Mandatory Consideration of Energy Efficiency in Home Appraisals for Mortgages.
This law mandates that when appraising homes for government-backed mortgages, qualified appraisers must formally consider energy efficiency features and renewable energy installations. Citizens gain the right to submit an energy report, which could potentially increase the property's appraised value and affect loan terms. This ensures that energy-saving investments are reflected in the home's market value.
Key points
Appraisers must consider energy reports (detailing features like solar panels or insulation) when determining a home's value for mortgage purposes.
Lenders must inform borrowers of their right to provide an energy report and how it might influence the appraisal outcome.
Appraisers handling these loans must complete specialized training on how to properly assess the impact of energy efficiency on property value.
The consideration of an energy report cannot be used as the sole basis to reject a home appraisal or loan application.
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