Events & Press
Energy Efficiency Management, Inc. Scores One For Energy Efficiency And The American Homeowner |
| Published by Apr 22nd, 2009 |
| Yesterday, it was revealed to Energy Efficiency Management, Inc. that through persistent efforts working with staffers at the Senate office of the Honorable Senator Diane Feinstein for over five months, we were able to get a response from HUD to a letter generated by the Senator's office to them dated February 6, 2009. HUD has addressed in a letter to the Senator's office stamped March 5, 2009, in response to her letter dated February 6, the reason a scheduled release of a HUD Mortgagee Letter (scheduled to be released near the beginning of October 2008), issuing guidance on the removal of the cap of $8,000 from the HUD/FHA Energy Efficient Mortgage (EEM), has been delayed. HUD has outlined to the Senator's office that the Housing and Economic Recovery Act of 2008 (HERA) would have allowed lenders to use a higher cap on FHA EEM Loans, but the letter was withdrawn due to flawed statutory language in the HERA legislation. Energy Efficiency Management, Inc. has known this for over six months, and took steps to identify the issue to Congress nearly that long ago. Until yesterday though, the exact section in the HERA legislation that was flawed had yet to be identified. HUD identified the problem section HERA cites (which continues to hamper the release of the HUD Mortgagee Letter) as "Section 203(b) (2) (A) of the National Housing Act (12 U.S.C. 1709(b) (2) (A) for non-high cost areas and section 203(b) (2) (B) for high cost areas. Those references should be Section 203(b) (2) (A) (i) for non-high cost areas and 203 (b) (2) (A) (ii) for high cost areas". Now that the exact section of the HERA Legislation determined to be flawed has been identified, a technical correction from Congress can and must be made, in order for HUD to be able to release a Mortgagee Letter issuing guidance based on the law. Once corrected, HERA lifts the cap of $8,000 on EEM loans and allows the retention of a cap of 5% of the appraised value, or 2% of the loan limit, whichever is greater. So, if Congress takes steps to correct the flawed language, as It's assumed they will immediately, we will have to see if that will influence any changes to the HUD Mortgagee letter that should immediately follow; issuing the appropriate guidance about the new loan limits to lenders. Energy Efficiency Management, Inc. applauds the effort of both the Office of Senator Feinstein and HUD for working together to identify the problem, now we can move forward to have this legislation technically corrected by Congress. It is the understanding of Energy Efficiency Management, Inc. that the Senate Energy Committee will take this issue up immediately, and will try to get it placed in the upcoming energy bill. Once the legislation is technically corrected by Congress, HUD needs to move swiftly to put out the Mortgagee Letter issuing guidance to Lenders on the removal of the EEM cap of $8,000. This will have an immediate, significant and meaningful impact on the viability of the EEM Program as the most appropriate vehicle the country has, to make our vast housing stock of existing homes energy efficient and healthier overall. The new Administration and Congress have identified energy efficiency, the related jobs sector and the subsequent benefits, as a priority of the nation. The HUD/FHA EEM loan program will be one of the main vehicles to get us on the road to a more green, energy efficient and sustainable future; one house at a time. Energy Efficiency Management, Inc. is proud of the effort by all so far, now let's carry this ball over the goal line without delay. |