American Indian Band sues HUD over letter

Local News

CEDAR CITY, Utah (ABC4 News) – The Cedar Band of Piutes alongside the CBC Mortgage Agency filed a lawsuit in a federal court Monday seeking an order immediately stopping enforcement of the U.S. Department of Housing and Urban Development’s (HUD) Mortgagee Letter 19-06.

According to Cedar Band Corporation, HUD’s “Mortgagee Letter” targets and American Indian tribes by prohibiting them from participating in the home-purchasing assistance programs. 

“The action damages not just the Cedar Band, but also borrowers who thought they’d be closing on a home in the coming days, and lenders with loans in the pipeline.” 

The group claims the letter violates federal law and claims that HUD released the letter without consulting with affected tribes and bands and that it is an effort to force American Indians back onto the reservation. 


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