Skip to Page Content | Skip to Site Navigation | Skip to Section Navigation

Reminder about Mortgages with PACE Obligations

August 20, 2014

Today we issued an Industry Letter to remind you that mortgages with Property Assessed Clean Energy (PACE) and PACE-like obligations that provide for first-lien priority are not eligible for sale to Freddie Mac. The only exception is a Freddie Mac Relief Refinance MortgageSM – Open Access subject to the eligibility requirements in Section 24.9 of the Single-Family Seller/Servicer (Guide).

The Industry Letter is being published in light of recent energy retrofit programs announced by certain California counties that permit a first lien position for loans that support energy efficient home improvements.

It is important that you check state and local laws to determine whether a jurisdiction has a PACE program that provides for first lien priority.

We continue to purchase mortgages on properties with PACE and PACE-like obligations, provided that these obligations are in a subordinate lien position and the mortgage meets our other eligibility requirements.

For More Information

Back to Top