Section 184 Indian Home Loan Guarantee program

(a) In general Section 184 of the Housing and Community Development Act of 1992 (12 U.S.C. 1715z–13a) is amended— (1) by amending subsection (a) to read as follows: (a) Authority To provide access to sources of private financing to Indian families, Indian housing authorities, and Indian tribes, who otherwise could not acquire housing financing because of the unique legal status of Indian lands and the unique nature of tribal economies, and to expand homeownership opportunities to Indian families, tribally designated housing entities, Indian housing authorities, and Indian tribes on fee simple lands, the Secretary may guarantee not to exceed 100 percent of the unpaid principal and interest due on any loan eligible under subsection (b) made to an Indian family, tribally designated housing entity, Indian housing authority, or Indian tribe on trust land and fee simple land.; (2) in subsection (b)— (A) by amending paragraph (2) to read as follows: (2) Eligible housing The loan shall be used to construct, acquire, refinance, or rehabilitate 1- to 4-family dwellings that are standard housing.; (B) in paragraph (4)— (i) by redesignating subparagraphs (A) through (D) as clauses (i) through (iv), respectively, and adjusting the margins accordingly; (ii) by striking The loan and inserting the following: (A) In general The loan; (iii) in subparagraph (A), as so designated, by adding at the end the following: (v) Any other lender that is supervised, approved, regulated, or insured by any agency of the Federal Government, including any entity certified as a community development financial institution by the Community Development Financial Institutions Fund established under section 104(a) of the Riegle Community Development and Regulatory Improvement Act of 1994 (12 U.S.C. 4703(a)).; and (iv) by adding at the end the following: (B) Direct guarantee endorsement process and indemnification (i) Authorization The Secretary may, dependent on the available systems development and staffing resources, delegate to eligible lenders the authority to directly endorse loans under this section. (ii) Indemnification (I) In general If the Secretary determines that a loan guaranteed under this section was not originated in accordance with the requirements established by the Secretary, the Secretary may require the lender approved under this subparagraph to indemnify the Secretary for the loss or potential loss, irrespective of whether the violation caused or will cause the loan default. (II) Fraud or misrepresentation If fraud or misrepresentation is involved in a loan guaranteed under this section, the Secretary may require the originating lender approved under this subparagraph to indemnify the Secretary for the loss regardless of whether there was a payment made by the Secretary under the guarantee. (III) Implementation The Secretary may implement any requirement described in this subparagraph by regulation, notice or Dear Lender Letter.; (C) in paragraph (5)(A), by inserting before the semicolon at the end the following: except, as determined by the Secretary, when there is a loan modification under subsection (h)(1)(B), the term of the loan shall not exceed 40 years; and (D) by adding at the end the following: (6) Review of lenders (A) In general The Secretary may periodically review the lenders originating, underwriting, or servicing single family mortgage loans under this section. (B) Requirements In conducting a review under subparagraph (A), the Secretary— (i) shall compare the lender with other lenders originating or underwriting loan guarantees for Indian housing based on the rates of defaults and claims for guaranteed loans originated, underwritten, or serviced by that lender; and (ii) may compare the lender with such other lenders based on underwriting quality, geographic area served, or any commonly used factors the Secretary determines necessary for comparing mortgage default risk, provided that the comparison is of factors that the Secretary would expect to affect the default risk of mortgage loans guaranteed by the Secretary.; (3) in subsection (c)— (A) in paragraph (1)— (i) by striking Before and inserting the following: (A) In general Except as provided in subparagraph (B), before; and (ii) by adding at the end the following: (B) Exception Subparagraph (A) shall not apply when the Secretary exercises its discretion to delegate direct guarantee endorsement authority to eligible lenders under subsection (b)(4)(B)(i).; (B) in paragraph (2)— (i) by striking The Secretary and inserting the following: (A) In general Except as provided in subparagraph (B), the Secretary; and (ii) by adding at the end the following: (B) Exceptions When the Secretary exercises its discretion to delegate direct guarantee endorsement authority to eligible lenders under subsection (b)(4)(B)(i)— (i) subparagraph (A) shall not apply; and (ii) the direct guarantee endorsement lender may issue a certificate under this paragraph as evidence of the guarantee in accordance with requirements established by the Secretary.; and (C) in paragraph (3), by inserting, or where applicable, the direct guarantee endorsement lender, after Secretary in each place that term appears; and (4) in subsection (l)— (A) by redesignating paragraphs (8) and (9) as paragraphs (9) and (10), respectively; and (B) by inserting after paragraph (7) the following: (8) The term tribally designated housing entity has the meaning given the term in section 4 of the Native American Housing Assistance and Self-Determination Act of 1996 (25 U.S.C. 4103).. (b) Loan guarantees for Indian housing Section 184(i)(5) of the Housing and Community Development Act of 1992 (12 U.S.C. 1715z–13a(i)(5)) is amended— (1) in subparagraph (B), by inserting after the first sentence the following: There are authorized to be appropriated for those costs such sums as may be necessary for each of fiscal years 2027 through 2033.; and (2) in subparagraph (C), by striking 2008 through 2012 and inserting 2027 through 2033.