WASHINGTON, D.C. (July 19, 2016) – (RealEstateRama) — Pete Mills, Senior Vice President of Residential Policy and Member Engagement for the Mortgage Bankers Association (MBA) issued the following statement regarding FHA’s guidance on the Property Assessed Clean Energy (PACE) program.
“MBA and its members believe that energy efficient home improvements provide homeowners with a wide variety of benefits, and want to help homeowners safely and sustainably finance these kinds of improvements. However, we are concerned that this program, as designed, would leave low and moderate income FHA borrowers more vulnerable to being misled and steered into financial obligations that they may not fully understand due to lack of disclosure. Further, the program puts taxpayers at risk by effectively making the FHA the guarantor of home improvement loans made by private contractors, thus increasing loss severity for the FHA program if borrowers default.
“Alternative means to finance energy efficient improvements already exist that don’t pose the same risks to consumers and taxpayers. MBA urges FHA to solicit and incorporate feedback from the industry to refine their program to better serve and protect consumers and the taxpayers.”
Rob Van Raaphorst
(202) 557- 2799