PorterWorks Inc. Issues Challenge to Lenders, the Lending Industry and the Government

By Dave Porter
 
Eighty-three percent of US homes (95 million) need energy improvements. The average home is 35 years old. Refinances in 2009 could top $1.9 trillion and thousands of first time buyers are purchasing. But how many of these borrowers will be offered the chance to add energy improvements and decrease their overall monthly expenses? Unfortunately, very few. Lenders are not offering EEM (Energy Efficient Mortgages or EIM (Energy Improvement Mortgages).

 
Lenders make their livings on buildings and US buildings are wasteful. US DOE claims that buildings account for 40% of total energy use, 71% of electricity consumption, 38% of CO2 emissions, 36% of greenhouse gas emissions, 30% of raw material consumption, 30% of waste output, and 12% of potable water consumption. 
 
Industry experts predict the green building market could reach $140 billion by 2013.  Are lenders prepared for this emerging market? Green building and energy-improved buildings are fiscally smart for lenders: more qualified buyers, larger loans (i.e. higher commissions), improved collateral and lower default rates. They’re good for consumers; overall operating costs declines; the home’s comfort and value improved.  They’re beneficial to our economy: saving money on utilities means more disposable income; and weatherization and energy efficient improvements mean less dependence on imported energy and creates jobs. They’re best for our planet; we use less of our precious resources and do less harm.
 
Utilities have a significant impact on affordability. Dave Porter, President of PorterWorks, Inc. says that lenders ought to consider the PITIUM: Principal, Interest, Taxes, Insurances AND Utilities and Maintenance. The total cost of ownership should be considered.
 
PorterWorks challenges President Obama, Secretary Donovan, Fannie Mae, Freddie Mac, HUD, and the VA, the Mortgage Bankers Association and all and lenders to streamline the EEM/EIM process, offering a fast track EEM/EIM of preapproved improvements and require a document signed by borrowers at loan application that have been offered these programs and insure lender and appraiser competency through required education.  We need to create a true Green Mortgage. We urge the Senate to extend the First Time Home Buyers Tax Credit, the Energy Efficient Tax Incentives and pass the American Clean Air & Security Act.
 
 PorterWorks, Inc., an education and consulting solutions provider, has developed the GreenLending Specialist™ and GreenValuation Specialist™ designation programs to help lenders and appraisers do their part in this important and urgent work.