FHA Updates Servicing Section of Single Family Housing Policy Handbook with respect to Property Assessed Clean Energy (PACE) Obligations

FHA issued Mortgagee Letter 2017-06, updating the servicing section of the Single Family Housing Policy Handbook with respect to Property Assessed Clean Energy (PACE) obligations. The updates include revisions to escrow, appraisal and property conveyance requirements. The topics affected by the Mortgagee Letter include: application of payments; escrowing of funds; pre-foreclosure sales; deed-in-lieu of foreclosure; claims without conveyance of title; foreclosure; conveyance of acquired properties; and loan assumptions. The updates went into effect January 19, 2017.

Click here to view the FHA Mortgagee Letter