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California AG’s green-loan lawsuit wins Placer County treasurer support

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Placer County mPower program chief Jenine Windeshausen is supporting Attorney General Jerry Brown’s court battle with the Federal Housing Finance Authority over local green loans. Brown sued the federal government Wednesday, asking a judge to stop government sponsored mortgage buyers from blocking a programs like Placer County, the Associated Press reported. Established last spring, Placer’s mPower loan program has been suspended indefinitely because of opposition from Fannie Mae and Freddie Mac and their federal regulatory agency, the FHFA. Windeshausen said earlier this week that if federal roadblocks cause the program to fail, the county would be stuck with $500,000 in startup and program costs that were to have been paid back with interest from loans. The county committed $33 million from its treasury for loans. “The money would have been invested in Wall Street but instead was redirected to be invested in Main Street to create local jobs, help consumers reduce their energy consumption, increase energy independence and strengthen the environment,” Windeshausen said. Fannie Mae and Freddie Mac positions are that counties would move to the front of the line for repayments when mortgage defaults occur. They contend that they cannot guarantee mortgages when a property owner participates in a program like mPower. “We are pleased that Attorney General Brown has taken action to overturn what is an example of bureaucracy at its worst,” Windeshausen said. – Gus Thomson