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E-Mail 'Can't Keep PACE? Try FHA Improvement Loans' To A Friend

by Gina Pogol
July 18th, 2010

Email a copy of 'Can't Keep PACE? Try FHA Improvement Loans' to a friend

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This entry was posted on Sunday, July 18th, 2010 at 4:20 pm and is filed under . You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.

One Response to “Can’t Keep PACE? Try FHA Improvement Loans”

  1. Larry Says:

    PACE is an Assessment similar to 37,000 other assessments in taxing districts across the country, many of which are longer than 20 years. All of these assessments inevitably are priority liens to a first mortgage in the event of a default. PACE is the first assessment which I am aware that actually will lower the operating cost of your property while serving a vital public policy -reduction of green house gases and carbon emissions.
    PACE Assessments allow people to finance energy efficiency and renewable energy improvements which lower the operating cost of your property which will strengthen a borrower’s ability to pay their mortgage.
    PACE Assessments allow consumers the ability to spread the financial burden of these costs over many years just as the utilities and municipalities finance power plants over 30 – 50 years at interest rates lower than what any consumers were paying (pre-PACE) through many other financing arrangements available that do not align consumers goals with government. Why shouldn’t consumers receive the same type of financing benefits?
    PACE Assessments align consumer’s goals with those of the government which are mandating or operating under goals to reduce Green House Gases and Carbon Emissions.
    This public policy inevitably leads to the creation of hundreds of thousands of community jobs across the country. All these extra jobs will allow many unemployed workers who may coincidentally be behind on their own bills to begin getting back on track with their own mortgage payments which will be another benefit to lenders and those who guarantee loans.
    Lenders deal with increasing tax bills all the time and part of the closing documents you sign, especially when you pay in to an escrow account, strictly state that they will be increasing your monthly payment to reflect any increases in your tax bill. Since you voluntarily opt in to a PACE Assessment this is something that you actually plan for whereas the other 37,000 assessments just appear when you receive your tax bill. PACE guidelines stipulate that you notify your lender or mortgage servicer.
    Sonoma County has over 1000 assessments and 700 pending. This is a large sample. In elections polling is used with great accuracy and samples of 300 – 600 lead to highly accurate predictions over 90 % of the time. The data from the over 1000 homes with PACE improvements have a 60% lower rate of default. Don’t let anyone tell you the sample isn’t large enough.
    Congress (HB5766), Senate (Bill recently submitted), the DOE, HUD, FHFA, FNM & FRE all realize that these are assessments. Inevitably, it appears, all anyone wants is clarity as to guidelines and this matter will be solved.
    Please continue to reach out to your Congressman & Senators and urge them to finalize this important, non-partisan issue immediately!

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