Congressman Sherman Introduces Legislation to Provide Consumer Protections to Homeowners that ‘Go Green’
Washington, D.C. – Today, Congressman Brad Sherman, a senior member of the Financial Services Committee, joined Senator Tom Cotton (R-AR) and Congressman Ed Royce (R-CA) in introducing legislation to increase transparency for homeowners who take out loans to make environmentally-focused home improvements.
The bipartisan Protecting Americans from Credit Entanglements Act of 2017, or PACE Act, amends the Truth in Lending Act, to ensure that PACE lenders are subject to the same basic disclosure requirements that apply to traditional lenders, including providing to consumers the annual percentage rate, a schedule of payments, and the total cost of the loan. Homeowners will also be notified that they will be taking a lien on their home.
"PACE programs provide an important source of financing for consumers looking to make energy-efficient changes to their homes. But the current process presents homeowners with many challenges and can result in homeowners being misled about the terms of their loan,” said Congressman Sherman. “We must ensure that homeowners concerned with promoting energy efficiency, conservation, and a cleaner environment are given the tools to be successful.”
Very similar legislation was introduced in the California Legislature and signed into law by Governor Jerry Brown on September 25, 2016.