Roles and responsibilities for processing the HUD 184 Indian Home Loan Guarantee Program
Borrower responsibilities
- Make application for financing to a private lender
- Provide the income verification and site information needed to enable the lender to determine the borrower's qualification for mortgage financing
- Abide by the terms of the loan agreement after it is approved
Tribal responsibilities
- Enact and agree to enforce foreclosure laws or agree to follow state foreclosure procedures
- Enact and agree to enforce eviction procedures
- Enact tribal law or follow state laws ensuring the 184 loan will be a first lien
- Sign lease if home is on tribal trust land
Lender responsibilities
- Accept and process applications for financing
- Call ONAP to verify tribal eligibility
- Complete loan underwriting
- Review the title status report
- Order the appraisal
- Submit the loan application package to the ONAP field office to request a prequalification commitment
- Prepare closing documents
- Close loan
HUD/ONAP responsibilities
- Review all commitment requests submitted by lenders
- Issue both the prequalification and firm commitment based on lender submissions
- For assigned loans, determine the claim payment amount to be paid to the lender and foreclose on the loan or enter into a work-out agreement with the borrower
- In the case of a foreclosure, sell the property to another buyer
BIA responsibilities
- Issue title status report for trust lands
- Develop site map for trust property
- Prepare lease document for tribe and applicant to sign
- Review, approve and record lease contracts, deeds of trust and/or real estate mortgages
- Send recorded documents to lender, HUD/ONAP and tribe
Source: Section 184 Guidebook
