Mortgaging Trust Properties

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Mortgaging Trust Properties

• Freida Satepeahtaw Bailey
• Division of Capital Investment
• (DCI)
• 405-247-6140

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TITLE STATUS REPORT

• What is a Title Status Report?
• A report that shows the legal description of a
  tract, the most current ownership and
  encumbrances/liens (if any) of record
• Why would a TSR be requested?
• Mortgage Loan/Business Lease/Residential Lease
• Land Status/Land Sale
• Current Ownership Update
• Who can request a TSR?
• Agency / Regional Office having jurisdiction over
  the land
• Compacted/Contracted Tribes
• Individuals

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Simplified legal land description
Simple statement of ownership
Simple statement of title status
Simple statement of encumbrance
Simple title notes
Note Title Notes and Remarks will be re-written
after the release of the new TSR to improve
clarity understanding
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Types of Title Status Reports

• Informational TSR is an uncertified unverified
  report of ownership encumbrance as shown by
  title data in the land title system-of-record
  (TAAMS Title).
• Certified TSR is a report of ownership
  encumbrance certified as a true, accurate
  up-to-date report of title status as shown by an
  examination of title documents recorded at the
  DLTR and update of land title in TAAMS.

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Salish Kootenai (Montana) Colville Tribe
(Washington) Morongo Tribe (California)
Cherokee Nation Choctaw Nation of
Oklahoma Muscogee (Creek)
Nation
Compacted for DLTR functions but currently do
not provide Federal title services consistent
with the services provided by Bureau DLTRs. 
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Delegated authority 25 CFR 150

• LAND RECORDS AND TITLE DOCUMENTS
• DLTR is charged with the Federal responsibility
  to record, provide custody, and maintain records
  that affect titles to Indian lands, to examine
  title, and to provide title status reports for
  such land.

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Division of Land Titles Records Major Program
Functions

• Document Recordation
• Similar to recording at a County Recording Office
• Document Imaging
• Titles Maintenance
• Similar to work performed at a Title Abstract
  Co.
• Automated Data Systems Management
• Cartographic Services
• Indian Probate Curative Actions
• Document Certification

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Bureau of Indian Affairs

• HOME OWNERSHIP
• MORTGAGE PROCESSING
• HIGHLIGHTS

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Key Players in the Mortgage Process

• Applicant
• Tribe
• Agency
• DLTR
• Lender
• BIA Realty Staff/IEED Staff

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MORTGAGE PROCESSING RESPONSIBILITIES
VS
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Redesign the TSR Modernize THE TSR Request
Delivery

• The redesign of the TSR has been a work in
  progress since 2009
• The goal of the redesign was to create a report
  that was clear and understandable to a land owner
  and other persons or financial-business entities
  without the need for special knowledge or
  information
• The TSR template model has the TSR on a single
  page with appendices for ownership encumbrance
  information

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Summary of New TSR Modernization

• TSR has been redesigned for clarity
• TSR request and delivery automated
• TSR Repository will have all certified or
  verified TSR available for access and retrieval
• New TSR business rule title ownership TSR must
  be certified within 2 business days of a change
  in ownership

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• Land owners may mortgage trust properties
• US Statutes place limitations on the alienation
  or encumbrance
• Authority 25 USC 483a 25 CFR 152.34
• Policy of BIA to assist individual Indian owners
  of trust/restricted land to obtain adequate
  financing

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Qualifying criteria

• Repayment ability
• Sole ownership
• Legal age

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Advantages to owner

• Trust status remains
• Lands provide security for the loan
• economics

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Applicant responsibility

• Complete application for lender
• Provide
• Tribal membership card
• Ownership documents
• Income verification
• Copy of lender application
• Credit Report
• Appraisal
• Business plan, if applicable

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Process

• Order Title Status Report (TSR)
• Appraisal review
• Analysis
• LTV
• Credit history
• Business expertise
• Recommendation Approval
• Questions/Comments