23-EA-09: CFPB - Residential Property Assessed Clean Energy Financing (Regulation Z)

On May 1, 2023, the Consumer Financial Protection Bureau (CFPB or Bureau) published a notice of proposed rulemaking (NPRM) seeking to prescribe ability-to-repay rules for Property Assessed Clean Energy (PACE) financing and to apply the civil liability provisions of the Truth in Lending Act (TILA) for violations. Specifically, the Bureau proposes to implement Economic Growth, Regulatory Relief, and Consumer Protection Act (EGRRCPA) section 307 and to amend Regulation Z to address how TILA applies to PACE transactions to account for the unique nature of PACE.

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