April 8, 2013 3:46 am
The report is based on a study using a sample of 71,000 mortgage loans, compiled from across 38 states and the District of Columbia. CoreLogic, the lending industry's leading source for such information, provided the data and the sample was restricted to single-family, owner-occupied homes whose mortgages were contracted during 2002-2012. RESNET supplied both the addresses and the homes' HERS Index Scores to the University of North Carolina for the purposes of this study.
The impact of the report promises to be far-reaching, especially to consumers, with recommendations such as:
- The lower risks related with energy efficient homes should be taken into consideration when underwriting mortgage loans.
Fannie Mae, Freddie Mac and FHA should:
-Encourage underwriting flexibility for mortgages on energy efficient homes.
-Promote energy efficiency to consumers and their lenders.
RESNET Executive Director Steve Baden, who took part at the news conference and congressional briefing in Washington, D.C. when the report was released, said of the study, "This is a real game changer. The finding that the lower the HERS Score, the lower the mortgage risk should increase consumer, builder, lender, real estate agent and appraiser confidence in the HERS Index Score. In light of these findings, RESNET calls on the mortgage industry to rationalize the underwriting process to take in consideration energy savings in the mortgage loan."
Published with permission from RISMedia.