The


U.S.
Department
of
Housing
and
Urban
Development
(HUD)
this
week
announced
a
new
rule
aimed
at
bolstering
the
department’s
Section
184
Indian
Housing
Loan
Guarantee
program,
with
the
goal
to
increasing
lender
participation
and
ensure
access
to
potential
Native
American
beneficiaries.

The
final
rule,

published
in
the
Federal
Register
on
March
20
but
formally

announced
this
week,
aims
to
strengthen
the
program
by
“clarifying
rules
for
stakeholders”
and
cites
increased
demand
as
one
reason
for
pursuing
the
rule.

There
are
a
total
of
30
program
changes
listed
in
the
rule’s
Federal
Register
entry,
but
it
is
summarized
by
explaining
how
the
new
rule
“adds
participation
and
eligibility
requirements
for
lender
applicants,
direct
[and
non-direct]
guarantee
lenders,
[…]
holders
and

servicers
and
other
financial
institutions,”
according
to
the
entry.

The
new
rule
also
clarifies
governing
rules
for
tribal
participation
in
the
Section
184
program
and
“establishes

underwriting
requirements,
specifies
rules
on
the
closing
and
endorsement
process,
establishes
stronger
and
clearer
servicing
requirements,
establishes
program
rules
governing
claims
submitted
by
servicers
and
paid
by
HUD,
and
adds
standards
governing
monitoring,
reporting,
sanctions,
and
appeals.”

HUD
acting
secretary
Adrianne
Todman
said
that
this
new
rule
has
been
issued
in
an
effort
to
provide
more
access
to
homeownership
for
tribal
communities.

“Homeownership
is
key
to
building
generational
wealth.
By
enhancing
the
Section
184
program,
we
are
ensuring
homeownership
and
wealth-building
opportunities
are
available
to
Native
American
borrowers,”
Todman
said.
“[This]
announcement
emphasizes
the

Biden-Harris
administration’s
dedication
to
strengthening
the
Nation-to-Nation
relationship
with
Tribes
and
making
key
investments
in
Indian
Country.”

Miki
Adams,
president
of

CBC
Mortgage
Agency
—
a
correspondent
investor
wholly
owned
by
the

Cedar
Band
of
Paiutes
of
the

Paiute
Indian
Tribe
of


Utah
—
expressed
support
for
the
final
rule
in
a
statement
shared
with

HousingWire.

“The
Section
184
program
is
a
vital
tool
for
so
many
Native
American
homebuyers,”
Adams
said.
“The
new
regulations
will
bring
more
clarity
and
predictability
to
this
important
program,
and
we
applaud
the
administration
for
the
improvements
and
their
efforts
to
work
closely
with
Tribal
leaders
and
other
stakeholders.
There
is
still
more
that
must
be
done
to
modernize
the
program
and
we
look
forward
to
working
collaboratively
with
HUD
on
future
improvements.”

During
the
public
comment
period,
several
opposition
comments
were
submitted
to
the
department.
HUD
provided
rebuttals
to
many
of
the
expressed
concerns
in
the
final
rule’s
entry,
including
on
issues
such
as
the
onerousness
of
the
rule’s
requirements,
sanctions
and
penalties
that
critics
said
could
reduce
the
intended
participation
from
tribal
communities.

“HUD
appreciates
all
the
concerns
raised
by
the
commenters.
HUD
does
not
believe
that
the
proposed
rule
will
deter
Tribes
and
Direct
Guarantee
and
Non-Direct
Guarantee
Lenders
from
participating
in
the
program,”
the
department
responded
in
part.
“Most
of
HUD’s
proposed
rule
codified
current
program
practices.”

The
effective
date
for
the
new
rule
is
June
18,
2024.

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