S.Amdt. 2984

1. Rewrites page 117, line 23 through page 123, line 25

   ReplacesPrinted page

   Removes page 117, line 23 through page 123, line 25 of the printed bill. See that page

   Inserted: (8) Applicability and implementation date.--Not later than 4 years after the date of enactment of this Act, and before December 31, 2017, the enhanced loan eligibility requirements required under this subsection shall be implemented by each covered agency to--

   Inserted: (A) apply to any covered loan for the sale, or refinancing of any loan for the sale, of any home;

   Inserted: (B) be available on any residential real property (including individual units of condominiums and cooperatives) that qualifies for a covered loan; and

   Inserted: (C) provide prospective mortgagees with sufficient guidance and applicable tools to implement the required underwriting methods.

   Inserted: (d) Enhanced Energy Efficiency Underwriting Valuation Guidelines.--

   Inserted: (1) In general.--Not later than 1 year after the date of enactment of this Act, the Secretary shall--

   Inserted: (A) in consultation with the Federal Financial Institutions Examination Council and the advisory group established in subsection (f)(2), develop and issue guidelines for a covered agency to determine the maximum permitted loan amount based on the value of the property for all covered loans made on properties with an energy efficiency report that meets the requirements of subsection (c)(3)(B); and

   Inserted: (B) in consultation with the Secretary of Energy, issue guidelines for a covered agency to determine the estimated energy savings under paragraph (3) for properties with an energy efficiency report.

   Inserted: (2) Requirements.--The enhanced energy efficiency underwriting valuation guidelines required under paragraph (1) shall include--

   Inserted: (A) a requirement that if an energy efficiency report that meets the requirements of subsection (c)(3)(B) is voluntarily provided to the mortgagee, such report shall be used by the mortgagee or covered agency to determine the estimated energy savings of the subject property; and

   Inserted: (B) a requirement that the estimated energy savings of the subject property be added to the appraised value of the subject property by a mortgagee or covered agency for the purpose of determining the loan-to-value ratio of the subject property, unless the appraisal includes the value of the overall energy efficiency of the subject property, using methods to be established under the guidelines issued under paragraph (1).

   Inserted: (3) Determination of estimated energy savings.--

   Show 23 more inserted paragraphsShow less

   Inserted: (A) Amount of energy savings.--The amount of estimated energy savings shall be determined by calculating the difference between the estimated energy costs for the average comparable houses, as determined in guidelines to be issued under paragraph (1), and the estimated energy costs for the subject property based upon the energy efficiency report.

   Inserted: (B) Duration of energy savings.--The duration of the estimated energy savings shall be based upon the estimated life of the applicable equipment, consistent with the rating system used to produce the energy efficiency report.

   Inserted: (C) Present value of energy savings.--The present value of the future savings shall be discounted using the average interest rate on conventional 30-year mortgages, in the manner directed by guidelines issued under paragraph (1).

   Inserted: (4) Ensuring consideration of energy efficient features.--Section 1110 of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (12 U.S.C. 3339) is amended--

   Inserted: (A) in paragraph (2), by striking "; and" and inserting a semicolon; and

   Inserted: (B) in paragraph (3), by striking the period at the end and inserting "; and" and inserting after paragraph (3) the following:

   Inserted: "(4) that State certified and licensed appraisers have timely access, whenever practicable, to information from the property owner and the lender that may be relevant in developing an opinion of value regarding the energy- and water-saving improvements or features of a property, such as--

   Inserted: "(A) labels or ratings of buildings;

   Inserted: "(B) installed appliances, measures, systems or technologies;

   Inserted: "(C) blueprints;

   Inserted: "(D) construction costs;

   Inserted: "(E) financial or other incentives regarding energy- and water-efficient components and systems installed in a property;

   Inserted: "(F) utility bills;

   Inserted: "(G) energy consumption and benchmarking data; and

   Inserted: "(H) third-party verifications or representations of energy and water efficiency performance of a property, observing all financial privacy requirements adhered to by certified and licensed appraisers, including section 501 of the Gramm-Leach-Bliley Act (15 U.S.C. 6801).

   Inserted: Unless a property owner consents to a lender, an appraiser, in carrying out the requirements of paragraph (4), shall not have access to the commercial or financial information of the owner that is privileged or confidential.".

   Inserted: (5) Transactions requiring state certified appraisers.--Section 1113 of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (12 U.S.C. 3342) is amended--

   Inserted: (A) in paragraph (1), by inserting before the semicolon the following: ", or any real property on which the appraiser makes adjustments using an energy efficiency report"; and

   Inserted: (B) in paragraph (2), by inserting after "atypical" the following: ", or an appraisal on which the appraiser makes adjustments using an energy efficiency report.".

   Inserted: (6) Protections.--

   Inserted: (A) Authority to impose limitations.--The guidelines to be issued under paragraph (1) shall include such limitations and conditions as determined by the Secretary to be necessary to protect against meaningful under or over valuation of energy cost savings or duplicative counting of energy efficiency features or energy cost savings in the valuation of any subject property that is used to determine a loan amount.

   Inserted: (B) Additional authority.--At the end of the 7-year period following the implementation of enhanced eligibility and underwriting valuation requirements under this section, the Secretary may modify or apply additional exceptions to the approach described in paragraph (2), where the Secretary finds that the unadjusted appraisal will reflect an accurate market value of the efficiency of the subject property or that a modified approach will better reflect an accurate market value.

   Inserted: (7) Applicability and implementation date.--Not later than 4 years after the date of enactment of this Act, and before December 31, 2017,

   Original wording

   Beginning on page 117, strike line 23 and all that follows through page 123, line 25, and insert the following:

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As printed