FHA Cuts PACE Program

The Federal Housing Administration announce Friday that they would be making some changes to some there house financing programs. FHA told the Los Angeles Times that, “PACE loans lack sufficient consumer protection and put taxpayers at risk.”

In a statement, Renovate America, the largest PACE lender, said that the policy change only affects a fraction of its business and that PACE borrowers do not default on their mortgages more frequently than those without a PACE loan. The FHA now joins the Federal Housing Finance Agency, which has barred Fannie Mae and Freddie Mac from purchasing mortgages on homes with PACE loans. See the original LA Times article on PACE.

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