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Major association scrutinizes PACE home improvement loans

Posted on Tuesday, August 9, 2016 at 10:44:09 AM

Home improvement financing applications and approvals have been skyrocketing, as individuals put some of their hard-earned dollars back into their abodes. One of the most popular projects in the nation is improving the home's energy efficiency, and a common loan program used to do so has come under fire of late. 

Scotsman Guide recently reported that the Consumer Financial Protection Bureau has received a formal warning from the Mortgage Bankers Association regarding the Property Assessed Clean Energy loan program. PACE loans have been among the most highly sought-after for years now, but the MBA believes that other forms of financing are more reliable, affordable and transparent, the source explained. 

As such, the news provider pointed out that the MBA is asking the CFPB to make adjustments that will make the loans, backed by the U.S. Department of Housing and Urban Development and the U.S. Department of Veterans Affairs, less risky for lower and middle-income homeowners. 

Homeowners who are looking to get financing for their energy efficient improvement projects should always consider speaking with a representative from a local, small bank to understand the full spectrum of options on the table.