Ute tribal members will now be able to purchase a home on tribal trust lands using conventional mortgage financing thanks to a partnership between the Ute Indian Tribally Designated Housing Entity (UITDHE), Zion’s First National Bank, and Fannie Mae, (FNM/NYSE), the nation’s largest source of financing for home mortgages.

The partnership was announced today at the first annual Ute Tribal Homebuyers’ Fair. The tri-party agreement provides the legal framework for conventional mortgage lending, including the sale of mortgage loans originated on trust land to Fannie Mae. In addition, Fannie Mae along with PMI Mortgage Insurance Company (PMI) announced the Ute Conventional Lending Initiative, a $5 million mortgage experiment that offers low down payment requirements and flexibilities to borrowers who have had minor credit difficulties in the past.

"Last year alone, Fannie Mae invested $30 million in Native American housing on Tribal Trust Lands nationwide," said Tim Stewart, director of Fannie Mae’s Utah Partnership Office. "We’ve worked diligently with UITDHE, local lenders, and PMI to develop a program that addresses the unique housing needs of tribal members on the Uintah and Ouray Reservations."

"The Ute tribal leadership has been working to create homeownership opportunities for its tribal members," said Roland McCook, chairman of Ute Tribal Business Committee. "The partnership announced today provides the needed home-buyer counseling and flexible financial terms that will do just that."

"Owning a home is a key focus for all Utah tribes," said Perry Mathews, deputy director of the Utah Division of Indian Affairs. "The creation and availability of these mortgage products are important steps toward making this dream a reality. Additionally, these tools will stimulate the construction of new homes on Ute tribal lands."

The new mortgage experiment is designed to offer Ute Tribal members who wish to purchase homes on trust land the same or better terms for mortgage financing than is currently available in non-trust land areas. These mortgage terms allow the borrower to make a down payment of as little as 1 percent. The remaining 2 percent may be provided by the UITDHE down payment assistance program, a gift or grant from another nonprofit organization. These mortgages are available for the purchase of a new home or the purchase and rehabilitation of an existing home. There are no income limitations.

Under this experiment the tribe has agreed to pay the required mortgage insurance which lowers the borrower’s monthly mortgage payment. Zion’s First National Bank will originate the mortgages, Fannie Mae will purchase the loans, and PMI will provide the mortgage insurance for the loans. Other mortgage options are available that require zero down payment from the borrower, only if they meet certain income limitations.

The Uintah Basin Association of Governments, through the Utah State University Extension Office, will provide the required pre-purchase home-buyer education and program mentoring for the first two years of this lending initiative, thanks to the generous grants from Washington Mutual Bank, Zion’s First National Bank, and American Express Centurion Bank.

"We are thrilled to be a part of this historic partnership that will bring the reality of homeownership to Ute Tribal members on the Uintah and Ouray Reservations," said Scott Anderson, president and CEO of Zion’s First National Bank. "It is our hope that this initiative will serve as the blueprint for bringing similar initiatives to other American Indian tribes in Utah."

"PMI Mortgage Insurance Company has a continuing commitment to expand homeownership opportunities for Native Americans, and we are pleased and proud to work with Fannie Mae, Washington Mutual, Zion’s First National Bank, and American Express Centurion Bank to further our commitment," said Taia Lockhart, director of emerging markets for PMI.

This partnership is made possible through Fannie Mae’s "HouseUtah," a five-year, $7 billion investment plan created to finance affordable housing for 66,000 Utah families. HouseUtah is part of the company’s nationwide $2 trillion American Dream Commitment to increase homeownership rates and serve 18 million targeted families.

For additional information on UITDHE’s home-buyer assistance program and home-buyer education classes, consumers may call (435) 722-4656.

For additional information on the Ute Native American Conventional Lending Initiative or HouseUtah, consumers may call Fannie Mae’s Consumer Resource Center at 1-800-7FANNIE (1-800-732-6643), Monday through Friday, 7 a.m. to 3 p.m. MST.

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