HUD issued Mortgagee Letter 2016-11. The Mortgagee Letter sets forth FHA policy on using FHA insurance on new Title II forward mortgages for single family homes with Property Assessed Clean Energy (PACE) obligations. The policy will make it easier to purchase or refinance homes using FHA financing when there is an existing PACE obligation attached to the property. Mortgagees may begin using the PACE policy in Mortgagee Letter 2016-11 for case numbers assigned on or after July 19, 2016, but must begin using the new policy for FHA case numbers assigned on or after 60 days from July 19, 2016.
Click here to view the HUD Mortgagee Letter
