2026-10753NoticeWallet

HUD Updates Debt-Tracking Database Privacy Rules

Published Date: 5/29/2026

Notice

Summary

HUD is updating its system that tracks debts and payments to keep your info safer and clearer. If you’re involved with HUD finances, these changes affect how your data is handled and protected. You’ve got until June 29, 2026, to share your thoughts before the new rules kick in, with no extra costs involved.

Analyzed Economic Effects

4 provisions identified: 0 benefits, 2 costs, 2 mixed.

HUD may send your debt to collectors

If HUD says you owe a debt, HUD can share your records with the Department of the Treasury's Bureau of Fiscal Service to recover the debt using administrative offset, cross-servicing, private collection agencies, administrative wage garnishment, or public dissemination. This sharing is part of HUD's HUD/CFO-05 Remittance and Debt Collection system and is effective after the comment period ends following June 29, 2026.

Canceled HUD debt will be reported to IRS

HUD will disclose information from the HRDC system to the Internal Revenue Service for the purpose of reporting canceled debt on IRS Form 1099‑C. This disclosure is part of routine uses described in the HUD notice and is effective after the comment period that ends June 29, 2026.

Broader data sharing to stop improper payments

HUD added a new routine use (10) allowing disclosure of HRDC records to Federal and non‑Federal agencies, contractors, and partners to detect, prevent, and recover improper payments and to verify eligibility or compliance for Federal benefits or payment programs. This change takes effect after the comment period ending June 29, 2026.

What HUD keeps and how it protects it

HUD's HRDC system will store debtor data including full name, Social Security Number, Taxpayer ID, home address, telephone number, and a new 'Assigned Account Number.' Records are stored encrypted in HUD‑authorized systems (including a FedRAMP and FISMA Moderate cloud environment) and are retained under NARA GRS rules — destroyed 6 years after final payment or cancellation.

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Key Dates

Published Date
Comments Due
Effective Date
5/29/2026
6/29/2026
6/30/2026

Department and Agencies

Department
Independent Agency
Agency
Housing and Urban Development Department
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