The United South and Eastern Tribes Calls HUD’s Exclusion of Tribal Nations ‘Antithetical’ to Federal Policy
The Cedar Band of Paiutes today commended the United South and Eastern Tribes Sovereignty Protection Fund (USET-SPF) resolution responding to the April 18, 2019 Department of Housing and Urban Development (HUD) issuance of Mortgagee Letter 19-06. The HUD Mortgagee Letter endeavored to establish that tribes may act in their governmental capacity only on their reservations or when working with enrolled members. While HUD’s Mortgagee Letter was ultimately withdrawn in response to successful litigation brought by the Cedar Band of Paiutes, HUD has indicated that it intends to advance rule changes affecting tribal nations through rulemaking.
The resolution, entitled “Urging Consultation Prior to Proceeding with Rule Making on Tribal Down Payment Assistance Programs”, was adopted at the USET-SPF Annual Meeting on the Sovereign Territory of the Mississippi Band of Choctaw Indians. In the resolution, USET-SPF called on HUD to engage in meaningful government-to-government consultation with tribal nations before rulemaking or any other action that “would undermine the inherent sovereignty of Tribal Nations to act in a governmental capacity…”
The Cedar Band of Paiutes wholly owns and operates Cedar Band Corporation, which wholly owns CBC Mortgage Agency (CBCMA), which provides secondary financing to homebuyers receiving loans from the Federal Housing Authority. The Band heavily relies on the funds generated from CBCMA and other Band enterprises to support its essential governmental programs.
“Our Band operates within existing federal regulations pertaining to sovereign tribal nations. It is paramount that organizations such as USET support and defend the sovereignty of the hundreds of tribal nations affected by HUD’s rulemaking on down payment assistance,” said Delice Tom, chairwoman of the Cedar Band of Paiutes.
Chairwoman Tom also pointed to a similar resolution recently passed by the National Congress of American Indians, underscoring that “HUD has the full attention of the tribal nations community, which expects the agency to promote and protect the inherent sovereign rights of all tribal nations.”
While HUD has issued a Notice for Proposed Rulemaking confirming it intends to proceed with rulemaking, the Band maintains the importance—and requirement—of tribal consultation in the early stages of the rulemaking process.
About CBC Mortgage Agency
CBCMA provides secondary financing to borrowers, who are receiving loans insured by the Federal Housing Administration (FHA). CBCMA takes great care to ensure that the FHA loans perform well, including providing education as well as 12 months of counseling to borrowers after the purchase of their home. In addition, CBCMA regularly reviews its credit standards to ensure that the borrowers it assists are credit worthy.
CBCMA is a wholly owned subsidiary of Cedar Band Corporation, a federally chartered tribal corporation wholly owned by the Cedar Band of Paiutes, a federally recognized American Indian band. For more information about CBCMA and its programs, visit chenoafund.org.