Title 38 — Veterans' BenefitsRelease 119-73

§3762A Native community development financial institution relending program

Title 38 › Part PART III— - READJUSTMENT AND RELATED BENEFITS › Chapter CHAPTER 37— - HOUSING AND SMALL BUSINESS LOANS › Subchapter SUBCHAPTER V— - DIRECT HOUSING LOANS FOR NATIVE AMERICAN VETERANS › § 3762A

Last updated Apr 6, 2026|Official source

Summary

The Secretary may lend money to a Native community development financial institution (a Native CDFI) so that the CDFI can reloan it to qualified Native American veterans. The Secretary will set rules to decide which Native CDFIs qualify. A qualifying CDFI must be able to make and service single‑family home loans, run the relending program to serve veterans, and use the money only for relending to Native American veterans. The CDFI must lend only to Native American veterans who live on trust land. Those veteran loans may be for buying, building, improving, or refinancing a home on trust land and must follow section 3762(h) and rules to prevent predatory lending, including limits on interest rates. Loans from the Secretary to a CDFI must be repaid under regulations and carry a 1 percent interest rate. If, after notice and a hearing, the Secretary finds a CDFI kept poor records, cannot service loans, used bad credit judgment, or acted in ways harmful to veterans or the Government, the Secretary can require immediate repayment and take assignment of the veteran loans. The Secretary cannot make loans under this program after September 30, 2027.

Full Legal Text

Title 38, §3762A

Veterans' Benefits — Source: USLM XML via OLRC

(a)The Secretary may make a loan to a Native community development financial institution for the purpose of allowing the institution to relend loan amounts to qualified Native American veterans, subject to the requirements of this section.

(b)(1)The Secretary shall establish standards to be used in evaluating whether to make a loan to a Native community development financial institution under this section.

(2)In establishing standards under paragraph (1), the Secretary shall ensure that a Native community development financial institution—

(A)is able to originate and service loans for single-family homes;

(B)is able to operate the relending program in a manner consistent with the mission of the Department to serve veterans; and

(C)uses loan amounts received under this section only for the purpose of relending, as described in subsection (c), to Native American veterans.

(c)(1)A Native community development financial institution that receives a loan under this section shall use the loan amounts to make loans to Native American veterans residing on trust land.

(2)A loan to a Native American veteran made by a Native community development financial institution under paragraph (1) shall—

(A)be limited either to the purpose of purchase, construction, or improvement of a dwelling located on trust land or to the refinance of an existing mortgage loan for a dwelling on trust land, consistent with the requirements of section 3762(h) of this title; and

(B)comply with such terms and conditions as the Secretary determines are necessary to protect against predatory lending, including the interest rate charged on a loan to a Native American veteran.

(d)A loan made to a Native community development financial institution under this section shall—

(1)be payable to the Secretary upon such terms and conditions as are prescribed in regulations pursuant to this subchapter; and

(2)bear interest at a rate of one percent.

(e)Subject to notice and opportunity for a hearing, whenever the Secretary finds with respect to loans made under subsection (a) or (c) that any Native community development financial institution has failed to maintain adequate loan accounting records, to demonstrate proper ability to service loans adequately, or to exercise proper credit judgment, or that such Native community development financial institution has willfully or negligently engaged in practices otherwise detrimental to the interest of veterans or of the Government, the Secretary may take such actions as the Secretary determines necessary to protect veterans or the Government, such as requiring immediate repayment of any loans made under subsection (a) and the assignment to the Secretary of loans made under subsection (c).

(f)The Secretary may not make a loan under this section after September 30, 2027.

Reference

Citations & Metadata

Citation

38 U.S.C. § 3762A

Title 38 — Veterans' Benefits

Last Updated

Apr 6, 2026

Release point: 119-73