26 March 2013 — A new study, funded by the US Institute for Market Transformation, indicates that default risks are, on average, 32 per cent lower in energy-efficient homes.

The study found that the energy efficiency and the degree of energy efficiency matter.

“The lower risks associated with energy efficiency should be taken into consideration when underwriting mortgage risks,” it found.

“Major market stakeholders, such as FHA, Freddie Mac, and Fannie Mae, could encourage underwriting flexibility for mortgages on energy-efficient homes as well as promote energy efficiency to consumers in concert with their lending partners.

“Finally, Congress should consider the findings in its deliberations of current and proposed legislation to improve the accuracy of mortgage underwriting used by federal mortgage agencies, by ensuring that energy costs are considered in the underwriting process.”

See the full report here.

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