July 19, 2012
Last month the FHFA released proposed rules restricting Fannie & Freddie from holding mortgages on properties encumbered by Property Assessed Clean Energy (PACE) loans. PACE loans have been authorized in several states, including California. Key provisions of the proposed rule include prohibition GSAs from purchasing any mortgage subject to a first lien PACE obligation or consenting to the impositions of a first lien for a PACE obligation. GSAs would also have to take action to be able to accelerate its loan if a first lien PACE obligation is imposed without the consent of the GSA. The entire Federal Register report can be found here: http://www.gpo.gov/fdsys/pkg/FR-2012-06-15/pdf/2012-14724.pdf.