Bipartisan bill factors energy costs into mortgage underwriting equations

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A new bipartisan effort on Capitol Hill would change the way homes are appraised by putting energy costs and savings into standard mortgage underwriting equations.

November 09, 2011
green homes, energy efficient homes, mortgage, home financing

green homes, energy efficient homes, mortgage, home financing

A new bipartisan effort on Capitol Hill would change the way homes are appraised by putting energy costs and savings into standard mortgage underwriting equations, forcing Fannie Mae, Freddie Mac, and the Federal Housing Administration to take energy costs into account for every loan they insure, guarantee, or buy, according to the Los Angeles Times.

The Sensible Accounting to Value Energy Act (SAVE) would ensure that estimated energy-consumption expenses for the house be included as a mandatory new underwriting factor.

Because utility bills can drain more cash than property taxes or insurance –– key factors in standard underwriting –– they can seriously affect a family’s ability to afford a house.

For more information, read the article here.

 

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