Stop Careless Lending & Tax Defaults: Stricter Guidelines for PACE Loans
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Making unaffordable loans based on the assets of the borrower rather than on the borrower’s ability to repay an obligation = PREDATORY LENDING
Inducing a borrower to refinance a loan repeatedly in order to charge high points and fees each time the loan is refinanced (loan flipping) = PREDATORY LENDING
Engaging in fraud or deception to conceal the true nature of the loan obligation, or ancillary products, from an unsuspecting or unsophisticated borrower = PREDATORY LENDING
I, Lacy Robertson a Mortgage and Real Estate professional with over 14 years of experience am asking for stricter financing guidelines when approving homeowners that seek to finance energy and water efficient products. This request is in an effort to prevent another financial housing melt down. Too many people have lost their homes to unfair, careless lending practices and we don't need any more families to lose their most expensive asset they own or will ever own!
When you seek to finance a car or a house it is customary to provide debt and income information to the financing company in an effort to make sure you have sufficient income to repay the loan back for the benefit of both the consumer and investor. This is where your help is needed!!! Right now homeowners can apply to finance energy-efficient products with PACE loans without providing any type of documentation that would show their ability to repay the loan. Not only is financing available but 100% financing is available. 100% financing on large purchase item(s) to consumers without considering their ability to repay the loan is not only risky but a recipe for disaster!!!
What does 100% financing remind you of… Oh no, this sounds like adjustable rate mortgages being approved only at the minimum payment and never at the fully amortized highest contractual payment. When lenders failed to see if an applicant could afford the highest payment amount under the loan it led to mortgages falling into default at record numbers once the payment adjusted. The same is true if you fail to evaluate a consumer’s ability to repay PACE loans based on their income, debt and actual projected savings. It is only a matter of time, if stricter financing guidelines are not put in place that homeowners will be forced to default on their property taxes and mortgage payments that include property taxes. Why? Because They Can’t Pay!!!
Homeowners tend to upgrade to energy-efficient products in an effort to save money on their utility bills. If sufficient guidelines are not in place to ensure that when a homeowner finances energy and water efficient products they can both pay the loan and save money then we are voluntarily creating another housing crisis but I HAVE GOOD NEWS YOU CAN HELP by signing the petition!
Based on my research and cases that I have come across PACE loans do not require any type of income and liability documentation before approving financing and at the very least this is careless and shows that the finance company doesn’t care if a consumer can afford to pay the loan because they now have collateral to back the loan classified as a Hero Property Tax Assessment which also creates a senior position lien or 1st position lien recorded against your property. Yikes, if the homeowners can’t pay this loan, they will most likely lose their home or be forced to sell, when their original intention was trying to save money.
PACE loans also don’t require that a homeowner at least saves a certain amount of money monthly/yearly when upgrading to energy and water efficient products. Without this due diligence, there is no guarantee that the products are actually beneficial to them. When a finance company fails to insure a consumer’s beneficial interest, you have a case where consumers are taken advantage of like during the refinance boom years. Many homeowners were refinancing their properties over and over again with virtually no significant benefit to them and the only party that benefited was the lender.
I need your help! You need my help! We need each other’s help! Stop the careless lending of PACE loans. It is time that we demand strict financing guidelines to protect our homes and our families. Everything that is legal is not ethical but together we can prevent finance companies from taking advantage of homeowners in a legal but unethical way! Stand Up For Your Families by signing this petition, sharing it with everyone you know and encouraging them to do the same! We CAN make a difference.
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Lacy Robertson needs your help with “Predatory Lending: Stricter Guidelines for HERO Program | Renovate America | CaliforniaFIRST | Renew Financial | PACE Funding | CSCDA Open PACE | AllianceNRG”. Join Lacy and 165 supporters today.