Home Energy Retrofit Loan Pilot Program

Appendix A:
Home Energy Retrofit Loan Pilot Program
Criteria for Expressions of Interest from Lenders

Introduction
Lender participation in the Retrofit Pilot Program is voluntary. HUD intends to select a
limited number of lenders to participate.
Lenders interested in potentially participating in the Retrofit Pilot Program must submit
an Expression of Interest using the format below and following the instructions in this notice.
Lenders that fail to do so will not be considered for participation.
Lenders interested in potentially participating may also provide general comments on the
Pilot Program. Any such comments should be submitted separately from the Expression of
Interest, following the instructions in the notice, but may be referenced in the Expression of
Interest.
As noted in the notice, all properly submitted comments and communications submitted
to HUD in connection with this pilot program will be available for public inspection and
copying. Expressions of Interest should not therefore contain any proprietary information. HUD
may seek additional information from lenders that submit Expressions of Interest. Such
information would be available for public inspection and copying as well, unless it is proprietary.
Expressions of Interest are non-binding. HUD will execute contracts with participating
lenders after reviewing all Expressions of Interest and the issuance of the final notice for the
Retrofit Pilot Program in the Federal Register.
Submission Instructions
To be considered for participation in the Pilot Program, a lender must email its
Expression of Interest to [email protected] by the public comment deadline set

forth in the “DATES” section of this notice. Late submissions and Expressions of Interest
not submitted to [email protected] will not be considered for participation in the
Pilot Program.
Expressions of Interest must address each of the 10 factors identified below (labeled I
through X). There is no minimum or maximum page number or required format for Expressions
of Interest. Lenders should provide whatever manner of information they believe would be most
relevant to HUD in evaluating their Expression of Interest in participating in the Retrofit Pilot
Program. Each Expression of Interest must also contain a one page executive summary that
sequentially summarizes the factors addressed below.
Factors to be Addressed in Expressions of Interest
I. Contact Information
Institution Name:
Address:
Contact Name, Title, Phone Number and Email Address:
II. Statement of Interest
Please describe your institution’s interest in potentially participating in the program.
HUD is interested in understanding the reasons for your interest, how it fits with your business
strategy and goals, and how, specifically, your institution would be able to meet the goals of the
Pilot Program as described in the notice.
III. Status as an FHA Title I or Title II Program lender
Please provide evidence that your institution has a valid Title I contract of insurance and
is approved under the requirements of 24 CFR part 202 to originate, purchase, hold, service, or
sell loans insured under the Title I program regulations at 24 CFR part 201.

If you do not meet the criteria above but are an approved Title II lender, please provide
evidence to that effect.
IV. Experience with similar lending initiatives
Please describe your experience successfully originating and/or servicing small loans,
home equity loans, second liens, FHA section 203(k) rehabilitation loans, and/or Title I Property
Improvement Loans.
If your institution does not have such experience and capacity, please describe how any
other experience is relevant to determining your institution’s ability to participate in the Pilot
Program.
V. Computer system capabilities
Please provide evidence of your institution’s technical capability to interface with FHA
through FHA Connection and the Single Family Default Monitoring system.
Note: Participating lenders will be required have the technical capability to interface with
any other computer systems utilized by FHA or its contractors pertaining to the Retrofit Pilot
Program.
VI. Audit and reporting capabilities
Please provide evidence of your institution’s capacity to provide timely reports to FHA
on origination and performance of loans under the Pilot Program, specifically including an
electronic loan package to HUD for a random sample of loans chosen for quality reviews.
Note: FHA envisions requiring monthly reports on loan and portfolio performance.
VII. Collaborative capacity
Please provide evidence of your institution’s capacity to work with public sector
agencies, nonprofit organizations, utilities, and/or home improvement contractors.

VIII. Projected activity and markets
Please describe the volume of lending your institution anticipates doing under the twoyear Pilot Program and the markets you intend to serve.
Note: FHA may allow less volume than described.
IX. Product plan and business model
Please describe your institution’s product plan and business model as you envision it for
lending under the Pilot Program. Specifically, please inform HUD of the following: (1) Will you
originate and service loans, or originate only? (2) What do you expect in terms of loan
performance? (3) What fees will you charge? (4) What steps will you take to ensure the lowest
cost of financing for consumers? (5) How will you market the product? (6) To what extent will
you work with public agencies, contractors, utilities, and other organizations? (7) How will you
ensure quality control of contractors? (8) Will you hold loans, sell whole loans and/or issue
securities backed by pools of loans, or some combination?
X. Use of HUD incentive payments
To the extent that you request to utilize funds from HUD for incentive payments to lower
costs for borrowers, either through lower interest rates, lower servicing costs, and potentially
other purposes, please describe how much funding you request, the number of loans you
anticipate making (a range is appropriate if necessary), and the bona fide benefit that would
accrue to borrowers through the uses of the funds.
Note: As noted, Expressions of Interest are non-binding. The purpose of this question is
to get a sense of your institution’s intent at this stage, understanding that specifics may change.
Note: To the extent these answers would contain proprietary information, please contact
HUD based on information provided in the notice.

X. Final comments
Please provide any additional information that would be relevant to HUD in evaluating
your Expression of Interest to participate in the Retrofit Pilot Program, either as a narrative
response or attachment(s), or both.