FHFA Proposes Rule for PACE Programs

On June 15, the FHFA, as required by a preliminary injunction from the Northern District Court of California, issued a notice of proposed rulemaking on state and local energy retrofit financing arrangements known as Property Assessed Clean Energy, or PACE. FHFA, as conservator, had directed Fannie Mae and Freddie Mac not to purchase any mortgage where PACE financing with a priority lien was placed on the underlying property. Comments must be submitted by July 30. Notice of Proposed Rulemaking.