June 20, 2008
Mortgage News Daily

The National Association of Home Builders (NAHB) urged Congress this week to move forward on legislation to improve energy efficiency and sustainability in housing without driving costs above manageable levels.

Jerry Howard, NAHB executive vice president and CEO testified before a House Financial Services Committee hearing on H.R. 6078, the Green Resources for Energy Efficient Neighborhood Act (or the GREEN Act) of 2008.

The GREEN Act, sponsored by Rep. Ed Perlmutter, (D-CO) provides incentives to lenders to provide lower interest loans and other benefits to consumers who build, buy, or remodel their homes or businesses to improve energy efficiency.

In addition the law would require Fannie Mae and Freddie Mac to finance energy efficient and location efficient mortgages such as buildings located near mass transit.

In prepared remarks for the Committee, Rep Perlmutter said that his bill's goal is to create a market for energy efficient and location efficient mortgages by making the GSE's, FHA and HUD eager to collect them.

This would be accomplished by amending the charters for Fannie and Freddie to buy, sell, service and otherwise deal in energy and location efficient mortgages and amending the Home Mortgage Disclosure Act to require data information for the number of and dollar amount of mortgages of single-family and multi-family housing which meet these standards.

HR 6078 would also require the FHA to insure $1 billion worth of energy efficient homes.