Nation's PACE Solar Loan Programs Run Into Trouble on Mortgage Issue

" Typically, the jurisdictions that have enacted such programs, such as towns, cities and counties, have made the PACE loans the first-priority debt on the property, which helps keep the interest rates down.

The Federal National Mortgage Association and the Federal Home Loan Mortgage Corp., the formal names for Fannie Mae and Freddie Mac, both issued letters May 5 saying that PACE loans may not be made the first-priority debt on the mortgages they accept for financing."