Partner Message: Tribal Consultation On HUD’s Proposed Rule On Mortgage Insurance For Transactions Involving Downpayment Assistance Programs

This is a reminder that HUD’s Office of Housing will conduct Tribal consultation on a Proposed Rule that would establish underwriting criteria for Single Family Federal Housing Administration (FHA) insured financing where in conjunction with the FHA-insured mortgage, downpayment assistance (DPA) is provided by a State, local government, or Indian Tribe or an agency or instrumentality thereof. HUD will host a webinar and is also requesting written comments and recommendations on HUD’s efforts to develop this Proposed Rule.

As part of this consultation, HUD will host a webinar on January 25, 2022, at 2pm EST to provide interested Tribal leaders with the opportunity to comment as well as comment on the following specific questions:

  1. What is a reasonable amount per transaction for De Minimis Administrative costs over the amount of the assistance that would not constitute a financial benefit prohibited under section 203(b)(9)(C) of the NHA? How should HUD establish the amount of administrative costs? How often should HUD establish such costs?
  2. How can HUD effectively ensure that DPA providers comply with section 203(b)(9)(C) of the NHA? Is requiring DPA providers to certify compliance regarding Financial Benefits and De Minimis Administrative Costs an effective option?
  3. To what extent would HUD’s rulemaking potentially impact access to, and availability of, DPA and, by extension, homeownership for potential FHA borrowers? To what extent would Tribal entities that provide DPA and tribal borrowers be affected by the Proposed Rule?
  4. How can HUD ensure compliance with section 203(b)(9)(C) of the NHA while not unnecessarily restricting or reducing available resources for potential homeowners, including first-time and low-income individuals?

The webinar begins at 2:00 PM Eastern Time on January 25, 2022; you may join the webinar 10 minutes prior.

  • To join, click:
  • Join the Webex event and follow the prompts to connect audio by computer or telephone. Need to join via phone only? 888-251-2949 or 215-861-0694 – Need an international number? Access Code: 8287711# Webex Support: 888-793-6118

We welcome your views as a Tribal leader on items that should be included as we develop these policy proposals. You may submit your comments to HUD within 60 days of the date of this letter by e-mail to

Please review the Dear Tribal Leader letter in its entirety for background information and more specific details regarding this Consultation session.

As a reminder, all of HUD’s Consultation notices and activity can be found here:

HUD’s Fiscal Year 2022-2026 Strategic Plan

HUD is seeking Tribal feedback on the Department’s FY2022-2026 Strategic Plan. Comments for specific focus areas are due by January 28, 2022.

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