Court ordered Rulemaking resulted in over 30,000 public comments in response to the FHFA’s Advance Notice of Proposed Rulemaking (ANPR), the overwhelming majority in support of PACE. The FHFA’s Notice of Proposed Rule (NPR):
PACENow believes strongly that the FHFA’s proposed rule is unnecessary and can not be justified, based on the evidence and record established with comments filed in response to the ANPR. Courts will decide whether the FHFA has acted arbitrarily or capriciously, in the light of that record. In its NPR, the FHFA says it is considering three alternatives to its proposed rule.
PACENow supports comment which rejects the FHFA’s proposed rule and urges it to adopt a rule that would allow Fannie Mae and Freddie Mac to buy and hold mortgages with PACE assessments and require Fannie and Freddie to consent to PACE liens if PACE programs meet standards set forth in FHFA’s Third Risk-Mitigation Alternative (H.R. 2599 Underwriting Standards). These standards are derived from H.R. 2599, the PACE Assessment Protection Act of 2011. See Federal Register page 36108. If an insurance product or reserve fund that provides sufficient protection against the risk to the Enterprises perceived by FHFA becomes available in the future, local governments should be permitted to choose whether to utilize such products or comply with FHFA’s Third Risk Mitigation Alternative standards.