Comment Detail

Comment

Good Morning and thank you for the opportunity to comment. I am an Attorney with the Legal Aid Society of Northeastern New York and I am a member and resident of the St. Regis Mohawk Indian Reservation, an area that has been and continues to be chronically under-served by nearly all federal home mortgage programs. Both government and enterprise based.
Having researched and tracked the efforts to date I hope to submit comment with enough clarity to offer some input on the efforts to be made in serving our specific Rural Area: Native Americans residing ON Reservation lands.
It is clear that nearly all efforts of the Agencies/Enterprises to date have centered upon the individual Native American applicant/borrower. With the usual emphasis on credit scores, DTI, and income records. However such efforts ignore the hundreds, if not thousands, of Native Americans residing on Indian Reservations who already have established their Credit, have money to purchase, and for many, work and have been working for a great number of years. Those Native Americans fall by the wayside in any consideration to be given by FHFA. Fannie, and Freddie and the policies put forward to date.
Research has shown that the likely response to this concern by FHFA, Fannie, Freddie is going to be the oft repeated 'Well we don't make the loans'. Understood. However, for sake of clarity, it is hoped that to best describe the issue of my comment is for the well qualified, or otherwise eligible, Native American borrowers residing ON and Indian Reservation who CANNOT get a mortgage because financial institutions will not lend. The problem in this context is with the financial institutions that will not lend and NOT the otherwise eligible Native American borrower. They do not need more courses on improving credit scores. In this context, for us, it simply equates to our Reservation being a 21st century from of lawful and permissible Redlining.
Next, and for greater discussion and consideration, it is clear that there does exist one Mortgage Insurance program that should help address any financial lending institution concerns with lending ON an Indian Reservation: HUD's 184 Program.
The 184 Program is a federal guarantee program that insures mortgages up to 100% if a Native American Borrower face foreclosure on their mortgage, including borrowers located on Indian Reservation. The guarantee is supported by a mortgage insurance program that Native American borrowers pay into as part of their payment. Fannie has publicly stated that they would purchase HUD 184 loans. However it is clear that Fannie has actually purchased a very miniscule number of HUD 184 loans. This is likely due to the fact that financial institutions are not lending under the HUD 184 program! Therefore, even with the HUD 184 program home mortgage lending ON nearly all Indian reservations is nearly non-existent.
In light of the foregoing, it is clear that any technical assistance, policy guidance, program amendment is NOT needed at the Native American borrower level it is needed at the financial lending institution level and the entities that purchase mortgages from them to provide liquidity to the mortgage market. The change that is needed is structural at levels that no Native American borrower, or that some Rural/Country Native American lawyer, has the ability to reach.
Therefore, it is hoped that FHFA, Fannie, Freddie, with their role and influence in the mortgage industry can make as part of their Duty to Serve Rural Areas, like Indian reservations, include efforts address and pursue policies to help on-Reservation Native American borrowers get access to the mortgage market like all other equally qualified borrowers and end Reservation Redlining. To make such efforts at the level needed- the financial institution structure level.