What This Bill Does
This bill requires the Bureau of Indian Affairs to process mortgage packages for homes and businesses on Indian land within specific timeframes. It also creates a new position called the Realty Ombudsman to oversee these mortgage reviews and ensure the Bureau meets its deadlines.
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Who It Affects
- The Bureau of Indian Affairs and its local offices
- Individual American Indians who own trust land (a type of land held in trust by the federal government)
- Mortgage lenders
- The Department of Agriculture, Department of Housing and Urban Development, and Department of Veterans Affairs
- Indian Tribes
- Members of Indian Tribes
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Key Provisions
- The Bureau must notify lenders within 10 calendar days that a mortgage package was received and must complete a preliminary review within 10 calendar days to confirm all required documents are included (Sec. 3(a)(2))
- The Bureau must approve or disapprove leasehold mortgages within 20 calendar days and land mortgages and right-of-way documents within 30 calendar days after receiving complete paperwork (Sec. 3(a)(3))
- The Bureau must complete title status reports (documents that verify ownership and liens on property) within 10 calendar days of approving a mortgage or within 14 calendar days of receiving a request for one (Sec. 3(a)(4))
- The Bureau must immediately notify parties if it misses any deadline and respond to inquiries within 2 calendar days (Sec. 3(b))
- The Director of the Bureau must create a new position called Realty Ombudsman who reports directly to the Secretary of the Interior and oversees mortgage processing deadlines, compliance with notice requirements, and handles complaints from tribes, tribal members, and lenders (Sec. 4)
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What Changes
If this bill becomes law, the Bureau of Indian Affairs will face strict timelines for approving mortgages on Indian land instead of processing them without set deadlines. The Bureau must provide written approval or denial decisions and explain reasons for denial. A new Realty Ombudsman will be hired to ensure the Bureau meets these deadlines and serves as a point of contact for complaints. Federal agencies like the Department of Veterans Affairs will gain read-only access to the Trust Asset and Accounting Management System. The Bureau Director must submit annual reports to Congress describing how many mortgage requests were completed on time and why any were delayed.
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Important Definitions
- **Indian land**: Property defined in federal regulations (specifically section 162.003 of title 25, Code of Federal Regulations)
- **Land mortgage**: A loan taken out by an individual American Indian who owns trust land for buying a home, building a home, home improvements, or economic development
- **Leasehold mortgage**: A mortgage, deed of trust, or similar document that uses leasehold interest as security for a debt
- **Mortgage package**: A proposed residential leasehold mortgage, business leasehold mortgage, land mortgage, or right-of-way document submitted to a Bureau office
- **Right-of-way document**: A document defined in federal regulations (specifically section 169.2 of title 25, Code of Federal Regulations)
- **Applicable Bureau office**: A Regional office, Agency office, or Land Titles and Records Office of the Bureau of Indian Affairs
- **Relevant Federal agency**: The Department of Agriculture, Department of Housing and Urban Development, or Department of Veterans Affairs
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Effective Date
Not specified in bill text
118TH CONGRESS
1ST SESSION
S. 70
AN ACT
To require the Bureau of Indian Affairs to process and
complete all mortgage packages associated with residen-
tial and business mortgages on Indian land by certain
deadlines, and for other purposes.
Be it enacted by the Senate and House of Representa-
1
tives of the United States of America in Congress assembled,
2
2
† S 70 ES
SECTION 1. SHORT TITLE.
1
This Act may be cited as the ‘‘Tribal Trust Land
2
Homeownership Act of 2023’’.
3
SEC. 2. DEFINITIONS.
4
In this Act:
5
(1) APPLICABLE BUREAU OFFICE.—The term
6
‘‘applicable Bureau office’’ means—
7
(A) a Regional office of the Bureau;
8
(B) an Agency office of the Bureau; or
9
(C) a Land Titles and Records Office of
10
the Bureau.
11
(2) BUREAU.—The term ‘‘Bureau’’ means the
12
Bureau of Indian Affairs.
13
(3) DIRECTOR.—The term ‘‘Director’’ means
14
the Director of the Bureau.
15
(4) FIRST CERTIFIED TITLE STATUS REPORT.—
16
The term ‘‘first certified title status report’’ means
17
the title status report needed to verify title status on
18
Indian land.
19
(5) INDIAN
LAND.—The term ‘‘Indian land’’
20
has the meaning given the term in section 162.003
21
of title 25, Code of Federal Regulations (as in effect
22
on the date of enactment of this Act).
23
(6) LAND MORTGAGE.—The term ‘‘land mort-
24
gage’’ means a mortgage obtained by an individual
25
3
† S 70 ES
Indian who owns a tract of trust land for the pur-
1
pose of—
2
(A) home acquisition;
3
(B) home construction;
4
(C) home improvements; or
5
(D) economic development.
6
(7) LEASEHOLD MORTGAGE.—The term ‘‘lease-
7
hold mortgage’’ means a mortgage, deed of trust, or
8
other instrument that pledges the leasehold interest
9
of a lessee as security for a debt or other obligation
10
owed by the lessee to a lender or other mortgagee.
11
(8) MORTGAGE
PACKAGE.—The term ‘‘mort-
12
gage package’’ means a proposed residential lease-
13
hold mortgage, business leasehold mortgage, land
14
mortgage, or right-of-way document submitted to an
15
applicable Bureau office under section 3(a)(1).
16
(9) RELEVANT FEDERAL AGENCY.—The term
17
‘‘relevant Federal agency’’ means any of the fol-
18
lowing Federal agencies that guarantee or make di-
19
rect mortgage loans on Indian land:
20
(A) The Department of Agriculture.
21
(B) The Department of Housing and
22
Urban Development.
23
(C) The Department of Veterans Affairs.
24
4
† S 70 ES
(10) RIGHT-OF-WAY
DOCUMENT.—The term
1
‘‘right-of-way document’’ has the meaning given the
2
term in section 169.2 of title 25, Code of Federal
3
Regulations (as in effect on the date of enactment
4
of this Act).
5
(11) SUBSEQUENT
CERTIFIED
TITLE
STATUS
6
REPORT.—The term ‘‘subsequent certified title sta-
7
tus report’’ means the title status report needed to
8
identify any liens against a residential, business, or
9
land lease on Indian land.
10
SEC. 3. MORTGAGE REVIEW AND PROCESSING.
11
(a) REVIEW AND PROCESSING DEADLINES.—
12
(1) IN GENERAL.—As soon as practicable after
13
receiving a proposed residential leasehold mortgage,
14
business leasehold mortgage, land mortgage, or
15
right-of-way document, the applicable Bureau office
16
shall notify the lender that the proposed residential
17
leasehold mortgage, business leasehold mortgage, or
18
right-of-way document has been received.
19
(2) PRELIMINARY REVIEW.—
20
(A) IN GENERAL.—Not later than 10 cal-
21
endar days after receipt of a proposed residen-
22
tial leasehold mortgage, business leasehold
23
mortgage, land mortgage, or right-of-way docu-
24
ment, the applicable Bureau office shall conduct
25
5
† S 70 ES
and complete a preliminary review of the resi-
1
dential leasehold mortgage, business leasehold
2
mortgage, land mortgage, or right-of-way docu-
3
ment to verify that all required documents are
4
included.
5
(B) INCOMPLETE
DOCUMENTS.—As soon
6
as practicable, but not more than 2 calendar
7
days, after finding that any required documents
8
are missing under subparagraph (A), the appli-
9
cable Bureau office shall notify the lender of
10
the missing documents.
11
(3) APPROVAL OR DISAPPROVAL.—
12
(A) LEASEHOLD
MORTGAGES.—Not later
13
than 20 calendar days after receipt of a com-
14
plete executed residential leasehold mortgage or
15
business leasehold mortgage, proof of required
16
consents, and other required documentation, the
17
applicable Bureau office shall approve or dis-
18
approve the residential leasehold mortgage or
19
business leasehold mortgage.
20
(B)
RIGHT-OF-WAY
DOCUMENTS.—Not
21
later than 30 calendar days after receipt of a
22
complete executed right-of-way document, proof
23
of required consents, and other required docu-
24
mentation, the applicable Bureau office shall
25
6
† S 70 ES
approve or disapprove the right-of-way docu-
1
ment.
2
(C) LAND MORTGAGES.—Not later than 30
3
calendar days after receipt of a complete exe-
4
cuted land mortgage, proof of required con-
5
sents, and other required documentation, the
6
applicable Bureau office shall approve or dis-
7
approve the land mortgage.
8
(D) REQUIREMENTS.—The determination
9
of whether to approve or disapprove a residen-
10
tial leasehold mortgage or business leasehold
11
mortgage under subparagraph (A), a right-of-
12
way document under subparagraph (B), or a
13
land mortgage under subparagraph (C)—
14
(i) shall be in writing; and
15
(ii) in the case of a determination to
16
disapprove a residential leasehold mort-
17
gage, business leasehold mortgage, right-
18
of-way document, or land mortgage shall,
19
state the basis for the determination.
20
(E) APPLICATION.—This paragraph shall
21
not apply to a residential leasehold mortgage or
22
business leasehold mortgage with respect to In-
23
dian land in cases in which the applicant for
24
the residential leasehold mortgage or business
25
7
† S 70 ES
leasehold mortgage is an Indian tribe (as de-
1
fined in subsection (d) of the first section of the
2
Act of 1955 (69 Stat. 539, chapter 615; 126
3
Stat. 1150; 25 U.S.C. 415(d))) that has been
4
approved for leasing under subsection (h) of
5
that section (69 Stat. 539, chapter 615; 126
6
Stat. 1151; 25 U.S.C. 415(h)).
7
(4) CERTIFIED TITLE STATUS REPORTS.—
8
(A) COMPLETION OF REPORTS.—
9
(i) IN GENERAL.—Not later than 10
10
calendar days after the applicable Bureau
11
office approves a residential leasehold
12
mortgage, business leasehold mortgage,
13
land mortgage, or right-of-way document
14
under paragraph (3), the applicable Bu-
15
reau office shall complete the processing
16
of, as applicable—
17
(I) a first certified title status re-
18
port, if a first certified title status re-
19
port was not completed prior to the
20
approval of the residential leasehold
21
mortgage, business leasehold mort-
22
gage, land mortgage, or right-of-way
23
document; and
24
8
† S 70 ES
(II) a subsequent certified title
1
status report.
2
(ii) REQUESTS FOR FIRST CERTIFIED
3
TITLE
STATUS
REPORTS.—Notwith-
4
standing clause (i), not later than 14 cal-
5
endar days after the applicable Bureau of-
6
fice receives a request for a first certified
7
title status report from an applicant for a
8
residential leasehold mortgage, business
9
leasehold mortgage, land mortgage, or
10
right-of-way document under paragraph
11
(1), the applicable Bureau office shall com-
12
plete the processing of the first certified
13
title status report.
14
(B) NOTICE.—
15
(i) IN GENERAL.—As soon as prac-
16
ticable after completion of the processing
17
of, as applicable, a first certified title sta-
18
tus report or a subsequent certified title
19
status report under subparagraph (A), but
20
by not later than the applicable deadline
21
described in that subparagraph, the appli-
22
cable Bureau office shall give notice of the
23
completion to the lender.
24
9
† S 70 ES
(ii) FORM OF NOTICE.—The applica-
1
ble Bureau office shall give notice under
2
clause (i)—
3
(I) electronically through secure,
4
encryption software; and
5
(II) through the United States
6
mail.
7
(iii) OPTION TO OPT OUT.—The lend-
8
er may opt out of receiving notice elec-
9
tronically under clause (ii)(I).
10
(b) NOTICES.—
11
(1) IN GENERAL.—If the applicable Bureau of-
12
fice does not complete the review and processing of
13
mortgage packages under subsection (a) (including
14
any corresponding first certified title status report
15
or subsequent certified title status report under
16
paragraph (4) of that subsection) by the applicable
17
deadline described in that subsection, immediately
18
after missing the deadline, the applicable Bureau of-
19
fice shall provide notice of the delay in review and
20
processing to—
21
(A) the party that submitted the mortgage
22
package or requested the first certified title sta-
23
tus report; and
24
10
† S 70 ES
(B) the lender for which the mortgage
1
package (including any corresponding first cer-
2
tified title status report or subsequent certified
3
title status report) is being requested.
4
(2) REQUESTS FOR UPDATES.—In addition to
5
providing the notices required under paragraph (1),
6
not later than 2 calendar days after receiving a rel-
7
evant inquiry with respect to a submitted mortgage
8
package from the party that submitted the mortgage
9
package or the lender for which the mortgage pack-
10
age (including any corresponding first certified title
11
status report or subsequent certified title status re-
12
port) is being requested or an inquiry with respect
13
to a requested first certified title status report from
14
the party that requested the first certified title sta-
15
tus report, the applicable Bureau office shall re-
16
spond to the inquiry.
17
(c) DELIVERY OF FIRST AND SUBSEQUENT CER-
18
TIFIED TITLE STATUS REPORTS.—Notwithstanding any
19
other provision of law, any first certified title status report
20
and any subsequent certified title status report, as appli-
21
cable, shall be delivered directly to—
22
(1) the lender;
23
11
† S 70 ES
(2) any local or regional agency office of the
1
Bureau that requests the first certified title status
2
report or subsequent certified title status report;
3
(3) in the case of a proposed residential lease-
4
hold mortgage or land mortgage, the relevant Fed-
5
eral agency that insures or guarantees the loan; and
6
(4) if requested, any individual or entity de-
7
scribed in section 150.303 of title 25, Code of Fed-
8
eral Regulations (as in effect on the date of enact-
9
ment of this Act).
10
(d) ACCESS
TO TRUST ASSET
AND ACCOUNTING
11
MANAGEMENT SYSTEM.—Beginning on the date of enact-
12
ment of this Act, the relevant Federal agencies and Indian
13
Tribes shall have read-only access to the Trust Asset and
14
Accounting Management System maintained by the Bu-
15
reau.
16
(e) ANNUAL REPORT.—
17
(1) IN GENERAL.—Not later than March 1 of
18
each calendar year, the Director shall submit to the
19
Committee on Indian Affairs of the Senate and the
20
Committee on Natural Resources of the House of
21
Representatives a report describing—
22
(A) for the most recent calendar year, the
23
number of requests received to complete resi-
24
dential leasehold mortgage packages, business
25
12
† S 70 ES
leasehold mortgage packages, land mortgage
1
packages, and right-of-way document packages
2
(including any requests for corresponding first
3
certified title status reports and subsequent cer-
4
tified title status reports), including a detailed
5
description of—
6
(i) requests that were and were not
7
successfully completed by the applicable
8
deadline described in subsection (a) by
9
each applicable Bureau office; and
10
(ii) the reasons for each applicable
11
Bureau office not meeting any applicable
12
deadlines; and
13
(B) the length of time needed by each ap-
14
plicable Bureau office during the most recent
15
calendar year to provide the notices required
16
under subsection (b)(1).
17
(2) REQUIREMENT.—In submitting the report
18
required under paragraph (1), the Director shall
19
maintain the confidentiality of personally identifiable
20
information of the parties involved in requesting the
21
completion of residential leasehold mortgage pack-
22
ages, business leasehold mortgage packages, land
23
mortgage packages, and right-of-way document
24
packages (including any corresponding first certified
25
13
† S 70 ES
title status reports and subsequent certified title sta-
1
tus reports).
2
(f) GAO STUDY.—Not later than 1 year after the
3
date of enactment of this Act, the Comptroller General
4
of the United States shall submit to the Committee on
5
Indian Affairs of the Senate and the Committee on Nat-
6
ural Resources of the House of Representatives a report
7
that includes—
8
(1) an evaluation of the need for residential
9
leasehold mortgage packages, business leasehold
10
mortgage packages, land mortgage packages, and
11
right-of-way document packages of each Indian
12
Tribe to be digitized for the purpose of streamlining
13
and expediting the completion of mortgage packages
14
for residential mortgages on Indian land (including
15
the corresponding first certified title status reports
16
and subsequent certified title status reports); and
17
(2) an estimate of the time and total cost nec-
18
essary for Indian Tribes to digitize the records de-
19
scribed in paragraph (1), in conjunction with assist-
20
ance in that digitization from the Bureau.
21
SEC. 4. ESTABLISHMENT OF REALTY OMBUDSMAN POSI-
22
TION.
23
(a) IN GENERAL.—The Director shall establish with-
24
in the Division of Real Estate Services of the Bureau the
25
14
† S 70 ES
position of Realty Ombudsman, who shall report directly
1
to the Secretary of the Interior.
2
(b) FUNCTIONS.—The Realty Ombudsman shall—
3
(1) ensure that the applicable Bureau offices
4
are meeting the mortgage review and processing
5
deadlines established by section 3(a);
6
(2) ensure that the applicable Bureau offices
7
comply with the notices required under subsections
8
(a) and (b) of section 3;
9
(3) serve as a liaison to other Federal agencies,
10
including by—
11
(A) ensuring the Bureau is responsive to
12
all of the inquiries from the relevant Federal
13
agencies; and
14
(B) helping to facilitate communications
15
between the relevant Federal agencies and the
16
Bureau on matters relating to mortgages on In-
17
dian land;
18
(4) receive inquiries, questions, and complaints
19
directly from Indian Tribes, members of Indian
20
Tribes, and lenders in regard to executed residential
21
leasehold mortgages, business leasehold mortgages,
22
land mortgages, or right-of-way documents; and
23
(5) serve as the intermediary between the In-
24
dian Tribes, members of Indian Tribes, and lenders
25
15
† S 70 ES
and the Bureau in responding to inquiries and ques-
1
tions and resolving complaints.
2
Passed the Senate July 18, 2023.
Attest:
Secreta
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