Title 38 — Veterans' BenefitsRelease 119-73not60

§3762A Native Community Development Financial Institution Relending Program

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

Last updated Apr 5, 2026|Official source

Summary

The Secretary may lend money to Native community development financial institutions so they can relend it to qualified Native American veterans who live on trust land. The Secretary must set rules to decide which institutions get loans. Those institutions must be able to make and manage single-family home loans, run the relending program to serve veterans, and use the money only to relend to those veterans. The veteran loans can be for buying, building, improving, or refinancing a home on trust land and must follow the requirements in section 3762(h). The loans must include protections against predatory lending, including limits on interest rates. Loans to the institutions must be repaid under rules the Secretary makes and will bear interest at 1 percent. After giving notice and a chance for a hearing, the Secretary can act if an institution has bad records, poor loan servicing, bad credit judgment, or has harmed veterans or the Government. Actions can include demanding immediate repayment and taking assignment of the veteran loans. The Secretary may not make any loans under this authority 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 5, 2026

Release point: 119-73not60