Loan Giants Threaten Energy-Efficiency Programs

[Mango]

Personally, I feel these should be unsecured government loans with their own underwriters who can provide additional funding if the home is retro-fittted at a later point with updated technology. This way, it is not tied to the municipalities, and someone's credit can be impacted if they do not pay it, but sell the home. There should be a due at sale clause so legally the government can recoup their money, but if there is a deficit, the house can be sold, but Borrower is still responsible after closing for the deficit. I feel this will always provide an incentive to the Borrower to always make sure their home is updated with the newest technologies and that they made responsible choices.

The Obama administration is devoting $150 million in stimulus money for programs that help homeowners install solar panels and other energy improvements, which they pay for over time on their property tax bills.
At the same time, the two government-chartered agencies that buy and resell most home mortgages are threatening to derail the effort by warning that they might not accept loans for homes that take advantage of the special financing.
The mixed messages have alarmed state officials and prompted many local governments to freeze their programs, which have been hailed as an innovative way to help homeowners afford the retrofitting of a house with solar panels, which can cost $30,000 or more before incentives.>>>>>FULL ARTICLE