Congress Should Turn the Mortgage Crisis Into Green Opportunity

Fannie Mae and Freddie Mac Should Promote Green Mortgages

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array of solar panels by namaste solar electric on a home

Solar panels installed by Namaste Solar Electric.

Photo: Courtesy of Namaste Solar Electric

By Brian Clark Howard

Brent Blackwelder and James S. Henry of The Nation have some interesting advice for Congress on the recent mortgage crisis. They suggest using today's challenges as an opportunity to remake Fannie Mae and Freddie Mac in a green image.

"We need to be farsighted as we look to the next generation of houses," Blackwelder and Henry write. "The goal must be to shift from underwriting energy-guzzling McMansions to a green lending strategy that protects us from energy inflation and the impacts of rapid climate change."

As we've written about extensively, the idea behind green mortgages is simple. Over time, Fannie Mae and Freddie Mac could reward mortgage lenders who finance green building and promote New Urbanism.

As we've seen, one of the best ways to help people combat the troubled housing market is by going green, from boosting energy efficiency to using sustainable materials. The built environment has enormous implications for the planet, and mortgage lending is a big piece of that puzzle.

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