,i #aac? ,,congress #b;d ,session ,h4 ,r4 #dfae ,,9 ,,! ,,h\se ,,( ,,repres5tatives ,may #h1 #bjad ,mr4 ,k+ ( ,new ,york 7= himself1 ,mr4 ,p]lmutt]1 ,mr4 ,mc,kinley1 ,mr4 ,wel*1 & ,mr4 ,pet]s ( ,cali=nia7 introduc$ ! foll[+ bill2 :i* 0 ref]r$ to ! ,committee on ,f9ancial ,s]vices ,a ,,bill ,to improve ! accuracy ( mortgage und]writ+ us$ by ,f$]al mortgage ag5cies by ensur+ t en]gy co/s are includ$ 9 ! und]writ+ process1 to r$uce ! am\nt ( en]gy consum$ by homes1 to facilitate ! creation ( en]gy effici5cy retr(it & con/ruction jobs1 & = o!r purposes4 #a4 ,%ort title ,?is ,act may be cit$ z ! ,s5sible ,acc\nt+ to ,value ,en]gy ,act ( #bjad 4 #b4 ,def9itions ,9 ?is ,act1 ! foll[+ def9itions %all apply3 7#a7 ,cov]$ ag5cy ,! t]m cov]$ ag5cy-- 7,a7 means-- 7i7 an executive ag5cy1 z t t]m is def9$ 9 section #ajb ( title #ca1 ,unit$ ,/ates ,code2 & 7ii7 any o!r ag5cy ( ! ,f$]al ,gov]nm5t2 & 7,b7 includes any ent]prise1 z t t]m is def9$ "u section #acjc ( ! ,f$]al ,h\s+ ,ent]prises ,f9ancial ,safety & ,s\ndness ,act ( #aiib 7#ab ,u4,s4,c4 #dejb74 7#b7 ,cov]$ loan ,! t]m cov]$ loan means a loan secur$ by a home t is issu$1 insur$1 pur*as$1 or securitiz$ by a cov]$ ag5cy4 7#c7 ,home[n] ,! t]m home[n] means ! mortgagor "u a cov]$ loan4 7#d7 ,mortgagee ,! t]m mortgagee means-- 7,a7 an orig9al l5d] "u a cov]$ loan or ! hold] ( a cov]$ loan at ! "t at :i* t mortgage transaction is consummat$2 7,b7 any affiliate1 ag5t1 subsidi>y1 successor1 or assignee ( an orig9al l5d] "u a cov]$ loan or ! hold] ( a cov]$ loan at ! "t at :i* t mortgage transaction is consummat$2 7,c7 any s]vic] ( a cov]$ loan2 & 7,d7 any subsequ5t pur*as]1 tru/ee1 or transf]ee ( any cov]$ loan issu$ by an orig9al l5d]4 7#e7 ,secret>y ,! t]m ,secret>y means ! ,secret>y ( ,h\s+ & ,urban ,developm5t4 7#f7 ,s]vic] ,! t]m s]vic] means ! p]son or entity responsible = ! s]vic+ ( a cov]$ loan1 includ+ ! p]son or entity :o makes or holds a cov]$ loan if t p]son or entity also s]vices ! cov]$ loan4 7#g7 ,s]vic+ ,! t]m s]vic+ has ! mean+ giv5 ! t]m 9 section #f7;i7 ( ! ,real ,e/ate ,settlem5t ,proc$ures ,act ( #aigd 7#ab ,u4,s4,c4 #bfje7;i774 #c4 ,f9d+s & purposes 7a7 ,f9d+s ,congress f9ds t-- 7#a7 en]gy co/s = home[n]s are a significant & increas+ portion ( _! h\sehold budgets2 7#b7 h\sehold en]gy use c v>y sub/antially dep5d+ on ! effici5cy & *>act]i/ics ( ! h\se2 7#c7 expect$ en]gy co/ sav+s are important to ! value ( ! h\se2 7#d7 ! curr5t te/ = loan af=dability us$ by mo/ cov]$ ag5cies1 commonly kn[n z ! debt-to-income te/1 is inadequate because x does n take into acc\nt ! expect$ en]gy co/ sav+s = ! home[n] ( an en]gy effici5t home2 & 7#e7 ano!r loan limitation1 commonly kn[n z ! loan-to-value te/1 is ti$ to ! appraisal1 :i* (t5 does n adju/ = effici5cy features ( h\ses4 7b7 ,purposes ,! purposes ( ?is ,act are to-- 7#a7 improve ! accuracy ( mortgage und]writ+ by ,f$]al mortgage ag5cies by ensur+ t en]gy co/ sav+s are includ$ 9 ! und]writ+ process z describ$ bel[1 & ?us to r$uce ! am\nt ( en]gy consum$ by homes & to facilitate ! creation ( en]gy effici5cy retr(it & con/ruction jobs2 7#b7 require a cov]$ ag5cy to include ! expect$ en]gy co/ sav+s ( a home[n] z a regul> exp5se 9 ! te/s1 su* z ! debt-to-income te/1 us$ to det]m9e ! ability ( ! loan applicant to af=d ! co/ ( home[n]%ip = all loan programs2 & 7#c7 require a cov]$ ag5cy to include ! value home buy]s place on ! en]gy effici5cy ( a h\se 9 te/s us$ to comp>e ! mortgage am\nt to home value1 tak+ precautions to avoid d\ble-c\nt+ & to support safe & s\nd l5d+4 #d4 ,enhanc$ en]gy effici5cy und]writ+ crit]ia 7a7 ,9 g5]al ,n lat] ?an #a ye> aft] ! date ( enactm5t ( ?is ,act1 ! ,secret>y %all1 9 consultation ) ! advisory gr\p e/abli%$ 9 section #g7;b71 develop & issue guidel9es = a cov]$ ag5cy to implem5t enhanc$ loan eligibility requirem5ts1 = use :5 te/+ ! ability ( a loan applicant to repay a cov]$ loan1 t acc\nt = ! expect$ en]gy co/ sav+s = a loan applicant at a subject prop]ty1 9 ! mann] set =? 9 subsections 7b7 & 7c74 7b7 ,requirem5ts ,to acc\nt = en]gy co/ sav+s ,! enhanc$ loan eligibility requirem5ts "u subsection 7a7 %all require t1 = all cov]$ loans = :i* an en]gy effici5cy report is volunt>ily provid$ to ! mortgagee by ! mortgagor1 ! cov]$ ag5cy & ! mortgagee %all take into consid]ation ! e/imat$ en]gy co/ sav+s expect$ = ! own] ( ! subject prop]ty 9 det]m9+ :e!r ! loan applicant has suffici5t income to s]vice ! mortgage debt plus o!r regul> exp5ses4 ,to ! ext5t t a cov]$ ag5cy uses a te/ su* z a debt-to-income te/ t includes c]ta9 regul> exp5ses1 su* z haz>d insurance & prop]ty taxes1 ! expect$ en]gy co/ sav+s %all be includ$ z an (fset to ^! exp5ses4 ,en]gy co/s to be assess$ include ! co/ ( electricity1 natural gas1 oil1 & any o!r fuel regul>ly us$ to supply en]gy to ! subject prop]ty4 7c7 ,det]m9ation ( e/imat$ en]gy co/ sav+s 7#a7 ,9 g5]al ,! guidel9es to be issu$ "u subsection 7a7 %all include in/ructions = ! cov]$ ag5cy to calculate e/imat$ en]gy co/ sav+s us+-- 7,a7 ! en]gy effici5cy report2 7,b7 an e/imate ( basel9e av]age en]gy co/s2 & 7,c7 additional s\rces ( in=mation z det]m9$ by ! ,secret>y4 7#b7 ,report requirem5ts ,= ! purposes ( p>agraph 7#a71 an en]gy effici5cy report %all-- 7,a7 e/imate ! expect$ en]gy co/ sav+s specific to ! subject prop]ty1 bas$ on specific in=mation ab\t ! prop]ty2 7,b7 be prep>$ 9 accordance ) ! guidel9es to be issu$ "u subsection 7a72 & 7,c7 be prep>$-- 7i7 9 accordance ) ! ,resid5tial ,en]gy ,s]vice ,network's ,home ,en]gy ,rat+ ,sy/em 7commonly kn[n z ,,h]s7 by an individual c]tifi$ by ! ,resid5tial ,en]gy ,s]vice ,network1 unless ! ,secret>y f9ds t ! use ( ,,h]s does n fur!r ! purposes ( ?is ,act2 or 7ii7 by o!r me?ods approv$ by ! ,secret>y1 9 consultation ) ! ,secret>y ( ,en]gy & ! advisory gr\p e/abli%$ 9 section #g7;b71 = use "u ?is ,act1 :i* %all include a ?ird-p>ty quality assurance proc$ure4 7#c7 ,use by apprais] ,if an en]gy effici5cy report is us$ "u subsection 7b71 ! en]gy effici5cy report %all be provid$ to ! apprais] to e/imate ! en]gy effici5cy ( ! subject prop]ty & = pot5tial adju/m5ts = en]gy effici5cy4 7d7 ,requir$ disclosure to consum] = a home ) an en]gy effici5cy report ,if an en]gy effici5cy report is us$ "u subsection 7b71 ! guidel9es to be issu$ "u subsection 7a7 %all require ! mortgagee to-- 7#a7 in=m ! loan applicant ( ! expect$ en]gy co/s z e/imat$ 9 ! en]gy effici5cy report1 9 a mann] & at a "t z prescrib$ by ! ,secret>y1 & if practicable1 9 ! docum5ts deliv]$ at ! "t ( loan application2 & 7#b7 include ! en]gy effici5cy report 9 ! docum5tation = ! loan provid$ to ! borr[]4 7e7 ,requir$ disclosure to consum] = a home )\t an en]gy effici5cy report ,if an en]gy effici5cy report is n us$ "u subsection 7b71 ! guidel9es to be issu$ "u subsection 7a7 %all require ! mortgagee to in=m ! loan applicant 9 a mann] & at a "t z prescrib$ by ! ,secret>y1 & if practicable1 9 ! docum5ts deliv]$ at ! "t ( loan application (-- 7#a7 typical en]gy co/ sav+s t w\ld be possible f a co/-effective en]gy upgrade ( a home ( ! size & 9 ! region ( ! subject prop]ty2 7#b7 ! impact ! typical en]gy co/ sav+s w\ld h on mon?ly own]%ip co/s ( a typical home2 7#c7 ! impact on ! size ( a mortgage t c\ld be obta9$ if ! typical en]gy co/ sav+s 7 reflect$ 9 an en]gy effici5cy report2 & 7#d7 res\rces = improv+ ! en]gy effici5cy ( a home4 7f7 ,limitations ,a cov]$ ag5cy %all n-- 7#a7 modify exi/+ und]writ+ crit]ia or adopt new und]writ+ crit]ia t int5tionally negate or r$uce ! impact ( ! requirem5ts or result+ b5efits t are set =? or o!rwise d]iv$ f ! enhanc$ loan eligibility requirem5ts requir$ "u ?is section2 or 7#b7 impose great] buy back requirem5ts1 cr$it ov]lays1 insurance requirem5ts1 includ+ private mortgage insurance1 or any o!r mat]ial co/s1 imp$im5ts1 or p5alties on cov]$ loans m]ely because ! loan uses an en]gy effici5cy report or ! enhanc$ loan eligibility requirem5ts requir$ "u ?is section4 7g7 ,applicability & implem5tation date ,n lat] ?an #c ye>s aft] ! date ( enactm5t ( ?is ,act1 & be=e ,decemb] #ca1 #bjaf1 ! enhanc$ loan eligibility requirem5ts requir$ "u ?is section %all be implem5t$ by ea* cov]$ ag5cy to-- 7#a7 apply to any cov]$ loan = ! sale1 or ref9anc+ ( any loan = ! sale1 ( any home2 7#b7 be available on any resid5tial real prop]ty 7includ+ individual units ( condom9iums & coop]atives7 t qualifies = a cov]$ loan2 & 7#c7 provide prospective mortgagees ) suffici5t guidance & applicable tools to implem5t ! requir$ und]writ+ me?ods4 #e4 ,enhanc$ en]gy effici5cy und]writ+ valuation guidel9es 7a7 ,9 g5]al ,n lat] ?an #a ye> aft] ! date ( enactm5t ( ?is ,act1 ! ,secret>y %all-- 7#a7 9 consultation ) ! ,f$]al ,f9ancial ,in/itutions ,exam9ation ,c\ncil & ! advisory gr\p e/abli%$ 9 section #g7;b71 develop & issue guidel9es = a cov]$ ag5cy to det]m9e ! maximum p]mitt$ loan am\nt bas$ on ! value ( ! prop]ty = all cov]$ loans made on prop]ties ) an en]gy effici5cy report t meets ! requirem5ts ( section #d7;c77#b72 & 7#b7 9 consultation ) ! ,secret>y ( ,en]gy1 issue guidel9es = a cov]$ ag5cy to det]m9e ! e/imat$ en]gy sav+s "u subsection 7c7 = prop]ties ) an en]gy effici5cy report4 7b7 ,requirem5ts ,! enhanc$ en]gy effici5cy und]writ+ valuation guidel9es requir$ "u subsection 7a7 %all include-- 7#a7 a requirem5t t if an en]gy effici5cy report t meets ! requirem5ts ( section #d7;c77#b7 is volunt>ily provid$ to ! mortgagee1 su* report %all be us$ by ! mortgagee or cov]$ ag5cy to det]m9e ! e/imat$ en]gy sav+s ( ! subject prop]ty2 & 7#b7 a requirem5t t ! e/imat$ en]gy sav+s ( ! subject prop]ty be add$ to ! apprais$ value ( ! subject prop]ty by a mortgagee or cov]$ ag5cy = ! purpose ( det]m9+ ! loan-to-value ratio ( ! subject prop]ty1 unless ! appraisal includes ! value ( ! ov]all en]gy effici5cy ( ! subject prop]ty1 us+ me?ods to be e/abli%$ "u ! guidel9es issu$ "u subsection 7a74 7c7 ,det]m9ation ( e/imat$ en]gy sav+s 7#a7 ,am\nt ( en]gy sav+s ,! am\nt ( e/imat$ en]gy sav+s %all be det]m9$ by calculat+ ! diff]5ce betwe5 ! e/imat$ en]gy co/s = ! av]age comp>able h\ses1 z det]m9$ 9 guidel9es to be issu$ "u subsection 7a71 & ! e/imat$ en]gy co/s = ! subject prop]ty bas$ ^u ! en]gy effici5cy report4 7#b7 ,duration ( en]gy sav+s ,! duration ( ! e/imat$ en]gy sav+s %all be bas$ ^u ! e/imat$ life ( ! applicable equipm5t1 consi/5t ) ! rat+ sy/em us$ to produce ! en]gy effici5cy report4 7#c7 ,pres5t value ( en]gy sav+s ,! pres5t value ( ! future sav+s %all be disc\nt$ us+ ! av]age int]e/ rate on conv5tional #cj-ye> mortgages1 9 ! mann] direct$ by guidel9es issu$ "u subsection 7a74 7d7 ,ensur+ consid]ation ( en]gy effici5t features ,section #aaaj ( ! ,f9ancial ,in/itutions ,re=m1 ,recov]y1 & ,en=cem5t ,act ( #aihi 7#ab ,u4,s4,c4 #ccci7 is am5d$-- 7#a7 9 p>agraph 7#b71 by /rik+ 2 & & ins]t+ a semicolon2 & 7#b7 9 p>agraph 7#c71 by /rik+ ! p]iod at ! end & ins]t+ 2 & & ins]t+ aft] p>agraph 7#c7 ! foll[+3 7#d7 t ,/ate c]tifi$ & lic5s$ apprais]s h timely access1 :5ev] practicable1 to in=mation f ! prop]ty own] & ! l5d] t may be relevant 9 develop+ an op9ion ( value reg>d+ ! en]gy- & wat]-sav+ improvem5ts or features ( a prop]ty1 su* z-- 7,a7 labels or rat+s ( build+s2 7,b7 in/all$ appliances1 measures1 sy/ems or te*nologies2 7,c7 bluepr9ts2 7,d7 con/ruction co/s2 7,e7 f9ancial or o!r inc5tives reg>d+ en]gy- & wat]-effici5t compon5ts & sy/ems in/all$ 9 a prop]ty2 7,f7 utility bills2 7,g7 en]gy consumption & b5*m>k+ data2 & 7,h7 ?ird-p>ty v]ifications or repres5tations ( en]gy & wat] effici5cy p]=mance ( a prop]ty1 obs]v+ all f9ancial privacy requirem5ts adh]$ to by c]tifi$ & lic5s$ apprais]s1 includ+ section #eja ( ! ,gramm-,lea*-,bliley ,act 7#ae ,u4,s4,c4 #fhja74 ,unless a prop]ty own] cons5ts to a l5d]1 an apprais]1 9 c>ry+ out ! requirem5ts ( p>agraph 7#d71 %all n h access to ! comm]cial or f9ancial in=mation ( ! own] t is privileg$ or confid5tial4 4 7e7 ,transactions requir+ /ate c]tifi$ apprais]s ,section #aaac ( ! ,f9ancial ,in/itutions ,re=m1 ,recov]y1 & ,en=cem5t ,act ( #aihi 7#ab ,u4,s4,c4 #ccdb7 is am5d$-- 7#a7 9 p>agraph 7#a71 by ins]t+ be=e ! semicolon ! foll[+3 1 or any real prop]ty on :i* ! apprais] makes adju/m5ts us+ an en]gy effici5cy report2 & 7#b7 9 p>agraph 7#b71 by ins]t+ aft] atypical ! foll[+3 1 or an appraisal on :i* ! apprais] makes adju/m5ts us+ an en]gy effici5cy report44 7f7 ,protections 7#a7 ,au?ority ,to impose limitations ,! guidel9es to be issu$ "u subsection 7a7 %all include su* limitations & conditions z det]m9$ by ! ,secret>y to be necess>y to protect aga9/ mean+ful "u or ov] valuation ( en]gy co/ sav+s or duplicative c\nt+ ( en]gy effici5cy features or en]gy co/ sav+s 9 ! valuation ( any subject prop]ty t is us$ to det]m9e a loan am\nt4 7#b7 ,additional au?ority ,at ! end ( ! #g-ye> p]iod foll[+ ! implem5tation ( enhanc$ eligibility & und]writ+ valuation requirem5ts "u ?is ,act1 ! ,secret>y may modify or apply additional exceptions to ! approa* describ$ 9 subsection 7b71 :]e ! ,secret>y f9ds t ! unadju/$ appraisal w reflect an accurate m>ket value ( ! effici5cy ( ! subject prop]ty or t a modifi$ approa* w bett] reflect an accurate m>ket value4 7g7 ,applicability & implem5tation date ,n lat] ?an #c ye>s aft] ! date ( enactm5t ( ?is ,act1 & be=e ,decemb] #ca1 #bjaf1 ea* cov]$ ag5cy %all implem5t ! guidel9es requir$ "u ?is section1 :i* %all-- 7#a7 apply to any cov]$ loan = ! sale1 or ref9anc+ ( any loan = ! sale1 ( any home2 & 7#b7 be available on any resid5tial real prop]ty1 includ+ individual units ( condom9iums & coop]atives1 t qualifies = a cov]$ loan4 #f4 ,monitor+ ,n lat] ?an #a ye> aft] ! date on :i* ! enhanc$ eligibility & und]writ+ valuation requirem5ts are implem5t$ "u ?is ,act1 & e ye> !reaft]1 ea* cov]$ ag5cy ) relevant activity %all issue & make available to ! public a report t-- 7#a7 enum]ates ! numb] ( cov]$ loans ( ! ag5cy = :i* !re 0 an en]gy effici5cy report1 & t us$ en]gy effici5cy appraisal guidel9es & enhanc$ loan eligibility requirem5ts2 & 7#b7 includes ! default rates & rates ( =eclosures = ea* category ( loans4 #g4 ,rulemak+ 7a7 ,9 g5]al ,! ,secret>y %all prescribe regulations to c>ry out ?is ,act1 9 consultation ) ! ,secret>y ( ,en]gy & ! advisory gr\p e/abli%$ 9 subsection 7b71 :i* may conta9 su* classifications1 diff]5tiations1 or o!r provisions1 & may provide = su* prop] implem5tation & appropriate treatm5t ( diff]5t types ( transactions1 z ! ,secret>y det]m9es are necess>y or prop] to effectuate ! purposes ( ?is ,act1 to prev5t circumv5tion or evasion !re(1 or to facilitate compliance !re)4 7b7 ,advisory gr\p ,to assi/ 9 c>ry+ out ?is ,act1 ! ,secret>y %all e/abli% an advisory gr\p1 consi/+ ( individuals repres5t+ ! int]e/s (-- 7#a7 mortgage l5d]s2 7#b7 apprais]s2 7#c7 en]gy rat]s & resid5tial en]gy consumption exp]ts2 7#d7 en]gy effici5cy organizations2 7#e7 real e/ate ag5ts2 7#f7 home build]s & remodel]s2 7#g7 ,/ate en]gy (ficials2 & 7#h7 o!rs z det]m9$ by ! ,secret>y4 #h4 ,additional /udy 7a7 ,9 g5]al ,n lat] ?an #ah mon?s aft] ! date ( enactm5t ( ?is ,act1 ! ,secret>y %all reconv5e ! advisory gr\p e/abli%$ 9 section #g7;b71 9 addition to wat] & locational effici5cy exp]ts1 to advise ! ,secret>y on ! implem5tation ( ! enhanc$ en]gy effici5cy und]writ+ crit]ia e/abli%$ 9 sections #d & #e4 7b7 ,recomm5dations ,! advisory gr\p e/abli%$ 9 section #g7;b7 %all provide recomm5dations to ! ,secret>y on any revisions or additions to ! enhanc$ en]gy effici5cy und]writ+ crit]ia deem$ necess>y by ! gr\p1 :i* may include alt]nate me?ods to bett] acc\nt = home en]gy co/s & additional factors to acc\nt = sub/antial & regul> co/s ( home[n]%ip su* z location-bas$ transportation co/s & wat] co/s4 ,! ,secret>y %all =w>d any legislative recomm5dations f ! advisory gr\p to ,congress = its consid]ation4