California is suing the Federal Housing Finance Authority (FHFA) because of the decision by Freddie Mac and Fannie Mae, the two quasi-governmental agencies it oversees, to not buy mortgages from participants in the Property Assessed Clean Energy (PACE) energy-efficiency program. In the lawsuit, CA Attorney General Jerry Brown says the publicly regulated mortgage companies are breaking California laws by interfering with city programs that allow homeowners to finance energy retrofits through property taxes. The federal lawsuit charges the FHFA and the mortgage giants with intentionally mischaracterizing the local programs as risky loans in order to block them, engaging in unfair business practices and failing to follow environmental laws. Freddie Mac and Fannie Mae “are severely hampering California’s efforts to assist thousands of California homeowners to reduce their energy and water use, help drive the state’s green economy, and create significant numbers of skilled, stable and well paying jobs,” the lawsuit states.
Monday, July 19, 2010
CA Sues FHFA Over Setbacks to PACE Financing
Source: San Francisco Chronicle
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