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Announcement #2018-43 VA Update – PACE Obligations

Announcement #2018-43

July 16, 2018

VA Update

Eligible Channels, All

VA Update – PACE Obligations

VA is not extending its Property Assessed Clean Energy (PACE) policy originally announced in
Circular 26-16-18, which was rescinded on July 1, 2018. Effective with loans insured on or after
July 1, 2018, transactions will no longer be permitted to close with an outstanding PACE
obligation.
The following sections of the New Penn Financial VA product profile have been updated with all
applicable requirements.
Section Change Summary
1.3 Ineligible Programs Added transactions where properties will remain encumbered with a
PACE obligation.
2.6 Refinances (General) Added that any outstanding Property Assessed Clean Energy (PACE)
obligations must be paid in full at or prior to closing.
2.7 VA IRRRLs Added that any outstanding Property Assessed Clean Energy (PACE)
obligations must be paid in full at or prior to closing.
Refer to the New Penn Financial VA Product Profile found on www.newpenncorrespondent.com for specific
details.