15.1.14.020 Support for Mortgage Lending

(a) The Tribe shall consult with Fannie Mae to identify one or more Fannie Mae-approved lenders to act as "Designated Lenders."

(b) The Tribe agrees to the establishment and maintenance of Legal Standards as long as Fannie Mae is the holder of any Mortgage originated pursuant to this MOU.

(c) The Tribe may satisfy the Legal Standards by adopting by ordinance, either

(1) The laws of the state where the mortgaged properties are located relating to such standards and procedures;

(2) The "Model Tribal Lending Code" which is attached to the "One-Stop Mortgage Center Initiative in Indian Country" (issued in October 2000 by the U.S. Department of Housing and Urban Development and the U.S. Department of the Treasury); or

(3) Enacting conveyance, recordation, foreclosure and eviction laws which are specifically reviewed and approved by Fannie Mae's counsel, and by adopting appropriate ordinances governing Manufactured Housing and Land Assignments, as necessary.

(d) The Tribe shall ensure that each Eligible Borrower to whom a loan is made in connection with this MOU holds or possesses, at the time of such financing, either (i) a leasehold estate on Trust Land or Restricted Land pursuant to a Residential Ground Lease satisfactory to Fannie Mae that is entered into between the Tribe (or TDHE or IHA) and the Eligible Borrower (provided, however, the lessor and the lessee may not be the same entity; for example, if a TDHE or IHA is the lessor, that same TDHE or IHA may not be the lessee); (ii) a valid Assignment of Trust Land or Restricted Land pursuant to the Tribe's Land Assignment Law; or (iii) a sole beneficial interest in individual Trust Land or Restricted Land (as evidenced by a deed of allotment), and that such Borrower will acquire, construct or rehabilitate a dwelling on such property with the proceeds of the Mortgage or refinance an existing mortgage loan on such property.

(e) The Tribe shall ensure that each Eligible Borrower to whom a loan is made in connection with this MOU shall convey to the Designated Lender a security interest in the applicable real property interest described in Section 2 (d) above, by an appropriate instrument satisfactory to the Designated Lender, Fannie Mae and the Tribe, as security for a Mortgage made pursuant to NACLI.

(f) The Tribe, and the Eligible Borrower who applies for a Mortgage, will permit the Designated Lender or Fannie Mae, and their respective successors or assigns, to enter upon the Trust Land or Restricted Land, as applicable, for the purpose of carrying out such actions as the Designated Lender and Fannie Mae determine are necessary to evaluate the advisability of providing the Mortgage, to service the Mortgage after origination, and to otherwise carry out or enforce the terms of the Mortgage.

(g) The Tribe will, to the maximum extent possible, assist the Designated Lender and Fannie Mae, and their successors and assigns, in their efforts to facilitate the continued availability of conventional mortgage financing on the Trust Land or Restricted Land. Such assistance shall include:

(1) Assisting the Designated Lender and Fannie Mae in finding a qualified substitute purchaser of the mortgaged property if the initial borrower is unable to fulfill the obligations under the Mortgage;

(2) Assisting the Designated Lender and Fannie Mae with the proper recordation of Mortgages and other legal instruments; and

(3) Supporting enforcement of foreclosures and evictions in connection with any default under a Mortgage in accordance with the Legal Standards.

(h) The Tribe and Fannie Mae acknowledge and agree that Mortgages made pursuant to NACLI shall be recorded in (i) the appropriate Bureau of Indian Affairs Area Land Titles and Records Office, (ii) the county recorder's office in the state in which the mortgaged properties are located, and (iii) the following recording office established under Tribal law that are designated by the Tribe for the recording of Mortgages: Realty Office of the Tribe.

(i) With respect to any leasehold estate or Assignment financed by a Mortgage, the Tribe, as lessor, agrees that it shall not attempt to cancel, modify, amend, terminate, surrender or forfeit any Residential Ground Lease, leasehold estate, or Assignment without the prior written consent of the Designated Lender and Fannie Mae, or their successors or assigns, as long as such Mortgage remains outstanding and the Designated Lender or Fannie Mae, or their successors or assigns, otherwise has an interest in such leasehold estate or Assignment.