Tuesday, March 11, 2014
The State has created a $10 million reserve fund to reimburse mortgage lenders. The fund would repay the lenders if people who finance clean energy projects through property tax payments default on their loans.
Evan Westrup with Governor Jerry Brown’s office says federal mortgage lenders Freddie Mac and Fannie Mae have previously rejected additional liens for homeowners who wished to finance these projects.
“The main concern of the Federal Government was around the financial liability and potential cost if these properties fell into foreclosure,” says Westrup.