Utah Tribe Says HUD Letter Wiped Out Its Home Mortgage Biz

Law360 (April 23, 2019, 8:29 PM EDT) -- A Utah tribe urged a federal court on Monday to rip up a recent U.S. Department of Housing and Urban Development letter updating certain requirements for federally insured mortgages, alleging HUD is illegally clamping down on tribes that help provide down payments for homes.

The Cedar Band of Paiutes filed the complaint challenging HUD's April 18 mortgagee letter, which the department said was meant to "clarify documentation requirements that Federal Housing Administration-approved mortgagees must satisfy when originating a mortgage" for a borrower using down payment assistance, or DPA. It included a provision that tribes can only provide down payment assistance for...

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