LOS ANGELES, April 5, 2017 /PRNewswire-USNewswire/ -- The CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) today issued the following statement in support of the introduction of the Protecting Americans from Credit Entanglements Act, or PACE Act, by California Representatives Brad Sherman (D-Calif.) and Ed Royce (R-Calif.) that would regulate Property Assessed Clean Energy (PACE) loans:
"The use of Property Assessed Clean Energy (PACE) liens, which lacks industry oversight, has grown more in California than in any other state. Without federal regulatory oversight for these types of loans, unknowing homeowners are unable to compare costs, and terms and conditions, and are vulnerable to rates and fees that are in some cases predatory," said C.A.R. President Geoff McIntosh. "We commend Reps. Sherman and Royce for introducing legislation that will allow the Consumer Financial Protection Bureau to regulate the companies selling PACE loans and protect consumers from hard sales tactics that often lead to abuse."
C.A.R. also thanks Sens. Tom Cotton (R-Ark.), Marco Rubio (R-Fla.), and John Boozman (R-Ark.) for their introduction of a companion bill in the Senate.
PACE programs allow homeowners to finance through an assessment on their property various energy conservation-related improvements, such as energy-rated water heaters, windows, and solar panels.
Last year, C.A.R. successfully sponsored AB 2693 (Dababneh), which requires Truth in Lending Integrated Disclosure – or TRID-like disclosures – be provided to a property owner participating in a PACE program, a three-day right of rescission, and a notice that the property owner may not be able to refinance or sell without paying off the PACE "loan." Gov. Jerry Brown signed the bill into law last fall.
Leading the way...® in California real estate for more than 110 years, the CALIFORNIA ASSOCIATION OF REALTORS® (www.car.org) is one of the largest state trade organizations in the United States, with more than 185,000 members dedicated to the advancement of professionalism in real estate. C.A.R. is headquartered in Los Angeles.
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SOURCE CALIFORNIA ASSOCIATION OF REALTORS