Fannie Mae Lender Letter LL 2010 06
May 6th, 2010
May 5, 2010
Lender Letter LL-2010-06
TO: All Fannie Mae Single-Family Sellers and Servicers
Property Assessed Clean Energy Loans
Fannie Mae has received a number of questions from seller-servicers regarding government-sponsored energy loans, sometimes referred to as Property Assessed Clean Energy (PACE) loans. PACE loans generally have automatic first lien priority over previously recorded mortgages. The terms of the Fannie Mae/Freddie Mac Uniform Security Instruments prohibit loans that have senior lien status to a mortgage. As PACE programs progress through the experimental phase and beyond, Fannie Mae will issue additional guidance to lenders as may be needed from time to time.
Fannie Mae supports energy-efficiency initiatives, and is willing to engage with federal and state agencies as they consider sustainable programs to facilitate lending for energy-efficiency home retrofits, while preserving the status of mortgage loans originated as first liens.
Questions should be directed to Resource_Center@fanniemae.com with the subject line “PACE.” Lenders may also wish to consult with their federal regulators, who share concerns about PACE programs.
Marianne E. Sullivan
Senior Vice President
Single-Family Chief Risk Officer
To view the online Lender Letter, please click here
About Safeguard
Safeguard Properties is the largest privately held field services company in the country. Located in Cleveland, Ohio and founded in 1990 by Robert Klein, Safeguard has grown from a regional preservation company with a few employees and a handful of contractors performing services in the Midwest, to a national company with over 700 employees. Safeguard is supported by a nationwide network of subcontractors able to perform any requested superintendence, preservation, and maintenance functions, as well as numerous ancillary services in the U.S., the Virgin Islands, and Puerto Rico.