Senator Michael Bennet (D-CO) has introduced in the US Senate S. 4671 which addresses accurate energy appraisals in connection with residential mortgage loans. The proposed legislation requires that the federal secondary mortgage institutions of Fannie Mae, Freddie Mac, FHA, VA, Ginnie Mae and the Rural Housing Service of the Department of Agriculture to provide written disclosure to loan applicants: • A statement that the “prospective borrower or current homeowner may provide an energy report, or any information in such report, regarding the property subject to the covered loan to the creditor or to a qualified appraiser or other interested party for consideration during a home appraisal or application for a covered loan.” • A statement that “the prospective borrower under the covered loan has the right to request an energy report regarding the property subject to the covered loan.” • A statement that in developing an appraisal in connection with such covered loan— • a qualified appraiser will take the information in the report into consideration; and • the appraisers’ final opinion of the value of the property may be higher, lower, or no different than if the energy report had not been available for the appraiser to review.” • A statement that “as with any other data considered by the appraiser that affects the appraiser’s opinion of the value of a property, consideration of such data may help or hurt the ability of the prospective borrower to obtain a covered loan.” The proposed legislation specifically recognizes that the energy report be conducted, “… in accordance with HERS by an individual certified by the Residential Energy Service Network, unless the Secretary finds that the use of HERS does not further the purposes of this section. …”
