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HUD Mortgagee Letter 2019-06

If you are a borrower affected by the HUD Mortgagee letter please visit this link to tell us your story and how you’ve harmed: For Were You Affected by the New Mortgagee Letter? >>


  • CBC Mortgage Agency (CBCMA) provides down payment assistance to borrowers who need help obtaining a home mortgage insured by the Federal Housing Administration (FHA).
  • Through its down payment program, Chenoa Fund, CBCMA has helped thousands of credit-worthy borrowers achieve the dream of homeownership.
  • CBCMA is a subsidiary of Cedar Band Corporation, which is federally chartered and wholly owned by the Cedar Band of Paiutes, a constituent band of the Paiute Tribe of Utah.


  • On April 18, the U.S. Department of Housing and Urban Development (HUD) released a Mortgagee Letter that effectively outlaws national down payment assistance programs like the Chenoa Fund.
  • HUD failed to comply with Executive Order 13175 and HUD’s own policy, which require that federal agencies engage in tribal consultation before they make a policy change that would affect a Native American tribe.
  • The Chenoa Fund immediately filed a challenge in federal court, which prompted HUD to put a 90-day hold on its new policy. But the core issue remains unresolved.
  • HUD’s action creates chaos for hundreds of borrowers suddenly threatened with the loss of the down payment help they need to close on their home loan.
  • HUD claims its new policy would reduce risk to FHA’s Mutual Mortgage Insurance Fund, but presented no data to support its position.


  • HUD’s new rule is an example of discriminatory policies that continue to lock minorities in a permanent, renting underclass.
  • More than half of CBCMA’s borrowers are African American, Latino, or other people of color who lack sufficient funds to meet the down payment threshold for an FHA-insured loan.
  • Data show that minority borrowers rely more heavily than other homebuyers on down payment assistance programs offered by government entities.
  • HUD’s action encroaches on tribal sovereignty and contradicts established federal policy of promoting the economic development of American Indian tribes and bands.

For more information, please following the links below. If you would like to lend your support to our efforts, please email

Show support for a withdrawal of Mortgagee Letter 2019-06

Take Survey And Sign Petition


As a lender, we’ve offered the Chenoa Fund down payment assistance program, to help bring about new homeownership, particularly with hard working minority families who often do not have access to down payment funds.
Please do not allow FHA to pass a rule which will limit homeownership options. I add my name in support of the Chenoa Fund in requesting that this Mortgagee Letter be withdrawn. FHA should work with Chenoa Fund to manage risks and address concerns it may have.



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Key Contact Information

House and Senate

Senate Banking Committee Correspondents Letter=

House Financial Services Committee Correspondents Letter

Trade Associations

  •     Scott Olson
  •    David Horne

Department of Housing and Urban Development