A coalition of six financial services trade associations has sent a letter to the Federal Housing Finance Agency (FHFA) that says the changes being proposed to the Property Assisted Clean Energy (PACE) lending programs should preclude the ability of the government-sponsored enterprises (GSEs) to purchase mortgages that are subject to PACE liens.
‘We believe the GSEs should not purchase loans on properties that are, or could become, subject to a PACE super-lien, a lien that has priority over the mortgage lien,’ said the coalition in its letter. ‘The GSEs were created to promote stability and liquidity in the secondary mortgage market. [PACE super liens] threaten stability and liquidity, and are therefore inconsistent with the GSEs' mission and are inappropriate for them to purchase.’
The trade groups added that although energy efficiency was a ‘worthy goal,’ the PACE super-liens were disruptive to the mortgage market and, thus, were ‘not an appropriate method for financing energy-efficiency improvements for homes.’
The letter was signed by officers at the American Bankers Association, the Community Mortgage Banking Project, the Consumer Mortgage Coalition, the Housing Policy Council, the Independent Community Bankers of America and the Mortgage Bankers Association.