Cedar Band Corporation Mortgage Agency
The Cedar Band of Paiutes today applauded the National Congress of American Indians' (NCAI) resolution responding to the Department of Housing and Urban Development's (HUD) issuance of Mortgagee Letter 19-06 on April 18, 2019. The Housing and Urban Development Mortgagee Letter attempted to assert that "tribes are acting in their governmental capacity only on their reservations or when working with enrolled members." The Department of Housing and Urban Development's Mortgagee Letter was eventually withdrawn in response to successful litigation brought by the Cedar Band of Paiutes.
The resolution, titled "HUD Consultation Before Proceeding with Rule Making Relating to Tribal Down Payment Assistance Programs," was adopted by the National Congress of American Indians General Assembly at its 2019 Annual Session in Albuquerque, New Mexico. In its resolution, National Congress of American Indians called on the Department of Housing and Urban Development to engage in meaningful consultation with tribal nations before commencing rulemaking, and to refrain from discrimination against tribal nations or any actions that are deleterious to tribal sovereignty. National Congress of American Indians's official position further underscores how the Department of Housing and Urban Development's actions had a substantial direct effect on all tribal nations — including the Cedar Band of Paiutes — and sought to limit the ability of a tribe to operate in a governmental capacity.
The Cedar Band of Paiutes wholly owns and operates Cedar Band Corporation and CBC Mortgage Agency (CBCMA), which provides secondary financing to homebuyers receiving loans from the Federal Housing Authority. The Band relies on the revenues derived from CBC Mortgage Agency and other Band enterprises to sustain the Band's essential government functions.
"Housing and Urban Development's actions were a direct violation of the agency's own Government-to-Government Tribal Consultation Policy," said Delice Tom, chairwoman of the Cedar Band of Paiutes. "Housing and Urban Development's unilateral actions would have had a ruinous impact on our Band and negatively impacted the hundreds of other tribal nations around the country seeking innovative and sustainable ways to support their communities."
The Cedar Band of Paiutes also highlighted that the recently passed U.S. House of Representatives T-HUD appropriations bill, included language strengthening the process for federal agencies to consult with tribal nations.
While Housing and Urban Development has indicated that it intends to proceed with rulemaking, Chairwoman Tom further highlighted the importance of appropriate consultation in the nascent stages of the process. "We fully expect the Department of Housing and Urban Development to engage in a meaningful and collaborative process with the Cedar Band, as well as other Indian Nations and National Tribal organizations before drafting a rule affecting tribal nations, consistent with the Department of Housing and Urban Development's own Tribal Consultation policy."
About CBC Mortgage Agency
CBC Mortgage Agency provides secondary financing to borrowers, who are receiving loans insured by the Federal Housing Administration (FHA). CBC Mortgage Agency 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, CBC Mortgage Agency regularly reviews its credit standards to ensure that the borrowers it assists are credit worthy.
CBC Mortgage Agency 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 CBC Mortgage Agency and its programs, visit chenoafund.org.