A lending program called PACE, or Property Assessed Clean Energy, has been a boon for solar system contractors who have mastered the online systems of lenders to find homeowners whom qualify for the loans based on the equity in their house. However, homeowners have accused contractors of misrepresenting the financing and terms for repaying the loan, which if unpaid can lead to foreclosure just like an unpaid mortgage.
The Los Angeles Times reports that proposed protections range from, in California, banning lenders from revealing to contractors how much financing homeowners are eligible for to an effort in Congress to roll the PACE program into the federal Truth in Lending Act, which would subject that industry to scrutiny from the Consumer Financial Protection Bureau.
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