HUD moves to bar non-permanent residents from Section 184

"The Section 184 program provides loan guarantees for enrolled tribal members. Under a rule issued by former acting secretary Adrianne Todman, eligible borrowers included U.S. citizens, lawful permanent residents and non-permanent resident aliens. That rule also established new lender eligibility and underwriting requirements aimed at reducing risk and increasing participation from financial institutions. According to Turner, non-permanent residents are subject to immigration laws that can affect their ability to remain legally in the United States."

"In addition, HUD's ability to fulfill long-term financial obligations depends on stable residency and employment. HUD claims that the update is similar to changes made to mortgage programs insured by the Federal Housing Administration. Although HUD is accepting public comments until Nov. 3, the rule will take effect Oct. 6. The agency said there is good cause to implement the change immediately since immigration status is rarely at issue under the Section 184 program."

The Section 184 program provides loan guarantees for enrolled tribal members. A prior rule allowed U.S. citizens, lawful permanent residents and non-permanent resident aliens to be eligible borrowers. The update modifies lender eligibility and underwriting requirements to reduce risk and increase participation from financial institutions. HUD cites that non-permanent residents face immigration laws that can affect their legal ability to remain in the United States, which affects long-term repayment stability tied to residency and employment. HUD characterizes the change as similar to FHA mortgage program updates and set the rule to take effect Oct. 6 while accepting comments through Nov. 3.

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