New Bill targets predatory lending on energy improvements:
The Protecting Americans and Credit Entanglements Act
This Week, three Republican senators introduced a bill intended to prevent predatory lending practices connected to the financing and installation of solar energy panels…as in PACE (Property Assessed Clean Energy) loans. Or, as I will refer to it (Predatory Aging Citizens Energy) loans. In the house, a similar bill has been introduced by Reps. Brad Sherman, D-Calif., and Ed Royce, R-California.
I think most of us recognize the importance of the clean energy program. But when the program contains loopholes that jeopardize home ownership for older homeowners on fixed incomes to shoulder the program, it became a problem.
The bill sponsored by Senators Tom Cotton, R-AR, Marco Rubio, R-FL, and John Boozman, R-AR would require Truth-in Lending Act disclosures for financing through the Property Assessed Clean Energy program, which is exempt from current laws. Unfortunately, the exemption and federal support created loopholes that allowed predatory lenders to change state and local laws to target seniors into taking out high interest rate (more than twice the rate on a normal mortgage) twenty year loans, complete with pass along liens on their homes for technology that may be obsolete before the debt is repaid.
The bill seems to have some bi-partisan support as well as support from those in the mortgage industry. In a statement released by President of the Mortgage Bankers Association, David Steven noted, “PACE loans are mortgage-related financing and should adhere to federal mortgage financing rules”.
As Brad Sherman, D-California stated: Sherman said. “We must ensure that homeowners concerned with promoting energy efficiency, conservation, and a cleaner environment are given the tools to be successful.”
Read More: Here
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