MBA Statement on the Protecting Americans from Credit Entanglements (PACE) Act

CONTACT
Rob Van Raaphorst
rvanraaphorst@mba.org
(202) 557- 2799

WASHINGTON, D.C. (April 6, 2017) - MBA President & CEO David H. Stevens, CMB made the following statement regarding yesterday's introduction of S.838 and H.R. 1958, the Protecting Americans from Credit Entanglements (PACE) Act.

"Senators Cotton, Rubio and Boozman and Congressmen Sherman and Royce are to be lauded for introducing legislation that will protect low-income and elderly Americans from risky financial products.  While energy efficient home improvements can be beneficial for some homeowners, MBA has significant concerns with the Property Assessed Clean Energy (PACE) program construct. PACE loans are, in substance, mortgage-related financing and should adhere to federal mortgage financing rules. This legislation will subject PACE loans to the same Truth in Lending Act consumer protections required of other applicable mortgage products. We look forward to continuing to work with Congress on this very important issue."