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Section 307 of the Economic Growth, Regulatory Relief, and Consumer Protection Act
(EGRRCPA) amended the Truth in Lending Act (TILA) to require the CFPB to prescribe regulations relating to "Property Assessed Clean Energy” (PACE) financing. As defined in EGRRCPA section 307, PACE financing results in a tax assessment on a consumer’s real property and covers the costs of home improvements. The required regulations must carry out the purposes of TILA’s ability-to-repay (ATR) requirements, currently in place for residential mortgage loans, with respect to PACE financing, and apply TILA’s general civil liability provision for violations of the ATR requirements the CFPB will prescribe for PACE financing. The EGRRCPA directs that such requirements account for the unique nature of PACE financing and specifically authorizes the collection of data and information necessary to support a PACE rulemaking. In May 2023, the CFPB issued a proposed rule to implement EGRRCPA section 307 and make other adjustments to Regulation Z to account for the unique nature of PACE financing. The final rule was published in January 2025. The final rule will become effective on March 1, 2026.