FAQ

 

How long does the process take?
From the time we receive the first call inquiring about the EEM, we can have all the documents into the mortgage loan file in five business days.

If there are “health & safety” conditions (broken windows, etc.), can the work be done before close to satisfy the underwriter?
No work is ever done before title conveys to the buyer. The replacement of “health & safety” issues that were conditioned in the appraisal will be addressed in the EEM documentation. The underwriter will, typically, waive the condition so the transaction can close.

Do EEM Improvements qualify for the energy tax credits?
They may. The efficiency, to qualify for tax credits, must exceed the standard and, as a result, are more expensive. As long as there is room in the budget to include the higher efficiency improvements, the buyer may do so. The client may also elect to perform more upgrades using existing energy standards, rather than fewer upgrades using higher energy standard. Everyone should always consult a tax professional before making any decision that has tax consequences.

What fees are associated with the EEM?
The HERS energy rating fee ranges from $400 – $425. There are no other fees involved.

Can the client choose the contractor?
No. Federal Energy Services, Inc. is a licensed general contractor. We have a panel of sub-contractors in each discipline that, over the years, we have spent considerable time and resources vetting. As the prime contractor we stand behind the quality and craftsmanship of our sub-contractors.

What are Federal Energy Services’ qualifications?
Since managing our first “energy option” loan in 1982 – long before it was known as an Energy Efficient Mortgage – Federal Energy Services has facilitated over 8,000 EEMs. In 1996 Fes was invited by Countrywide Home Loans to consult on the development of their underwriting guidelines. Today most California wholesale lenders base their documentation requirements on our model.

We are the most experienced and successful EEM program managers in the industry. Please contact us for a list of references and testimonials.

 

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