Mortgage Borrower Protection Act of 2022
This bill requires an entity extending a Property Assessed Clean Energy (PACE) financing agreement to receive written consent from each owner of any residential mortgage loan or other recorded lien on the property before extending such financing to the dwelling owner. (PACE financing is used to cover the costs of home improvements such as energy-efficient improvements. The subsequent lien is tied to the specific property in the form of a tax assessment.)
Consent is not required if the PACE financing does not have priority over the mortgage loan or lien.
To amend the Truth in Lending Act to require Property Assessed Clean 
Energy financiers to receive the consent of mortgage holders and other 
                lien holders before providing financing.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Mortgage Borrower Protection Act of 
2022''.

SEC. 2. PROPERTY ASSESSED CLEAN ENERGY FINANCING CONSENT REQUIREMENT.

    Section 128 of the Truth in Lending Act (15 U.S.C. 1638) is amended 
by adding at the end the following:
    ``(g) Property Assessed Clean Energy Financing Consent 
Requirement.--
            ``(1) In general.--With respect to a dwelling of a consumer 
        that is the subject of a residential mortgage loan or other 
        recorded lien, it shall be unlawful to extend Property Assessed 
        Clean Energy financing to the dwelling owner with respect to 
        such dwelling without first receiving the written consent of 
        each owner of each residential mortgage loan and other recorded 
        lien, either directly from the owner or from a servicer.
            ``(2) Exception.--Consent shall not be required under 
        paragraph (1) from an owner of a residential mortgage loan or 
        other recorded lien if amounts that become due and payable 
        under the applicable Property Assessed Clean Energy financing 
        will not have priority over such residential mortgage loan or 
        other recorded lien.
            ``(3) Penalty.--With respect to any Property Assessed Clean 
        Energy financing extended in violation of this subsection--
                    ``(A) such Property Assessed Clean Energy financing 
                shall be null and void; and
                    ``(B) the consumer shall not be required to repay 
                any amounts received under the Property Assessed Clean 
                Energy financing.
            ``(4) Definition of property assessed clean energy 
        financing.--In this subsection, the term `Property Assessed 
        Clean Energy financing' has the meaning given that term under 
        section 129C(b)(3)(C)(i).''.
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Mortgage Borrower Protection Act of 2022
To amend the Truth in Lending Act to require Property Assessed Clean Energy financiers to receive the consent of mortgage holders and other lien holders before providing financing.
Mortgage Borrower Protection Act of 2022
Rep. Sherman, Brad