CFPB Publishes a Notice of Proposed Rulemaking on Residential Property Assessed Clean Energy Financing (Regulation Z)
On May 11, 2023, the Consumer Financial Protection Bureau (CFPB) published a notice of proposed rulemaking in the Federal Register on Residential Property Assessed Clean Energy Financing (Regulation Z). Section 307 of the Economic Growth, Regulatory Relief, and Consumer Protection Act (EGRRCPA) directs the CFPB to prescribe ability-to-repay rules for Property Assessed Clean Energy (PACE) financing and to apply the civil liability provisions of the Truth in Lending Act (TILA) for violations. PACE financing is financing to cover the costs of home improvements that results in a tax assessment on the real property of the consumer. In this notice of proposed rulemaking, the Bureau proposes to address how the Truth in Lending Act applies to PACE transactions to account for the unique nature of PACE.
Comments due on or before July 26, 2023.