Loan Wars: Indian Mortgage Program Pushes Back Against Criticism
A federal Inspector General’s office has rapped a popular American Indian mortgage program, alleging lax underwriting. But the guarantor of the loans, the Department of Housing and Urban Development’s Office of Native American Programs, has pushed back hard against that assessment.
The HUD Inspector General has alleged ONAP’s Office of Loan Guarantee “did not provide adequate oversight of the Section 184 program, resulting in an increased overall risk to the program, including guaranteeing 3,845 loans totaling more than $705 million that were not underwritten in accordance with program guidelines. On an annualized basis looking forward, this is equivalent to $77 million in loans that have a higher risk of loss in the first year.”