U.S. Representative Ed Royce (R-Calif.) questioned U.S. Department of Housing and Urban Development (HUD) Secretary Julián Castro on the Federal Housing Agency’s (FHA) forthcoming Property-Assessed Clean Energy (PACE) loan guidelines and HUD’s Distressed Asset Stabilization Program (DASP) during a House Financial Services Committee hearing entitled “HUD Accountability.”
“In August 2015, [FHA] Principal Deputy Assistant Secretary Ed Golding, who I see is with us today, announced anticipated guidance on FHA-insured financing for properties with these qualifying PACE loans. As you may know, the use of PACE ‘super liens’ has grown more in California than anywhere else. I think it does pose additional risks for homebuyers and lenders, who already face some significant hurdles. When is the Department’s actual guidance on PACE loans coming? Will implementation be made through a HUD Mortgagee Letter or via a public notice and comment rulemaking?” asked Rep. Royce.
“We anticipate very likely in the next several weeks we will offer that. I believe it’s a Mortgagee Letter, but Ed [Golding] can check me on that. That is something we are currently working on… that’s still being discussed, whether it’s a Mortgagee Letter or public notice and comment. With respect to California, there is a California approach. …read more
Source:: U.S. Rep. Ed Royce