MBA Advocacy Update: MBA-Opposed Residential PACE Bill Signed by Governor DeSantis
MBA-Opposed Residential PACE Bill Signed by Governor DeSantis
Last Friday, Florida Governor Ron DeSantis signed harmful legislation to expand projects eligible for residential Property Assessed Clean Energy (PACE) financing (SB-770).
• The now-enacted law will significantly expand the number and types of projects eligible for financing by Florida’s PACE loan program without first subordinating residential PACE liens to existing mortgages or providing substantive consumer protections.
• MBA has long opposed residential PACE programs because they create risk to lenders and consumers due to the priority status the PACE lien is granted ahead of previously recorded first-mortgages. They also expose consumers to further risk because they are not yet covered by MBA-supported federal consumer protection regulations currently being written by the Consumer Financial Protection Bureau (CFPB).
• After the bill was sent to Governor DeSantis for consideration, the MBA sent a Mortgage Action Alliance (MAA) Call-to-Action to members in Florida and coordinated with the MBA of Florida to provide a second wave of industry opposition and concern.
Why it matters: Expanding the PACE program will preclude borrowers from future refinancing of their first mortgages with a loan insured by the Federal Housing Administration (FHA) and Department of Veterans Affairs (VA), or with a loan sold to Fannie Mae or Freddie Mac (GSEs). Similarly, buyers of homes with PACE liens cannot obtain federally backed financing unless the PACE lien is first paid off in its entirety.
What’s next: MBA will continue to support the MBAF in its efforts to resolve PACE lien priority issues to protect consumers and sustain financing options within Florida.
For more information, please contact William Kooper (202) 557-2737 or Liz Facemire at (202) 557-2870.
For more information about MAA, please contact Jamey Lynch (202) 557-2818.
Upcoming MBA Education Webinars on Critical Industry Issues
MBA Education continues to deliver timely commercial/multifamily and single-family programming that covers the spectrum of challenges, obstacles and solutions pertaining to our industry. Below, please see a list of upcoming and recent webinars – which are complimentary to MBA members:
• Loan Servicing Transfers that Deliver Results – July 11
• Adding Reverse Mortgages to Your Business Line: The Roadmap – July 23
• Rethink Everything: You “Know” To Be A Next Gen Loan Officer – A Deeper Dive With the Writers & Experts Webinar Series: Advocacy – Aug. 1
• What Value Will AI Bring to the Mortgage Industry? – Aug. 13
• Benchmarking & Performance Ratios Mortgage Bankers Must Know – Aug. 20
MBA members can register for any of the above events and view recent webinar recordings by clicking here.
For more information, please contact David Upbin or (202) 557-2931.
