“The SAVE Act” is legislation introduced by U.S. Senators Michael Bennet (D-Colorado) and Johnny Isakson (R-Georgia). This bipartisan legislation is intended to improve the accuracy of mortgage underwriting used by Federal mortgage agencies by ensuring that energy costs are included in the underwriting process. Taking your electric bills into account is an important aspect to determine if you can afford a home. The bill, S. 1737 (112th Congress), was introduced on October 19th, 2011. It was referred to the Committee on Banking, Housing, and Urban affairs. The proposal is supported by a diverse coalition of organizations, including the U.S. Chamber of Commerce, the Appraisal Institute, The U.S. Green Building Council, and the Natural Resources Defense Council.
This legislation would provide lower mortgage rates for efficient homes, allowing home owners and builders to recover their investments. This act would also provide an accurate picture of repayment risk and the expected cost of home ownership. It would also increase demand for energy efficient design and construction for new homes. Also important is that it would put people back to work doing energy efficient upgrades. It is estimated that the SAVE Act would create 83,000 jobs and $1.1 billion in annual energy bills savings.