The California Department of Business Supervision has banned the Encino contractor from offering a PACE home improvement loan, accusing the company of falsely signing the homeowner for financing which if not paid could lead to foreclosure.
The action against Eco Technology Inc., which through its lawyers denied the allegations, marked the first step the department has taken since the 2017 law provides oversight of PACE, a unique type of financing that funds repairs to energy-efficient homes and water. .
The Energy Assessed Property, or PACE program, is formed by government authorities, and most have partnered with private lenders to offer loans that are repaid through homeowner’s property tax bills.
Private lenders, in turn, rely on home improvement contractors to market loans and register people. Some homeowners accused the contractor of misleading them to take out loans they did not understand or could not afford.
In a termination and termination order issued Wednesday, the Department of Business Supervision accuses Green Technology workers of falsely telling homeowners that they are applying for a “free government program” and do not have to pay for repairs to their homes.
To settle the loan, the department accused Eco Technology of falsifying signatures from homeowners on electronic loan documents and homeowners who were emulated in a call with a PACE lender.
The order said that in at least one case, it appeared that “fraudulent IRS 1099 Forms were submitted in a financing package to increase the homeowner’s income level to meet the ‘ability to pay’ requirements.”
The ability to pay terms, together with phone calls mandated by lenders, are both part of the 2017 state legislation package that seeks to ensure homeowners understand what they are facing and can afford it.
In addition to accusations of counterfeiting, the department said Eco Technology “sells products offered at inflated prices – three to five times the usual industry level – and uses high-pressure tactics to prey on most older homeowners and those who do not speak English. their main. “
Lawyers representing Eco Technology said the company denied all allegations, including that they falsified documents or the owner of the house that was being copied.
Nick Brunner of the law firm Plumtree and Associates called the department’s investigation “short” and said PACE lenders assume responsibility for ensuring homeowners understand financing.
Maria Plumtree, from Plumtree and Associates, said the price for home repairs was also determined by lenders and Eco Technology had stopped offering PACE before the order, because homeowners complained after they realized they had to pay interest – something Plumtree said Eco Technology was not aware of.
The order did not mention PACE lenders and The Times could not immediately confirm their identity.
In the past, major lenders said most consumers had positive experiences with PACE and that they had instituted reforms and taken action against contractors who were proven to misrepresent financing.
Mark Leyes, a spokesperson for the Business Supervision Department, said that although Eco Technology is no longer working with PACE lenders, the department is taking action to stop companies from working with PACE lenders in the future.
Citing contractor supervision difficulties as justification, Los Angeles County recently ended its PACE program. Even so, homeowners in this area can still access PACE funding through statewide programs if their city allows it.
