May 03, 2011

HUD has selected 18 lenders to participate in the two-year PowerSaver pilot program it announced late last year.  The participating lenders will offer low-cost loans to borrowers otherwise unable to access such products, which will be used to make improvements to home energy efficiency.  The loans, backed by FHA for up to $25,000, will allow homeowners to make energy-saving changes, including the installation of insulation, water heaters, new windows, and solar panels.  FHA mortgage insurance will cover up to 90 percent of the loan amount in the event of default.  All individual borrowers participating in the program must have a credit score of 660 or higher and a debt-to-income ratio of 45 percent or lower.

Eligible lenders were required to have submitted an Expression of Interest; be approved FHA Title I or Title II program lenders; have experience with similar lending initiatives; have adequate computer systems and audit capabilities; and have the capacity to work collaboratively with public sector agencies.  The 18 lenders chosen for the pilot program are:

  • Admirals Bank
  • AFC First Financial Corporation
  • Bank of Colorado
  • City of Boise, Idaho
  • Energy Finance Solutions
  • Enterprise Cascadia
  • HomeStreet Bank
  • Neighbor's Financial Corporation
  • Paramount Equity Mortgage, Inc.
  • Quicken Loans
  • SOFCU Community Credit Union
  • Stonegate Mortgage Corporation
  • Sun West Mortgage Company, Inc.
  • The Bank at Broadmoor
  • University of Virginia Community Credit Union, Inc.
  • Viewtech Financial Services, Inc.
  • WinTrust Mortgage
  • W. J. Bradley Mortgage Capital Corporation

The PowerSaver pilot program, further detailed last month, is designed to test the feasibility of a nationwide, affordable mortgage product for home energy retrofit loans and to gather a robust set of data on the impact of home energy efficiency improvements.  The program will meet a growing demand among homeowners for opportunities to make energy-saving improvements to their homes.  Approximately 30,000 homeowners are expected to be helped through the pilot program.