The roles of principal participants are summarized below.
| a. | Borrower Responsibilities. Individual, IHA/TDHE and Indian tribe borrowers are responsible for making an application for financing to an approved Section 184 lender; providing the information needed to enable the lender to determine the borrower’s qualification for mortgage financing; and abiding by the terms of the loan agreement, once the loan is approved. |
| b. | Responsibilities of the Tribe: |
| 1. | Each tribe must enact policies and procedures for processing foreclosure and eviction actions or identify a State/County court that will enforce these procedures. |
| 2. | Tribes may also participate as a coordinator of the program by: assisting borrowers with loan applications; making available, through lease, trust lands for home sites; providing financial assistance to borrowers; and homebuyer education. |
| c. | Lender Responsibilities: |
| 1. | Lenders accept and process borrower applications for financing, and, if the borrower qualifies, submit the loan application packages to HUD to request a firm commitment under the Section 184 Program. Lenders may contact the Program ONAP to determine eligibility, land status and other essential information. |
| 2. | Once HUD has approved the firm commitment, and a closing has taken place, the lender makes the loan to the borrower. The loan may be held in their portfolio or sold. |
| 3. | If a lender elects to participate as a Direct Guarantee lender, procedures in Chapter 10 must be followed. |
| 4. | In the event of default, the lender has the option of either foreclosing or requesting assignment to HUD. |
The responsibility for review of tribal eligibility and land status issues lies with HUD’s Program Office of Native American Programs (ONAP). The address and phone number for the Program ONAP is included in Appendix 1. Responsibility for case number assignment, loan processing, underwriting, issuance of the firm commitment, and guarantee certificate also lies with HUD’s Program ONAP. HUD will:
| 1. | Issue a Section 184 case number to reserve Loan Guarantee Funds (if available) and issues the loan guarantee certificate after closing. |
| 2. | Review all underwriting recommendations submitted by lenders. |
| 3. | Approve or disapprove firm commitments based on lenders’ submissions. |
| 4. | For assigned loans, HUD determines the claim payment amount to be paid to the lender and may foreclose on the loan. |
| 5. | In the case of a foreclosure, HUD will sell the property to another eligible buyer. |
| 6. | For lender conveyed properties after completion of the foreclosure, HUD determines the claim amount paid to the lender and resells the property. |
| e. | Role of the Bureau of Indian Affairs: For trust lands, BIA issues Title Status Reports (TSR) and reviews, approves, and records lease contracts, deeds of trust, leasehold mortgages and/or real estate mortgages. |
Indian Health Service Responsibilities: The Indian Health Service is available to evaluate the adequacy of water and sewer systems for Native Americans and may also provide for the cost and/or installation of water and sewer systems on an individual or community-wide basis.
