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U. S. Department of Housing and Urban Development
Washington, D.C. 20410-8000

May 14, 1992
OFFICE OF THE ASSISTANT SECRETARY
FOR HOUSING-FEDERAL HOUSING COMMISSIONER
Mortgagee Letter 92-16
    TO:  ALL APPROVED MORTGAGEES
    SUBJECT:  Mortgage Insurance on Indian Reservations and Other
                Restricted Lands (Section 248)
 
         On April 6, 1988, Mortgagee Letter 88-11 was issued to
    provide implementing instructions for Section 248 of the National
    Housing Act.  Section 248 provides for mortgage insurance on
    Indian Reservations and other restricted lands.  Since that time,
    very few loans have been made under this program, and HUD is
    concerned that this segment of the population continues to be
    underserved in terms of their housing needs.
 
         Therefore, I am reminding lenders of the availability of
    this program and urge those lenders in areas of concentrated
    Indian populations to contact their local HUD Field Office for
    information and guidance on the Section 248 program.  Mortgagee
    Letter 88-11 provides a program overview and processing and
    underwriting requirements for these loans.  Section 248 is very
    affordable for the mortgagor, because there is no upfront
    mortgage insurance premium.  The mortgage insurance premium is
    just 0.5 percent annually.
 
         If you have any questions regarding this Mortgagee Letter or
    use of the program, please contact Joan Morgan, Chief, Programs
    and Procedures Branch, at (202) 708-2676.
 
                                  Very sincerely yours,
 
                                  Arthur J. Hill
                                  Assistant Secretary for
                                    Housing-Federal Housing Commissioner
 
               *U.S. Government Printing Office: 1992 - 312-218/60151