[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[S. 2725 Introduced in Senate (IS)]
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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.
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