CFPB Releases Advanced Notice of Proposed Rulemaking Regarding Residential Property Assessed Clean Energy Financing
On March 4, the Consumer Financial Protection Bureau (CFPB) released an Advanced Notice of Proposed Rulemaking (ANPR) to seek information from the public about certain issues related to Property Assessed Clean Energy (PACE) financing. In particular, the CFPB issued the ANPR to obtain more information (1) about the relationship between an assessment of a consumer’s “ability to repay” and the terms of a PACE financing agreement, and (2) related to the extension of Truth In Lending Act (TILA) general civil liability to PACE transactions.
The ANPR requests information related to the following five categories: (1) written materials associated with PACE financing transactions; (2) descriptions of current standards and practices in the PACE financing origination process; (3) information relating to civil liability under TILA for violations of the ability to repay requirements in connection with PACE financing; (4) information about what features of PACE financing make it unique and how the CFPB should address these features; and (5) views concerning the potential implications of regulating PACE financing under TILA. The CFPB seeks information from a variety of stakeholders, including contractors, consumers and law firms.
Comments will be due 60 days after publication in the Federal Register. More information is available here