America's Fastest-Growing Loan Category Echoes Subprime Crisis

Printer-friendly version
January 11, 2017

Property Assessed Clean Energy (PACE) loans, set up by local governments and designed to encourage homeowners to buy energy-efficient solar panels, window insulation, and air-conditioning units, are a growing corner of the lending industry, but they come with problems that eerily echo the subprime mortgage crisis. Contractors essentially function as loan brokers, but have scant training and oversight and often pitch PACE loans to help land jobs and earn referral fees from lenders. The loans are based on property values, not creditworthiness, but some borrowers don’t realize that the debt will be added to their property taxes.

Read more

Add new comment

Filtered HTML

  • Web page addresses and e-mail addresses turn into links automatically.
  • Allowed HTML tags: <a> <em> <strong> <cite> <blockquote> <code> <ul> <ol> <li> <dl> <dt> <dd> <img>
  • Lines and paragraphs break automatically.
  • Captions may be specified with [caption]<img src="example.png">Image caption[/caption]. Items can be aligned with [caption align=left].

Plain text

  • No HTML tags allowed.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Lines and paragraphs break automatically.
By submitting this form, you accept the Mollom privacy policy.

Comments on: "America's Fastest-Growing Loan Category Echoes Subprime Crisis"

August 2017

This Month in Professional Builder

Features

Gehan Homes expansion into entry-level home building through...

Overlay Init