Introduction to PowerSaver
For Southeast U.S. and Hawaii
What You Will Learn Today
• Why PowerSaver loan is Important
• Roles of Federal Government, Sun
West and EGIA
• Loan Description
• Borrower Application Process
• Contractor Enrollment Process
Beginning July 15, Sun West will accept PowerSaver loan
applications from borrowers in Virginia, North and South
Carolina, Florida, and Georgia as well as Hawaii
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
Power Saver Framework
•
Expanded Title I Pilot Program
– Version of the Title 1 program which has been in place since 1938
– National availability through 18 lenders
•
Direct (not Dealer) Loans
– Contractor role limited to providing info. to homeowners on how to apply
– Lender must process application directly with borrower
– Only pre-screened contractor may install DOE approved improvements
•
Enhance Program Flexibility
– Aligned with Better Buildings and Home Performance with ENERGY STAR
programs
– Allows utility/govt programs to pay for discount points or other incentives
– $25 million in HUD grants for added incentives
PowerSaver Loan Program Terms
PowerSaver Lending Parameters
Property Eligibility:
Single family owner occupied
Loan:
Up to $25,000
Period:
15 years energy efficiency upgrades, 20 years for renewable energy solutions
Credit score:
660+ FICO
Debt to Income:
45%
Loan-to-Value:
100%
Loan Disbursement:
50% at closing; 50% when retrofit is completed
What Measures Qualify For PowerSaver
Standard Energy Efficiency and
Renewable Energy Improvements
ENERGY EFFICIENCY
 Whole House/ Home Performance
 Insulation & Air Ceiling
(Attic, Wall, Floor and Crawl Space)
 Window and Door Replacements
(including Skylights, Doors, Windows, and Storm doors
and windows)
 HVAC Systems & Duct Sealing/ Replacement
 Hot Water (gas, propane, electric, tankless)
 High Efficiency Roofs
RENEWABLE ENERGY
 Solar PV & Solar Water Heating
 Ground Source Heat Pump Systems
 Wind Turbines
 Fuel Cells & Micro Turbine Systems
Role of Federal Government in PowerSaver
• The Federal Housing Administration (FHA) guarantees the
PowerSaver
• Fannie Mae provides the capital (they buy the loan once it is
closed).
• Housing & Urban Development (HUD) determines lenders
• Dept. of Energy (DOE) specifies measures to be financed.
PowerSaver Provides For Federal Funding
That Doesn’t Rely on
State or Utility Program Incentives
Role of Sun West in PowerSaver
• FHA Approved Lender
• Fannie Mae Approved Lender
• Originates and Services Loans
Role of EGIA in PowerSaver
• Contractor Outreach
• Contractor Enrollment and Screening
• Contractor Bid Validation
• Business Development Mentor
Role of Contractor in PowerSaver
• Enroll with EGIA to become GEOSmart Authorized Contractor
• Promote Value of Energy Efficiency and Renewable Energy
Improvements to Homeowners
• Refer Homeowners to Sun West for PowerSaver loan
application
• Provide Homeowner and Sun West with Proposed Work Scope
and Installation Documentation
• Coordinate with Sun West and EGIA to streamline process and
payment
Sun West Overview
• Sun West Mortgage Company Inc. is a national FHA, VA, Freddie Mac, Fannie Mae
and Ginnie Mae approved full-service mortgage lender and servicer.
• Sun West is on pace to close over $3billion in mortgage loans in 2012.
• Sun West is one of the fastest growing mortgage companies in the United States.
• Sun West has 30 Years Experience in Government lending programs.
•FHA Single Family,
•FHA Reverse Mortgages,
•HUD Multi-Family
•VA
• Sun West is one of the few direct lender / servicer that provide in-house
underwriting, funding, and servicing.
Unlike a broker Sun West makes the underwriting decisions, this means less back and
forth, faster answers, and better service.
Sun West Overview
• FHA Experts: Sun West has been FHA approved since inception and is
experienced in working with contractors.
• Experienced Underwriting: Very low turn over in key FHA underwriting
positions. 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.
SWMC experience and expertise in specialty lending means a faster, more
efficient and professional experience for contractors and borrowers alike.
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 the contractor and borrower
will be alerted to the status of the loan and the next action to take.
• Instant Pre-Qualification: By calling our hotline 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.
PowerSaver Loan Program Terms
PowerSaver Lending Parameters
Property Eligibility:
Single family owner occupied
Loan:
Up to $25,000
Period:
15 years energy efficiency upgrades, 20 years for renewable energy solutions
Credit score:
660+ FICO
Debt to Income:
45%
Loan-to-Value:
100%
Loan Fees:
HUD list of fees and charges
Loan Disbursement:
50% at closing; 50% when retrofit is completed
Discount Points:
Allows borrowers to pay discount points to buy-down interest rate
CLTV / LTV:
100% (1st or 2nd position only will not follow an interest only 1st mortgage)
Sun West PowerSaver Fees
Fee Description
Fee Amount
Loan Origination Fee
5% of the Base Loan Amount
Discount Points
As per Rate Sheet
Flood Cert Fee
$5.00
Credit Report Fee
As per Credit Report
Appraisal Report (Exterior Only)
As per Appraisal Report
Property Inspection Fee
$125.00
Title Report Fee
$100.00
Notary Fee
$145.00
Recording Fee
$100.00
Energy Audit Fee
Optional, can be financed
Permit Fee
If applicable, can be financed
Online Resources For PowerSaver
Your Customers Can Get A Quick Quote, Get Current
Rates or Access to a Handy Loan Calculator at:
www.powersaverloan.com
Lets Review The Site!
Special Note:
*Rates, points, and APRs shown are for a 7-day lock. APRs shown are for loan amount of $25,000.00 equal or less than 90% LTV loan.
State and other conditions and restrictions may apply.
www.powersaverloan.com
Turn Times
Turn times are dependent on collecting
and validating all required
documentation. Two weeks closing is
our objective.
Appraisal turn times are dependent on
the area, but are expected in 2-5
business days.
Sun West PowerSaver Process
Prequalification
• Have Customer call
866-740-3677 or
Apply online at
www.powersaverloan
.com
• Discuss program and
guidelines with loan
consultant
• Minimum FICO 660
• DTI ratio maximum
45%
• Note: Customer must
pay for appraisal
upfront
Conditional Approval
• Borrower submits
supporting
documentation
• Credit checked
• Appraisal completed
• Status e-mail sent to
borrower and
contractor
• Contractor submits bid
& measurement
verification worksheet
to EGIA. If scope of
work meets program
standards EGIA gives
green light to SWMC to
proceed.
• NOTE: Worksheet and
eligible improvements
detailed at
www.egia.org/swmc
Loan Funds
• Underwriting
conditions cleared
• E-mail sent to
borrower and
contractor confirming
settlement date
Work Completed
• Borrower confirms
work is satisfactory
and approves final
disbursement
• Check for remaining
funds disbursed
Loan Status Communication
Borrower and contractors are notified via phone and e-mail:
• Prequalification
• Application status and outstanding
loan conditions
• When loan is approved
• When loan is cleared to close:
Settlement date
• Loan funding (after three day
recession)
Don’t get ahead of your skis. The money is not committed until the borrower
signs the final closing documents. After that, the borrower still has the option
for 3 days to change his mind.
Borrower Checklist Overview
The loan officer will be responsible for taking the application and collecting all
pertinent documentation, which must come directly from the applicant.
About EGIA
EGIA is a non-profit organization dedicated to advancing energy efficiency &
renewable energy solutions through a nationwide network of contractors,
manufacturers, distributors and utility companies.
Why Sun West PowerSaver
Why EGIA Partners With 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……
Example Payments
$25,000 Solar or Geothermal Project
Term - 20 years
Interest Rate - 5.875%
Payment - $198.14/ month
$15,000 Home Energy Efficiency Upgrade
Term - 15 years
Interest Rate - 5.625%
Payment - $136.06/ month
Hypothetical Loan Scenario Based On Sample Interest Rates
Online Contractor Directory
Authorized
Contractors are
listed on the
PowerSaver
Contractor
Directory
GEOSmart Authorized Contractor
The Criteria & Required Documentation For
PowerSaver Enrollment Is:
•
•
•
•
•
•
•
•
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
with minimum $50,000 net worth or $100,000 annual sales)
Gives You Access To:
 Independent third
party validation
 The GEOSmart
Authorized Contractor
logo
 Listing on the
PowerSaver Contractor
Directory
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
PowerSaver Enrollment Options
Membership & PowerSaver Screening = $250
EGIA Member Benefits Include:
• PowerSaver Screening & Enrollment
• Monthly Educational Webinars
• Monthly Industry Trend & Best Practice
Reports
• Third Party Business Validation &
Industry Leader Designation
• Access To EGIA Financing Clearinghouse
• Sales, Marketing and Business
Development Training
• Discounted Business Products &
Services
Learn More at www.egia.org
PowerSaver Screening Only = $100
• PowerSaver Screening, Enrollment and
Training
• Access to PowerSaver Contractor
Toolkit and program branded sales and
marketing tools
• Approved use of EGIA GEOSmart
Authorized Contractor logo
Visit Contractor Portal to Enroll
Visit
www.egia.org/swmc
to enroll and for
marketing tools &
program worksheet
Enrollment Process Overview
Step 1
Attend an overview / training webinar or a program orientation webinar
You have already completed this step!
Step 2
Go to www.egia.org/swmc and complete the membership/ screening
application along with the PowerSaver enrollment form
Step 3
Once approved, schedule a training for your staff!
For More Information …..Contact!
Marya Martinez
Manager, Program Enrollment
866-797-7343
mmartinez@egia.org