Mortgage Lenders Urge FHFA to Adopt Codes for Energy-Efficient Homes

Adopting up-to-date energy codes would not only save families thousands in energy costs but also reduce risks for lenders

In a joint effort to enhance long-term housing affordability and reduce financial risk, a group of consumer and mortgage lenders has penned a letter to the Federal Housing Finance Agency (FHFA) expressing support for adopting updated energy codes for newly constructed homes backed by Fannie Mae and Freddie Mac (the Enterprises), which guarantee nearly half of new home mortgages each year. The coalition of lenders, most of which are members of the Global Alliance for Banking on Values, spans states across the nation and includes Amalgamated Bank, Beneficial State Bank, City First, Clearwater Credit Union, Climate First Bank, Credit Human, Housing Assistance Council, Network for Oregon Affordable Housing, New England Federal Credit Union, Spring Bank, Sunrise Banks, and Verity Credit Union.

Studies have shown that homes built to higher energy efficiency standards help people to stay in their homes longer, with lower delinquency rates for loans, and significantly lower default risks.

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