Borrowers with energy-efficient homes less likely to default

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Study suggests lenders could lower risk premiums

BY INMAN NEWS

Borrowers with energy-efficient homes are significantly less likely to default, according to a study by the University of South Carolina Center for Community Capital.

Funded by the Institute for Market Transformation (IMT), the study found that default risks are on average 32 percent lower for borrowers with energy-efficient homes that met “Energy Star” guidelines.

The study examined 71,000 homes and accounted for loan, household and neighborhood characteristics, IMT said in a blog post. Homes earn Energy Star status by meeting guidelines set by the U.S. Environmental Protection Agency. Continue reading…