A Green Mortgage?
July 2nd, 2008 categories: Our Market, The Greener Side
Not the green as in cash green but Green as in Clean Green. Mortgagegreen, Inc. has introduced the first National Green Residential Mortgage Underwriting Standard at the Capital Markets Partnership Organization Meeting at JP Morgan Chase in New York on June 18, 2008. The focus of this new standard is as follows;
Clearing the path for discounted financing on green-certified buildings
Accelerating the greening of the real estate industry
Resulting in significant impact of greenhouse gas emissions and global sustainability
Buildings are the largest single category of carbon-emission producers contributing to global warming. One half of the content of our nations landfills comes from new construction debris. There is a real need for change in our building technologies and change is underway with Green building standards as established by Leed, Build It Green and others, each system with its own set of criteria for certification. The rating systems are different but over time will grow more similar as research is shared and compared and BMPs are established.
Green underwriting criteria for mortgages is a wonderful new idea brought about by a shift in at least one company’s priorities. It shows a new maturity on the part of the financial sector- this same sector that has brought about the current credit debacle that has been so impactful in the downturn of the nation’s housing market. Finally, a great idea with positive consequences.
Agenda items from the June 18 meeting include topics such as “Sustainable Investment Market Brief: Giving the market what it wants”. Discussion points were on this topic included the following;
- Higher valued collateral
- Reduced risk
- No climate credit risk- stop dangerous climate change/irreversibility
- Innovation and good will
- Enhanced liquidity
- Improved investor confidence
- Near term economic stimulus
- Cheaper cost of capital
Improving the standards by which we build homes and commercial buildings and utilization of sustainable technologies creates a more valuable end-product and reduces risk on multiple levels. Mortgage programs that reward builders and buyers of Green properties will encourage more Green building which in turn will drive down costs as Green products become more prevalent and readily available which then makes Green projects more profitable encouraging more Green technology. It’s a great example of the far-reaching benefits of rewarding good behavior.
For more information about Green mortgages, visit the website for Mortgagegreen and learn how owning a Green home can save you some green.
