BY THE NUMBERS
What is 32%
Default risk reduction for ENERGY STAR homes vs. the control group
What are default and prepayment?
The two competing risks estimated simultaneously in this study
What is 15–20%?
Minimum efficiency advantage of an ENERGY STAR home over a standard new build
What are Energy-Efficient Mortgages (EEMs)?
Mortgage products that offer underwriting flexibility for energy-efficient homes
What is 0.73?
The odds ratio for prepayment risk in ENERGY STAR homes, meaning they are 25% less likely to prepay
What is ~71,000?
Number of loans included in the baseline model
What is a multinomial logit model?
Statistical model used to estimate mortgage termination hazards
What is a net-zero energy home?
What a HERS score of 0 represents
What is the SAVE Act?
The legislation the authors urge Congress to pass to embed energy costs in federal mortgage underwriting
What is 4%?
The reduction in default risk for each one-point decrease in a home's HERS Index Score
What is 25%?
Share of new US housing starts that were ENERGY STAR-certified in 2011
What is 90 days (delinquency)?
The threshold used to define mortgage default in this study
What is RESNET?
The body responsible for certifying HERS raters and ensuring rating consistency
What are Fannie Mae and Freddie Mac?
The GSEs whose Loan-Level Price Adjustments (LLPAs) the paper suggests adjusting
What is more financially savvy / forward-looking borrowers?
The paper's proposed explanation for why ENERGY STAR homeowners are better at meeting mortgage obligations beyond just saving on bills