ABA Banking Journal
No Result
View All Result
  • Topics
    • Ag Banking
    • Commercial Lending
    • Community Banking
    • Compliance and Risk
    • Cybersecurity
    • Economy
    • Human Resources
    • Insurance
    • Legal
    • Mortgage
    • Mutual Funds
    • Payments
    • Policy
    • Retail and Marketing
    • Tax and Accounting
    • Technology
    • Wealth Management
  • Newsbytes
  • Podcasts
  • Magazine
    • Subscribe
    • Advertise
    • Magazine Archive
    • Newsletter Archive
    • Podcast Archive
    • Sponsored Content Archive
SUBSCRIBE
ABA Banking Journal
  • Topics
    • Ag Banking
    • Commercial Lending
    • Community Banking
    • Compliance and Risk
    • Cybersecurity
    • Economy
    • Human Resources
    • Insurance
    • Legal
    • Mortgage
    • Mutual Funds
    • Payments
    • Policy
    • Retail and Marketing
    • Tax and Accounting
    • Technology
    • Wealth Management
  • Newsbytes
  • Podcasts
  • Magazine
    • Subscribe
    • Advertise
    • Magazine Archive
    • Newsletter Archive
    • Podcast Archive
    • Sponsored Content Archive
No Result
View All Result
No Result
View All Result
ADVERTISEMENT
Home Newsbytes

CFPB proposes rule to apply TILA requirements to PACE loans

May 1, 2023
Reading Time: 1 min read
CFPB proposes rule to apply TILA requirements to PACE loans

The CFPB today released a proposal for applying ability-to-repay requirements to residential property assessed clean energy, or PACE, loans. The proposal, required by the S. 2155 regulatory reform law, would also apply civil liability provisions of the Truth in Lending Act for violations. Comments on the proposal are due July 26.

PACE loans are financed through tax assessments and often take super priority over existing and subsequent first mortgage liens. ABA has long called for TILA’s ATR requirements and civil liability penalties to be applied to these loans, emphasizing that PACE loans are “consumer credit” and therefore subject to Regulation Z.

Along with the proposed rule, the CFPB also released a report on PACE financing, which found that the loans cause an increase in borrowers falling behind on their mortgage payments, along with other negative credit outcomes. “It is likely that a contributing factor behind these results is that the PACE companies did not evaluate whether the consumer had the ability to repay before making most of the loans in our data,” the report noted. “We find that PACE outcomes improved significantly in California after that state began requiring PACE companies to consider ability to pay before making a loan.”

ADVERTISEMENT
Tags: Consumer lendingPACE loans
ShareTweetPin

Related Posts

ABA, associations urge lawmakers to finalize deal on debt ceiling

Congress sends budget bill to president with numerous ABA-backed provisions

Ag Banking
July 3, 2025

Included in the bill were several ABA-supported tax provisions related to banks, including a modified version of the ABA-advocated ACRE Act and the permanent extension of the Section 199A pass-through deduction rate of 20%.

Factory orders increased in May

Economy
July 3, 2025

New orders for manufactured goods in May, up five of the last six months, increased $48.5 billion or 8.2% to $642.0 billion, the U.S. Census Bureau reported today. This followed a 3.9% April decrease. New orders for manufactured...

International trade deficit increased in May

Economy
July 3, 2025

The U.S. Census Bureau and the U.S. Bureau of Economic Analysis announced today that the goods and services deficit was $71.5 billion in May, up $11.3 billion from $60.3 billion in April, revised. The May increase in the...

ISM: Service sector expanded in June

Economy
July 3, 2025

Economic activity in the services sector grew in June after contracting for just one month. The ISM Services Index indicated expansion at 50.8%, above the 50% breakeven point for the 11th time in the last 12 months. “Ten...

147,000 Jobs Added in June, Unemployment Rate Steady at 4.1%

Economy
July 3, 2025

Total nonfarm payroll employment increased by 147,000 in June, and the unemployment rate was little changed at 4.1%, the U.S. Bureau of Labor Statistics reported today. The number of unemployed people, at 7.0 million, changed little over the...

ADP: 33,000 jobs lost in June

Economy
July 3, 2025

The non-farm private sector lost 33,000 jobs in June, and annual pay was up 4.4% year-over-year, according to the ADP National Employment Report. This follows a downward revision of May’s report from 37,000 jobs added to 29,000.Small businesses...

NEWSBYTES

Congress sends budget bill to president with numerous ABA-backed provisions

July 3, 2025

Factory orders increased in May

July 3, 2025

International trade deficit increased in May

July 3, 2025

SPONSORED CONTENT

Navigating Disruption in Ag Lending – Why Tariffs Are Just the Tip of the Iceberg

Navigating Disruption in Ag Lending – Why Tariffs Are Just the Tip of the Iceberg

July 1, 2025
AI Compliance and Regulation: What Financial Institutions Need to Know

Unlocking Deposit Growth: How Financial Institutions Can Activate Data for Precision Cross-Sell

June 1, 2025
Choosing the Right Account Opening Platform: 10 Key Considerations for Long-Term Success

Choosing the Right Account Opening Platform: 10 Key Considerations for Long-Term Success

April 25, 2025
Outsourcing: Getting to Go/No-Go

Outsourcing: Getting to Go/No-Go

April 5, 2025

PODCASTS

Podcast: Inside ABA’s new Treasury Check Verification System API

June 25, 2025

Podcast: Staying close to clients amid tariff-driven volatility

June 18, 2025

Podcast: Old National’s Jim Ryan on the things that really matter

June 12, 2025
ADVERTISEMENT

American Bankers Association
1333 New Hampshire Ave NW
Washington, DC 20036
1-800-BANKERS (800-226-5377)
www.aba.com
About ABA
Privacy Policy
Contact ABA

ABA Banking Journal
About ABA Banking Journal
Media Kit
Advertising
Subscribe

© 2025 American Bankers Association. All rights reserved.

No Result
View All Result
  • Topics
    • Ag Banking
    • Commercial Lending
    • Community Banking
    • Compliance and Risk
    • Cybersecurity
    • Economy
    • Human Resources
    • Insurance
    • Legal
    • Mortgage
    • Mutual Funds
    • Payments
    • Policy
    • Retail and Marketing
    • Tax and Accounting
    • Technology
    • Wealth Management
  • Newsbytes
  • Podcasts
  • Magazine
    • Subscribe
    • Advertise
    • Magazine Archive
    • Newsletter Archive
    • Podcast Archive
    • Sponsored Content Archive

© 2025 American Bankers Association. All rights reserved.