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Energy-Related Mortgage Innovations To Come Within a Year?
Michael Morris / ECOHOME / April 3, 2013
Three recent studies that address the advantages of energy efficiency as it relates to home ownership could have a significant impact on the way buyers finance home purchases in the near future. The studies, all released in March, point to a convergence among thought leaders in the financial, energy, and homebuilding industries, and may provide needed momentum for current efforts to change mortgage lending practices to include energy-related improvements.
Vision 2020 Economics + Financing Chair Robert Sahadi said the studies together are a cause for optimism that federal regulators will allow new-home mortgages to include additional funds for energy-related improvements. Sahadi, the director of energy efficiency finance policy at the Institute for Market Transformation (IMT), has been actively promoting this type of financing through proposed legislation known as the SAVE Act. Although this legislation failed to gain traction in the U.S. Congress in the past, Sahadi believes it has a much better chance this time around and he is working to attract new sponsors for the bill.