CFPBFinal Rule
Residential Property Assessed Clean Energy Financing (Regulation Z)
HousingEnergyFinance & Banking
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Summary
This regulation updates the rules for how banks and lenders handle special financing programs that help homeowners pay for energy-efficient improvements like solar panels or better insulation. The rule ensures that consumers understand the costs and terms of these loans, and that lenders treat borrowers fairly when they take out this type of financing.
Key Points
- 1The rule clarifies disclosure requirements, meaning lenders must clearly explain the interest rates, fees, and total costs of Property Assessed Clean Energy (PACE) loans to borrowers before they sign
- 2It establishes protections for homeowners so they understand how PACE financing differs from traditional mortgages and what happens if they sell their home
- 3Lenders must verify that borrowers can actually afford these loans and aren't taking on unmanageable debt
- 4The rule applies to banks and non-bank lenders offering PACE financing programs across the country
- 5These protections help prevent homeowners from being caught off-guard by high costs or unfavorable loan terms when trying to make their homes more energy efficient
Key Dates
Published
January 10, 2025
This summary is for informational purposes only. It may not capture all nuances of the regulation. Always refer to the official text for authoritative information.
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