FHA TO HALT INSURING MORTGAGES ON HOMES WITH PACE ASSESSMENTS

WASHINGTON - The Federal Housing Administration (FHA) today announced it is reversing a short-lived policy announced in July of 2016 and will no longer insure new mortgages on properties that include Property Assessed Clean Energy (PACE) assessments. Read FHA's mortgagee letter.

FHA's decision is part of a larger effort to protect the health of its Single Family Mutual Mortgage Insurance Fund (MMIF) and the borrowers who rely upon it. Last month, FHA released its latest annual report on the fiscal health of the MMIF finding the Fund had a total economic net worth of $25.6 billion and the Capital Ratio that remains above the statutory minimum for a third straight year. Read more about FHA's FY2017 Annual Report.

Links to articles:

http://www.latimes.com/business/la-fi-fha-pace-20171207-story.html

https://www.hud.gov/press/press_releases_media_advisories/2017/HUDNo_17-111