Green Mortgages Find Home in Housing Bill
July 28, 2008
04:47 PM
A provision to improve and promote energy efficient mortgages is included in the Housing aid legislation that the Senate passed on Saturday. The bipartisan proposal was put forward by Sens. Jeff Bingaman and Pete Domenici, chair and ranking member of the Senate Energy Committee.
Energy efficient mortgages could play an important role in a national effort to make homes more energy efficient. Residential housing accounts for about 22 percent of all energy use, and a similar percentage of greenhouse gas emissions. Many Federal agencies and some banks already offer such mortgages, and Fannie Mae and Freddie Mac are authorized to purchase them. So, rather than creating a new mortgage product, the provision directs Federal agencies to identify barriers that have prevented widespread adoptions of such mortgages; give recommendations to Congress to alleviate obstacles if found, and authorizes a public education and marketing campaign for the mortgages.
Sen. Bingaman: “With high energy prices expected to continue, a streamlined energy efficient mortgage process would make energy efficient new homes and energy retrofits much more attractive to builders and consumers. Promoting energy efficient homes will reduce the amount of energy we consume in our homes while also helping mitigate the effects of global warming.”
Sen. Domenici: “American homes serve as the front-line for improved energy efficiency. I’m pleased that the bill managers have accepted our amendment to identify obstacles that are making it more difficult to build, buy or renovate energy efficient homes. In this time of rising energy costs, we should do everything possible to help people use less energy -- and spend less money.”
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