Proposed Regulations: PACE and NMLS under the California Financing Law

The Commissioner of Business Oversight is seeking comments on proposed regulations under the California Financing Law.

Property Assessed Clean Energy (PACE) Regulations

Since January of 2019, the Department of Business Oversight has licensed PACE program administrators under the California Financing Law. The Department is proposing regulations to implement the regulatory requirements of licensure, including provisions related to the enrollment and oversight of PACE solicitors and PACE solicitor agents.

Transitioning CFL Licensees to NMLS

Currently, only California Financing Law licensees engaged in the business of making or brokering loans secured with residential real property or financing PACE transactions are licensed through NMLS, the Nationwide Multistate Licensing System. This proposed rulemaking action proposes transitioning all applicants and licensees onto NMLS for obtaining and maintaining a license under the California Financing Law. The proposal would require all applicants to file through NMLS on or after January 1, 2021, and would require all existing licensees to transition onto NMLS by July 1, 2021.

Deadline for Comments

The comment period ends December 9, 2019.

Background and Text

The notice, text, and initial statement of reasons for this proposed rulemaking action may be accessed here.