ICBA issued a comment letter in response to the Consumer Financial Protection Bureau’s advance notice of proposed rulemaking for Property Assessed Clean Energy financing. In its letter, ICBA stressed the need to ensure these loans are subject to the same standards as other forms of consumer mortgage credit, especially when a consumer’s home is used as the collateral. Individuals who arrange PACE financing should also be subject to the bureau’s Mortgage Loan Originator Compensation rules and the Nationwide Multistate Licensing System licensing requirements, ICBA wrote.
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.
Read ICBA Letter