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  Goldwater Newsletter-GEM Blog  |  February 2016    


Brown Discounts & Green Premium Value Trends 

New Real Estate Market Emerging Risk


Final Logo.pngby Teresa Lopez, CEO Green Energy Money, February 15, 2016 


When it comes to high-performance building mitigating investment risk, most real estate finance investors and mortgage companies don’t get it. In fact, many lenders tend to discount (undervalue) green-high-performance projects and consider them risky investments. Antiquated lending and appraisal guideline policies along with market preconceptions continue to plague the green real estate market and have not evolved for decades; regardless of building industry and technological advancement.  We are still experiencing an old paradigm of lending guidelines that simply don’t match or support 21st Century building performance innovation.

Older, outdated, inefficient buildings and homes continue to pose a real economic risk for mortgage industry investors.  Loan portfolios today are bundled or tranched according to their risk, which impacts the interest rate and loan guidelines, including down payment requirements.  The borrower’s credit score, down payment, and the loan product all play a role in pricing and risk assessment.  Collateral is a big part of the risk analysis, but it is often overlooked as posing a threat due to deferred maintenance or obsolescence.  Life cycles for older properties with high deferred maintenance improvement costs can be upside down, translating to properties that won’t exceed a 30 – 15 year loan cycle and will require capital to offset and pay for the costs of improvements.

Outdated properties should be considered more risky than newly constructed, energy efficient or net- zero homes (generate as much or more energy they are using) that will require less maintenance and dramatically reduce their costs to operate, thereby reducing the risk.  Older homes represent depreciative assets, whereas, newly constructed properties meeting or exceeding 2015 IECC (International Energy Conservation Code) requirements, represents an appreciative asset.




Mortgage Rates Could Cross a Record Low

Diana Olick@DianaOlick February, 2016  CNBC Report


Comp_76521573Who knew? The Federal Reserve raised its funds rate barely two months ago, and all that worry about higher interest rates for mortgage borrowers ended up being positively unwarranted. The average rate on the popular 30-year fixed mortgage began a free fall, reacting to financial markets overseas rather than monetary policy here at home.

"Mortgage rates are going down again, and it's good for borrowers, but is it really good for the housing market and the broader economy? The answer is no," said Guy Cecala, CEO and publisher of Inside Mortgage Finance. 




10 Construction Industry Trends to Watch in 2016

By Emily Peiffer | January 4, 2016 

Comp_23598069Now that 2015 has come and gone, construction professionals are focusing attention on the year ahead. Analysts predict 2016 will be a strong year for the industry, as Dodge Data & Analytics' 2016 Construction Outlook report predicted 6% growth, with the value of construction starts reaching an estimated $712 billion. 

We talked with experts from various sectors of the construction industry to find out their predictions for 2016. Their answers varied from new technology trends, to workforce concerns, to homebuyer preferences. But one common thread connected all of the experts: They have high hopes that 2016 will bring strong demand and booming business



Top 10 Green Advances in Residential Building 2016

Comp_75184967Once upon a time, all residential building was green. Nomadic Mongolians carted their felt-and-wooden yurts around on four-wheeled wagons. Celts kicked it in earthen ("cob") roundhouses made of wattle, mud and straw, while Spaniards and indigenous Americans perfected the art of the adobe dwelling.

Until the Industrial Revolution, residential building materials consisted of mud, straw, stone, timbers and other locally harvested ingredients. Sustainable by default, these homes met the needs of the present without compromising the needs of future generations. With the advent of railroads, however, it became easy for builders to acquire materials like steel from faraway places. Fast-forward more than a century and soon cheap, energy-inefficient McMansions ruled residential home markets.




GEM is excited to announce the recent launch of our new web development links:One-off residential green construction loan for consumers and Project Development, land acquisition, vertical construction for builders and developers resources. 



Copyright © Green Energy Money, Inc. All rights reserved.

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This is not an advertisement to extend consumer credit as defined in Regulation Z 226.2.  All loans are subject to credit and property approval. Programs, rates, terms and conditions are subject to change without notice. Goldwater Mortgage, A Division of Goldwater Bank, N.A, Corporate NMLS# 452955 Weststar Mortgage Corp 7200 N. Mopac Expwy., Suite 165, Austin, TX 78731  (512) 343-2345


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