§ 1715z-13. — Single family mortgage insurance on Indian reservations.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 12USC1715z-13]
TITLE 12--BANKS AND BANKING
CHAPTER 13--NATIONAL HOUSING
SUBCHAPTER II--MORTGAGE INSURANCE
Sec. 1715z-13. Single family mortgage insurance on Indian
reservations
(a) One- to four-family residence; eligibility
The Secretary, subject to such special conditions as the Secretary
may prescribe, may insure under any provision of this subchapter that
authorizes such insurance, a mortgage covering a property upon which
there is located a one- to four-family residence, without regard to any
limitation in this chapter relating to marketability of title or any
other limitation in this chapter that the Secretary determines is
contrary to promoting the availability of such insurance on Indian
reservations if the mortgage (1) is executed by an Indian tribe and the
property is located on trust or otherwise restricted land; or (2) is
executed by a member of an Indian tribe who will use the property as a
principal residence and the property is on trust or otherwise restricted
land.
(b) Construction advances; percentage limitation on amount of principal
obligation; pledge of income from tribal resources or assets
Notwithstanding any other provision of this chapter, with respect to
mortgages covering a property upon which there is located a one- to
four-family residence--
(1) the Secretary may insure and make commitments to insure
under this subchapter pursuant to this section advances made during
construction where the Secretary determines that the proposed
construction is otherwise acceptable and meets an applicable tribal
or national model building code, and that no feasible financing
alternative is available;
(2) the applicable percentage limitation on the amount of the
principal obligation of a mortgage based on the appraised value or
replacement cost, as appropriate, of a one- to four-family owner-
occupied residence contained in this subchapter shall apply in the
case of all mortgages insured pursuant to this section without
regard to whether the residences are owner-occupied where the
residences are owned by the tribe; and
(3)(A) the Secretary may require an Indian tribe, only as a
condition of insurance made under this subchapter pursuant to this
section, to pledge income from tribal resources or income from
tribal assets not subject to a restriction by the Secretary of the
Interior or pledge grants under title I of the Housing and Community
Development Act of 1974 [42 U.S.C. 5301 et seq.] or any other
Federal grant program administered by the Secretary of Housing and
Urban Development to be used to reimburse the Secretary for any
mortgage insurance claims paid in connection with residences insured
pursuant to this section; or
(B) in the case of an individual Indian mortgagor, the Secretary
may require a pledge of his or her share of distributed income from
tribal resources or income from tribal assets, excluding any Federal
grants received by the tribe.
(c) Lack of tribal or trust fund income
The Secretary may not refuse to insure a mortgage under this section
to an individual home purchaser because there is no distributed tribal
or trust fund income attributable to that purchaser.
(d) Availability of tribal eviction procedures
Before making any commitment to insure a mortgage under this section
with respect to property located on trust or otherwise restricted land,
the Secretary shall require a showing by the tribe that it has adopted
eviction procedures to be used in the event of a default.
(e) Assumption of mortgage
A mortgage insured under this section may be assumed, subject to
credit approval by the lender and the consent of the tribe to an
assumption of the existing lease or the grant of a new lease, without an
adjustment of the interest rate. Any other sale of a property subject to
a mortgage insured under this section may be made only if a new lease is
granted, except that a sale following a foreclosure may be accompanied
by an assumption of the lease with the consent of the tribe.
(f) Insurance of mortgage as obligation of General Insurance Fund
Notwithstanding any other provision of this chapter, the insurance
of a mortgage using the authority contained in this section shall be the
obligation of the General Insurance Fund established in section 1735c of
this title. The mortgagee shall be eligible to receive the benefits of
insurance as provided in section 1710 of this title with respect to
mortgages insured pursuant to this section, except that (1) all
references in section 1710 of this title to the Mutual Mortgage
Insurance Fund or the Fund shall be construed to refer to the General
Insurance Fund; and (2) all references in section 1710 of this title to
section 1709 of this title shall be construed to refer to the section
under which the mortgage is insured.
(g) Availability of status and payment history of loans; entitlement to
benefit of insurance; reinstatement of loan upon cure of
default; garnishment proceedings; foreclosure proceedings
(1) The Secretary shall make information regarding the status and
payment history of loans insured under this section available to local
credit bureaus and prospective creditors. Prior to accepting assignment
of a mortgage, the Secretary shall require mortgagees to submit
documentation that mortgagors have been counseled in a face-to-face
interview, informed of the provisions of this subsection or other
available assistance, and provided with the names and addresses of
officials of the Department of Housing and Urban Development to whom
further communications shall be addressed.
(2) Notwithstanding the requirement for conveyance of title under
section 1710 of this title, a mortgagee under this section shall be
entitled to receive the benefit of insurance under this section in the
case of a mortgage which is more than 90 days in default upon conveyance
of the lease agreement and the mortgage documents.
(3) In the event that any default is cured, the Secretary shall seek
to reinstate the loan with the mortgagee or another mortgagee. For
purposes of this paragraph, the Secretary may provide appropriate
financial incentives to reinstate the loan commensurate with sound
management of the General Insurance Fund.
(4) If the Secretary determines that a mortgagor is not making a
good-faith effort to cure a default, and that trust fund or tribal
income is available under subsection (b)(3)(B) of this section, the
Secretary shall commence proceedings for the garnishment of the
mortgagor's distributed share of tribal or trust fund income in order to
collect loan payments that are past due. Proceedings under this
paragraph may be instituted in a tribal court, court of competent
jurisdiction designated by the tribe, or Federal district court.
(5) If the Secretary determines such action is necessary to protect
the General Insurance Fund from undue loss, the Secretary may initiate
foreclosure proceedings with respect to any mortgage acquired under this
subsection. Such proceeding may take place in a tribal court, a court of
competent jurisdiction, or Federal district court. Any such court shall
have jurisdiction to convey to the Secretary the remaining life of a
lease on the real property and to order eviction of the delinquent
mortgagor.
(h) Premium charge for insurance; report to Congress
In the administration of this section, the Secretary shall establish
a premium charge for insurance that will be sufficient to cover the full
costs of the mortgage insurance program under this section, except that
such charge may not exceed 3 percent per annum of the principal amount
of the mortgage outstanding at any time. Not later than September 30,
1984, the Secretary shall determine and report to the Congress on the
feasibility of eliminating any excess amount of the premium under this
section over the premium under section 1709 of this title. In the event
such premiums are not sufficient to cover the full costs of the mortgage
insurance program under this section, the Secretary shall make
recommendations to the Congress about changes to the program.
(i) ``Indian tribe'' and ``trust or otherwise restricted land'' defined
For purposes of this section:
(1) The term ``Indian tribe'' means any Indian or Alaska native
tribe, band, nation, or other organized group or community of
Indians or Alaska natives recognized as eligible for the services
provided to Indians or Alaska natives by the Secretary of the
Interior because of its status as such an entity, or that was an
eligible recipient under chapter 67 of title 31, prior to the repeal
of such chapter.
(2) The term ``trust or otherwise restricted land'' means (A)
that area of land, as defined by the Secretary of the Interior, over
which an Indian tribe is recognized by the United States as having
governmental jurisdiction; (B) land held in trust for the benefit of
any Indian tribe or individual or held by any Indian tribe or
individual subject to a restriction by the United States against
alienation; or (C) land acquired by Alaska natives under the Alaska
Native Claims Settlement Act [43 U.S.C. 1601 et seq.] or any other
land acquired by Alaska natives pursuant to statute by virtue of
their unique status as Alaska natives.
(June 27, 1934, ch. 847, title II, Sec. 248, as added Pub. L. 98-181,
title IV, Sec. 422, Nov. 30, 1983, 97 Stat. 1214; amended Pub. L. 99-
272, title XIV, Sec. 14001(b)(7), Apr. 7, 1986, 100 Stat. 329; Pub. L.
100-242, title IV, Secs. 413(c), 429(i), Feb. 5, 1988, 101 Stat. 1906,
1919.)
References in Text
The Housing and Community Development Act of 1974, referred to in
subsec. (b)(3)(A), is Pub. L. 93-383, Aug. 22, 1974, 88 Stat. 633, as
amended. Title I of the Housing and Community Development Act of 1974 is
classified principally to chapter 69 (Sec. 5301 et seq.) of Title 42,
The Public Health and Welfare. For complete classification of this Act
to the Code, see Short Title note set out under section 5301 of Title 42
and Tables.
Chapter 67 of title 31, referred to in subsec. (i)(1), was repealed
by Pub. L. 99-272, title XIV, Sec. 14001(a)(1), Apr. 7, 1986, 100 Stat.
327. A new chapter 67 of Title 31, Money and Finance, was added by Pub.
L. 103-322, title III, Sec. 31001(a), Sept. 13, 1994, 108 Stat. 1859.
The Alaska Native Claims Settlement Act, referred to in subsec.
(i)(2), is Pub. L. 92-203, Dec. 18, 1971, 85 Stat. 688, as amended,
which is classified generally to chapter 33 (Sec. 1601 et seq.) of Title
43, Public Lands. For complete classification of this Act to the Code,
see Short Title note set out under section 1601 of Title 43 and Tables.
Amendments
1988--Subsec. (a)(1). Pub. L. 100-242, Sec. 429(i)(1), substituted
``land'' for ``lands''.
Subsec. (a)(2). Pub. L. 100-242, Sec. 429(i)(2), substituted ``on
trust or otherwise restricted land'' for ``on trust lands or otherwise
restricted land''.
Subsec. (d). Pub. L. 100-242, Sec. 429(i)(3), substituted ``trust or
otherwise restricted land'' for ``tribal or trust land''.
Subsec. (f). Pub. L. 100-242, Sec. 413(c)(3), added subsec. (f).
Former subsec. (f) redesignated (g).
Subsec. (g). Pub. L. 100-242, Sec. 413(c)(1), (2), redesignated
former subsec. (f) as (g) and substituted ``General Insurance Fund'' for
``insurance fund'' in pars. (3) and (5). Former subsec. (g) redesignated
(h).
Subsecs. (h), (i). Pub. L. 100-242, Sec. 413(c)(2), redesignated
former subsecs. (g) and (h) as (h) and (i), respectively.
1986--Subsec. (h)(1). Pub. L. 99-272 substituted ``was an eligible
recipient under chapter 67 of title 31, prior to the repeal of such
chapter'' for ``is an eligible recipient under chapter 67 of title 31''.
Effective Date of 1986 Amendment
Amendment by Pub. L. 99-272 effective Oct. 18, 1986, see section
14001(e) of Pub. L. 99-272.
Section Referred to in Other Sections
This section is referred to in section 1709 of this title.
