There are times, though rare, when the federal government actually does the right thing. The Housing and Economic Recovery Act of 2008 which was signed into law by President Bush on July 30 is one of those instances. This law is designed to help those facing foreclosure due to the current mortgage crisis.
Unknown to many is the fact that buried way down in the law is Section 2902, which requires the Department of Housing and Urban Development to offer solutions that will eliminate barriers to the use of Energy Efficient Mortgages(EEMs). Also known as green mortgages, EEMs are housing loans that incorporate the cost of energy efficient improvements into a borrower's home refinance or purchase. Also, as part of the law, an increase of up to five percent of the value of the home is now allowed, up from a limit of $8,000.
Will this provision cure all our financial problems, as well as all of our energy consumption issues? Not likely. However, it will certainly give lending institutions more incentive to start offering these EEMs as part of their array of financing products.
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