[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[S. 70 Introduced in Senate (IS)]

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118th CONGRESS
  1st Session
                                 S. 70

  To require the Bureau of Indian Affairs to process and complete all 
mortgage packages associated with residential and business mortgages on 
       Indian land by certain deadlines, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                            January 25, 2023

    Mr. Thune (for himself, Ms. Smith, Mr. Rounds, and Mr. Tester) 
introduced the following bill; which was read twice and referred to the 
                      Committee on Indian Affairs

_______________________________________________________________________

                                 A BILL


 
  To require the Bureau of Indian Affairs to process and complete all 
mortgage packages associated with residential and business mortgages on 
       Indian land by certain deadlines, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Tribal Trust Land Homeownership Act 
of 2023''.

SEC. 2. DEFINITIONS.

    In this Act:
            (1) Applicable bureau office.--The term ``applicable Bureau 
        office'' means--
                    (A) a Regional office of the Bureau;
                    (B) an Agency office of the Bureau; or
                    (C) a Land Titles and Records Office of the Bureau.
            (2) Bureau.--The term ``Bureau'' means the Bureau of Indian 
        Affairs.
            (3) Director.--The term ``Director'' means the Director of 
        the Bureau.
            (4) First certified title status report.--The term ``first 
        certified title status report'' means the title status report 
        needed to verify title status on Indian land.
            (5) Indian land.--The term ``Indian land'' has the meaning 
        given the term in section 162.003 of title 25, Code of Federal 
        Regulations (as in effect on the date of enactment of this 
        Act).
            (6) Land mortgage.--The term ``land mortgage'' means a 
        mortgage obtained by an individual Indian who owns a tract of 
        trust land for the purpose of--
                    (A) home acquisition;
                    (B) home construction;
                    (C) home improvements; or
                    (D) economic development.
            (7) Leasehold mortgage.--The term ``leasehold mortgage'' 
        means a mortgage, deed of trust, or other instrument that 
        pledges the leasehold interest of a lessee as security for a 
        debt or other obligation owed by the lessee to a lender or 
        other mortgagee.
            (8) Mortgage package.--The term ``mortgage package'' means 
        a proposed residential leasehold mortgage, business leasehold 
        mortgage, land mortgage, or right-of-way document submitted to 
        an applicable Bureau office under section 3(a)(1).
            (9) Relevant federal agency.--The term ``relevant Federal 
        agency'' means any of the following Federal agencies that 
        guarantee or make direct mortgage loans on Indian land:
                    (A) The Department of Agriculture.
                    (B) The Department of Housing and Urban 
                Development.
                    (C) The Department of Veterans Affairs.
            (10) Right-of-way document.--The term ``right-of-way 
        document'' has the meaning given the term in section 169.2 of 
        title 25, Code of Federal Regulations (as in effect on the date 
        of enactment of this Act).
            (11) Subsequent certified title status report.--The term 
        ``subsequent certified title status report'' means the title 
        status report needed to identify any liens against a 
        residential, business, or land lease on Indian land.

SEC. 3. MORTGAGE REVIEW AND PROCESSING.

    (a) Review and Processing Deadlines.--
            (1) In general.--As soon as practicable after receiving a 
        proposed residential leasehold mortgage, business leasehold 
        mortgage, land mortgage, or right-of-way document, the 
        applicable Bureau office shall notify the lender that the 
        proposed residential leasehold mortgage, business leasehold 
        mortgage, or right-of-way document has been received.
            (2) Preliminary review.--
                    (A) In general.--Not later than 10 calendar days 
                after receipt of a proposed residential leasehold 
                mortgage, business leasehold mortgage, land mortgage, 
                or right-of-way document, the applicable Bureau office 
                shall conduct and complete a preliminary review of the 
                residential leasehold mortgage, business leasehold 
                mortgage, land mortgage, or right-of-way document to 
                verify that all required documents are included.
                    (B) Incomplete documents.--As soon as practicable, 
                but not more than 2 calendar days, after finding that 
                any required documents are missing under subparagraph 
                (A), the applicable Bureau office shall notify the 
                lender of the missing documents.
            (3) Approval or disapproval.--
                    (A) Leasehold mortgages.--Not later than 20 
                calendar days after receipt of a complete executed 
                residential leasehold mortgage or business leasehold 
                mortgage, proof of required consents, and other 
                required documentation, the applicable Bureau office 
                shall approve or disapprove the residential leasehold 
                mortgage or business leasehold mortgage.
                    (B) Right-of-way documents.--Not later than 30 
                calendar days after receipt of a complete executed 
                right-of-way document, proof of required consents, and 
                other required documentation, the applicable Bureau 
                office shall approve or disapprove the right-of-way 
                document.
                    (C) Land mortgages.--Not later than 30 calendar 
                days after receipt of a complete executed land 
                mortgage, proof of required consents, and other 
                required documentation, the applicable Bureau office 
                shall approve or disapprove the land mortgage.
                    (D) Requirements.--The determination of whether to 
                approve or disapprove a residential leasehold mortgage 
                or business leasehold mortgage under subparagraph (A), 
                a right-of-way document under subparagraph (B), or a 
                land mortgage under subparagraph (C)--
                            (i) shall be in writing; and
                            (ii) in the case of a determination to 
                        disapprove a residential leasehold mortgage, 
                        business leasehold mortgage, right-of-way 
                        document, or land mortgage shall, state the 
                        basis for the determination.
                    (E) Application.--This paragraph shall not apply to 
                a residential leasehold mortgage or business leasehold 
                mortgage with respect to Indian land in cases in which 
                the applicant for the residential leasehold mortgage or 
                business leasehold mortgage is an Indian tribe (as 
                defined in subsection (d) of the first section of the 
                Act of 1955 (69 Stat. 539, chapter 615; 126 Stat. 1150; 
                25 U.S.C. 415(d))) that has been approved for leasing 
                under subsection (h) of that section (69 Stat. 539, 
                chapter 615; 126 Stat. 1151; 25 U.S.C. 415(h)).
            (4) Certified title status reports.--
                    (A) Completion of reports.--
                            (i) In general.--Not later than 10 calendar 
                        days after the applicable Bureau office 
                        approves a residential leasehold mortgage, 
                        business leasehold mortgage, land mortgage, or 
                        right-of-way document under paragraph (3), the 
                        applicable Bureau office shall complete the 
                        processing of, as applicable--
                                    (I) a first certified title status 
                                report, if a first certified title 
                                status report was not completed prior 
                                to the approval of the residential 
                                leasehold mortgage, business leasehold 
                                mortgage, land mortgage, or right-of-
                                way document; and
                                    (II) a subsequent certified title 
                                status report.
                            (ii) Requests for first certified title 
                        status reports.--Notwithstanding clause (i), 
                        not later than 14 calendar days after the 
                        applicable Bureau office receives a request for 
                        a first certified title status report from an 
                        applicant for a residential leasehold mortgage, 
                        business leasehold mortgage, land mortgage, or 
                        right-of-way document under paragraph (1), the 
                        applicable Bureau office shall complete the 
                        processing of the first certified title status 
                        report.
                    (B) Notice.--
                            (i) In general.--As soon as practicable 
                        after completion of the processing of, as 
                        applicable, a first certified title status 
                        report or a subsequent certified title status 
                        report under subparagraph (A), but by not later 
                        than the applicable deadline described in that 
                        subparagraph, the applicable Bureau office 
                        shall give notice of the completion to the 
                        lender.
                            (ii) Form of notice.--The applicable Bureau 
                        office shall give notice under clause (i)--
                                    (I) electronically through secure, 
                                encryption software; and
                                    (II) through the United States 
                                mail.
                            (iii) Option to opt out.--The lender may 
                        opt out of receiving notice electronically 
                        under clause (ii)(I).
    (b) Notices.--
            (1) In general.--If the applicable Bureau office does not 
        complete the review and processing of mortgage packages under 
        subsection (a) (including any corresponding first certified 
        title status report or subsequent certified title status report 
        under paragraph (4) of that subsection) by the applicable 
        deadline described in that subsection, immediately after 
        missing the deadline, the applicable Bureau office shall 
        provide notice of the delay in review and processing to--
                    (A) the party that submitted the mortgage package 
                or requested the first certified title status report; 
                and
                    (B) the lender for which the mortgage package 
                (including any corresponding first certified title 
                status report or subsequent certified title status 
                report) is being requested.
            (2) Requests for updates.--In addition to providing the 
        notices required under paragraph (1), not later than 2 calendar 
        days after receiving a relevant inquiry with respect to a 
        submitted mortgage package from the party that submitted the 
        mortgage package or the lender for which the mortgage package 
        (including any corresponding first certified title status 
        report or subsequent certified title status report) is being 
        requested or an inquiry with respect to a requested first 
        certified title status report from the party that requested the 
        first certified title status report, the applicable Bureau 
        office shall respond to the inquiry.
    (c) Delivery of First and Subsequent Certified Title Status 
Reports.--Notwithstanding any other provision of law, any first 
certified title status report and any subsequent certified title status 
report, as applicable, shall be delivered directly to--
            (1) the lender;
            (2) any local or regional agency office of the Bureau that 
        requests the first certified title status report or subsequent 
        certified title status report;
            (3) in the case of a proposed residential leasehold 
        mortgage or land mortgage, the relevant Federal agency that 
        insures or guarantees the loan; and
            (4) if requested, any individual or entity described in 
        section 150.303 of title 25, Code of Federal Regulations (as in 
        effect on the date of enactment of this Act).
    (d) Access to Trust Asset and Accounting Management System.--
Beginning on the date of enactment of this Act, the relevant Federal 
agencies and Indian Tribes shall have read-only access to the Trust 
Asset and Accounting Management System maintained by the Bureau.
    (e) Annual Report.--
            (1) In general.--Not later than March 1 of each calendar 
        year, the Director shall submit to the Committee on Indian 
        Affairs of the Senate and the Committee on Natural Resources of 
        the House of Representatives a report describing--
                    (A) for the most recent calendar year, the number 
                of requests received to complete residential leasehold 
                mortgage packages, business leasehold mortgage 
                packages, land mortgage packages, and right-of-way 
                document packages (including any requests for 
                corresponding first certified title status reports and 
                subsequent certified title status reports), including a 
                detailed description of--
                            (i) requests that were and were not 
                        successfully completed by the applicable 
                        deadline described in subsection (a) by each 
                        applicable Bureau office; and
                            (ii) the reasons for each applicable Bureau 
                        office not meeting any applicable deadlines; 
                        and
                    (B) the length of time needed by each applicable 
                Bureau office during the most recent calendar year to 
                provide the notices required under subsection (b)(1).
            (2) Requirement.--In submitting the report required under 
        paragraph (1), the Director shall maintain the confidentiality 
        of personally identifiable information of the parties involved 
        in requesting the completion of residential leasehold mortgage 
        packages, business leasehold mortgage packages, land mortgage 
        packages, and right-of-way document packages (including any 
        corresponding first certified title status reports and 
        subsequent certified title status reports).
    (f) GAO Study.--Not later than 1 year after the date of enactment 
of this Act, the Comptroller General of the United States shall submit 
to the Committee on Indian Affairs of the Senate and the Committee on 
Natural Resources of the House of Representatives a report that 
includes--
            (1) an evaluation of the need for residential leasehold 
        mortgage packages, business leasehold mortgage packages, land 
        mortgage packages, and right-of-way document packages of each 
        Indian Tribe to be digitized for the purpose of streamlining 
        and expediting the completion of mortgage packages for 
        residential mortgages on Indian land (including the 
        corresponding first certified title status reports and 
        subsequent certified title status reports); and
            (2) an estimate of the time and total cost necessary for 
        Indian Tribes to digitize the records described in paragraph 
        (1), in conjunction with assistance in that digitization from 
        the Bureau.

SEC. 4. ESTABLISHMENT OF REALTY OMBUDSMAN POSITION.

    (a) In General.--The Director shall establish within the Division 
of Real Estate Services of the Bureau the position of Realty Ombudsman, 
who shall report directly to the Secretary of the Interior.
    (b) Functions.--The Realty Ombudsman shall--
            (1) ensure that the applicable Bureau offices are meeting 
        the mortgage review and processing deadlines established by 
        section 3(a);
            (2) ensure that the applicable Bureau offices comply with 
        the notices required under subsections (a) and (b) of section 
        3;
            (3) serve as a liaison to other Federal agencies, including 
        by--
                    (A) ensuring the Bureau is responsive to all of the 
                inquiries from the relevant Federal agencies; and
                    (B) helping to facilitate communications between 
                the relevant Federal agencies and the Bureau on matters 
                relating to mortgages on Indian land;
            (4) receive inquiries, questions, and complaints directly 
        from Indian Tribes, members of Indian Tribes, and lenders in 
        regard to executed residential leasehold mortgages, business 
        leasehold mortgages, land mortgages, or right-of-way documents; 
        and
            (5) serve as the intermediary between the Indian Tribes, 
        members of Indian Tribes, and lenders and the Bureau in 
        responding to inquiries and questions and resolving complaints.
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