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As a 203k Consulatant and a Energy Manager, I rountinely perform a energy analysis in trying to secure the Energy Efficiency Mortgage componenet of the program for my clients in the NYC area. I have ran into some very staunch opposition from lenders, who have refused to process the EEM. I have even been denied payment for the energy audit, due to the lenders inability to understand the cocept of energy efficiency and how it not only relates to reduced energy consumption for the purchaser, but how the energy cost could be just as consistent to purchaser. I think that the lenders unwillingness to embarace the EEM is two fold. One, they do not want to prpocess the loan, or they can't process the loan. Two, there are not enough Consultants who even know hat a HERS audit is. hOW CAN THERE BE A EEM, WHEN THE CONSULATANTS AND LENDERS DON'T HAVE A CLUE????????????? We would like to change that. COMING SOON TO THIS WEB SITE, "ENERGY TRAINING FOR 203K CONSULTNATS". PLEASE FEEL FREE TO EMAIL (mmenergy2007@gmail.com) or call (917 345 6141) if you are interested in taking your business to the next level.


  1. David Sovde on September 16, 2009 at 2:37 PM said:
    We just had a meeting with lenders about the EEM. We had a hers rater at the meeting. He went over what his energy audits accomplished. Needless to say he was the hit of the meeting. Wells fargo and BOA representatives were there. They both realize that there is a real need for 1. Hers Rater to be involved 2. that there is a need to get these house energy efficient. Everyone benefits. There are 203k wholesale buyers that are not buying loans were EEM has been applied. The biggest problem is no one understands it, including the lenders. The 203k is a complicated loan and the EEM throws another curve ball into the process. It is coming but it will take hard push to educate and I think the government will have to push it. It is coming, but how soon. A couple years is my guest. The energy train is starting to roll, but get on board earlier because there is going to be tremedous opportunities for those that understand it.
  2. Kevin W on September 24, 2009 at 8:20 PM said:
    Hi Mike, I'm just starting to market the 203k streamline in Ventura County Ca. I've been a conforming loan guy for 16 years, and now to stay up with the market, I'm going FHA, with an eye on niching the 203k Streamline. Your blog is a WEALTH of information and thanks for putting it out there. My first question is in regards to the contractors for the streamline. I've read about some fast ones a contractor can pull. I'm getting a team together (contractors) but in case a Realtor or the buyer insists on using their own people, I was curious to know what kind things to look out for with contractors that can delay the process. Also I read your EEM blog post about it being a good piggyback with the 203k. In comparing the 203k Streamline vs. the 203k full rehab, are there any restrictions on the Streamline when using in concert with the EEM, that the 203k full rehab doesn't have? Again I appreciate all your info on these unique products, or at least they're unique to me :) Thanks, Kevin Walto
  3. Mikey on September 24, 2009 at 8:38 PM said:
    Kevin, thanks for the question. Blogging is tough without questions and answers. Glad to have your participation. It sounds like you are a lender putting a team together... good job. Micheal Faust is my "go to" guy with regards to the EEM and will likely add some thoughts on the subject for us. I would suggest you get hold of your local "builder's association" as most of them have a remodeler's sub group. We have found them to be very receptive to bidding on our projects. Some may even want to become consultants. Contractors who are made aware of the 203k and Streamlined "k" can bring you a lot of loans. The big advantage is that they get calls all the time from people who might want to rehab a bathroom...only or a kitchen... only. In many cases the borrower may not have all the money for the rehab project and wasted everyone's time. If the contractor gets the program... I mean actually understands it well, they will use it to offer to set the borrower up with you as the lender in order to get a larger project out of the contact which keeps their business growing. The 203k and streamlined k both require a contractor to have a draw inspection within 30 days of the loan closing and also requires that the work them must not stop for more than 30 days at a time... we also let them know that the job should be completed in a "time is of the essence" basis. I had a contractor in NJ who read the HUD guideline that allowed up to six months to complete a project... that is only a guideline. He failed to read on and see there were only three draws established and he must have a draw every 30 days at a minimum. My contractor typically want to complete the projects as fast as possible as they realize they make more per hour if they do it quickly. Both the 203k and the Streamlined k have the same restrictions however a streamlined k allows contractor bids to set up the "scope of work". If you plan to do only the steamlined k then you should have a consultant perform a plan review before the appraiser goes out. If you don't and the appraiser catches something that the contractor failed to include that would normally be "conditioned" then it becomes a "full 203k" but if the plan review reveals the same issues they can be added to the scope of work and no fault... it stays a streamlined k unless there work is found that keeps it from being a 203k "S". If you limit your marketing to a streamlined k you may be missing a lot of loans though. Thanks again for your kind words. We appreciate it.
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