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Introduction to PowerSaver For Southeast U.S. and Hawaii.

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Presentation on theme: "Introduction to PowerSaver For Southeast U.S. and Hawaii."— Presentation transcript:

1 Introduction to PowerSaver For Southeast U.S. and Hawaii

2 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

3 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

4 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

5 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

6 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

7 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

8 Role of Sun West in PowerSaver FHA Approved Lender Fannie Mae Approved Lender Originates and Services Loans

9 Role of EGIA in PowerSaver Contractor Outreach Contractor Enrollment and Screening Contractor Bid Validation Business Development Mentor

10 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

11 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.

12 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.

13 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.

14 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% (1 st or 2 nd position only will not follow an interest only 1 st mortgage)

15 Sun West PowerSaver Fees Fee DescriptionFee Amount Loan Origination Fee5% of the Base Loan Amount Discount PointsAs per Rate Sheet Flood Cert Fee$5.00 Credit Report FeeAs 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 FeeOptional, can be financed Permit FeeIf applicable, can be financed

16 Online Resources For PowerSaver *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. Your Customers Can Get A Quick Quote, Get Current Rates or Access to a Handy Loan Calculator at: Special Note: Lets Review The Site!


18 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.

19 Prequalification Have Customer call 866-740-3677 or Apply online at 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 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 disbursementBorrower confirms work is satisfactory and approves final disbursement Check for remaining funds disbursedCheck for remaining funds disbursed Sun West PowerSaver Process

20 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.

21 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.

22 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.

23 Why Sun West PowerSaver 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…… Why EGIA Partners With Sun West PowerSaver Solution

24 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

25 Online Contractor Directory Authorized Contractors are listed on the PowerSaver Contractor Directory

26 GEOSmart Authorized Contractor Gives You Access To: Independent third party validation The GEOSmart Authorized Contractor logo Listing on the PowerSaver Contractor Directory 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)

27 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

28 PowerSaver Enrollment Options 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 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

29 Visit Contractor Portal to Enroll Visit to enroll and for marketing tools & program worksheet Visit to enroll and for marketing tools & program worksheet

30 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 and complete the membership/ screening application along with the PowerSaver enrollment form Step 3 Once approved, schedule a training for your staff!

31 For More Information …..Contact! Marya Martinez Manager, Program Enrollment 866-797-7343

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