Introduction to PowerSaver For Virginia LEAP and Chapel Hill WISE

Transcription

1 Introduction to PowerSaver For Virginia LEAP and Chapel Hill WISE

2 What You Will Learn Today Who is behind the PowerSaver loan Why PowerSaver loan was developed About Sun West and EGIA Loan Specifications Loan Process Contractor Enrollment Process

3 Recovery Through Retrofit Initiative HUD Energy Innovation Program $25 million for single family energy efficient mortgage products HUD Program Notice: (March 31, 2011) Provides program Terms Lists Energy Measures HUD Fannie Mae MOU (December 14, 2011) Provides liquidity to PowerSaver approved lenders by creating a secondary market outlet Fannie Mae will now purchase FHA PowerSaver loans from Fannie Mae approved seller servicers HUD Information: EGIA / Sun West PowerSaver Webinar

4 PowerSaver General Framework Expanded Title I Pilot Program National program/18 lenders selected Direct Loans Contractors may provide information to homeowners on how to obtain a PowerSaver loan Program Incentives HUD incentives must have bona fide benefit to borrowers Enhance Program Flexibility Alignment with Residential Energy Retrofit programs Allows third parties to pay for discount points or other financing EGIA / Sun West PowerSaver Webinar

5 Role of Federal Government FHA insures the loans Fannie Mae purchases the loans Housing & Urban Development (HUD) determines lenders that can participate Dept. of Energy (DOE) specifies measures to be financed

6 Why PowerSaver Is Important Federal agencies, state and local governments and utilities promote energy efficiency and renewable energy. They have found that loan programs are very effective. Unlike rebates, loans do not require the homeowner to provide upfront money. But a successful loan program requires two ingredients: Unlimited liquidity (money to loan) Large volumes of projects to finance

7 PowerSaver Framework Provides For Ongoing Liquidity (Money to Lend) The Federal Housing Administration (FHA) guarantees the PowerSaver. Fannie Mae provides the capital (they buy the loan once it is closed). These two federal agencies combine to provide unlimited liquidity. PowerSaver is a version of the Title 1 program which has been in place since 1938.

8 Why Choose Sun West Headquartered in Cerritos, California Sun West has been serving our nationwide client base since Our diversified loan program experience includes FHA Single Family, FHA Reverse Mortgages, HUD Multi Family, VA, Conventional and Home Equity mortgages. Sun West Mortgage Company Inc. is a large Wholesale and Retail lender: On track to originate over $3billion in Sun West Mortgage Company Inc. is a large Wholesale and Retail lender. Sun West is experienced working with contractors. Sun West is Privately Held and has the flexibility to respond quickly to its customers needs. Sun West is one of the largest FHA and Reverse Mortgage Originators in the Nation.

9 The Government Lending Expert Largest issuer of FHA Title 1 securities in the 80s FHA 203K Leader in the 90s EXPERIENCED WITH CONTRACTORS and disbursements. Currently Servicing/Master Servicing over $14billion in FHA/Agency The First FNMA approved PowerSaver Lender Nearly Unlimited funding resources SUN WEST is committed to being a leader in government lending programs The First FNMA approved PowerSaver Lender

10 Sun West Superlative Service Experienced Underwriting: In house localized underwriting means faster turn times and better customer experience. Sun West has underwriters with 25+ years underwriting experience and 15+ years at Sun West. Experienced Servicing: 19 years of FHA and Ginnie servicing experience. Sun West understands FHA borrowers and FHA properties. Extensive Experience with Specialty and FHA Products: Was the largest originator, securitizer, and servicer of HUD Title I and 203K (rehab) loans. Summary: SWMC experience and expertise in specialty lending means a faster, more efficient and professional experience for contractors and borrowers alike.

11 The Sun West PowerSaver Advantage Low Rates and Closing Costs: For the first 1000 PowerSaver Loans Sun West will be covering all closing costs* (provided by HUD grant funding). Online and E mail Loan Status: Every step of the way you and the borrower and contractor will be alerted to the status of the loan and the next action to take. Instant pre qualification: By calling our hotline your borrowers will be able to get fast answers about getting a PowerSaver Loan. 24hr Conditional Loan Approvals: SWMC s In house underwriting and vast FHA experience gets your borrowers fast answers on loan approval and loan fundings.

12 PowerSaver Program Terms PowerSaver Lending Parameters Property Eligibility: Single family owner occupied Loan: Up to $25,000 Period: years Credit score: 660 Debt to Income: 45% Loan to Value: 100% Loan Fees: Loan Disbursement: Discount Points: CLTV / LTV: HUD list of fees and charges 50% at closing; 50% when retrofit is completed Allows third parties to pay for discount points or other financing 100% (1 st or 2 nd position only will not follow an interest only 1 st mortgage)

13 What Measures Qualify For PowerSaver Energy Efficiency To 15 Years Renewables to 20 Years (includes solar thermal/photovoltaic & geothermal heat pumps 75% of the loan must be qualifying improvements (this includes every step it takes to install each measure) Up to 25% of the loan can be used for non qualifying home improvements! Standard Energy Efficiency Improvements Whole House Air Sealing Insulation (Attic, Wall, Floor and Crawl Space) Window and Door Replacements (including Skylights, Doors, Windows, and Storm doors and windows) Heating Systems Air Conditioning Systems Duct Sealing and Insulation Hot Water Heaters Roofs

14 Sun West PowerSaver Process Let s Review The Worksheet and Approved Products list!

15 Loan Status Communication Communication is the key to success. As a result, the borrower and contractors are notified via phone and 1.Prequalification 2.When loan is approved 3.When loan is cleared to close (settlement date) 4.Loan funding

16 Online Resources For PowerSaver Your Customers Can Get A Quick Quote, Get Current Rates or Get Access to a Handy Loan Calculator at: Lets Review The Site! Special Note: *Rates, points, and APRs shown are for a 7 day lock. APRs shown are for loan amount of $25, equal or less than 90% LTV loan in California. State and other conditions and restrictions may apply.

17 About EGIA EGIA is a non profit organization that is dedicated to advancing energy efficiency & renewable energy solutions through a nationwide network of contractors, manufacturers, distributors and utility companies.

18 Why Sun West PowerSaver Why EGIA Picked The Sun West PowerSaver Solution Nationally approved provider Contractor centric and committed to ease of use for both contractor and homeowner Program has no end date and could be around for years to come Aggressively marketing the program to homeowners which will turn into leads for PowerSaver approved contractors Extremely competitive long term, low interest options

19 Example Payments $25,000 Solar or Geothermal Project Term 20 years Interest Rate 5.625% Payment $194.57/ month $15,000 Home Performance Project Term 15 years Interest Rate 6.000% Payment $139.08/ month Hypothetical Loan Scenario Based On Sample Interest Rates

20 Online Contractor Directory Authorized Contractors are listed on the PowerSaver Contractor Directory

21 GEOSmart Authorized Contractor The Criteria & Required Documentation For PowerSaver Is: Required Documentation: Signed Contractor Participation Agreement Satisfactory BBB A copy of all applicable Contractor Licenses A copy of current General Liability Insurance certificate A copy of Surety Bond Insurance certificate A copy of your W 9 Tax Form 3 Trade References 2 years business financials (including P&L and Balance Sheet. (Minimum $50,000 net worth or $100,000 annual sales) Gives You Access To: Independent third party verification The GEOSmart Authorized Contractor logo Listing on the PowerSaver Contractor Directory

22 Promotional Materials Promotional materials developed with input from top contractors. These are designed to help contractors become more effective at closing sales and communicating the value of energy efficient home improvements. Customer Flyer Customer FAQ Document

23 PowerSaver Special Promotion EGIA Member Benefits Include: PowerSaver Access Monthly Educational Webinars Monthly Industry Trend & Best Practice Reports Third Party Business Validation & Industry Leader Designation Business Expansion Financing Discounted Business Products & Services Learn More at LIMITED TIME OFFER! Gets You Approved and Trained To Use PowerSaver

24 Visit Contractor Portal to Enroll Visit to enroll and for marketing tools & program worksheet

25 Enrollment Process Overview

26 To Get Started Today! Go To: 1. To Enroll 2. For Marketing Collateral 3. List of Eligible improvements To Enroll: Marya Martinez Manager Of Enrollment