On May 24, 2018 the Economic Growth, Regulatory Relief, and Consumer Protection Act was signed into law. Among its many provisions Section 307 amends the Truth in Lending Act (TILA) to mandate that the Consumer Financial Protection Bureau (CFPB) prescribe certain regulations relating to residential Property Assessed Clean Energy (PACE) financing. Specifically, the regulations must carry out the purposes of TILA’s ability-to-repay (ATR) requirements, currently in place for residential mortgage loans, with respect to PACE financing, and apply TILA’s general civil liability provision for violations of the ATR requirements the Bureau will prescribe for PACE financing.
On March 8, 2019 the CFPB published an Advanced Notice of Proposed Rulemaking (ANPR) on Residential Property Assessed Clean Energy Financing as required by Section 307 of EGRRCPA. The regulations must “account for the unique nature” of PACE financing. The ANPR solicits information to better understand the PACE financing market and the unique nature of PACE financing.
Comments will be accepted until May 9,2019.
More Information: On March 12, 2019 Compliance Resource is conducting a two-hour long webinar entitled Current Status of the Ability-to-Repay/Qualified Mortgage Rules that covers the PACE rule and the other EGRRCPA rules that impact the ATR/QM area. Click the link above to register. A recording of the program will be available for sale following the program.