SharperLending is introducing a one-of-kind product through our longtime collaborator, New Vista Solutions. New Vista has partnered with IncentiFind, owner of the only database that houses and maintains U.S. government-backed financial incentives available to property owners when they add energy and water-efficient products and systems to their property. Through this partnership, we created a first-to-market product called The Quick Summary that lenders are rapidly signing up for.
SharperLending is looking to make this product available in XpertOnline for CRAs to add value to the credit reports that they provide to their lenders. It can also expand your product arsenal and continue to set your company apart from your competitors.
What is The Quick Summary?
The Quick Summary is a digital report that quickly shows residential and commercial property owners a high-level summary of financial incentives (green incentives) available to them when they upgrade the energy and water efficiency of their property.
Each year, the U.S. government offers billions of dollars in financial incentives to encourage property owners to “green” their homes and buildings. These incentives can bring:
- A minimum $500 in in immediate cost savings to residential property owners who “green” their homes.
- A minimum $10,000 in immediate cost savings to commercial property owners who “green” their buildings.
Top 3 Reasons for Residential Property Owners
- Lower utility costs — As the single largest housing expense after a mortgage payment, utility costs have a significant impact on a homeowner’s monthly housing expenses.
- More borrowing power — Lower housing expenses give homeowners more flexibility when deciding how much they can comfortably spend on a mortgage.
- Property resilience against catastrophic weather events — Green incentives can help pay for structural upgrades that mitigate property damage resulting from extreme heat, drought, and catastrophic flood and wind events. And the more resilient a home is against a natural disaster, the better the chance the property owner will see lower insurance premiums.
Top 3 Reasons for Commercial Property Owners
- Commercial borrowers are looking for additional capital for their projects. Green incentives bring cost savings, adding to their capital stack.
- Studies have shown that commercial buildings with energy-efficient upgrades and lower operating costs can demand higher rents and tend to have a higher occupancy rate.
- A 2019 report from the American Institute of Architects shows energy-efficient upgrades can represent a 50 percent-plus increase in asset value.
How can The Quick Summary benefit residential and commercial lenders?
- The Quick Summary gives lenders an opportunity to offer property owners information that can save them money. It also adds value and helps lenders stay connected to borrowers in a way that affords a competitive advantage in the marketplace.
- Promoting energy efficiency to potential borrowers could lead to a portfolio that is more profitable and less risky through lower operational costs and higher occupancy ratios for the property owner.
- Risk is also mitigated because "green" properties with resiliency improvements can be better protected from catastrophic weather events and therefore are less likely to suffer a total loss, also helping reduce risk to the lender’s asset portfolio. Green improvements also increase property value, which decreases lender exposure and reduces risk.