Tax reform presents obstacle for residential PACE ABS

A trio of changes in the recently signed US tax reform package could lead to shrinking origination volumes of residential Property Assessed Clean Energy (PACE) liens, and speed up prepayments on existing PACE securitizations, analysts at Morningstar Credit Ratings cautioned this week.

  • By Sasha Padbidri
  • 13 Feb 2018

Residential PACE could lose some of its shine as the tax overhaul could reduce some of the advantages of the product, said the analysts.

They singled out three factors that could affect whether consumers would still opt for PACE financing — the decrease in mortgage interest deduction from ...

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