Use of FHA downpayment assistance from programs run by entities owned by Native American tribes may soon be under agency scrutiny. Industry stakeholders are pointing to a pre-rule notice the Department of Housing and Urban Development published last spring as an opportunity for HUD to clarify the use of downpayment assistance from parties other than those currently allowed to meet FHA’s 3.5 percent downpayment requirement. In an advanced notice of proposed rulemaking in the Federal Register, HUD is seeking comment on the use of downpayment assistance as well as their approved sources, such as tribal providers, state and local housing finance agencies, government agents and non-profit organizations. One downpayment-assistance provider is the Chenoa Fund Loan Program, which is owned and operated by the Utah Cedar Band of Paiutes. The fund provides secondary financing to ...