Calif. AG Sues GSEs, FHFA Over PACE

Posted by Orb Staff on July 15, 2010 No Comments
Categories : Residential Mortgage

rnia Attorney General Jerry Brown has filed a federal suit against Fannie Mae, Freddie Mac and the Federal Housing Finance Agency (FHFA), stating that the government-sponsored enterprises (GSEs) and their regulator violated California laws by interfering with municipal programs allowing homeowners to finance energy retrofits through property taxes. According to a [link=http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2010/07/14/MN651EEDEG.DTL#ixzz0tl5dxsml]report[/link] in the San Francisco Chronicle, Brown states that the refusal of the GSEs and the FHFA to participate in the federal Property Assessed Clean Energy (PACE) program has forced California counties to suspend their planned financing of energy-efficient upgrades. ‘By misrepresenting the nature of the (programs) and municipal financing, in violation of California law, (the) defendants … are severely hampering California's efforts to assist thousands of California homeowners to reduce their energy and water use, help drive the state's green economy, and create significant numbers of skilled, stable and well paying jobs,’ the lawsuit states. Fannie Mae and Freddie Mac did not publicly respond to the lawsuit. The FHFA issued a statement that said, ‘In keeping with our safety and soundness obligations, the Federal Housing Finance Agency will defend vigorously its actions that aim to protect taxpayers, lenders, Fannie Mae and Freddie Mac. Homeowners should not be placed at risk by programs that alter lien priorities and fail to operate with sound underwriting guidelines and consumer protections.’ SOURCE: San Francisco Chronicl

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