FHA issued Mortgagee Letter 2017-18, setting forth revised policies for insuring mortgages secured by 1- to 4- family properties encumbered with Property Assessed Clean Energy (PACE) obligations. Per the Mortgagee Letter, properties encumbered with a PACE obligation will no longer be eligible for FHA-insured forward mortgages. The Mortgagee Letter also clarifies that PACE obligations are existing debt that may be paid off using a Rate and Term Refinance. Current policies allowing the use of a Cash-Out refinance to pay off PACE obligations remain unchanged. With respect to HECMs, PACE obligations must be paid off at closing, and may be paid off using HECM proceeds. The revised policies are effective for case numbers issued on or after January 6, 2018.
Fannie Mae
Fannie Mae Issues Servicing Guide Announcement SVC-2024-06
Fannie Mae issued Servicing Guide Announcement SVC-2024-06 (Announcement), setting forth updates to the Servicing Guide. Per the Announcement, Fannie Mae clarified requirements related to eMortgages.
November 14, 2024
