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From the Editors of CU Weekly
HUD PACE GUIDANCE
07/25/16 02:42 PM
League Advocates For More Guidance
On Tuesday July 19, the U.S. Department of Housing and Urban Development (HUD) released guidance stating the Federal Housing Administration (FHA) will insure mortgages on certain properties with Property Assessed Clean Energy (PACE) assessments. Properties with PACE obligations must meet strict criteria which are outlined below and can be found in the FHA release linked below.
“While FHA loans represent approximately 20 percent of mortgage loans, the California Credit Union League continues to advocate for additional guidance from the Federal Housing Finance Agency, which continues a policy of not accepting mortgages with a super-priority PACE lien. The League will also continue to support AB 2693 and push for underwriting standards for PACE lenders from the Consumer Financial Protection Bureau,” said Courtney Jensen, League legislative advocate.
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