League seeks to protect members from risky PACE lending
Published by: Jared Weiser
January 26, 2022 | Political Action
Credit unions always support good government policy that protects people and empowers financial co-operatives. That’s why the League recently joined other trade associations and consumer protection groups in penning this op-ed outlining serious flaws with Property Assessed Clean Energy (PACE) loans. PACE loans are marketed directly to homeowners as an alternative financing option, sourced through property tax assessments to cover energy-efficient home improvement costs. However, PACE programming secures these property liens without offering fundamental consumer protections and notifications. For credit union-originated mortgage loans, PACE assessments are placed in the first lien position, without any required notification to the mortgage lienholder, and are often priced without energy audits or “ability-to-repay” requirements. These risky lending practices could lead some homeowners into a property tax default and ultimate foreclosure, which not only harms the consumer but also their financial institution.
To help protect credit unions and their members from risky PACE lending practices, the League will continue to work with the lending and housing coalition to ensure 3.1 million Ohioans remain protected. Reach out to League Legislative Affairs Director Jared Weiser if you’d like to learn more about PACE lending or get involved with the League’s advocacy efforts on the issue.
