Energy Savings Amendment To H.R. 1427

Floor Speech

ENERGY SAVINGS AMENDMENT TO H.R. 1427 -- (Extensions of Remarks - May 16, 2007)

* Mr. BLUMENAUER. Madam Speaker, today I am introducing the ``Energy Saving Mortgages Amendment'' to H.R. 1427. This amendment calls on Fannie Mae and Freddie Mac work with lenders to quantify a household's monthly savings for purchasing an energy-efficient home or from living in a neighborhood providing transit and other transportation alternatives and shifts those savings into the ``shelter'' category of expenses. The amendment forces lenders to recognize the added purchasing power homebuyers generate by saving on energy and transportation costs. This allows the homebuyer, based on their enhanced buying power, either to qualify for a mortgage or to qualify for a larger mortgage.

* By requiring lenders to quantify these savings, the amendment helps lower-income or first-time homebuyers qualify for mortgages to purchase homes located in transit-friendly locations or for homes that incorporate greater energy efficient building technologies. It also increases the lending ceiling for homebuyers purchasing a home in a neighborhood that allows for transportation savings from access to transit or other forms of transportation and for home buyers purchasing an energy efficient home.

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