ICBA: Act Fast on New PACE Loan Standards

Oct 16, 2018

ICBA and other groups called on the Bureau of Consumer Financial Protection to quickly write rules subjecting Property Assessed Clean Energy loans to the same standards as other forms of consumer mortgage credit.

PACE loans allow homeowners to fund energy-efficiency upgrades through an assessment on their property tax bill, which by law gives them the same priority over a first-lien mortgage as tax payments. In a joint letter, the financial and consumer groups said PACE loans have developed outside the consumer-protection framework and are plagued by deceptive marketing and unaffordability.

The ICBA-advocated S. 2155 regulatory relief law requires the bureau to incorporate PACE loans into disclosure, ability-to-repay, and consumer-protection rules.

Read Joint Letter