Skip to main content
U.S. flag
An official website of the United States government
Dot gov
The .gov means it’s official.
Federal government websites often end in .gov or .mil. Before sharing sensitive information, make sure you’re on a federal government site.
Https
The site is secure.
The https:// ensures that you are connecting to the official website and that any information you provide is encrypted and transmitted securely.
INACTIVE
This page is no longer active. Its content has expired or been rescinded by the FDIC.
Financial Institution Letter
Alert on FHFA Statement Relative to Concerns With Certain Energy Lending Programs
July 6, 2010
Notes
 
Summary: The Federal Housing Finance Agency (FHFA) has issued a statement relative to concerns with certain energy retrofit lending programs. Insured institutions should be aware of such programs, as these programs could affect their residential mortgage lending activities and the ability to sell loans to Fannie Mae and Freddie Mac.

Highlights:
  • The FHFA statement may impact institutions' ability to sell residential mortgage loans to Fannie Mae and Freddie Mac.
  • The FHFA statement advises that certain energy retrofit programs use the municipal tax assessment process to ensure repayment, which results in a priority lien status that supersedes the position of existing properly recorded lien holders.
  • The FHFA statement indicates that underwriting and consumer protection standards, as well as energy retrofit standards, are being developed for these programs to ensure borrowers have the ability to repay the new monies in addition to existing obligations and consumers receive appropriate truth-in-lending disclosures. The FDIC shares the FHFA's concerns about the lack of appropriate underwriting and consumer protection standards.
  • The FHFA statement directs Fannie Mae, Freddie Mac, and the Federal Home Loan Banks to take specific actions that protect their operations.
  • The FHFA's statement is available at www.fhfa.gov/webfiles/15884/PACESTMT7610.pdf .
  • This alert is provided for informational purposes.

Distribution:
FDIC-Supervised Banks (Commercial and Savings)

Suggested Routing:
Chief Executive Officer
Chief Lending Officer

Note:
FDIC financial institution letters (FILs) may be accessed from the FDIC's Web site at www.fdic.gov/news/financial-institution-letters/2010/index.html .

To receive FILs electronically, please visit http://www.fdic.gov/about/subscriptions/fil.html .

Paper copies of FDIC financial institution letters may be obtained through the FDIC's Public Information Center, 3501 Fairfax Drive, E-1002, Arlington, VA 22226 (1-877-275-3342 or 703-562-2200).

FIL-37-2010
Last Updated: July 6, 2010