Property Assessed Clean Energy (PACE)

Rating Agency Developments

On July 28, DBRS published methodology for conducting operational risk assessments for U.S. asset-backed securities originatorsReport.

On July 28, 2015, DBRS published methodology for conducting operational risk assessments for U.S. asset-backed securities servicersReport.

On July 28, DBRS published methodology for rating U.S. property assessed clean energy (PACE) securitizationsReport.

On July 28, DBRS published methodology for rating Canadian split share companies and trustsReport.

On July 28, DBRS published methodology for assigning and reviewing stability ratings for Canadian structured income fundsReport.

On July 24, Fitch published a new investor FAQ report on EMEA oil and gasRelease.

On July 23, Fitch updated its global covered bonds master criteriaRelease.

On July 23, Fitch published rating criteria for SHFA mortgage insurance or guarantee fund programsRelease.

On July 23, Fitch published updated insurance-linked securities (ILS) methodologyRelease.

On July 23, Fitch released final criteria for rating public sector counterparty obligations in PPP TransactionsRelease.

FHFA Statement on PACE Programs

On July 6, the FHFA issued a statement expressing its determination that Property Assessed Clean Energy (PACE) programs present significant safety and soundness concerns that must be addressed by Fannie Mae, Freddie Mac, and the Federal Home Loan Banks as well as other mortgage market participants. Under PACE programs, these PACE loans often acquire lien priority over existing mortgages.  The FHFA cautions that first liens for these loans represent a key alteration of traditional mortgage lending practice and present significant risk to lenders and secondary market entities. Release.