This page contains a Flash digital edition of a book.
restrict market liquidity and reduce access to capital: changes to capital requirements for new construction, especially for larger loans; modifications to borrower credit require- ments; and a continued backlog of loans due to processing procedures. Demand for FHA multifamily financing has surged during the economic downturn from $2 billion to $10 billion annually, putting significant pressure on FHA’s ability to handle the added volume. Read our full testimony at www.naahq.org/ governmentaffairs/issues.


PACE FINANCE PROGRAM UNDER FIRE The Federal Housing Finance Agency is


soliciting comments on a proposed rule that would change underwriting standards for Fannie Mae and Freddie Mac with regard Property Assessed Clean Energy bonds. These bonds aim to promote energy efficiency and renewable energy projects for residential and commercial buildings by providing long- term, low-cost funding from local govern- ments. The proposed rule would require Fannie and Freddie to immediately act to address existing loans with PACE encum- brances while preventing them from both purchasing loans with PACE liens and accept- ing first-lien PACE obligations on a mortgage. This proposed rulemaking follows earlier


FHFA action to limit Fannie and Freddie’s involvement in the PACE program. In July 2010, FHFA directed Fannie and Freddie to take “prudential actions to limit their expo- sure to financial risks associated with first- lien PACE programs.” The agency then pro- hibited Fannie and Freddie from purchasing loans with these first-lien features in 2011. FHFA was subsequently sued in California district court and ordered to undertake a for- mal rulemaking process; FHFA has appealed this ruling. If the appeal is granted, FHFA will withdraw the rulemaking. Twenty-five states have enacted legislation authorizing PACE programs. In addition, the PACE Assessment Protection Act of 2011 (HR 2599), which would prevent Fannie, Freddie and other federal mortgage lending regula- tors from adopting policies that contravene established state and local property assessed clean energy laws, has received bipartisan support. Of particular note, FHFA referenced some of our earlier comments on the pre- proposal in the notice. Get HAA’s Twitter updates via SMS by texting follow HAAonline to 40404.


ABODE AUGUST 2012 27


Page 1  |  Page 2  |  Page 3  |  Page 4  |  Page 5  |  Page 6  |  Page 7  |  Page 8  |  Page 9  |  Page 10  |  Page 11  |  Page 12  |  Page 13  |  Page 14  |  Page 15  |  Page 16  |  Page 17  |  Page 18  |  Page 19  |  Page 20  |  Page 21  |  Page 22  |  Page 23  |  Page 24  |  Page 25  |  Page 26  |  Page 27  |  Page 28  |  Page 29  |  Page 30  |  Page 31  |  Page 32  |  Page 33  |  Page 34  |  Page 35  |  Page 36  |  Page 37  |  Page 38  |  Page 39  |  Page 40  |  Page 41  |  Page 42  |  Page 43  |  Page 44  |  Page 45  |  Page 46  |  Page 47  |  Page 48  |  Page 49  |  Page 50  |  Page 51  |  Page 52  |  Page 53  |  Page 54  |  Page 55  |  Page 56  |  Page 57  |  Page 58  |  Page 59  |  Page 60  |  Page 61  |  Page 62  |  Page 63  |  Page 64  |  Page 65  |  Page 66  |  Page 67  |  Page 68  |  Page 69  |  Page 70  |  Page 71  |  Page 72  |  Page 73  |  Page 74  |  Page 75  |  Page 76  |  Page 77  |  Page 78  |  Page 79  |  Page 80