Section 1 Short title
This Act may be cited as the “Protecting Americans from Credit Entanglements Act of 2017” or the “PACE Act of 2017”.
Protecting Americans from Credit Entanglements Act of 2017
A BILL
To amend the Truth in Lending Act to include retrofit loans such as property assessed clean energy loans, and for other purposes.
Sec. 2 Real property retrofit loans
in subsection (g), in the last sentence, by inserting “and a person who lends money to consumers for real property retrofit loans” before “for purposes”;
by redesignating subsection (cc) (relating to definitions relating to mortgage origination and residential mortgage loans) and (dd) as subsections (dd) and (ee), respectively;
in subsection (dd)(5), as redesignated, by inserting “, including a real property retrofit loan,” before “other than”; and
adding at the end the following:
“(ff) The term consumer credit transaction includes a real property retrofit loan extended to a consumer.
“(gg) The term real property retrofit loan means a financing instrument—
“(1) secured by an interest in real property;
“(2) that is repayable in installments through payments made concurrently with the payment of property taxes on the real property; and
“(3) that is used to finance real property improvements or retrofits, including property assessed clean energy loans or other loans repaid through the property tax system for the purposes of energy efficiency upgrades, renewable energy installations, windproofing or seismic retrofits, water conservation upgrades, septic tanks, or other real property improvements or retrofits to a particular parcel of real property.”
Real property retrofit loan disclosure— Section 128 of the Truth in Lending Act (15 U.S.C. 1638) is amended by adding at the end the following:
“(g) Real property retrofit loan disclosure—Before extending a real property retrofit loan, the creditor shall provide a disclosure statement explaining that the real property retrofit loan will result in a lien on the real property securing the loan.”