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PACE Loan Legislation Dies in Oklahoma House
Friday, April 28, 2017 6:45 AM

Legislation that would have had a very negative impact on Oklahoma credit unions died Thursday in the Oklahoma House of Representatives.

Had SB0291 become law, mortgage liens would have become secondary to so-called “Green-Energy PACE Home Loans.” These loans are placed on a homeowner’s tax bill as an assessment and average about $25,000. In the event of a default, they are given priority over a homeowner’s mortgage.

Oklahoma is just one of several states where similar legislation has been introduced.

“These companies are predatory green-energy lenders and are out changing state and local laws, ultimately, to trick seniors and other vulnerable Americans to take out high-interest-rate loans—without proper disclosure of interest rate or fees,” said Nate Webb, president of the Oklahoma Credit Union Association. "This legislation was bad for Oklahomans and the state’s financial institutions."

Webb credits Oklahoma credit unions for playing an integral role in killing the legislation. “Our members responded to a call to action and stepped up in a big way," he said. "I was told by House leadership that our outreach was an important factor in the bill’s demise.”

As introduced, Senate Bill 291 was designed to create a task force to examine tax credits. The bill was stripped of its original language by the House Committee on Appropriations.