NAHB Green Building Legislation Offers Incentives to Lenders

re: NAHB Green Building Legislation Offers Incentives to Lenders

Dave Porter — Sat, 25 Apr 2009 18:40:53 GMT

We have a historic opportunity to retrofit our existing housing stock by having lenders who have taken homes back to add energy improvements. Lenders are busy as heck with refinances but very, very few lenders are offering the EIM (Energy Improvement Mortgage) to add energy improvements to their homes. We need to start looking at the borrowers’ ability to repay based on PITI-UM (adding utilities and maintenance). Currently we don’t factor for energy costs that can be several hundred dollars a month. Energy Efficient and Green homes are selling faster and for more $ per sq foot (Seattle, WA and Portland OR MLS). In time, we can have green and EIM mortgage backed securities and these will be in demand thus providing a sustainable - market driven – green mortgage with a lower rate to consumers without government subsidies. Porterworks provides consulting and training to lenders on energy efficiency and green building.

RE:NAHB Green Building Legislation Offers Incentives to Lenders

Harlan Cooper — Wed, 18 Jun 2008 11:00:00 GMT

Larry, You asked "Why not give energy incentive rebates to consumers who build or remodel or add energy efficient devices such as solar or wind generated electric to their houses?" There are incentives and rebates available to consumers for energy efficient and renewable energy improvements. Here is a website provided by the NC State University, College of Engineering where you can see what is available Federally and also in your specific state and area: http://www.dsireusa.org/ Unfortunately the individual Federal Tax rebate for certain improvements expired 12/31/2007. There is however still an individual Federal Tax rebate for up to $2,000 for solar energy improvements that is available until 12/31/2008. Regarding your characterization of lenders getting a "free ride." The incentives given a lender to provide mortgages on energy efficient housing typically do not involve a payment or tax break directly to the lender. The incentives are more liberal underwriting guidelines and increased demand/liquidity for energy efficient mortgages. This results in more consumers qualifying for these loans and lower cost and interest rates on these loans. These energy efficient mortgages can then be marketed to consumers at a lower rate and cost that helps to make up for the increased cost to the consumer of green building. The lender wins by increased production, i.e. is able to make more loans to more people and therefore make more money. The consumer wins by getting loans at a lower rate and/or cost to purchase homes with energy efficient improvements. Harlan M. Cooper, President TransNet Mortgage Corporation

RE:NAHB Green Building Legislation Offers Incentives to Lenders

Larry — Tue, 17 Jun 2008 11:00:00 GMT

Nice : More help for lenders : No help for consumers ! Why not give energy incentive rebates to consumers who build or remodel or add energy efficent devices such as solar or wind generated electric to their houses ? It is so expensive to do these things now that it hardly works out as a savings. Also legislation concerning the Electric companies exegious and over blown costs to consumers who want to hook up to the electrical grid and sell energy back to the company using wind generators and other means ! In a time of energy crisis like we are in and the cost of everything going through the roof it is time to re-examine what oil , electric and gas companies are doing to block alternative energy usage and stop them cold : Give the incentive to the customer ! Lenders get enough free rides !