Special Report

Participants Expectations in a Time of Crisis - Second Annual Report

June 24, 2020

With the worst economic recession of our lifetime as a real possibility, we reopened our survey to compare market sentiment in this Covid-era to our results from 2019 and the pre-Covid 2020 survey. The study that follows is the result of broad participation from over 100 market participants of all types, including originators, investors, trustees, servicers and others in the field.

It’s time for the market to adjust its mirrors, buckle up and realistically consider whether a subprime auto crisis is imminent. Download our second annual special report to learn more.

ESG

On Our Watch: ESG in the Time of COVID-19

Apr 23, 2020 | By JOSEPH CIOFFI

Here’s something you don’t see much of these days, a market doing well and with the potential for real “green” shoots. With an emphasis on social responsibility and community support, ESG investing is a bright spot. Still, there are also reasons to be cautious, especially if social issues dominate over environmental ones. There are good reasons to keep investing in both. Positive Market Results ESG funds are outperforming conventional funds, and have been since late March. The ESG market has ...

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Marketplace Lending Mortgage Loans and MBS Auto Loans Student Loans ESG

Market Insights in a Time of Crisis

Mar 26, 2020 | By JOSEPH CIOFFI

Distance – the space between – defines our present in so many respects, but that’s not what will lead to success in any market. We have distance from each other, distance from our normal life of just days ago and distance from a future without COVID-19. But that distance has underscored the interconnection of people and markets and their actions like nothing has before. Sure, we knew we were all connected, and we knew the cause and effect of factors that drive our economy, but the coronavirus ...

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ESG

The Emergence of ESG as a Significant Risk Factor

Feb 20, 2020 | By JOSEPH CIOFFI

Recent reports of Australian investors "facing tough questions" over their failure to back climate change resolutions in 2019 highlights increased scrutiny surrounding corporations’ policies on climate change, especially amidst the devastating wildfires that swept through the country earlier this year. The same questions are now being asked globally of borrowers by lenders and investors about their environmental, social and governance (ESG) policies. As we previously noted in a blog post, the ...

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ESG

NYC is About to a Get a Lot Greener – Priming the PACE Pump

Feb 14, 2020 | By JOSEPH CIOFFI

New York City’s Climate Mobilization Act (CMA), touted as the city’s Green New Deal, is set to have a significant impact on the famous skyline. Property owners should now begin to familiarize themselves with the requirements and choose their optimal funding solutions. In many cases, the solution will be commercial Property Assessed Clean Energy (C-PACE) financing, which allows energy-saving capital improvements made to commercial properties to be financed through a special long-term tax ...

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ESG

PACE and ESG Investing: Market Momentum Heading into 2020

Jan 10, 2020 | By JOSEPH CIOFFI

History is filled with examples of a solution being repurposed to create greater benefits in unintended areas – think, Post-it Notes, the microwave oven and Botox. And often, the goals that spur a specific solution reflect a sea-change of thought that carries across markets. Case in point: Residential Property Assessed Clean Energy financing (R-PACE). In 2019, R-PACE may have declined but the style of financing is being repurposed to tackle other societal issues and in the ascending commercial ...

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ESG

PACE Financing: 2019 60-Second Market Review and Insights

Sep 05, 2019 | By JOSEPH CIOFFI

Originations and Issuances, by the Numbers Commercial PACE (C-PACE) originations have experienced steady growth, totaling $280.8 million in 2018, up 12% from 2017. Cumulative C-PACE financing is now approaching $1 billion since the inception of the program. However, residential PACE (R-PACE) has been a mixed bag. While originations are thriving in Florida, applications for PACE loans declined considerably in California following new consumer protection regulations, which took effect in April ...

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Mortgage Loans and MBS ESG

Tiny Spaces, but Lots of Room for Pace-Type Financing

Nov 20, 2018 | By JOSEPH CIOFFI

Move over mortgages – there’s a new kind of real estate that could benefit from a new type of funding. As higher interest rates and rising prices are making affordable housing a challenge in many markets, cities can fight the problem with a small-scale solution – accessory dwelling units (ADUs). What’s an ADU? ADUs are additions (attached or detached) to homes or converted spaces within already existing buildings that can be used as rental units. Local governments on the west coast have become ...

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ESG

PACE Financing: 60-Second Market Review and Insights

Jul 17, 2018 | By JOSEPH CIOFFI

Originations and Issuances, by the Numbers To date since the inception of Property Assessed Clean Energy (PACE) financing, $5.17 billion has been advanced to homeowners under residential PACE (R-PACE) programs, and an additional $672 million has been advanced for commercial PACE (C-PACE) projects. In 2017, R-PACE originations totaled $1.6 billion, down 6% compared with 2016. In 2018 so far, R-PACE originations have reached $372 million. C-PACE originations, on the other hand, are on the rise, ...

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ESG

PACE Financing in 2018: Against the Wind

Jan 25, 2018 | By JOSEPH CIOFFI AND SEIJI NEWMAN

Whether or not you believe in global warming, the recent frequency of severe climate-related events – from mudslides to bomb cyclone snowstorms – suggests Thomas Friedman had it right years ago when he coined the phrase “global weirding.” One would think that in this environment, the outlook for Property Assessed Clean Energy (PACE) financing, which makes energy efficiency possible for the average homeowner, would be sunny and bright. Consider further that Bitcoin, a mostly speculative pursuit ...

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ESG

PACE Financing: 60-Second Market Review and Insights

Sep 14, 2017 | By JOSEPH CIOFFI

Originations and Issuances, by the Numbers $3.7 billion has been advanced to homeowners under residential Property Assessed Clean Energy (R-PACE). Additionally, nearly $500 million has been advanced for commercial PACE (C-PACE) projects. Although R-PACE currently accounts for just .03% of the $12.8 trillion in household debt, it is one of the fastest growing sources of consumer credit and expected to double within the next year. Through May 2017, the cumulative issuance of R-PACE loan ...

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ESG

Carson Comments Leave PACE Twisting in Wind

May 31, 2017 | By JOSEPH CIOFFI

Recent comments from HUD Secretary Ben Carson struck a sour note for supporters of the PACE loan program, through which thousands of homeowners and businesses have made energy-efficient improvements to their properties. Just last year, in an effort to boost the program, the FHA, under the Obama Administration, said it would back mortgages on homes encumbered by PACE loans. But earlier this month, Carson said that the new administration is “very, very amenable to adjusting that policy.” The ...

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ESG

ValueWalk, “Trouble With Green Energy PACE Loans”

Jan 19, 2017 | By JOSEPH CIOFFI

In this ValueWalk article, Joseph Cioffi offers insight into concerns surrounding the Property Assessed Clean Energy program (PACE), including the adequacy of disclosures made at the time a PACE-funded project is sold to a homeowner as a means of financing energy efficient home improvements through a tax assessment on the property.

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