While many of the home mortgage issues facing Native Americans nationwide often come from federal trust land regulations, those living off reservations still struggle to acquire mortgage loans, said a consultant.

In 2014, lenders denied mortgage loans to more than 30 percent of Native Americans who applied for ones in Northwest Arkansas, according to Home Mortgage Disclosure Act loan records.

“When you are dealing with trust land on Indian reservations – regardless of the status of the land actually on trusts or reservations – the collateral is a little more complicated,” said Joanna Donohoe, a consultant at Seven Sisters Community Development Group, LLC.

Donohoe has previously conducted research on Native American housing and financial issues and has worked for Native CDFI Network, U.S. Department of Housing and Urban Development and the U.S. Department of the Treasury.

With no federally recognized tribe reservations in Arkansas, Donahoe said the high denial rate could be caused by a combination of financial and cultural factors that can lead to mismanaging of funds and poor or no credit among Native Americans.

“Where a young family in mainstream America may go to college, get married, buy their own home and start building their credit; young native people don’t have those same opportunities,” she said. “They may stay home to help take care of elders. They may not have as many opportunities because of education issues. A lot of them may be economically related, but could be cultural as well, and historical.”

Donohoe also said Native Americans might experience racism on the part of lenders, because of deny  misunderstandings based on the group’s historic performance – or stereotypes – and not  “consider the individuals’ needs before them.” This may not be as frequent off trust land, but could still possibly be a factor, she said.

While it may seem harder to get a loan on trust land, Donohoe said it just depends. While those living off reservations may find it easier – at least less complicated – to use their land as collateral for their home, they would also not be receiving the same kind of federal and tribe-based assistance they would be receiving on the reservation.

TRANSCRIPT: nativeamerican_transcriptnov-29