DSNews delivers stories, ideas, links, companies, people, events, and videos impacting the mortgage default servicing industry.
Issue link: http://digital.dsnews.com/i/1533987
35 April 2025 F E A T U R E S T O R Y April 2025 » Indian trust lands, but the Blackfeet Nation remains the final arbiter. The BIA must defer to a tribe's determination that a lease is in its best interest "to the maxi- mum extent possible." 24 The protracted litigation entangling Eagle Bear's finances and the Blackfeet Nation's economic development could have been avoided had the BIA properly consulted with the Blackfeet Nation from Eagle Bear's very first violation in 1997 and mandated compliance or enforced termination of the lease. The BIA possessed no authority to require the Blackfeet Nation to accept Eagle Bear's serially late payments or attempt- ed cures. 25 The Blackfeet Nation may have received revenue as BIA collected the rent, interest, and royalties on the Blackfeet Nation's behalf, but the BIA effectively forced the Blackfeet Nation to accept Eagle Bear's violations for close to a decade. A state, municipality, or pri- vate party retains a business edge over a tribe when the BIA fails its mandate. Today, when lack of investment can spell a dearth of jobs and sap economic life for a Native nation, byzantine regu- lations enforced by federal officials who play it by ear threaten to starve tribes of opportunity and the economic fruits of their own land. 26 The struggle of Maine tribes is another example. Because of the Maine Indian Claims Settlement Act, which stipulates that Maine tribes were bound by state law, Maine tribes did not enjoy federal recognition or sovereign immu-nity. In Maine, "reservations" were treated more like municipalities, not sovereign nations. Thus, unlike the other 570 federally recognized tribes across the United States, who were able to access federal funds during the pan- demic and federal emergency manage- ment funds following other disasters, Maine tribes were not. Practical impli- cations of this variance are inestimable and include systemic poverty, lack of infrastructure to prosper, and a bar to educational funding and opportunities available to federally recognized tribes. The impact of the decision in Lac clearly extends beyond bankruptcy law, as seen in Eagle Bear and in recently enacted legislation in Maine 27 to allow federal recognition for Maine tribes. The court divisions, the legislatures, and the practices of the tribes, the BIA, and those doing business in and with the tribes reflect that this conversation is far from over. 1. Eagle Bear noticed an appeal to the Ninth Circuit Court of Appeals on December 26, 2023. The U.S. District Court also granted Eagle Bear's motion to stay the termination of the lease pending the appeal upon the posting of a surety bond in the amount of $1,000,000.00. See Eagle Bear, Inc. v. Indep. Bank, 2024 WL 97372 (D. Mont. Jan. 9, 2024). 2. Haaland v. Brackeen, 599 U.S. 255, 296 (2023). 3. See Lac du Flambeau Band of Lake Superior Chippewa Indians v. Coughlin, 599 U.S. 382, 399 (2023). 4. Eagle Bear v. Indep. Bank, No. CV-22-93-GF-BMM, 2024 WL 97372 (D. Mont. Jan. 9, 2024). 5. Coughlin, 599 U.S. at 385. 6. See id. at 386; see also In re Coughlin, 622 B.R. 491, 492–93 (Bankr. D. Mass. 2020) (Coughlin I), rev'd, 33 F.4th 600 (1st Cir. 2022) (Coughlin II). 7. Coughlin I, 622 B.R. at 494 n.1. 8. Id. 9. Id. at 493 (Sotomayor, J., concurring) (quoting Michigan v. Bay Mills Indian Cmty., 572 U.S. 782, 788 (2014)). 10. Id. (quoting Michigan v. Bay Mills Indian Cmty., 572 U.S. 782, 790 (2014)). 11. Id. (quoting White Mtn. Apache Tribe v. Bracker, 448 U.S.136, 143–44 (1980)). 12. See Coughlin II, 33 F.4th at 608. 13. Id. at 612 (Barron, C.J., dissenting). 14. See id. at 612–26. 15. Compare id. at 604–11 n.3–n.13 (Lynch, J., majority opinion), with Id. at 612–24 n.14–n.19 (Barron, C.J., dissenting). 16. Coughlin, 599 U.S. at 393. 17. Id. at 388. 18. Eagle Bear, 2023 WL 8529145, at *6–7. "The record before the Court clearly shows Eagle Bear's repeated failure to make timely payments to the BIA. Eagle Bear's representative acknowledged the difficulties: "We made mistakes. We were late. We were scrambling. We were making late payments. We were making overpayments. We were making underpayments. Our books were a mess. We were not tracking this stuff as well as we needed to be or should be ... We were making payments late more often than I care as I look back on this whole thing. It was nightmare-ish." (Doc. 29-4 at 24). Notice letters from the BIA to Eagle Bear and the BIA's ledger of Eagle Bear's payments from 1997 through 2014 reveal multiple late payments by Eagle Bear." 19. Id. at *4. 20. Id. at *5; see 25 C.F.R. § 162.108 (2008). 21. Eagle Bear, 2023 WL 8529145, at *13; see also Wapato Heritage, L.L.C. v. United States, 637 F.3d 1033, 1037 (9th Cir. 2011). 22. Eagle Bear, 2023 WL 8529145, at *13; see 25 C.F.R. §§ 162.600–162.623 (2008); see also 25 C.F.R. §§ 162.401–162.474 (2023). 23. Eagle Bear, 2023 WL 8529145, at *5. 24. See 25 C.F.R. § 162.107 (2008). 25. See, e.g., Tuttle v. Jewel, 168 F. Supp. 3d 299, 312 (D.D.C. 2016). 26. Eagle Bear, 2023 WL 8529145, at *24–26. 27. On April 23, 2024, Maine enacted LD 2007 with broad bipartisan support, the third attempt at legislation to allow federal recognition of Maine Tribes. Brought to you by & YOUR TRUSTED SOURCE FOR MORTGAGE BANK ING AND SERVICING NEWS JULY 2024 Magazine White House Main Street America TO FROM THE As the November elections near, what ripple effects will the next Administration have on the housing industry? MortgagePoint gathered a panel of experts to dig deeper into the impact of the Presidential Elections and potential changes in the White House. Subscribe to MortgagePoint and MortgagePoint Digital now! Visit themortgagepoint.com/mp-access to take advantage of our special offer! Experts you trust. People you know. News you want. MortgagePoint is putting essential mortgage market news at your fingertips with our new digital edition, now available online via your smartphone, tablet, or computer. Enjoy the magazine at your desk, and tap into MortgagePoint Digital's easily accessible platform anywhere, anytime. Committed to giving originators, servicers, and all lending professionals access to smarter perspectives, MortgagePoint believes it's time to think differently about the mortgage industry. Because the American Dream is evolving . . . are you? FEATURE STORY THE BEST SOLUTION IS NOT ALWAYS THE SHINY NEW TOY While it can be debated as to how much default and foreclosure activity lies ahead, default servicers must carefully examine their tech systems to keep ahead of the curve. FEATURE STORY DRIVING GROWTH: LEVERAGING HOME EQUITY TO EXPAND LOAN OFFICER OPPORTUNITIES In a tight market, LOs seeking to diversify their offerings are turning to home equity products to expand their role and become a financial guide for life. COUNSEL'S CORNER FACING THE FORECLOSURE AND BANKRUPTCY CHALLENGES OF TODAY Robert S. Kahane, a foreclosure and bankruptcy attorney with more than 30 years under his belt, discusses current compliance issues related to loan servicing process enhancements. EXPERT INSIGHTS TONY JULIANELLE, CEO OF REAL ATLAS ESTATE discusses current market trends and the forces that will shape the landscape in the industry. ALSO IN THIS ISSUE: Brought to you by & YOUR TRUSTED SOURCE FOR MORTGAGE BANK ING AND SERVICING NEWS AUGUST 2024 Magazine The Burden of Proof MortgagePoint profiles Bron, Inc., a company that has carved out a unique niche with a focus on crucial but often-overlooked tasks such as managing registrations, utilities, and HOA verifications. TO YOUR TRUSTED SOURCE FOR MORTGAGE BANK ING AND SERVICING NEWS OCTOBER 2024 Magazine The Industry Leaves Its Mark at Five Star Conference Exclusive coverage from this year's Five Star Conference, including profiles of the Lifetime Achievement honoree, the Women in Housing Leadership Award recipients, and more. THE 2024 FIVE STAR CONFERENCE & EXPO SEPTEMBER 24-26, 2024 DALLAS, TEXAS