Removing Barriers Blog

Members of California Congressional Delegation Send Letter on PACE Lending
Posted November 30, 2018 by CUNA Advocacy

Nine Members of California’s delegation to the House of Representatives sent a letter yesterday to Acting Director of the Bureau of Consumer Financial Protection Mick Mulvaney, encouraging prompt implementations of regulations required by Section 307 of S. 2155, related to Property Assessed Clean Energy (PACE) lending.

In the letter, they note “Section 307 requires the Consumer Financial Protection Bureau (CFPB) to prescribe ‘Ability to Repay’ (ATR) regulations that account for the unique nature of PACE financing,” and encourage sound underwriting and appropriate disclosure for PACE loans.

CUNA has long fought for changes to PACE lending programs at both the state and federal level, to protect lenders, whose security interest in the property may be encumbered by PACE loans, as well as for consumers, who may not fully understand the implications of taking a PACE loan for the future marketability of their home.

 A link to the letter may be found here.