Build Green. Buy Green. Save Green. Jeff Cole, CEO myEnergyLoan LLC May 13, 2010
What is myEnergyLoan? The leading green real estate finance network. A green loan incentive & certification program. The premier Energy Star Mortgage Partner. Network enablesPublic-Private Partnership. The national standard for green lending
Through local providers myEnergyLoan handles the local financing interface whom we support on every single myEnergyLoan
Why a network? No national standard existed so we created one & MEL was born Public benefit funds needed way to set green loan incentive amounts Market needed early adopter lenders & brokers to serve growing demand Lenders need price-advantaged green loans & a uniform way to sell them Market needs public/private initiative for quality assurance & delivery
MEL established the lender network
Energy Star Mortgage provides State Energy Office guidance; secures incentive dollars (ie: Colorado).
Energy Star relies on myEnergyLoan providers to execute incentive program
Together, MEL & Energy Star Mortgage snap lenders into market and create gateway to Capital Markets
State Energy Offices need lenders in place to match incentives Local response to national demands
Solution #1: Incentive & Certification myEnergyLoan Incentive Program – overlays any loan product– establishes incentive amount 1bps per 1% energy efficiency improvement = MEL EC MEL EC paid by lender and sponsors when they exist MEL EC is used as savings from closing costs or as discount points to buy down rate Green loan certification by myEnergyLoan – File with title at County Level by title agent Energy Audit, Contractor and Post Auditory Functions = “the energy side” handled by MEL & EPC Solves the “how much incentive is warranted in this case” problem Certified by MEL and Certified by Fair Mortgage Collaborative
MEL Efficiency Credit When and How? Received at closing as closing cost credit Can be used to buy down interest rate Provided by Lender/Loan Officer Can be matched by State Energy Offices or other sponsors Builder incentives, other closing contributors manufacturer incentives can be incorporated into total credit
MEL Efficiency Credit How Much? 20bps to 100bps - Incentive based on building performance
Solution #2: The EIM & EEM Program New Construction & Purchase Mortgage Energy Efficient Mortgage (EEM) Greenovations & Weatherization Loans Energy Improvement Mortgage (EIM) Solves the “how do we do the EEM or EIM” problem
Evaluate as EEM or EIM Benefits your myEnergyLoan EIM is providing to borrower: LOWERS OPERATING COST OF THE HOME BY REDUCING ENERGY COST BY 30% TO 50%. MORTGAGE MAY BE SLIGHTLY HIGHER, BUT OPERATING COSTS ARE GREATLY REDUCED FOR A NET POSITIVE CASH FLOW, WHICH TRIGGERS THE QUALIFICATION. INCREASED VALUE OF THE HOME dollar FOR dollar FOR IMPROVEMENTS MADE.
E.I. APPRIASAL VALUE $150,000 PLUS $10,000 ENERGY UPGRADE IMPROVEMENTS.
Upcoming Fannie Mae Credit of $250 per myEnergyLoan
Solution #3: Energy Star Mortgage Program The myEnergyLoan provider network is a major part of the Energy Star Mortgage program. myEnergyLoan providers are recognized as qualified Energy Star Mortgage Partners. Together with the Energy Programs Consortium, the Fair Mortgage Collaborative and EIM LLC, myEnergyLoan serves the primary and secondary mortgage markets. myEnergyLoan network expected to be the largest producer of Energy Star Mortgages which will receive Federal and State loan incentives. Got to be in it to win it!
Natural Capital Conversion Leading the National Conversation about: What’s that?
Major Media Includes: Wall Street Journal New York Times Secondary Marketing Magazine MSNBC Discovery Channel Chicago Tribune Atlanta Journal Constitution GreenMoney Journal
Referral & Marketing Flyers with Consistent Messaging to Referral Sources
Opportunity to get it right myEnergyLoan Provides Harness the green value & reward consumer
51 million US households Existing Housing “EIM”
The myEnergyLoan network is Reliable, easy, nimble& National
myEnergyLoan providers myEnergyLoan certifies and trains and consults with them on every deal we remove the guesswork and keep it simple
We make you look great! We help grow your business most importantly…
A net Financial Advantage myEnergyLoan always provides to your clients and to you