2024-30629NoticeWallet

Environmental Assessment and Finding of No Significant Impact

Published Date: 1/10/2025

Notice

Summary

The Consumer Financial Protection Bureau (CFPB) checked if new rules for clean energy home loans (called PACE financing) would harm the environment and found they won’t. These rules protect homeowners by making sure lenders check if borrowers can repay their loans. The new protections kick in starting January 10, 2025, helping people finance eco-friendly home upgrades safely and smartly.

Analyzed Economic Effects

2 provisions identified: 1 benefits, 0 costs, 1 mixed.

Ability-to-Repay Checks for PACE Loans

The CFPB’s PACE rule requires lenders to determine a borrower’s ability to repay residential PACE loans and implement how PACE transactions are treated under the Truth in Lending Act. The CFPB expects that, as a result of these ability-to-repay checks, fewer PACE loans would be originated.

TILA Civil Liability Applies to PACE

The CFPB will apply the civil liability provisions of the Truth in Lending Act (TILA) to residential PACE transactions as directed by EGRRCPA section 307, giving borrowers TILA-based civil remedies for violations in PACE financing.

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Key Dates

Published Date
1/10/2025

Department and Agencies

Department
Independent Agency
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