Bill Summary
The Native American Housing Affordability Act of 2019 is a bill that aims to modify the procedures for loan guarantees provided for Indian housing. This bill was created in response to concerns about the long approval timelines for lenders to participate in the program established under section 184 of the Housing and Community Development Act of 1992. These extended timelines were found to inhibit the ability of lenders to provide mortgage loans on Native American reservations. To address this issue, the bill proposes improvements to the loan guarantee process, including allowing the Secretary of Housing and Urban Development to issue a certificate of guarantee before receiving all required documents, as long as the originating lender agrees to indemnify the Secretary for any losses that may result. The bill also requires the Secretary to report on progress made in accelerating the processing of lender applications and explain any lack of improvement.
Possible Impacts
1. This legislation could affect Native American individuals and families living on reservations by potentially providing them with easier access to mortgage loans for housing, as it aims to improve and expedite the loan guarantee process on Indian trust land. This could potentially improve the housing affordability and availability for these communities.
2. The legislation could also impact lenders, as they would be required to agree to indemnify the Secretary for any losses resulting from outstanding trailing documents related to loans on Indian trust land. This could potentially add an extra layer of risk and responsibility for lenders when providing loans for Native American housing.
3. The reporting requirement in the legislation could affect government officials and agencies, as they would be responsible for providing updates and reports on the progress of the loan guarantee process to various committees. This could potentially lead to increased accountability and transparency in the handling of these loans and their impact on Native American communities.
[Congressional Bills 116th Congress] [From the U.S. Government Publishing Office] [S. 2725 Introduced in Senate (IS)] <DOC> 116th CONGRESS 1st Session S. 2725 To modify the procedures for loan guarantees provided for Indian housing, and for other purposes. _______________________________________________________________________ IN THE SENATE OF THE UNITED STATES October 29, 2019 Mr. Rounds (for himself, Ms. Smith, Mr. Thune, Mr. Tester, Ms. McSally, and Ms. Cortez Masto) introduced the following bill; which was read twice and referred to the Committee on Banking, Housing, and Urban Affairs _______________________________________________________________________ A BILL To modify the procedures for loan guarantees provided for Indian housing, and for other purposes. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, SECTION 1. SHORT TITLE. This Act may be cited as the ``Native American Housing Affordability Act of 2019''. SEC. 2. FINDINGS. Congress finds that-- (1) the extended timelines for approving lenders' applications to participate in the program established under section 184 of the Housing and Community Development Act of 1992 (12 U.S.C. 1715z-13a) are unacceptably long; (2) those extended timelines inhibit the ability of lenders to provide needed mortgage loans on Native American reservations; and (3) it can take a significant amount of time for certain Bureau of Indian Affairs Land Title and Records Offices to issue final certified title status reports for mortgages issued on Indian trust land under section 184 of the Housing and Community Development Act of 1992 (12 U.S.C. 1715z-13a), which delays the guarantee of the loan by the Department of Housing and Urban Development. SEC. 3. IMPROVEMENTS TO LOAN GUARANTEES FOR INDIAN HOUSING. (a) Documentation Required for Indian Trust Land.--Section 184(c) of the Housing and Community Development Act of 1992 (12 U.S.C. 1715z- 13a(c)) is amended by adding at the end the following: ``(5) Trailing documents.-- ``(A) In general.--The Secretary may issue a certificate of guarantee under this subsection for a loan involving a security interest in Indian trust land before the Secretary receives the trailing documents required by the Secretary, including the final certified title status report showing the recordation by the Bureau of Indian Affairs of the mortgage relating to the loan, if the originating lender agrees to indemnify the Secretary for any losses that may result when-- ``(i) a claim payment is presented to the Secretary due to the default of the borrower on the loan; and ``(ii) the required trailing documents are outstanding. ``(B) Termination of indemnification agreement.--An indemnification agreement between an originating lender and the Secretary described in subparagraph (A) shall only terminate upon receipt by the Secretary of the trailing documents described in that subparagraph in a form and manner that is acceptable to the Secretary. ``(C) Rule of construction.--Nothing in this paragraph shall be construed as authorizing the Bureau of Indian Affairs to delay the issuance of a final certified title status report and recorded mortgage relating to a loan closed on Indian trust land.''. (b) Reporting.--The Secretary of Housing and Urban Development shall-- (1) report to the Committee on Banking, Housing, and Urban Affairs and the Committee on Indian Affairs of the Senate and the Committee on Financial Services and the Committee on Natural Resources of the House of Representatives on a semiannual basis on the progress that the Secretary is making to accelerate the processing of lender applications under section 184 of the Housing and Community Development Act of 1992 (12 U.S.C. 1715z-13a); and (2) if there is no improvement in accelerating those processing timelines, submit to the committees described in paragraph (1) a report explaining the lack of improvement. <all>