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GREEN RE Financing - moving forwardMortgagegreen is the first lender to adapt a green rating system as a integral part of all real estate financing transactions, nationwide. We further discounts our already low pricing with Greensave loans; 1/8% interest rate discounts or 1/4% cash rebate for green-rated homes.
National Green Building Investment Underwriting Standards© Applying Certified Buildings to Residential Real Estate Asset Underwriting, Financing, and Appraisal Methods 10.0 CMP Green Score Calculation – Overview The overall Capital Markets Partnership Green Score (“CMP Green Score”) is based on a scoring matrix which is both thorough and easy to implement. The resultant score is meant for underwriting decision purposes at time of primary financing, and to ride with the asset for use by in portfolio-based decision making by secondary market investors. The matrix derives a numeric score ranging from 0 to 100 comprised of a weighted compilation of an asset’s ENERGYSTAR score, Climate Neutral certification, LEED rating, and performance on the Green Building Underwriting Standard. This score is intended to ride with the asset during underwriting, loan decision-making, securitization (if applicable) and capital market reporting. User of this Standard inputs the appropriate score or criteria and then applies the weighting of the specific factor through the use of the Value Ratio to derive an adjusted score. The Adjusted Score, when totaled, equals the CMP Green Score to be reported along with other relevant asset information. The CMP Green Score formula is as follows:
HERS Rating Conversion Table Score 100 50 90 55 80 60 70 65 60 75 50 85 40 95 39 and below 100 10.1 CMP Green Score “Value Ratio” An element of the CMP Green Score is the “Value Ratio” (located in the third column of the CMP Green Score chart / outlined in red on the chart below) which weights the various components that comprise the Green Building Underwriting Standard. This Value Ratio is determined by placing principle focus on areas of tangible financial value and risk reduction, particularly energy prices and the impact on an asset’s current/future operating costs and leasing market competitiveness. These direct tangible financial metrics are transparently identified through 1) the asset’s ENERGYSTAR Score, and 2) the Green Building Underwriting Standard Score which has a significant weighting on energy and water operating costs as well as key location and indoor environmental quality aspects pertinent to leasing consideration. Further, assets that are Climate Neutral Certified typically enter into long-range renewable energy contracts which insulate from energy price increases and associated price volatility. This Value Ratio breakdown results in 85% of the CMP Green Score focused on energy and water efficiency, location, and indoor environmental quality, all having positive tangible impact on an asset’s ongoing revenue generation capability and operating cost profile.
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