Let Valuation Tech Help Improve Your Collateral Valuation

Join this webinar to learn how technological advancements in valuation provide solutions to help lenders and servicers deliver more comprehensive offerings to their clients.

Talking proptech with FinLedger Director Holden Page

In this episode, Page discusses the hottest topics coming across FinLedger’s news desk. Topics include: the online banking market, what’s happening in the proptech space and recent private market deals.

With a reinvigorated CFPB, what’s next for the NYDFS?

While the CFPB is reinvigorated under the Biden administration, there’s plenty of room for it to retake a leading role and coordinate with the NYDFS.

Does your CRM hurt or help the customer experience?

In real estate, data is king. The more you leverage your own data the better off your agents or loan officers will be because they’ll be able to identify, target and create better customer experiences.

Mortgage

Freddie Mac launches new, “green” mortgage

Financing targeted at energy efficient homes

Freddie Mac announced Friday that it is now offering what it calls GreenCHOICE mortgages.

These mortgages will help finance home improvements for greater energy efficiency, the company explained. The mortgage will include broader financing options to help families with lower incomes reduce home utility costs through energy saving home repairs and improvements.

“Older homes tend to be more energy inefficient, which may raise the cost of homeownership and may make them more difficult to maintain,” said Mike Dawson, Freddie Mac vice president of single-family affordable lending strategy and policy. “GreenCHOICE Mortgages is part of a multiyear initiative to facilitate energy-saving improvements that could help families better sustain homeownership.”

“Freddie Mac is committed to making mortgage lenders and real estate agents aware of these products and the value they bring to the housing market,” Dawson said.

Freddie Mac explained that while energy efficiency can make homeownership more affordable, this cost, an estimated $2,200 per year according to the U.S. Department of Energy, is not typically factored into traditional mortgage underwriting methods.

The new GreenCHOICE Mortgage will allow Freddie Mac to assess mortgage loan performance between homes with and without energy efficient enhancements. The research will help the GSE design valuation guidance and uniform data collection tools and develop underwriting guidelines to account for energy efficient features.

To further this initiative, Freddie Mac is partnering with organizations such as the Rocky Mountain Institute, RESNET, the Institute for Market Transformation and the Department of Energy.

“With a deeper understanding of the value of energy efficiency, as well as an increased awareness of Freddie Mac’s solutions and underwriting requirements, lenders will have more opportunities to expand their green product offerings in the marketplace,” said Robert Sahadi, Rocky Mountain Institute senior advisor.

The initiative is part of Freddie Mac’s Duty to Serve plan, which focuses on supporting underserved markets by financing more rural and manufactured housing and preserving more affordable housing for homebuyers and renters nationwide.

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3d rendering of a row of luxury townhouses along a street

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