RSS RSS

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

Top