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Federal Deposit
Insurance Corporation

Each depositor insured to at least $250,000 per insured bank

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Inactive Financial Institution Letters

Alert on FHFA Statement Relative to Concerns With Certain Energy Lending Programs
July 6, 2010

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.

  • 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
  • This alert is provided for informational purposes.

FDIC-Supervised Banks (Commercial and Savings)

Suggested Routing:
Chief Executive Officer
Chief Lending Officer

Beverlea S. Gardner, Senior Examination Specialist, at or (202) 898-3640

FDIC financial institution letters (FILs) may be accessed from the FDIC's Web site at

To receive FILs electronically, please visit

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).

Last Updated 11/14/2018

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