Industry News
July 20, 2010
Federal Mortgage Lenders Cast Doubt on Future Solar Loan Programs
Fannie Mae and Freddie Mac issued letters stating that Property Assessed Clean Energy, or PACE, programs may violate the mortgage lenders’ rules because counties receive a priority position when it comes to repayment. The PACE programs are a result of Assembly Bill 811, enacted in 2008. It allows borrowers to pay back loans used to install solar power systems through property taxes. Fannie and Freddie argued that a default on a property in the PACE program would entitle counties to be paid back before the lender.
