Crawford and Senate President Pro Tem Dave Schatz, R-Sullivan, also expressed concern that the loans take priority over any existing claim on the property, meaning if the homeowner struggles to pay debts the PACE loan would get paid before a longer-standing mortgage.
But parts of the legislation that would give prior lienholders the right to veto some PACE loans sparked debate, with opponents arguing they would gut the program and grant too much sway to the financial institutions that made PACE necessary.
Sen. Karla May, D-St. Louis, said a history of racial discrimination, redlining and undervaluing homes has made it difficult for certain areas to access credit.
She said banks are now trying to compete with PACE by advocating for legislative restrictions when they previously failed to lend to some communities.
“This is a poor attempt to interfere with a product that I believe, and others who have tried it believe, is working and helping those areas,”…