Free Lunches and Foodfights: Fannie and Freddie Say ‘No’ to Greens

James Gattuso / July 26, 2010

Fannie Mae and Freddie Mac are not known for overly cautious mortgage financing. To the contrary, their open wallets helped fuel the credit crisis of 2008, and drove the two into federal receivership. To date, taxpayers have paid some $145 billion to keep them afloat, with no end in sight.

Thus, its rather surprising to see the two in court for being too stingy. But that’s exactly where they are, having been sued earlier this month by California for refusing to finance properties in the federal government’s “Property Assessed Clean Energy,” or PACE, program.  And politicians who control them are lining up to force them to open up their wallets again.

This Obama-backed program, funded by Washington and administered by state and local governments, provides up-front financing for homeowners to make improvements in their home to increase energy efficency. In return, the property owner pays back the loan over time through a voluntary increase in his or her property taxes. (more…)