes the administrative controls that ensure that only information that is necessary and relevant to HUD’s mission is included.

Who Completes the PIA?

Both the program area System Owner and IT Project Leader work together to complete the PIA. The System Owner describes what personal data types are collected, how the data is used, and who has access to the personal data. The IT Project Leader describes whether technical implementation of the System Owner’s requirements presents any risks to privacy, and what controls are in place to restrict access of personally identifiable information.

When is a Privacy Impact Assessment (PIA) Required?

1. New Systems: Any new system that will contain personal information on members of the public requires a PIA, per OMB requirements (this covers both major and non-major systems).

2. Existing Systems: Where there are significant modifications involving personal information on members of the public, or where significant changes been made to the system that may create a new privacy risk, a PIA is required.

3. Information Collection Requests, per the Paperwork Reduction Act (PRA): Agencies must obtain OMB approval for new information collections from ten or more members of the public. If the information collection is both a new collection and automated, then a PIA is required.

What are the Privacy Act Requirements?

Privacy Act. The Privacy Act of 1974, as amended (http://www.usdoj.gov/foia/privstat.htm) requires that agencies publish a Federal Register Notice for public comment on any intended information collection. Privacy Act Systems of Records are created when information pertaining to an individual is collected and maintained by the Department, and is retrieved by the name of the individual or by some other identifying number, symbol, or other identifying particular assigned to an individual. The E-Government Act of 2002 requires PIAs for electronic systems as well as information collection requests that are automated. So, there is a relationship between the new PIA requirement (when automation is involved) and the long-standing Privacy Act System of Records Notices (for both paper-based and automated records that are of a private nature). For additional information, contact the Departmental Privacy Act Officer in the Office of the Chief Information Officer.

Why is the PIA Summary Made Publicly Available?

The E-Government Act of 2002 requires that the analysis and determinations resulting from the PIA be made publicly available. The Privacy Advocate in HUD’s Office of the Chief Information Officer (OCIO) is responsible for publishing the PIA summary on HUD’s web site. See: http://www.hud.gov/offices/cio/privacy/pia/pia.cfm.

SECTION 2 – COMPLETING A PRIVACY IMPACT ASSESSMENT

Please submit answers to the Departmental Privacy Act Officer in the Office of the Chief Information Officer (OCIO). If any question does not apply, state Not Applicable (N/A) for that question, and briefly explain why it is not applicable.

Program Area: Office of Single Family Housing

Subject matter expert in the program area: Robert L. Juenger, Housing Program Policy Specialist, (202) 402-4966

Program Area Manager: Tom Kumi, Director, Asset Management & Disposition Division, Office of Housing, (202) 402-2469

IT Project Leader: N/A

For IT Systems:

• Name of system: The FHA Connection

• PCAS #: N/A

• OMB Unique Project Identifier #: N/A

• System Code: N/A

For Information Collection Requests:

• Name of Information Collection Request: Loan Servicing for Performing Loans; MIP Processing, Escrow Administration, Customer Service, Servicing Fees and 235 Loans.

• OMB Control #: 2502-0583

Question 1: Provide a brief description of what personal information is collected.

Personal information is collected when the mortgage loan(s) were originated. The mortgage loan servicing that involves the escrow administration of the mortgage loan does not collect new personal information. The escrow administration involves primarily the paying of mortgagor insurance and tax obligations along with informing the mortgagor future escrow obligations. The FHA 235 program is no longer active but there is remaining approximately 1,291 mortgage loans that receive a subsidy from the Department. New financial information is required from the mortgagor on a annual basis to establish the forthcoming years payment subsidy.

If this automated system (or Information Collection Request) involves personally identifiable information on members of the public, then mark any of the categories that apply below:

Personal Identifiers:

X	Name (Mortgagor/Co-Mortgagor’s Last Name, and Initials)
X	Social Security Number (SSN): (Mortgagor/Co-Mortgagor’s)
X	Other identification number (specify type): (Loan Number, FHA Case Number, ADP Code, Case File Number)
	Birth date
X	Property address
X	Home telephone
	Personal e-mail address
	Fingerprint/ other “biometric”
	Other (specify):
	None
	Comment:

Personal/ Sensitive Information:

	Race/ ethnicity
X	Gender/ sex
X	Marital status
X	Spouse name
X	# of children
X	Income/ financial data (specify type of data, such as salary, Federal taxes paid, bank account number, etc.):
X	Employment history:
	Education level
	Medical history/ information
	Disability
	Criminal record
	Other (specify):
	None
	Comment:

Question 2: Will any of the personally identifiable information be accessed remotely or physically removed?

	Yes	No
If yes, Proceed to answering the following questions. (The FHA Connection is used and security controls are in place. FHA Connection is secure and requires external user authentication.)
Have the security controls been reviewed and approved by the Information Security Officer? (Yes, in the security plans for FHA Connection, SFDW, SFNW and SFDMS.)
What security controls are in place to protect the information (e.g., encryptions)? N/A, no personally identifiable information is collected in the system
What HUD approved application is used to grant remote access (e.g., VPN, Citrix)? Internet Explorer is used to access the ADAMS.
Is there a policy in place restricting remote access from certain locations outside the Department (For example: Policy may permit remote access, but prohibits access from a particular place; such as, Kinko’s/Starbuck) or is remote access permitted from all areas outside the Department? There is no policy to restrict access.  A majority of the users are outside the Department.
Is there a policy that identifies “if” or “if not” downloading and remote storage of this information is allowed (For example: Policy may permit remote access, but prohibit downloading and local storage)? There is no provision in ADAMS for directly downloading data.  Reports can be run from the system and saved.
Comment:

Question 3: Type of electronic system or information collection.

1. If a new electronic system (or one in development): Is this a new electronic system (implemented after April 2003, the effective date of the E-Government Act of 2002)?

	Yes	No
If yes, please proceed to answering the following questions.
Does the system require authentication? (However, FHA Connection and the Electronic Data Interchange (EDI) requires authentication. The data exchange is through FHA Connection and EDI.)
Is the system browser-based? (The FHA Connection is browser-based and externa user require authentication.)
Is the system external-facing (with external users that require authentication)? (Yes, through the FHA Connection or EDI.)

B If an existing electronic system: Mark any of the following conditions for your existing system that OMB defines as a “trigger” for requiring a PIA (if not applicable, mark N/A):

N/A	Conversion: When paper-based records that contain personal information are converted to an electronic system
N/A	From Anonymous (Non-Identifiable) to “Non-Anonymous” (Personally Identifiable): When any systems application transforms an existing database or data collection so that previously anonymous data becomes personally identifiable
N/A	Significant System Management Changes: When new uses of an existing electronic system significantly change how personal information is managed in the system. (Example #1: when new “relational” databases could combine multiple identifying data elements to more easily identify an individual. Example #2: when a web portal extracts data elements from separate databases, and thereby creates a more open environment for exposure of personal data)
N/A	Merging Databases: When government databases are merged, centralized, matched, or otherwise significantly manipulated so that personal information becomes more accessible (with special concern for the ability to combine multiple identifying elements)
N/A	New Public Access: When new public access is given to members of the public or to business partners (even if the system is protected by password, digital certificate, or other user-authentication technology)
N/A	Commercial Sources: When agencies systematically incorporate into databases any personal data from commercial or public sources (ad hoc queries of such sources using existing technology does not trigger the need for a PIA)
N/A	New Inter-agency Uses: When agencies work together (such as the federal E-Gov initiatives), the lead agency should prepare the PIA
N/A	Business Process Re-engineering: When altering a business process results in significant new uses, disclosures, or additions of personal data
N/A	Alteration in Character of Data: When adding new personal data raises the risks to personal privacy (for example, adding financial information to an existing database that contains name and address)

C. If an Information Collection Request (ICR): Is this a new Request that will collect data that will be in an automated system? Agencies must obtain OMB approval for information collections from 10 or more members of the public. The E-Government Act of 2002 requires a PIA for ICRs only if the collection of information is a new request and the collected data will be in an automated system.

	Yes, this is a new ICR and the data will be automated
X	No, the ICR does not require a PIA because it is not new or automated)
	Comment:

Question 4: Why is the personally identifiable information being collected? How will it be used?

Mark any that apply:

Homeownership:

X	Credit checks (eligibility for loans)
	Loan applications and case-binder files (via lenders) – including borrower SSNs, salary, employment, race, and other information
X	Loan servicing (MIP collections/refunds and debt servicing for defaulted loans assigned to HUD)
	Loan default tracking
	Issuing mortgage and loan insurance
	Other (specify):
	Comment:

Rental Housing Assistance:

	Eligibility for rental assistance or other HUD program benefits
	Characteristics on those receiving rental assistance (for example, race/ethnicity, # of children, age)
	Property inspections
	Other (specify):
	Comment:

Grants:

	Grant application scoring and selection – if any personal information on the grantee is included
	Disbursement of funds to grantees – if any personal information is included
	Other (specify):
	Comment:

Fair Housing:

	Housing discrimination complaints and resulting case files
	Other (specify):
	Comment:

Internal operations:

	Employee payroll or personnel records
	Payment for employee travel expenses
	Payment for services or products (to contractors) – if any personal information on the payee is included
	Computer security files – with personal information in the database, collected in order to grant user IDs
	Other (specify):
	Comment:

Other lines of business (specify uses):

Question 5: Will you share the information with others? (e.g., another agency for a programmatic purpose or outside the government)?

Mark any that apply:

X	Federal agencies?
X	State, local, or tribal governments?
	Public Housing Agencies (PHAs) or Section 8 property owners/agents?
X	FHA-approved lenders?
	Credit bureaus?
X	Local and national organizations?
	Non-profits?
	Faith-based organizations?
	Builders/ developers?
	Others? (specify):
X	Comment: Information will be shared only with approved HUD Headquarters and HOC staff.

Question 6: Can individuals “opt-out” by declining to provide personal information or by consenting only to particular use (e.g., allowing their financial information to be used for basic rent eligibility determination, but for not for sharing with other government agencies)?

	Yes, they can “opt-out” by declining to provide private information or by consenting only to particular use
X	No, they can’t “opt-out” – all personal information is required
	Comment:

If Yes, please explain the issues and circumstances of being able to opt-out (either for specific data elements or specific uses of the data):

Question 7: How will the privacy of the information be protected/ secured? What are the administrative and technological controls?

Mark any that apply and give details if requested:

X	System users must log-in with a password
X	When an employee leaves: (When an employee leaves the Department information is entered into CHAMP which track requests related to user account access.) How soon is the user ID terminated? (Using the CHAMPS system, generally about 1 day.) How do you know that the former employee no longer has access to your system? (explain your procedures or describe your plan to improve): (Notification via CHAMPS. )
X	Are access rights selectively granted, depending on duties and need-to-know? If Yes, specify the approximate # of authorized users who have either: Full access rights to all data in the system: (One person, EDS personnel under HITS contract.) Limited/restricted access rights to only selected data: (Three contract employees under an IT contract, otherwise “read only” access is given.)
X	Are disks, tapes, and printouts that contain personal information locked in cabinets when not in use? (explain your procedures, or describe your plan to improve): (Yes, mortgagees and servicers provide information on a tape, disk or electronic file transfer to HUD where they are sorted, pre-screened, edited, and processed. Computer facilities are secured and accessible only by authorized personnel, and all files are stored in a secured area. Technical restraints are employed with regard to accessing the computer and data files. Reports are maintained in desks and lockable file cabinets; access to automated system is by passwords and code identification cards access limited to authorized personnel. Additionally, the transmittal of the data from the mortgagee and servicers provides secure connectivity. Paper records do not exist.)
X	If data from your system is shared with another system or data warehouse, who is responsible for protecting the privacy of data that came from your system but now resides in another? Explain the existing privacy protections, or your plans to improve: (Yes, Single Family Housing Enterprise Data Warehouse (D64A), Single Family Neighborhood Watch (A80W), and the Credit Alert Interactive Voice Response System (F57). The System owner and security administrator are responsible for protecting the data in each system.)
N/A	Other methods of protecting privacy (specify):
	Comment:

Question 8: If privacy information is involved, by what data element(s) is it retrieved from the system?

Mark any that apply

X	Name:
X	Social Security Number (SSN)
X	Identification number (specify type): Name and Address Identifier (NAID)
	Birth date
	Race/ ethnicity
	Marital status
	Spouse name
X	Property address
	Home telephone
	Personal e-mail address
	Other (specify):
	None
	Comment:

Other Comments (or details on any Question above):

SECTION 3: DETERMINATION BY HUD PRIVACY ACT OFFICER

13