ATLANTA, GA 10/24/2011 -- U.S. Sen. Johnny Isakson has introduced a bill to require that mortgage lenders consider a homeowner's expected
energy costs when determining whether they can afford a loan.
The Georgia Republican joined with U.S. Sen. Michael Bennet, a
Colorado Democrat, in sponsoring the Sensible Accounting to Value
Energy Act. The lawmakers said the bill would enable better mortgage underwriting, encourage investments in energy efficient homebuilding and create more than 80,000 construction jobs.
The average homeowner spends more than $2,000 each year on energy costs. That's more than real estate taxes or homeowners insurance, both of which are regularly accounted for in mortgage underwriting. The SAVE Act would give borrowers a more complete picture of the costs of homeownership.
The bill has support from real estate, business, building trade and conservation groups.