CFPB Policies Hurting Energy Efficient Mortgages

06/13/2016
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Energy Efficient Mortgages (EEM’s) are a good thing right?  Well one of the unintended consequences of recent mortgage policies is making it harder for “green conscious” homeowners to get EEM products.

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10 thoughts on “CFPB Policies Hurting Energy Efficient Mortgages”

  1. Super priority liens, for whatever reason, are objectionable to a lender. For example, here in Nevada, we have super priority liens for HOA dues which, when unpaid, multiply geometrically with legal fees and collection costs. The Nevada legislature limited the super priority to equal nine months of such dues, but by its very nature, a super priority limits the ability of the lender to collect from the borrower, even through a foreclosure, what it legitimately lent to that borrower. And, besides, for "energy efficient improvements," all this is is a subsidy to those who install such improvements (remember Solyndra?) and/or those wealthy enough to pay for those "improvements."

    I do like how you have turned it around to describe any legitimate objection to super priority liens to the CFPB's being against the environment. Some of our politicians could learn from that when similarly accused of being, say, anti-woman when they don't want to support Planned Parenthood. Or, accused of being anti-clean air when they don't want to support closing down coal mines and putting coal miners out of work. Or, accused of being anti-worker when they don't want to support increasing the minimum wage which could put millions of those workers out of work. But, this is about real estate, so let me just reiterate that I don't think super priority liens are a good thing and could mean even less inclination on the part of lenders to make home loans.

  2. So who involved in real estate is not hurt by the CFPB?

  3. Realtors/Lenders who support Hillary or Bernie somehow are not hurt or have no education in regards to the CFPB.

  4. Steve Jordan says:

    Man made global warming is a hoax created for some to get rich (think Solyndra and Tesla, neither has made a profit) and for some to have more power over the populace BUT, that aside; solar power is not worth the money. If it was, the gov't wouldn't have to steal OPM to make it more appealing. At what point will these private businesses be able to stand on their own feet? 10 years? Oh wait, it's been more than that already. And let's not even mention the facts that the amount of energy and "pollution" created in the manufacture of the so called "green energy" products, far exceeds their benefit. I understand that actual facts are an inconvenient truth that make the emotion based, man made global warming crowd, go a little nuts (or a lot) but, it's time to look at all of the available history and data. I don't want the CFPB to exist in any form but, I also don't want the gov't reaching into my pocket to give money to my neighbor. If YOU want solar panels on YOUR roof, then YOU pay for 100% of it. .

  5. You guys are usually spot on, but this time you are way out in Left field.
    A PACE assessment has nothing to do with an EEM.
    The EEM is a borrower's option on a regular FHA 203b mortgage, and has nothing to do with super liens or assessments.
    In California, the most consumer friendly PACE program is HERO.
    PACE loans become assessments and are intended to allow existing homeowners the ability to affect needed energy efficient upgrades on their existing properties…. they are not mortgages.
    The EEM, Energy Efficent Mortgage, is an FHA option that has been in the California market since 1993. It has no connection in any way, shape or form to a PACE assessment.
    FannieMae has a new mortgage product, the HomeStyle Energy Mortgage, that addresses the issue of existing PACE assessments on homes going into escrow.
    HERO has a department that is dedicated in assisting Realtors and lenders with their assessments at time of sale.
    I'll have HERO give you guys a call…. and an education.

  6. William E. Blair is the one in Left field. I saw no real difference between what you wrote and what Frank and Brian did, except maybe the names of the programs. But I would have expected that from a high school teacher. What on earth are we teaching our kids?

  7. Yvonne Arnold says:

    Totally Wrong on your part!!
    These PACE and HERO

  8. Mr. Jordan how is global warming a hoax? Why is it then on a regular basis they are performing Geo Engineering in our skies? Look up now and then, it's happening. They have admitted it. The planet is heating up whether you want to believe it or not.

  9. Yvonne Arnold says:

    PACE AND HERO programs are the biggest scam ever!! Sadly I have to admit that the CFPB is accurate in regards to this one.
    These assessments and liens for “energy” repairs to homes are mis-leading to the consumer. They truly do not understand that it is something that a buyer must assume or they will have to pay off. It’s like added a Mello-Roos to your own home…. Who does that?

    If you can’t pay cash for your solar panels or new windows or whatever don’t add it to your home. Period.

  10. Rosemary Loven What are you smoking… I'm not a high school teacher. Is your last statement refering to "Global Warming"? Because if it is, and you think it's a crock of sh*t, then we might be on the same page. Next time, before you make rude comments to others, think first… use some discernment. It might even help you in your business.

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