The nation’s real estate appraisers are pledging their support for pending federal legislation that would require appraisers receive relevant information about energy-efficient features and other environmentally friendly features of a property.
According to the
The SAVE Act features include requiring federal agencies to assess energy costs when financing a mortgage loan based on updated Department of Housing and Urban Development underwriting and appraisal guidelines.
HUD is expected to issue new valuation requirements for any loan issued, insured, purchased or securitized by the Federal Housing Administration, Fannie Mae or Freddie Mac.
Annual energy costs consist would be determined either by average costs based on the Department of Energy’s Residential Energy Consumption Survey or a qualified, independent energy report that features an affordability test and a loan-to-value adjustment.
Appraisers support the SAVE Act sponsored by Sens. Michael Bennet, D-Colo., and Johnny Isakson, R-Ga., because it validates the “expertise of qualified, competent appraisers” and will help improve appraisal quality, said AIP president Richard Borges.
He praised the bill for requiring complex appraisals that help lenders better understand collateral risk, not just lower utility bills for U.S. households. For example, it would improve “communication and the flow of information among appraisers, lender clients and those interacting with the mortgage lending process.”
SAVE Act supporters so far include the American Institute of Architects, Green Builder Coalition, Leading Builders of America, National Association of Home Builders, National Association of Realtors and the Real Estate Roundtable.
