Summary of Proposed Rule to amend Regulation Z to include PACE financing

Updated 10/10/2023

  1. Pace financing is a mechanism that enables property owners to finance certain upgrades to real property through an assessment on their real property.
  2. The Proposed Rule would result in all of Regulation Zā€™s provisions potentially applying to PACE loans.
  3. Under the Proposed Rule, TRID forms would be provided for PACE financing with certain proposed modifications and creditors would have to consider PACE obligations under the Ability-to-Repay rule.

 

 

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