On Wednesday (Oct. 19), Senators Michael Bennet (D-Colo.) and Johnny Isakson (R-Ga.) introduced the Sensible Accounting to Value Energy (SAVE) Act.
The SAVE Act instructs federal loan agencies to assess a borrower’s expected energy costs when financing a mortgage. Federal mortgage agencies and the Department of Housing and Urban Development (HUD) will be directed to create a new mortgage underwriting and realty appraisal process that reflects actual homeowner energy costs.
Although the average American homeowner spends over $2,000 per year on energy costs – more than on either property taxes or home insurance – current underwriting rules do not take those costs into account.
Proponents say the SAVE Act would remove this blind spot and improve lending standards, and that the bill would create jobs, save homeowners money and accelerate demand for energy efficiency across the U.S. – which will be beneficial to those in the remodeling and retrofit industries.
The SAVE Act is supported by a broad-based coalition including the U.S. Chamber of Commerce, the Council of the North American Insulation Manufacturers Association (CNAIMA), the Alliance to Save Energy, the U.S. Appraisal Institute, homebuilders, environmental groups, green building advocates, and other champions of energy efficiency.
For more information go to http://www.imt.org/save-act