PACENow’s Lender Support Handbook, A Toolkit for Obtaining Lender Consent, provides general guidelines for PACE borrowers and program administrators for obtaining mortgage lender consents. The Handbook has been designed to provide information that will allow an existing lender to recognize the value proposition of a PACE-funded project and accommodate an important request from a valued customer.
The Handbook provides broad information regarding the PACE marketplace, data on previously provided lender consents, consent template forms, and suggestions to gain the support of a building’s existing mortgage lender for a PACE project. It complements our Lender Support Study, which details important insights on lenders’ familiarity and attitudes about PACE.
The following materials constitute the Lender Support Handbook and can be downloaded individually:
1. Suggested Strategies for Obtaining Consent: A narrative for strategies to employ when seeking consent.
2. Consent Form A, MS Word: The short form is a simpler, shorter lender consent agreement, generally intended for smaller, one or two component upgrade PACE projects usually less than $500,000 in size. While the form covers all the basics, the lender letter is shorter, the list of recommended supporting property information is smaller, and the consent agreement is simpler.
3. Consent Form B, MS Word: This longer form is a full lender consent document, generally intended for larger, complex multi-component PACE projects usually greater than $500,000 in size. The form includes an in-depth letter to a lender explaining the proposed PACE transaction, a full list of recommended supporting property information, and a formal lender consent form prepared with the input of a law firm.
Note that Consent Form A or B may not satisfy every mortgage lender, but may provide a baseline from which to start creating an alternate form. Other mortgage lenders may be fine with Form A or B as is, with the understanding that the forms were created with input from multiple banks.
4. Sample Intercreditor Agreement, MS Word: The intercreditor agreement is an optional document generally intended for those using Consent Form B when requested by the senior mortgage lender. The purpose of the form is to clarify and document the terms of the agreement between the senior mortgage lender and the PACE capital provider.
5. Project Timeline for Lenders: A general timeline for a PACE project from inception to completion.
6. Lender FAQs: FAQs by lenders about PACE transactions not readily and succinctly available in other places.
7. Partial List of Consenting Banks: A list of 35 banks that have previously consented to PACE transactions.
8. Partial List of Consented Transactions: Details about the consenting bank, property type, property assessed or appraised value, and PACE dollar amount.
9. PACE Transaction Trends: These graphs are based on industry-wide PACE data as collected by PACENow through its data collection portal. Data includes transactions that required lender consent and transactions that did not require lender consent because they did not have a mortgage.
10. List of PACE Programs by State: Summary of PACE activity by program.
11. PACE Program Availability: Map indicating the availability of PACE programs around the United States.
The Handbook will be a continuous work in progress, incorporating updates as PACE evolves as a financing tool. PACENow welcomes feedback – please feel free to share your comments and suggestions with us at firstname.lastname@example.org.