The Consumer Financial Protection Bureau ("CFPB") requested information on the financing of residential Property Assessed Clean Energy ("PACE"). PACE financing is defined by the Economic Growth, Regulatory Relief and Consumer Protection Act ("EGRRCPA") as "financing to cover the costs of home improvements that results in a tax assessment on the real property of the consumer."
In an Advance Notice of Proposed Rulemaking ("ANPR"), the CFPB said the information solicited will allow the CFPB to better understand the PACE financing market. CFPB stated it will be seeking to adopt new rules under EGRRCPA that will (i) "carry out the purposes" of the Truth in Lending Act ("TILA") ability-to-repay ("ATR") requirements related to PACE financing, and (ii) apply the TILA's "civil liability provisions for violations of the ATR requirements the CFPB will prescribe for PACE financing."
Comments must be submitted to the CFPB no later than 60 days after the date of publication of the proposal in the Federal Register.
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