Congress Weighs Bill to Revive PACE Financing Programs
Northern California Congressman Mike Thompson has introduced legislation in the House of Representatives designed to remove the regulatory barriers that have shuttered property assessed clean energy (PACE) lending programs across the country.
The PACE Assessment Protection Act of 2010 (H.R.5766) would require the Federal National Mortgage Association and the Federal Home Loan Mortgage Corporation to adopt new underwriting standards for home mortgages that are “consistent with the Guidelines for Pilot PACE Financing Programs issued on May 7, 2010, by the Department of Energy.” In essence, the law would force Fannie Mae and Freddie Mac, the two government-sponsored corporations that purchase or guarantee more the majority of all home mortgages in the United States, to underwrite mortgages on properties with energy improvement liens attached that would take precedence over mortgage debt in a foreclosure.
The bill was introduced last Thursday with 29 cosponsors, and has been referred to the House Committee on Financial Services.
Track the status of the legislation (including a full list of cosponsors) at the Library of Congress Web site:
Read Congressman Mike Thompson’s press release about the proposed legislation here: