38 USC 3762A - Native community development financial institution relending program

U.S Code last checked for updates: Jan 31, 2025

§ 3762A.

Native community development financial institution relending program

(a)

Purpose.—

The Secretary may make a loan to a Native community development financial institution for the purpose of allowing the institution to relend loan amounts to qualified Native American veterans, subject to the requirements of this section.

(b)

Standards.—

(1)

The Secretary shall establish standards to be used in evaluating whether to make a loan to a Native community development financial institution under this section.

(2)

In establishing standards under paragraph (1), the Secretary shall ensure that a Native community development financial institution—

(A)

is able to originate and service loans for single-family homes;

(B)

is able to operate the relending program in a manner consistent with the mission of the Department to serve veterans; and

(C)

uses loan amounts received under this section only for the purpose of relending, as described in subsection (c), to Native American veterans.

(c)

Relending Requirements.—

(1)

A Native community development financial institution that receives a loan under this section shall use the loan amounts to make loans to Native American veterans residing on trust land.

(2)

A loan to a Native American veteran made by a Native community development financial institution under paragraph (1) shall—

(A)

be limited either to the purpose of purchase, construction, or improvement of a dwelling located on trust land or to the refinance of an existing mortgage loan for a dwelling on trust land, consistent with the requirements of section 3762(h) of this title; and

(B)

comply with such terms and conditions as the Secretary determines are necessary to protect against predatory lending, including the interest rate charged on a loan to a Native American veteran.

(d)

Repayment.—

A loan made to a Native community development financial institution under this section shall—

(1)

be payable to the Secretary upon such terms and conditions as are prescribed in regulations pursuant to this subchapter; and

(2)

bear interest at a rate of one percent.

(e)

Oversight.—

Subject to notice and opportunity for a hearing, whenever the Secretary finds with respect to loans made under subsection (a) or (c) that any Native community development financial institution has failed to maintain adequate loan accounting records, to demonstrate proper ability to service loans adequately, or to exercise proper credit judgment, or that such Native community development financial institution has willfully or negligently engaged in practices otherwise detrimental to the interest of veterans or of the Government, the Secretary may take such actions as the Secretary determines necessary to protect veterans or the Government, such as requiring immediate repayment of any loans made under subsection (a) and the assignment to the Secretary of loans made under subsection (c).

(f)

Sunset.—

The Secretary may not make a loan under this section after September 30, 2027.

(Added Pub. L. 118–210, title II, § 232(a), Jan. 2, 2025, 138 Stat. 2787.)

cite as: 38 USC 3762A