SECTION 184 INDIAN HOUSING LOAN GUARANTEE PROGRAM
Processing Guidelines February 2003

TABLE OF CONTENTS

Chapter 1: Program Overview

1.1 Introduction
1.2 Program Overview
1.3 Key Program Policies And Requirements
1.4 Land Ownership In Indian Country
1.5 Roles And Processing Steps
1.6 Definitions

Chapter 2: Tribal Legal And Administrative Framework

2.1 Overview
2.2 Foreclosure And Eviction Procedures
2.3 Lien Procedures
2.4 Leasing Tribal Trust Land
2.5 Mortgaging Allotted Trust Lands
2.6 Tribal Application And Approval
2.7 Land Status Notification

Chapter 3: Lender Participation

3.1 Lender Qualification
3.2 Compliance With Applicable Tribal Laws
3.3 Disqualification Of Lenders And Civil Penalties
3.4 Quality Control Requirement
3.5 File Retention – Originating Mortgagee

Chapter 4: Eligible Activities And Properties

4.1 Overview
4.2 Eligible Properties
4.3 Modest Housing
4.4 Rehabilitation Of Existing Structures With Existing Debt
4.5 New Construction
4.6 Rental Housing
4.7 Property Standards
4.8 Architectural Exhibits
4.9 Contractor/Architect Selection
4.10 Appraisals
4.11 Environmental Review
4.12 Flood Plains
4.13 Title
4.14 Infrastructure
4.15 Manufactured Housing
4.16 Home Inspections

Chapter 5: Loan Processing And The Firm Commitment

5.1 Overview

Section I: Qualification Of Borrowers

5.2 General Approach
5.3 Credit History
5.4 Credit Reports
5.5 Reviewing Credit
5.6 Determining Income
5.7 Types Of Liabilities
5.8 Determining Ability To Pay
5.9 Borrower’s Investment In The Property
5.10 IHA/TDHE Or Tribal Loans
5.11 IHA/TDHE Or Tribal Applications For Subsequent Sale
5.12 IHA/TDHE Or Tribal Ongoing Property Ownership
5.13 IHA/TDHE Or Tribal Multiple Unit Projects

Section II: Loan Processing

5.14 Requesting A Case Number
5.15 Loan Parameters
5.16 Maximum Mortgage Amount
5.17 Closing Costs
5.18 Additional Items To Be Added To Sales Price
5.19 Items To Be Subtracted From Sales Price
5.20 Items Added Directly To The Mortgage Amount
5.21 Land Value
5.22 Transactions Affecting Maximum Mortgage
5.23 Firm Commitment Submission

Chapter 6: Loan Closing And Endorsement

6.1 Overview
6.2 Timing
6.3 Loan Changes After The Firm Commitment
6.4 Loan Closing Requirements
6.5 Escrow Account Policies
6.6 Escrow Account Items
6.7 Submission Of The Case Binder For Endorsement
6.8 Post Endorsement Submission (Single Close)

Chapter 7: Administering Construction Loans

7.1 Overview
7.2 Loan Terms And Requirements
7.3 Costs Eligible For Inclusion In Mortgage
7.4 Mortgages That Include Acquisition And Rehabilitation Financing
7.5 Construction/Rehabilitation Period
7.6 Construction/Rehabilitation Process Requirements
7.7 Submission At Completion Of Construction
7.8 Foreclosure Of Construction Loans

Chapter 8: Loan Servicing

8.1 Overview
8.2 General Servicing Responsibilities
8.3 Escrow Accounts And Fees
8.4 Assumptions
8.5 Prepayment And Sales
8.6 Delinquent Servicing
8.7 Preservation And Protection Of Property
8.8 Lender Initiated Foreclosure
8.9 No Foreclosure Option
8.10 Assignment Of The Mortage To Hud (No Foreclosure Option)
8.11 Foreclosure By The Secretary
8.12 Property Disposition

Chapter 9: Alaska Processing Guidelines For Construction Loans

9.1 Overview
9.2 Loan Terms And Requirements
9.3 Costs Eligible For Inclusion In Mortgage
9.4 Construction Period
9.5 Administration During Construction
9.6 Submission At Completion Of Construction
9.7 Unforeseen Circumstances During Construction

Chapter 10: Direct Guarantee

10.1 Overview
10.2 General
10.3 Mortgagee Approval For Direct Guarantee
10.4 Quality Control Requirement
10.5 Mortgagee Sanctions
10.6 Underwriting Responsibilities
10.7 Eligible Activities And Properties
10.8 Request For A Case Number
10.9 Requests For Case Number Extensions And Cancellations
10.10 Processing, Closing And Submitting The Loan For Endorsement
10.11 Post Endorsement Documentation
10.12 Administration Of Construction And Rehabilitation Loans
10.13 Assurance Of Endorsement
10.14 Firm Commitment Option
10.15 Loan Servicing

Chapter 11: Refinances

11.1 Overview
11.2 Trust Land Refinances
11.3 Appraisals
11.4 Types Of Refinances
11.5 Overview On All Streamline Refinances

LIST OF APPENDICES

Appendix 1

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Appendix 1 PDF | Appendix 1 Word

Appendix 1-1: Program Office of Native American Programs

Appendix 2

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Appendix 2-1 Leasehold Document and Checklist for Tribal Approval
Appendix 2-2 MOU
Appendix 2-3 Model Procedures

Appendix 3

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Appendix 3 PDF | Appendix 3 Word

Appendix 3-1 Request for Case Number
Appendix 3-2 Firm Commitment Checklists and Attachment (Individual and IHA/Tribe Borrowers)
Appendix 3-3 Endorsement Checklist and Attachment
Appendix 3-4 Post Endorsement Checklist

Appendix 4

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Appendix 4 PDF | Appendix 4 Word

Appendix 4-1 Land Status and Jurisdiction Form
Appendix 4-2 Mortgage Credit Analysis Worksheet (Form HUD 53036)
Appendix 4-3 Maximum Mortgage Worksheet
Appendix 4-4 Firm Commitment (Form HUD 53037)
Appendix 4-5 Importance of Home Inspections
Appendix 4-6 Construction Loan Agreement
Appendix 4-7 Construction Loan Rider
Appendix 4-8 Section 184 Applicant Acknowledgement
Appendix 4-9 Waiver of Contingency Reserve
Appendix 4-10 Contingency Release Letter
Appendix 4-11 Final Release Notice
Appendix 4-12 Mortgagor’s Letter of Completion
Appendix 4-13 Rider for Section 184 Mortgage (Leasehold)
Appendix 4-14 Rider for Section 184 Mortgage (Fee Simple Property)
Appendix 4-15 Rider for Section 184 Mortgage (Individual Allotted Trust — no lease)
Appendix 4-16 Transmittal for Indian Loan Guarantee Fee (Form HUD 53058)
Appendix 4-17 Indian Loan Guarantee Certificate (Form HUD 53039)
Appendix 4-18 Sample Draw Request
Appendix 4-19 Specification of Repairs for Construction/Rehab Work Orders
Appendix 4-20 90 or More Days Delinquent Notice and Status of Mortgage Codes
Appendix 4-21 Status of Mortgage Loans
Appendix 4-22 Self-Help Agreement
Appendix 4-23 Homebuyer Contract Agreement
Appendix 4-24 Change in Servicing Lender
Appendix 4-25 Borrower’s Information Packet
Appendix 4-26 HUD Form 4128, Environmental Assessment
Appendix 4-27 Environmental Review Record
Appendix 4-28 Statutory Worksheet
Appendix 4-29 Use of FHA Forms for the Section 184 Program

Appendix 5

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Appendix 5 PDF | Appendix 5 Word

Appendix 5-1 Credit Qualifying No Cash Out with an Appraisal Refinance Mortgage Credit Analysis Worksheet #1
Appendix 5-2 Credit Qualifying Cash Back with an Appraisal Refinance Mortgage Credit Analysis Worksheet #2
Appendix 5-3 Non Credit Qualifying Streamline Refinance with an Appraisal Refinance Mortgage Credit Analysis Worksheet #3
Appendix 5-4 Non Credit Qualifying Streamline Refinance without an Appraisal Refinance Mortgage Credit Analysis Worksheet #4
Appendix 5-5 Refinance Submission Checklist - Streamline Refinances
Appendix 5-6 Refinance Submission Checklist - Individual Borrowers - Credit Qualifying Cash Back with Appraisal
Appendix 5-7 Refinance Submission Checklist - Credit Qualifying No Cash Out with Appraisal
Appendix 5-8 Refinance Endorsement Submission Checklist

LIST OF EXHIBITS

Exhibit 5-1 Calculating Residual Income
Exhibit 5-2 Determining the Borrower’s Investment
Exhibit 5-3 Determining the Maximum Mortgage Amount for Properties Over $50,000
Exhibit 5-4 Determining the Maximum Mortgage Amount for Properties Under $50,000
Exhibit 5-5 Determining the Maximum Mortgage Amount for Properties Over $50,000 (with repairs and energy-weatherization)

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