MBA Applauds HUD Announcement on PACE Loan Reforms

MBA Applauds HUD Announcement on PACE Loan Reforms

WASHINGTON, D.C. (December 8, 2017) – (RealEstateRama) — Mortgage Bankers Association (MBA) President and CEO David H. Stevens, CMB, issued the following statement in response to the Department of Housing and Urban Development’s revised policies for Federal Housing Administration (FHA) insurance of Property Assessed Clean Energy (PACE) obligations:

“MBA applauds HUD’s announcement and fully supports these reforms. PACE liens pose a real danger to secured lenders and to the MMI fund because they erode the underlying collateral due to their priority lien position in the event of default. HUD’s actions today will help protect taxpayers and the FHA insurance fund, and will align FHA policy with that of Fannie Mae and Freddie Mac. However, consumers should still be very wary of these dangerous loans, which are not yet subject to important federal consumer protection laws. In addition, consumers need to understand that PACE loans can significantly hinder their ability to later sell their house. That is why we continue to support S. 2155, The Economic Growth, Regulatory Relief, and Consumer Protection Act, and its requirement that PACE loans comply with the same ability to repay requirements as other mortgage products.”

CONTACT
Rob Van Raaphorst

(202) 557- 2799

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The Mortgage Bankers Association (MBA) is the national association representing the real estate finance industry, an industry that employs more than 280,000 people in virtually every community in the country. Headquartered in Washington, D.C., the association works to ensure the continued strength of the nation’s residential and commercial real estate markets; to expand homeownership and extend access to affordable housing to all Americans. MBA promotes fair and ethical lending practices and fosters professional excellence among real estate finance employees through a wide range of educational programs and a variety of publications. Its membership of over 2,400 companies includes all elements of real estate finance: mortgage companies, mortgage brokers, commercial banks, thrifts, Wall Street conduits, life insurance companies and others in the mortgage lending field.

Contact:

Mortgage Bankers Association
1331 L Street, NW
Washington, DC 20005

Phone: (202) 557-2700

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