In May, the Consumer Financial Protection Bureau announced proposed rules for PACE loans. CUNA issued two letters in support of the proposed rules, urging additional consumer protections.

The first letter urged the CFPB to finalize the proposed rules and to take additional action to protect consumers. Specifically, CUNA urged the CFPB to:

– finalize the proposed rules
– take additional action to protect consumers
– ensure that PACE loans are offered only to borrowers who can afford them
– require lenders to disclose the risks of PACE loans
– ban lenders from using deceptive marketing practices

The second letter urged the CFPB to exempt credit unions from the proposed rules. CUNA argued that credit unions are not major players in the PACE loan market and that exempting them from the rules would reduce regulatory burden without jeopardizing consumer protection.

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