5: They Are Supported by Federal Government Agencies
A number of economic and community development programs can provide equity, loans, loan security, and other credit enhancements to help reduce any lending risk and provide worthwhile support:
Treasury supports partnerships with community financial institutions. The U.S. Department of the Treasury’s CDFI Fund fosters partnerships and offers support through its Native Initiatives program. In many cases, if you work at a community bank and a Native CDFI is in your bank’s assessment area, your bank establishment could leverage public funds to support technical assistance, trainings, and more.
HUD can guarantee home loan portfolios. Interested in growing your financial institution’s home loan portfolio? Section 184 in HUD’s Indian Home Loan Guarantee Program provides a 100 percent loan guarantee to ensure your financial institution’s investment held in Indian Country trust lands will be repaid in full in the event of foreclosure.