The Save Act -- Correcting a Blind Spot in Federal Mortgage Policy

Overview
October 19, 2011

The Save Act, introduced by Senators Michael Bennet and Johnny Isakson, corrects a significant flaw in the way federal mortgage agencies (Fannie Mae and Freddie Mac) determine whether a loan applicant can afford a mortgage loan. The flaw is that lenders are instructed to ignore the homeowner’s energy expenses.