New California Law Imposes More Discipline in PACE Lending
October 9, 2017
A new bill, AB 1284, addresses the problem of property assessed clean energy (PACE) loans being granted to homeowners without the protections normally associated with taking on mortgage-like obligations. The bill establishes underwriting standards and brings PACE program administrators, solicitors, and solicitor agents within the California Finance Lenders Law, renamed by this bill to the California Financing Law. This means that they will be subject to the Department of Business Oversight’s’ supervision and enforcement authorities.
See CBA’s Regulatory Compliance Bulletin for more information.