Two of the biggest buyers of home mortgages in the nation Fannie Mae and Freddie Mac have put on hold for 60 days the popular PACE (Property Assessed Clean Energy) loan program as concerns continue to rise regarding homeowners and businesses receiving upfront money to make their property (residential and commercial) energy efficient and/or to purchase renewable energy systems.  The hold only affects applications for residential loans.  It does not affect commercial loans. 

The loans are repaid in 15 to 20 years by the borrower, however with the default rate on loans still high there are concerns about getting mortgages repaid if homeowners have gone through the PACE program and later default on their mortgages.

Governor Ritter a proponent of the program sent a letter on May 17 to Fannie Mae and Freddie Mac regulators the Federal Housing Authority asking that the agencies quickly clarify that existing loans made through PACE programs are ok'd, as will be future loans made through programs that meet teh new Department of Energy guidelines. 

Over 20 states have adopted this program that started in Boulder County.  In Colorado three other counties Gunnison, Pitkin and Eagle are starting energy efficient programs with a statewide effort on the horizon this year.