FOR IMMEDIATE RELEASE
CONTACT: Hamilton McLean, (407) 648-3528 x13528
FHFA IGNORES STRONG SUPPORT FOR PACE PROGRAMS ACROSS THE US
ORLANDO – Sept 13, 2012 – FHFA remains generally hostile toward PACE programs despite roughly 400 substantive comments on the Advance Notice of Potential Rulemaking (ANPR) where most comments expressed strong support for PACE programs.
Florida PACE special assessments levied under the Agency’s PACE Program are no different than any other governmental assessments in Florida. FHFA issued a directive (the “Directive”) to Fannie Mae and Freddie Mac (the ”Enterprises”) not to purchase mortgages affected by PACE Obligations. The Proposed Rule, however, goes one step beyond those severe decrees by mandating that the Enterprises take steps to interpret or amend the Enterprises’ Security Instruments to preclude the property owner from even incurring PACE obligations. FHFA’s weapon of choice in this assault on PACE Programs is what the Agency has titled the “Immediate Full Amount Due Initiative”.
The Immediate Full Amount Due Initiative would require the Enterprises to immediately protect their right to force homeowners to immediately pay the full amount of their existing mortgage if a PACE lien is applied to their home. FHFA further directed the Enterprises not to allow the imposition of a first lien PACE obligation on any mortgage owned by them.