PACE Loans update

I mentioned earlier about PACE loans causing issues with home purchases being super liens.

An announcement by the U.S. Department of Housing and Urban Development (HUD) that the Federal Housing Administration (FHA) will issue final guidance that will require Property Assessed Clean Energy (PACE) liens to be subordinate to FHA single-family first-mortgage financing: “C.A.R. provided input to HUD last week asking that PACE liens remain subordinate to FHA first mortgages, and we are pleased with HUD’s announced anticipated guidelines to do so,” said C.A.R. President Chris Kutzkey. “In aligning with the Federal Housing Finance Agency’s (FHFA) policy that prohibits Fannie Mae and Freddie Mac from buying mortgages or notes with PACE-type “super liens,” home buyers can more easily obtain FHA financing while supporting energy efficiency, and mortgage markets can remain secure.” PACE loans allow homeowners to build the costs for energy-efficiency upgrades, such as adding insulation and installing energy efficient windows or solar panels, into their property tax bills. PACE is available in 31 states, including California.

More info here--
http://www.car.org/newsstand/newsreleases/2015releases/fhapacelien?view=Standard#

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