Independent Banker - October 2021 - 53

" There are lots of Native
Americans who live and work
in and around Oklahoma City,
and we serve a pretty diverse
clientele in our locations. "
-Barry Anderson, F&M Bank
OCTOBER 13 | 3 ET / 2 CT
In 2020, Lumbee Guaranty Bank
closed 16 Section 184 loans totaling
nearly $2.6 million. It has used
HUD's Tribal Housing Activities
Loan Guarantee Program (Title
VI) to provide financing to the
Lumbee Tribe. Title VI is a public
investment tool that HUD offers
to federally recognized tribes and
Tribally Designated Housing Entities
to provide an additional source
of financing for affordable tribal
housing activities.
For example, the community
bank provided a $6 million loan to
the tribe to finance three separate
housing developments that will create
about 50 new homes for eligible
homebuyers. " That will provide much
needed housing for Native families
in our communities, " Chavis says.
The program also aims to construct
community facilities and acquire land
to be used for housing.
In-house talent
One of the challenges for such
programs is that they often require inhouse
expertise to efficiently process.
In Guthrie, Okla., $620 million-asset
F&M Bank isn't owned by a tribe, but
it does have a loan officer who is wellversed
in Section 184 loans.
" There are lots of Native Americans
who live and work in and around
Oklahoma City, and we serve a pretty
diverse clientele in our locations, "
says Barry Anderson, president
and chief operations officer and a
member of ICBA's Minority Bank
Advisory Council.
Oklahoma is home to more than
three dozen different tribes. In 2020,
the community bank originated
about $225 million in governmentguaranteed
loans across all agencies.
The 184 HUD loans represented about
$5 million, or 2% of that total volume.
" Any lender can do those loans, but
it does help to have a little expertise,
because they are very complex and
time consuming, " West says.
Ogaard sees opportunities to
collaborate with other community
banks to boost the financial well-being
of indigenous communities. Some
projects require a sizable investment,
which creates an opportunity to
partner with other community banks
to provide the necessary capital. In
some cases, Native American Bank
can step in and provide expertise
while allowing the local bank to
maintain its relationship with
the tribe.
" Our mission is to grow Indian
Country, whether we do that ourselves
or partner with our Native-owned
banks or non-Native-owned banks, "
Ogaard says. " That collaboration on a
go-forward basis can bring even more
economic diversity and sustainability
to Indian Country. " 
Beth Mattson-Teig is a writer
in Minnesota.
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Independent Banker - October 2021

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