Events & Press
Letter to Congressman Royce Concerning FHA Energy Efficient Mortgage (EEM) |
| Published by Nov 17th, 2008 |
| October 28, 2008 Dear Congressman Royce, I want to call your attention to a very important issue that has escaped many and has an immediate and huge impact on the Southern California Real Estate economy, as well as all of California and the rest of the Nation, but requires immediate attention from Congress. The issue surrounds a Mortgagee Letter required to be released by Housing and Urban Development, as mandated by the 2008 Housing Economic Recovery Act, and signed by President Bush. As part of that act, HUD is required to release a Mortgagee Letter detailing the removal of a cap, on the amount of cost effective energy improvements that can be made on an existing home, in regards to an acquisition of a FHA Energy Efficient Mortgage (EEM); designed to save homeowner’s money on their energy bills. This letter has been prepared by HUD, but attorneys for HUD have detected flawed statutory language in the letter, that was approved and slated to be released in October of 2008. In order to correct the letter, so that it may be released, a Technical Correction to the letter must be made by Congress; otherwise, HUD may not correct the letter and issue it to the public, as mandated by the President’s signed legislation. This Mortgagee letter needs to be released. Without the release of this Mortgagee letter, the Energy Efficient Mortgage will have little or no effect on the Real Estate Economy here in California. However, release of the letter will have an immediate and significant impact on both, our Real Estate economy and on improving the energy efficiency of much of our existing home stock here in Southern California, throughout the rest of the State of California and indeed the Nation. Again, this Technical Correction must be taken up by Congress, and I’m told, it needs to be attached to housing legislation. In light of the immediacy of the situation and the possibility of immediate additional housing legislation being considered by Congress, the opportunity is now, to address and implement this Technical Correction through swift and decisive Congressional action. I understand that the Office of Legislation and Regulations staff at the HUD Office of General Council is prepared to offer assistance to your staff, the House Financial Services Committee and the staff of the Chairperson of the House Appropriations Committee, to make this technical correction expeditious and accurate for a smooth completion of the process. I am your constituent, residing in Fullerton, California. It would be my honor to speak with you, or your designated staff, to give you further details surrounding this issue. I am respectfully requesting you to take up immediate action in Congress, to initiate and secure this Technical Correction to HUD’s Mortgagee Letter, so that it may be released and that the FHA’s Energy Efficient Mortgage cap on Cost Effective Energy Efficient Improvements may be changed, resulting in immediate benefits to our economy, energy efficiency in our homes and energy bill savings, for our hard working families. Sincerely, John Shipman President, Energy Efficiency Management, Inc. 714-553-4162 |