Community Dividend

Roles and responsibilities for processing the HUD 184 Indian Home Loan Guarantee Program

Details about who does what in the HUD 184 loan program.

Published April 1, 1998  | April 1998 issue

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