Freddie Mac Single-Family Seller/Servicer Guide 4205.3 — Section 184 Indian Housing Loan Guarantee Program Mortgages

This section contains: ■ Overview ■ Eligible Mortgages and ineligible Mortgages ■ Compliance with Freddie Mac’s requirements ■ Title status report ■ Mortgage file documentation ■ Special Seller warranties ■ Delivery instructions ■ Credit Fees

(a) Overview Section 184 Native American Mortgages are eligible for sale to Freddie Mac in accordance with the provisions of this chapter and the Purchase Documents. The Seller must obtain Freddie Mac’s written approval to sell Section 184 Native American Mortgages by contacting its Freddie Mac representative or the Contact Support Center at 800-FREDDIE. (i) Glossary definitions for Section 184 Native American Mortgages The Seller should be familiar with the Glossary definitions of the following terms: Glossary definitions for Section 184 Native American Mortgages G Government Mortgage A Mortgage funded, guaranteed or insured by a government agency. S Section 184 Native American Mortgages A Mortgage guaranteed by HUD pursuant to the Indian Housing Loan Guarantee Program, Section 184 of the Glossary definitions for Section 184 Native American Mortgages Housing and Community Development Act of 1992 and originated pursuant to the Section 184 Regulations and the terms of the Guide. The related ULDD valid value is Public And Indian Housing. (ii) Other terms used in the section The following terms apply for purposes of this section: Additional defined terms I Indian Any person recognized as being Indian or Alaska Native by an Indian Tribe, the federal government or any State and includes the term “Native American”. Indian Tribe Any Indian or Alaska Native tribe, band, rancheria, colony, pueblo, nation or other organized group or community of Indians or Alaska Natives recognized as eligible for services provided to Indians or Alaska Natives by the U.S. Secretary of the Interior because of its status as such an entity, or that is an eligible recipient under Chapter 67 of Title 31, of the U.S. Code. S Section 184 Regulations The Indian Housing Loan Guarantee Program Processing Guidelines, dated February 2003, collectively with the forms, agreements, manuals and other material and documents issued by HUD, and as may be modified in writing by HUD from time to time.

(b) Eligible Mortgages and ineligible Mortgages Each Section 184 Native American Mortgage must: ■ Be a First Lien ■ Be a purchase transaction ■ Be a fully amortizing, fixed-rate Mortgage ■ Be assumable ■ Have an original UPB within the maximum loan amount allowed under the Section 184 Regulations or the maximum loan amount for conventional Mortgages stated in Section 4203.1(c), whichever is less ■ Be a Non-Loan Product Advisor® Mortgage Each Section 184 Native American Mortgage must not be: ■ Originated in connection with other FHA and VA programs, such as Section 203(k) of the National Housing Act ■ A super conforming Mortgage ■ A Community Land Trust Mortgage ■ A Mortgage secured by a property subject to income-based resale restrictions that terminate upon foreclosure (or expiration of any applicable legally required foreclosure redemption period) or recordation of a deed-in-lieu of foreclosure, where the property value must be determined in accordance with Section 4406.4

(c) Each Section 184 Native American Mortgage must be sold to Freddie Mac with recourse, within the meaning of Section 6201.2(b)(i). (c) Compliance with Freddie Mac’s requirements Each Section 184 Native American Mortgage must comply with the provisions of the Guide, except that if there are Section 184 Regulations applicable to the following matters, the Section 184 Regulations apply: ■ Appraisals ■ Borrower underwriting ■ Eligible Borrowers ■ Interested party contributions ■ Loan-to-value (LTV) and total LTV (TLTV) ratios ■ Mortgage and property insurance ■ Mortgage instruments ■ Reserves ■ Secondary financing ■ Sources of funds for the Down Payment and Closing Costs ■ Temporary subsidy buydown plans

(d) Title status report When the title to the Mortgaged Premises is an unrestricted fee simple, the provisions of Chapter 4702 apply. When title to the Mortgaged Premises is other than unrestricted fee simple, the Seller must obtain a title status report and any other documentation required by the Section 184 Regulations. The Seller must record the Security Instrument, and all other Mortgage documents required to be recorded, in accordance with the terms of the Section 184 Regulations.

(e) Mortgage file documentation In addition to the documents required by Chapters 3301 and 3401, the Mortgage file must contain the following documents: ■ Documentation of the land status and court system that has jurisdiction over the property ■ The Indian Loan Guarantee Certificate (HUD Form 53039)

(f) Special Seller warranties The Seller represents and warrants with respect to each Section 184 Native American Mortgage that: ■ The HUD guarantee on each Section 184 Native American Mortgage is in full force and effect as of the Delivery Date and will not be canceled while Freddie Mac has an ownership interest in the Mortgage ■ Each Section 184 Native American Mortgage was originated in compliance with all the requirements of the Section 184 Regulations, unless those requirements were modified or waived in writing by HUD and the Bureau of Indian Affairs and Freddie Mac approved the modifications and waivers ■ The Borrower’s Indian Tribe received authorization from HUD to participate in the Mortgage loan program described in the Section 184 Regulations and adopted, and is enforcing, a legal and administrative framework and procedures for foreclosure, evictions, establishing priority of liens and leasing that meets the requirements of the Section 184 Regulations ■ The HUD guarantee fee was paid ■ The Seller received the Indian Loan Guarantee Certificate (HUD Form 53039) endorsed for guarantee by an authorized agent of the Assistant Secretary for Public and Indian Housing

(g) Delivery instructions See Section 6302.13 for delivery and pooling requirements for Section 184 Native American Mortgages sold to Freddie Mac.

(h) Credit Fees The Seller must refer to Exhibit 19, Credit Fees, for Credit Fees related to Section 184 Native American Mortgages. Credit Fees are paid in accordance with the Credit Fee provisions stated in Chapter 6303.