Unsecured, Fixed Rate Financing for All Types of Energy Related Home Improvements

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1 } Overview & Program Guide } Unsecured, Fixed Rate Financing for All Types of Energy Related Home Improvements UPDATE 04/01/13

2 AFC First A Na8onal Leader in Home Energy Efficiency Lending and Programs Contractor- driven, energy related home improvement lending is our primary business. Founded in 1947, our complete focus since 1999 has been assisfng high- quality contractors and mofvated consumers to affordably install energy related home improvements AFC First was an early leader in the Fannie Mae Energy Loan program and one of its top three lenders in the U.S. NaFonal footprint with over 5,000 Approved Contractors, Manufacturer, UFlity and State and Municipal Partners and Sponsors We operate the Green Energy Training Center & Academy for Home Performance, BPI and contractor sales training Crea8ng new Green Energy Federal Credit Union for program expansion Na8on s first non- u8lity private Home Performance with ENERGY STAR sponsor by US DOE Exclusive Originator/Servicer for na8onal WHEEL program Selected as one of 18 na8onal Power Saver pilot lenders by HUD and DOE

3 True Fixed Rate Financing Available in All 50 States Plus Selected Special Lower Rate State and Local Programs Na8onal EnergyLoan Program from AFC First Available in all 50 States AVAILABLE IN PROGRAM NAME LOAN AMOUNT INTEREST RATE CONTRACTOR COST ELIGIBLE EQUIPMENT ELIGIBLE BORROWERS TERM COLLATERAL ALL 50 STATES EnergyLoan $1,000 to $25, % Buydowns to 8..99% 6 & 12 Month Same as Cash Available None for Standard Rate All makes and model of Heating, Cooling, Insulation, Windows, Solar and most other energy related improvements Qualifying homeowners who own and occupy a 1 to 2 unit residence or vacation home. State and Regional Special Energy Loan Programs Administered by AFC First As of April 1, 2013 Up to 10 Years None required, Unsecured AVAILABLE IN PROGRAM NAME LOAN AMOUNT INTEREST RATE CONTRACTOR COST ELIGIBLE EQUIPMENT ELIGIBLE BORROWERS TERM COLLATERAL Keystone HELP Unsecured $1,000 to $15, % to 5.99% in Southeast PA 2.99% to 8.99% Statewide None ENERGY STAR and Advanced Performance, Heating, Cooling, Windows, Insulation and Whole House Energy Improvements Qualifying homeowners who own and occupy a 1 to 2 unit residence. Maximum income limits may apply. 3, 5, and 10 Year Unsecured PENNSYLVANI A Power Saver Keystone HELP Secured $5,000 to $35, % to 8.875% None Whole House Energy Improvements; Larger Energy Projects, Sunrooms, Geothermal and Solar, some General Remodeling Qualifying homeowners who own and occupy a 1 to 2 unit residence. Maximum income limits may apply. 10, 15 and 20 Year Up to 120% of Home s Value 1 st, 2 nd 3 rd Lien Keystone HELP Geothermal $1,000 to $15,000, plus additional Tax Credit Loan to $10, % Plus no payments for 12 months on Tax Credit Loan None Qualifying Closed Loop Geothermal Heat Pump Systems Qualifying homeowners who own and occupy a 1 to 2 unit residence. 3, 5 and 10 Year Unsecured Efficiency Maine PACE $6,500 to $15, % None Qualifying Heating, Cooling, Windows, Insulation, Solar and Whole House Energy Improvements with energy audit 1-4 unit properties in PACE qualified townships 5, 10, and 15 Year Up to 100% of Home s Value+, Junior Lien MAINE Power Saver Efficiency Maine Up to $25, % None Qualifying Heating, Cooling, Windows, Insulation, Solar and Whole House Energy Improvements with energy audit Qualifying homeowners who own and occupy a 1 unit residence. 5, 10, 15 and 20 Year <=$7.500 Unsecured >$7,500 Up to 100% of Home s Value+, 1 st or 2 nd Lien ILLINOIS Illinois Energy Efficiency Loan Program (On Bill Finance) $500 to $20, % None Qualifying Improvements for customer of ComEd, Ameren, Peoples Gas and North Shore Gas. Nicor programs TBA. Qualifying homeowners who own a residential single family, duplex, or other residential building with 4 or less units, or a condominium at which they receive the applicable utility service 3, 5 and 10 Year Unsecured GREATER CINCINNATI GC-HELP Loan $2,500 to $20, % None ENERGY STAR, Heating, Cooling, Windows, Insulation and Whole House Energy Improvements with energy audit and 20% savings Qualifying homeowners who own and occupy a 1 unit residence 3, 5 and 10 Year Unsecured KENTUCKY Kentucky Home Performance New Program Coming Soon

4 Na8onal EnergyLoan True Fixed Rate Unsecured Energy Home Improvement Financing from AFC First ELIGIBLE IMPROVEMENTS Hea8ng & Cooling Systems All Fuels All Makes and Models Regardless of RaFng Water Heaters LighFng & Controls Electrical & Plumbing including Water Treatment Windows & Doors All Makes and Models Regardless of RaFng Air Sealing & Insula8on Whole House Energy Improvements Home Performance with ENERGY STAR Geothermal Heat Pumps Solar PV & Solar Thermal General Remodeling Roofing & Siding Heated Sunrooms Bathrooms & Kitchens Most Energy Improvements & All Related Work For Installed Improvements by an Approved AFC First EnergyLoan Contractor Only. 50% of Loan May be Used for Non- Qualifying Improvements ELIGIBLE BORROWERS All homeowners who are making qualifying improvements to their primary residence or vacafon home (1 to 2 unit primary residence or vacafon home on permanent foundafon) are eligible. Good credit and the ability to repay are required; all income levels are eligible. Loans from $1,000 to $25,000 New Higher Amount! 100% Financing Available Your First 6 Payments Are on Us! Promo2onal Op2on No Energy Audit Required Except for Whole House True Fixed Rate & Fixed Monthly Payments Not a Teaser - Rate and Payment Can Never Change No Lien Filed on Home, No Home Equity Required New Homeowners Eligible No Points, Fees or Closing Costs No Fees to Contractor for Standard EnergyLoan 3, 5, 7 or 10 Year Term No Penalty for Pre- Payment (888) energyloan.net afcfirst.com

5 Na8onal EnergyLoan True Fixed Rate Unsecured Energy Home Improvement Financing from AFC First Loan Amount Max Term Monthly Payment Per $1,000 at NO FEE Rate ONE- TIME CONTRACTOR BUY DOWN FEE FOR FULL TERM CONSUMER RATE Available for All Qualifying Improvements Available for Whole House Home Performance with ENERGY STAR Only STANDARD FIXED PAYMENT/ FIX RATE TERM OPTION NO FEE 2% 4% 6% 8% $1,000 to $3, $33.69 $3,001 to $5, $27.21 $5,001 to $7, $22.75 $7,501 to $10, $ % 11.99% 10.99% 9.99% 8.99% $10,001 to $25, $18.19 TEN YEAR FIXED PAYMENT/ FIX RATE TERM OPTION NO FEE 4% 9% 12% 15% $1,000 to $25, $ % 12.99% 11.99% 10.99% 9.99% OPTIONAL CONTRACTOR OR SPONSOR PROMOTION: YOUR FIRST (3 OR 6) PAYMENTS ARE ON US! 3 Month Contractor or Sponsor Pays 3 Month of Payments Upfront / 120 Month Term Only 6 Month Contractor or Sponsor Pays 6 Month of Payments Upfront / 120 Month Term Only (888) energyloan.net afcfirst.com

6 What is True Fixed Rate Financing? Credit Card or Promo8onal Finance Company Programs 18% to 26.99%! or a Short Term Teaser Rate Interest Rate is Never Really Locked in Read the Fine Print AFC First EnergyLoan & State Programs 0.99% to 13.99% depending on state and program True Fixed Rate Rate and Payment are Fixed for Life of Loan $2,500 $63 $39 $5,000 $125 $78 $10,000 $250 $155 $15,000 $375 $233 $20,000 $500 $310 Credit Card payments based on 2.50% minimum payment factor EnergyLoan payment based on ten year, fixed rate, 13.99% APR Many home improvement and manufacturer s financing opfons are finance company- type programs with promofonal or teaser interest rates for an introductory Fme which then revert to a very high rate if the loan balance is not paid off during the promofonal period. These credit card types of financing also do not necessarily guarantee a fixed rate or payment for the loan term. True Fixed Rate Low, Monthly Payments Drive Sales! EnergyLoan from AFC First is a simple interest, fixed rate loan with longer terms and lower payments available than typical bank or other types of unsecured home improvement financing. The monthly payment and interest rate can never change. And since there is no penalty for pre- payment, the customer may pay it off or make addifonal principal payments at any Fme.

7 Who is Eligible for the Na8onal EnergyLoan Program? All homeowners who are making qualifying improvements to their primary residence or vacafon home (1 to 2 unit primary residence or vacafon home on permanent foundafon) are eligible. Good credit and the ability to repay are required; all income levels are eligible.

8 What Improvements Can Be Financed? AFC First s NaFonal EnergyLoan program is for most energy related and renewable energy home improvements. Special state programs may have certain restricfons. All Makes and Models of Installed Equipment Home HeaFng and Cooling systems including Solar and Geothermal Windows, Doors, Siding, Roofing Air Sealing & InsulaFon LighFng Controls, Electrical and Plumbing Most other types of energy related home improvements Whole House Home Performance with ENERGY STAR Projects Prior to any other qualifying improvements, a BPI compliant Test In is conducted by a BPI CerFfied AFC First Approved Auditor /Contractor Blower door- directed air sealing of the home and ducts is performed, in accordance with ENERGY STAR recommended air sealing pracfces Program qualifying measures are installed A Test- Out is conducted Non- energy improvements may be financed provided they account for 50% or less of the total project.

9 Who Can Perform the Work? Only Approved Contractors which have met the standards of the AFC First EnergyLoan program may perform the work. Approved Contractors may also par8cipate in any special state, u8lity or other programs which AFC First administers. BPI Cer8fica8on allows par8cipa8on in Home Performance with ENERGY STAR programs where available. Minimum 3 years in business, history of financial stability and evidence of $50,000 net worth or compensafng factors SaFsfactory company and personal credit histories SaFsfactory Bener Business rafng SaFsfactory customer and trade references Overall reputafon for a high level of service and workmanship

10 Simple Consumer & Contractor- Friendly Loan Process Customer contacts an AFC First Approved EnergyLoan Contractor to get an es8mate for qualifying improvements. For fastest approval, customer applies online at the applica8on integrated on the contractor s website, at energyloan.net or by phone at (888) We ll have a quick decision on the applica8on, (typically within an hour), advise the contractor and consumer and answer any ques8ons. We take care of the details! Contractor sends us a copy of their es8mate/proposal and Contractor Submission Sheet iden8fying final price and qualifying improvements. Customer signs the simple one page loan note we will provide to them (or to the contractor for delivery to the customer). We pay the Contractor same day upon receipt of Comple8on Cer8ficate and verbal customer confirma8on that the work has been done to their sa8sfac8on. Customer Gets Es8mate Easy Customer Applica8on Fast Approval Contractor Provides Job Info Customer Signs Note We Pay the Contractor (888) energyloan.net afcfirst.com

11 Contractor - Customized Consumer Applica8on: On- Line, Fax, or Phone

12 May the contractor assist the homeowner to apply? All loans are direct loans to the homeowner but an Approved Contractor may Fax or assist a customer in filling out our on- line applicafon. How long does the ini8al approval take? Typically within the hour during normal business hours. ApplicaFons are accepted 24/7 online, by fax and through extended call center hours. If applicafon volume is extremely high or an applicafon is incomplete, the turn- a- round Fme may be greater. Expedited service for emergencies. What are the credit standards and approval rate? The program has broader approval standards than most home equity, mortgage or tradifonal bank guidelines. Generally, borrowers require a minimum credit score of 680 (extended program to 640), 50% debt rafo for most amounts (extended program to 60%) with no bankruptcy for last 7 years. Some addifonal standards may apply. Typically our True Fixed Rate Program appeals to a more energy and credit- savvy borrower, regardless of income level. Our average credit score is around 720 and we review each applicafon individually to maximize approvals. Contractors who market to energy- aware consumers, and who don t self select (they offer a monthly payment opfon to all customers rather than just those they think need financing) generally experience a higher approval percentage, approaching 70%.

13 How long is the credit approval good for? Homeowners credit may have to be rechecked if 60 days have elapsed and the job has not been completed. What is the most common term homeowners choose? Most homeowners choose the seven and ten year terms, although terms of three and five years are also available. Because these are simple interest loans with no pre- payment penalty the customer can choose to pay the loan off at any Fme regardless of term. What do the loan documents consist of? A one page note, a one page CompleFon CerFficate, a one page Patriot Act NoFce, the Original Customer ApplicaFon, and an Auto Pay Form (opfonal). We also require copies of the applicant s license or photo ID which we will obtain directly.

14 How are contractors paid? Most of our Contractors prefer an Electronic (ACH) Payment. Funds are transferred the same day the work has been completed and verified. If preferred, we can write a check and send via US Mail. What does the EnergyLoan program cost the contractor to use? There are no costs to the Contractor for the Standard EnergyLoan program. You will receive 100% of the amount financed. You may, however, choose to use an opfonal Contractor MarkeFng Cost program to reduce the interest rate to the customer or provide a Your First (3 or 6) Payments Are On Us! feature. That fee will be deducted from your funding check or may be paid by a sponsor under a sponsor program. Can the contractor collect deposit money up- front? Absolutely. Many of our Approved Contractors require deposit money to purchase material or to address other cash flow needs. AFC First can finance the enfre job and you can refund the customer deposit upon our payment or just have the customer finance a porfon of the job. It s your and the customer s choice.

15 What if the amount of the job changes? Just fax or us your revised contract and if necessary we ll redo the docs. What is the advantage of offering the EnergyLoan True Fixed Rate program vs. Teaser Programs? While we suggest Contractors offer consumers a variety of payment opfons, customers truly seeking affordable financing for higher end improvements may be put off by the prospect of having to come up with $5,000 to $20,000 in 6 or 12 months to avoid having a low introductory teaser rate revert retroacfvely to 26% or more (a standard rate for many manufacturer and finance company programs) and may be reluctant to make the investment. True Fixed Rate takes the uncertainty out of the customer s budget, with the flexibility to pay off whenever they want to without penalty. What is the advantage offering the EnergyLoan vs. a Home Equity Loan? Home Equity Loans are a good opfon if a homeowner already has a line of credit in place or if Fme is NOT of the essence.. and if the homeowner actually has equity in their home, and if the Lender is actually lending above 75% loan to value. The EnergyLoan from AFC First is quick and easy with no costs to the homeowner and no home equity required.

16 Can the Homeowner pay off their loan early? Yes, there is no pre- payment penalty with our programs. Any amount paid above the regular monthly payment goes directly to principal. Are non- owner co- signers permired? No - applicants must be on the deed to the home What happens if a homeowner stops paying AFC First? There is never any obligafon or recourse to the contractor for a delinquent customer except, of course, in the extremely rare case where the payment default is the result of contractor employee decepfon or related issues. How does the homeowner pay AFC First? Homeowners may use the Auto Pay Form (included with loan docs), mail a personal check, or make a payment on- line. All customers receive a monthly statement from AFC First from which to pay from or to keep for their records.

17 Program Delivery Accept Applica8ons Online via program website Through Custom Integrated App on Contractor s Website Call Center and Toll Free Numbers Other Industry Links and Call Center Direc8on

18 Customized Customer Hand- Outs, Posters, Sales Tools

19 (888) energyloan.net afcfirst.com Ken Yeager VP - NaFonal Accounts kyeager@afcfirst.com (443) Bob Groegler Business Development Manager, Midwest, CT and PA rgroegler@afcfirst.com (610) Greg Burns Business Development Manager, ME,NH,VT,MA,RI gburns@afcfirst.com (207) Diane Brandsterer Contractor Support Coordinator dbrandstener@afcfirst.com ext 2703 Valerie Berdahl Business Development Coordinator vberdahl@afcfirst.com ext 2722 Susan Moring MarkeFng Manager smoring@afcfirst.com ext 2687 Jared Kane CommunicaFons Coordinator jkane@afcfirst.com ext 2690 Tessa Shin Director of Programs tshin@afcfirst.com ext 2692 Peter Krajsa Chairman and CEO pkrajsa@afcfirst.com ext 2685 John Hayes President and COO jhayes@afcfirst.com ext 2683 Laura Nelson ExecuFve Vice President and CFO lnelson@afcfirst.com ext 2696