Raen Origins

[Hinoto-no-Ryuji]

I was hoping they'd offer a little more insight into their past relations with the Xaela, but it wasn't mentioned at all throughout the entire Azim Steppe portion of the story.

It was only implied that some tribes really don't like them, as the Oronir's version of their origin story denies any relation to them entirely, instead stating that the Dawn Father's blood is the strongest in Xaela males and the Dusk Mother's in females.

I suppose it's possible the subject might come up in future MSQ quests, since I'd be surprised if we didn't have to go back the steppes sooner or later (The Palace of the Collared Coin really looks like it'll be a dungeon entrance in the future).

It could come up later, I suppose, but what I think this all implies is that any animosity between the two is a nearly-total cultural non-factor. I think you're looking for a cultural feud that may not actually exist - whatever happened between them happened too long ago for any bad blood to remain.

Is it impossible to be a modern day Raen lorewise and not be from under the Sea?

Is their any regular Raen cities because I don't want my character to be from the under the sea town.

The Lore Book heavily implies - if not outright states - that the Raen are a diaspora, living in seclusion among mountains and valleys (and now, I suppose, under the sea). While the people of Sui-no-Sato certainly seem to believe that they're a representative sample of their people, this is obviously not the case; their village is both sparsely populated and the only one of its nature for malms around, and the (significantly higher) Raen population in Kugane makes no mention of having ever lived under the sea. I think it's safe to say that they didn't come from there exclusively.