Assessment Of Native American, Alaska Native, And Native Hawaiian Housing Needs

LENDER TELEPHONE INTERVIEW GUIDE

Introduction/Purpose of the Study

My name is _______________ and I’m a researcher from/consulting with the Urban Institute, a non-profit research organization located in Washington, DC. As you may have learned from the advance letter that was sent, the Urban Institute, on behalf of the Department of Housing and Urban Development (HUD), is studying the housing conditions and needs of Native Americans, Alaska Natives, and Native Hawaiians across the United States. One component of the study will identify challenges and opportunities associated with making mortgage loans to Native Americans on Indian land. We define Indian land in the study as land located within reservation boundaries. We understand that land status on reservations can differ, and we will ask about that in the survey.

We have selected your organization based on data regarding Section 184 Program lending volume [or, if applicable] your organization’s presence in the Native American mortgage lending market as identified by stakeholders. Are you responsible for taking mortgage loan applications?

[If NO]: Could you provide me the phone number of a person who does?

[If YES]:

Your participation is very important to the success of this study. These interviews will provide important information on homeownership and lending in Indian county, on the uses and benefits of the Section 184 program, and on challenges to homeownership and lending in Indian country. We will use what we learn today and from other interviews to contribute to a report on housing conditions and needs among Native Americans. This report will be submitted to HUD to inform the federal government of housing challenges. The interview will take about 45 minutes

Would you like to participate in the survey?

[If YES] Would you like to complete the survey now?

[If YES] Go through the survey with the respondent.

Confidentiality Statement [Interviewer must read this]: .

Before beginning the interview, I (we) want to thank you for agreeing to participate in this study and remind you that your participation is voluntary. You don’t have to participate and you can decide not to answer any specific questions. You also may end the interview at any point. I (we) know that you are busy and will try to be as brief as possible. The interview today should last about 45 minutes. This interview is not part of an audit or a compliance review. We are interested in learning about your ideas, experiences, and opinions. There are no right or wrong answers.

In addition, before we start, I want to let you know that although we will take notes during these interviews, information is never repeated with the name of the respondent in any reports or in any discussions with supervisors, colleagues, or HUD. When we write our reports and discuss our findings, information from all the people we speak with is compiled and presented so that no one person can be identified.

Do you have any questions before we begin?

INTERVIEW QUESTIONS

1. What are the main benefits or opportunities to your company that arise from mortgage lending on Indian land?

We wish to hear your insights regarding various challenges to lending on Indian land as well as the strategies and programs to overcome these challenges. For the sake of discussion, we will first consider Native American Land issues and then the subjects of Attracting, Qualifying and Retaining mortgage borrowers on Indian land.

2. On a 1 to 5 scale (1 not at all a problem to 5 a very big problem) how big a problem are the following land and title issues to your company’s ability to lend on Indian land?

1. Land and Title Issues (1 through 5 rating)

Land and Title Issue	Problem Level (1-5)
Trust land status
Fractional ownership
Uncertainty about recovering mortgaged properties in the event of a foreclosure
Other land/title issues: Specify:

2. Which two issues are the biggest problems? Why?

What strategies and programs does your company use to address each of the following land and title issues (probe for section 184 and others)?

1. Trust land status

2. Fractional ownership

3. Uncertainty about recovering mortgaged properties in the event of a foreclosure

4. Other land/title issues: Specify

3. What two strategies and programs are the most effective for addressing land and title issues? Why?

3. On a 1 to 5 scale (1 not at all a problem to 5 a very big problem) how big a problem are the following challenges to attracting mortgage applicants on Indian land?

1. Attracting Applicants (1 through 5 rating)

Attracting applicant challenge	Problem Level (1-5)
Potential borrowers are wary of formal institutional lenders
Language issues
Paperwork issues
Limited demand—minimal interest in or familiarity with homeownership
Others: Specify

2. Which two challenges are the biggest problems? Why?

2. Do you use (yes or no) any of the following strategies to attract mortgage applicants on Indian land and how effective are each of these strategies on a 1 through 5 scale (1 not at all effective to 5 very effective)?

Strategy for attracting applicants	Use (Yes or No)	Effectiveness (1-5)
Lender presence in/near Indian land
Advertising through media that reaches Indian land
Enhanced language and cultural sensitivity messages included in outreach materials
Outreach through informal gatherings
Outreach through employers of Native Americans
Working with Tribes, TDHEs and other Tribal institutions, such as Tribal CDFIs and credit unions
Others: Specify

2. Which two from the above list are the most effective for attracting mortgage applicants? Why?

4. On a scale of 1 to 5 (1 not at all a problem and 5 a very big problem) how big a problem are each of the following challenges to qualifying mortgage applicants on Indian land?

1. Qualifying applicants (1 through 5 rating)

Qualifying applicant challenge	Problem Level (1 to 5)
No credit history
Blemished credit
Insufficient income
Low savings for downpayment
High existing household debt
Mortgaged property condition
Difficulty in appraising mortgage property (e.g., insufficient “comps”)
Issues with employment record
Land title issues
Others: Specify

2. Which two challenges are the biggest problems? Why?

3. Do you use (yes or no) the following strategies to qualify mortgage applicants on Indian land and how effective are each of the following strategies on a 1 through 5 scale (1 not at all effective to 5 very effective)?

Strategy for qualifying applicants	Use (Yes or No)	Effectiveness (1-5)
Provide home buyer education and counseling
Provide affordable and flexible lending products (e.g., low down payments and higher debt ratios)
Use flexible and culturally- sensitive underwriting related to credit, property standards and appraisals, employment and income, asset verification, and other considerations
Foster fair access to credit through multiple reviews and other strategies;
Working with Tribes, TDHEs and other Tribal institutions, such as Tribal CDFIs and credit unions
Others: Specify

4. Which two from the above list are the most effective for qualifying mortgage applicants? Why?

4. On a 1 to 5 scale (1 not at all a problem to 5 a very big problem) how big a problem are the following challenges to servicing and retaining mortgage borrowers on Indian land?

   1. Serving/Retaining Mortgage Borrowers (1 through 5 rating)

Servicing/retaining mortgage challenge	Problem Level (1-5)
Higher delinquency
Lack of steady income
Taking on subsequent additional mortgage debt (e.g., second mortgage)
Taking on subsequent consumer debt (e.g., new/larger auto loan)
Inexperience with homeownership (e.g., making repairs and securing insurance, etc.)
Others: Specify

2. Which two challenges are the biggest problems? Why?

3. Do you use (yes or no) the following strategies to servicing and retaining mortgages on Indian land and how effective are each of these strategies on a 1 through 5 scale (1 not at all effective to 5 very effective)?

Strategy to service mortgages	Use (Yes or No)	Effectiveness (1-5)
1. Enhanced communication and education of borrowers
Enhanced oversight (e.g., neighborhood “drive-throughs” and visiting borrowers);
Quick response to delinquency and delinquency workout
Working with Tribes, TDHEs and other Tribal institutions, such as Tribal CDFIs and credit unions
Others: Specify

4. Which two from the list above are the most effective for servicing and retaining mortgage borrowers? Why?

5. Do you use (yes or no) the following management strategies for fostering mortgage lending on Indian land and how would you evaluate the effectiveness of each of these strategies on a 1 through 5 scale (1 not at all effective to 5 very effective)?

6. Management (1 through 5 rating)

Management strategy	Use (Yes or No)	Effectiveness (1-5)
Senior management commitment
Specific lending goals
Compensation formulas that encourage working on affordable lending
Recruiting staff who are familiar with issues associated with originating mortgages on Indian land
Workforce development and education
Market research
Targeted outreach activities
Working with TDHEs and other Tribal institutions, such as Tribal CDFIs and credit unions
Others: Specify

7. Which two from the above list are the most effective management strategies? Why?

4. Which three programs do you use most frequently to originate mortgages on Indian land (such as Section 184, NAHASDA, or any other initiatives)?

4. Why does your company use these programs? (Probe if programs help lender meet CRA requirements)

4. What are some of the best features of these programs?

4. What are some of the things that you would like to see changed about these programs?

4. What would happen to your company’s lending volume on Indian land if these programs did not exist?

4. Are there other lending programs (such as FHA, portfolio CRA products, etc.) that your company uses to serve other traditionally underserved markets? If yes: Why are these types of loans difficult to originate to Native American borrowers?

4. What has been the impact of the recent real estate crisis on mortgage lending in Indian Country?

4. To what extent does the Section 184 Program and other government mortgage lending programs that support lending on Indian land help offset challenges associated with the real estate slowdown?

4. How many mortgage loans did your company originate on Indian land from January 2009 through December 2010? What was the total dollar volume and number of these loans? What share are refinance loans?

4. What share of your mortgage origination volume for properties located on Indian land is retained in portfolio? Is this share different from other mortgages? Why or why not?

4. Does your company retain servicing for these loans? Why or why not?

4. What are the main factors that influenced your company’s lending volume on Indian land between January 2009 and December 2010?

4. Did your company’s lending volumes on Indian land in the two-year period starting in 2009 change from the two-year period starting in January 2007.

[If Yes] What were the main factors that affected the change in your company’s lending volume on Indian land after December 2008?

4. What are the two most important changes that would have to take place for your company to increase its mortgage lending on Indian land in the next two years? Why are these changes so important?

HOUSING FINANCE AGENCY TELEPHONE INTERVIEW GUIDE

Introduction/Purpose of the Study

My name is _______________ and I’m a researcher from/consulting with the Urban Institute, a non-profit research organization located in Washington, DC. As you may have learned from the advance letter that was sent, the Urban Institute, on behalf of the Department of Housing and Urban Development (HUD), is studying the housing conditions and needs of Native Americans, Alaska Natives, and Native Hawaiians across the United States. One component of the study will identify challenges and opportunities associated with making mortgage loans to Native Americans on Indian land. We define Indian land in the study as land located within reservation boundaries. We understand that land status on reservations can differ, and we will ask about that in the survey.

We have selected your organization based on its programs that fund home mortgage lending on Indian land. Your participation is very important to the success of this study. These interviews will provide important information on homeownership and lending in Indian country, and on challenges to homeownership and lending in Indian county. We will use what we learn today and from other interviews to contribute to a report on housing conditions and needs among Native Americans. This report will be submitted to HUD to inform the federal government of housing challenges. The interview will take about 45 minutes

Would you like to participate in the survey?

[If YES] Would you like to complete the survey now?

[If YES] Go through the survey with the respondent.

Confidentiality Statement [Interviewer must read this]: .

Before beginning the interview, I (we) want to thank you for agreeing to participate in this study and remind you that your participation is voluntary. You don’t have to participate and you can decide not to answer any specific questions. You also may end the interview at any point. I (we) know that you are busy and will try to be as brief as possible. The interview today should last about 45 minutes. This interview is not part of an audit or a compliance review. We are interested in learning about your ideas, experiences, and opinions. There are no right or wrong answers.

In addition, before we start, I want to let you know that although we will take notes during these interviews, information is never repeated with the name of the respondent in any reports or in any discussions with supervisors, colleagues, or HUD. When we write our reports and discuss our findings, information from all the people we speak with is compiled and presented so that no one person can be identified.

Do you have any questions before we begin?

INTERVIEW QUESTIONS

1. What are the main programs the HFA uses to finance mortgage lending on Indian land?

2. Are the Indian land-oriented programs the same as or different from the HFA’s overall mortgage programs?

3. What are the sources of funding for these Indian land-oriented programs?

4. When did these programs start?

5. What are the main objectives of these programs? (probe for benefits, opportunities and other objectives )

6. What are the main challenges that these programs are designed to address? (probe for challenges related to-- land and title, attracting applicants, qualifying applicants, and servicing/retaining mortgage borrowers )

7. Which lenders originate mortgages funded by these programs? How did you select these lenders?

8. What are the terms of loans (years to repay, interest rate, etc.) made under these Indian land-oriented programs? Are these Indian land-oriented mortgage terms the same as or different from the HFA’s overall mortgages?

9. What are the underwriting standards (LTV, credit score, DTI, etc.) for these Indian land-oriented programs? Are these underwriting terms the same as or different from the HFA’s overall mortgage underwriting standards?

10. Is pre-purchase counseling required under the Indian land-oriented programs? Why or why not? Is there anything unique about the pre-purchase counseling for the Indian land lending?

11. What are the most important strategies the HFA uses to attract, qualify and retain Native American mortgage borrowers on Indian lands?

12. What would happen to Native American borrowers if the HFA’s Indian land programs were not available?

13. How have the loans performed? (probe for absolute and relative performance ) Do the programs allow for forbearance or loan modifications?

14. What is the HFA’s Native American mortgage loan activity (number of loans and total dollar volume) on Indian land between January 2009 and December 2010?

15. What is your assessment of the HUD Section 184 Program? What changes, if any, would you recommend?

NATIVE AMERICAN CDFI AND TRIBE-OWNED CREDIT UNION

TELEPHONE INTERVIEW GUIDE

Introduction/Purpose of the Study

My name is _______________ and I’m a researcher from/consulting with the Urban Institute, a non-profit research organization located in Washington, DC. As you may have learned from the advance letter that was sent, the Urban Institute, on behalf of the Department of Housing and Urban Development (HUD), is studying the housing conditions and needs of Native Americans, Alaska Natives, and Native Hawaiians across the United States. One component of the study will identify challenges and opportunities associated with making mortgage loans to Native Americans on Indian land. We define Indian land in the study as land located within reservation boundaries. We understand that land status on reservations can differ, and we will ask about that in the survey.

We have selected your organization based on its reputation in the field for its success in originating mortgages for properties located on Indian land. Your participation is very important to the success of this study. These interviews will provide important information on homeownership and lending in Indian country, and on challenges to homeownership and lending in Indian county. We will use what we learn today and from other interviews to contribute to a report on housing conditions and needs among Native Americans. This report will be submitted to HUD to inform the federal government of housing challenges. The interview will take about 45 minutes

Would you like to participate in the survey?

[If YES] Would you like to complete the survey now?

[If YES] Go through the survey with the respondent.

Confidentiality Statement [Interviewer must read this]: .

Before beginning the interview, I (we) want to thank you for agreeing to participate in this study and remind you that your participation is voluntary. You don’t have to participate and you can decide not to answer any specific questions. You also may end the interview at any point. I (we) know that you are busy and will try to be as brief as possible. The interview today should last about 45 minutes. This interview is not part of an audit or a compliance review. We are interested in learning about your ideas, experiences, and opinions. There are no right or wrong answers.

In addition, before we start, I want to let you know that although we will take notes during these interviews, information is never repeated with the name of the respondent in any reports or in any discussions with supervisors, colleagues, or HUD. When we write our reports and discuss our findings, information from all the people we speak with is compiled and presented so that no one person can be identified.

Do you have any questions before we begin?

INTERVIEW QUESTIONS

1. What are the main programs or mortgage products does your institution use when originating mortgages on Indian land?

2. Are these programs and products the same as or different from your other mortgage programs and products?

[If DIFFERENT] How are they different?

3. What are the sources of funding for these Indian land-oriented programs or products?

4. When did these programs/products start?

5. What are the main objectives of these programs/products? (probe for benefits, opportunities and other objectives )

6. What are the main challenges that these programs/products are designed to address? (probe for challenges related to--land and title, attracting applicants, qualifying applicants, and servicing/retaining mortgage borrowers )

7. What are the terms of loans (years to repay, interest rate, etc.) made under these Indian land-oriented programs? Are these Indian land-oriented mortgage terms the same as or different from your organization’s overall mortgages?

8. What are the underwriting standards (LTV, credit score, DTI, etc.) for these Indian land-oriented programs/products? Are these underwriting terms the same as or different from your organization’s other mortgage underwriting standards?

9. Is pre-purchase counseling required under the Indian land-oriented programs? Why or why not? Is there anything unique about the pre-purchase counseling for the Indian land lending?

10. What are the most important strategies your organization uses to attract, qualify and retain Native American mortgage borrowers on Indian lands?

11. What would happen to Native American borrowers if your programs/products were not available?

12. How have the loans performed? (probe for absolute and relative performance ) Do the programs allow for forbearance or loan modifications?

13. What is the Native American mortgage loan activity (number of loans and total dollar volume) on Indian land between January 2009 and December 2010?

14. What is your assessment of the HUD Section 184 Program? What changes, if any, would you recommend?

LENDER TELEPHONE INTERVIEW GUIDE

PAGE 10