Quick Start: Title I PowerSaver Loans

Under HUD's Title I FHA PowerSaver Loan Program, a limited and pre-selected group of participating lenders make loans to homeowners seeking to make energy improvements to their homes. The goal of this program is to allow borrowers to finance permanent property improvements that protect or improve the basic livability or utility of the property. Home improvements eligible under the PowerSaver Loan program are established by the FHA and loan proceeds may only be used for the purpose(s) stated on the loan application. The Title I FHA PowerSaver pilot program is limited to loans for single-unit, detached, owner-occupied/principal residence properties. The PowerSaver loan term is limited to 15 years. HUD insures the lender against loss should the borrower default on the PowerSaver loan. The Title I FHA PowerSaver Loans menu is used to process PowerSaver cases (loans). Its functions are described in the table below. Title I FHA PowerSaver Loans Menu Menu Option Description Report a New PowerSaver Loan for Insurance When a lender closes a new Title I PowerSaver FHA-insured loan to finance energy improvements to their homes, this function allows the lender to establish insurance for the loan in HUD's Title I system and be assigned an FHA Title I case number. Currently this is a pilot program with a limited pre-selected group of participating lenders. Report an FHA PowerSaver Refinance for Insurance When a lender closes a refinanced Title I PowerSaver FHA-insured loan for energy improvements to homes, this function allows the lender to establish insurance for the new refinance loan in HUD's Title I system and be assigned an FHA Title I case number. Currently this is a pilot program with a limited pre-selected group of participating lenders. Reporting Multiple PowerSaver Loans This function allows bulk reporting to HUD of multiple Title I PowerSaver loans for insurance via batch file transmissions to HUD's Secure Shell File Transfer Protocol (SFTP) server. Service Bureau Authorization Lending institutions that choose to use the financial services of HUD-approved service bureaus for their loans must authorize the service bureau(s) to perform servicing tasks on the FHA Connection. The Service Bureau Authorization function allows the lender's Application Coordinator(s) to select an approved service bureau to access the appropriate Title I functions, e.g., Report Single Loans or Report Multiple Loans. See Service Bureau Administration [PDF] for additional information. Note: Service bureaus are organizations contracted by lending institutions to provide financial services for their loans. Service bureaus access the FHA Connection to perform servicing tasks designated by the lender(s) with which they are associated. CAIVRS Authorization Lists available information on a potential borrower's default, claim, judgment, or foreclosure on a past government loan or guarantee.