Click here to close now.

SYS-CON MEDIA Authors: XebiaLabs Blog, Sematext Blog, Trevor Parsons, Aria Blog, Pat Romanski

News Feed Item

CDFIs Craft3 & Self-Help Complete Trailblazing "On-Bill" Energy-Efficiency Loan Sale

Unique Secondary Market Sale Provides Craft3 Liquidity to Expand Program

PORTLAND, OR--(Marketwired - June 18, 2014) - Craft3 and Self-Help today announced details of an unprecedented multi-million dollar loan portfolio sale that will fuel more energy-efficient loans in Oregon. The sale of Craft3's $15.7 million Home Energy-Efficiency Loan portfolio to North Carolina's Self-Help Credit Union represents a new model for attracting capital to energy-efficiency lending. The loan sale is supporting loans for upgrades such as installation of high-efficiency furnaces, water heaters and insulation.

Since 2009, Craft3 has partnered with Clean Energy Works (CEW) to provide consumer energy-efficiency loans to Oregonians. Concurrently, the program helps build a network of contractors with increased green expertise and creates local jobs in this sector. To date, Craft3 and CEW's partnership has helped 2,460 Oregon homeowners finance $23.1 million in energy-efficiency upgrades. These homeowners have averted more than 63,000 metric tons of greenhouse gasses. Overall the program has catalyzed more than $62 million of local economic development, reduced carbon emissions, created jobs for local contractors and reduced home energy use.

A key innovation of Craft3's program is "on-bill" repayment, which allows homeowners to make loan payments through their monthly utility bill. This expands access to credit for energy-efficiency improvements by eliminating the up-front, out-of-pocket costs that often make upgrades unaffordable. The on-bill mechanism also allows Craft3 to review a homeowner's utility bill payment history as a factor in loan qualification. Using a blend of traditional and non-traditional underwriting techniques, Craft3 has approved loans to over 87 percent of homeowners who apply. 

With demand for the program increasing, Craft3 needed additional capital for loans, and found a partner in Self-Help. Self-Help Credit Union, one of the nation's leading Community Development Financial Institutions (CDFI), has a well-established secondary market home mortgage program and was seeking to leverage its secondary market experience by exploring new lending areas. Self-Help was attracted by (1) the direct impact of providing liquidity for fellow CDFI Craft3, to make more loans; and (2) the broader impact of potentially helping prove the value and performance of on-bill energy-efficiency consumer loans.

"This sale reflects the successful development and excellent performance of these consumer energy-efficiency loans," said Craft3 President John Berdes. "We also hope the sale will be a model for how secondary markets can help scale up the energy-efficiency industry in the Northwest and nationwide."

"The rubber really met the road in balancing the innovations of Craft3's lending program with a deal structure that can create a model secondary market transaction for such products," said Self-Help's Director of Commercial Lending Brian Schneiderman. "Having a strong partner in Craft3 was critical to move the needle in this field of financing."

A Lawrence Berkeley National Laboratory (LBNL) policy brief released on June 11, 2014 provides an in-depth look at the loan sale, examining how the parties addressed challenges in the uncharted territory of valuing the unique aspects of these on-bill loans and how this partnership might inform future investments in residential energy efficiency loan portfolios. In its brief, "Clean Energy Financing Policy Brief: Selling an Energy Efficiency Loan Portfolio in Oregon", LBNL outlines Craft3's energy-efficiency on-bill loan program and how its success drove the need for more liquidity. LBNL then discusses how Craft3 and Self-Help solved the challenges of selling such a unique portfolio to a federally regulated depository institution.

Craft3's efforts to find a secondary market partner are supported by Bank of America, Bullitt Foundation and Laird Norton Foundation. Self-Help also has received support from Bank of America for its energy-efficiency lending.

"Craft3 developed an innovative solution to address barriers that have kept many property owners from financing important energy-efficiency upgrades that help save energy and money," said Bob Peters, President of Bank of America in Washington State. "It creates jobs in low-income communities and reduces carbon emissions as these retrofits get underway."

The LBNL Policy Brief, as well as extensive details on the loan program and the portfolio sale, can be found at:

http://www.craft3.org/Borrow/portfolio-sale.

About Craft3

Craft3 is a nonprofit community development financial institution with a mission to strengthen economic, ecological and family resilience in Pacific Northwest communities. They do this by providing loans to entrepreneurs, nonprofits, individuals and others who don't normally have access to financing. Craft3 then complement these financial resources with expertise, personal connections and other advocacy for their clients. Learn more at www.Craft3.org.

About Self-Help

Self-Help Credit Union (www.self-help.org) is part of the Self-Help family of organizations headquartered in Durham, NC. Founded in 1980, Self-Help's combined affiliates have provided over $6.4 billion in financing to nearly 87,000 families, individuals and businesses underserved by traditional financial institutions. It strengthens communities by financing hundreds of homebuyers each year, as well as nonprofits, child care centers, community health facilities, public charter schools, and residential and commercial real estate projects. Through its two credit unions Self-Help serves over 100,000 families in North Carolina, California and Chicago and offers a full range of financial products and services. 

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
The explosion of connected devices / sensors is creating an ever-expanding set of new and valuable data. In parallel the emerging capability of Big Data technologies to store, access, analyze, and react to this data is producing changes in business models under the umbrella of the Internet of Things (IoT). In particular within the Insurance industry, IoT appears positioned to enable deep changes by altering relationships between insurers, distributors, and the insured. In his session at @Things...
When it comes to the Internet of Things, hooking up will get you only so far. If you want customers to commit, you need to go beyond simply connecting products. You need to use the devices themselves to transform how you engage with every customer and how you manage the entire product lifecycle. In his session at @ThingsExpo, Sean Lorenz, Technical Product Manager for Xively at LogMeIn, will show how “product relationship management” can help you leverage your connected devices and the data th...
SYS-CON Media announced that IBM, which offers the world’s deepest portfolio of technologies and expertise that are transforming the future of work, has launched ad campaigns on SYS-CON’s numerous online magazines such as Cloud Computing Journal, Virtualization Journal, SOA World Magazine, and IoT Journal. IBM’s campaigns focus on vendors in the technology marketplace, the future of testing, Big Data and analytics, and mobile platforms.
NaviSite, Inc., a Time Warner Cable company, has opened a new enterprise-class data center located in Santa Clara, California. The new data center will enable NaviSite to meet growing demands for its enterprise-class Cloud and Managed Services from existing and new customers. This facility, which is owned by data center solution provider Digital Realty, will join NaviSite’s fabric of nine existing data centers across the U.S. and U.K., all of which are designed to provide a resilient, secure, hi...
SYS-CON Events announced today that Intelligent Systems Services will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. Established in 1994, Intelligent Systems Services Inc. is located near Washington, DC, with representatives and partners nationwide. ISS’s well-established track record is based on the continuous pursuit of excellence in designing, implementing and supporting nationwide clients’ mission-cri...
PubNub on Monday has announced that it is partnering with IBM to bring its sophisticated real-time data streaming and messaging capabilities to Bluemix, IBM’s cloud development platform. “Today’s app and connected devices require an always-on connection, but building a secure, scalable solution from the ground up is time consuming, resource intensive, and error-prone,” said Todd Greene, CEO of PubNub. “PubNub enables web, mobile and IoT developers building apps on IBM Bluemix to quickly add sc...
The major cloud platforms defy a simple, side-by-side analysis. Each of the major IaaS public-cloud platforms offers their own unique strengths and functionality. Options for on-site private cloud are diverse as well, and must be designed and deployed while taking existing legacy architecture and infrastructure into account. Then the reality is that most enterprises are embarking on a hybrid cloud strategy and programs. In this Power Panel at 15th Cloud Expo (http://www.CloudComputingExpo.com...
There has been a lot of discussion recently in the DevOps space over whether there is a unique form of DevOps for large enterprises or is it just vendors looking to sell services and tools. In his session at DevOps Summit, Chris Riley, a technologist, discussed whether Enterprise DevOps is a unique species or not. What makes DevOps adoption in the enterprise unique or what doesn’t? Unique or not, what does this mean for adopting DevOps in enterprise size organizations? He also explored differe...
“In the past year we've seen a lot of stabilization of WebRTC. You can now use it in production with a far greater degree of certainty. A lot of the real developments in the past year have been in things like the data channel, which will enable a whole new type of application," explained Peter Dunkley, Technical Director at Acision, in this SYS-CON.tv interview at @ThingsExpo, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
The cloud has transformed how we think about software quality. Instead of preventing failures, we must focus on automatic recovery from failure. In other words, resilience trumps traditional quality measures. Continuous delivery models further squeeze traditional notions of quality. Remember the venerable project management Iron Triangle? Among time, scope, and cost, you can only fix two or quality will suffer. Only in today's DevOps world, continuous testing, integration, and deployment upend...
Data-intensive companies that strive to gain insights from data using Big Data analytics tools can gain tremendous competitive advantage by deploying data-centric storage. Organizations generate large volumes of data, the vast majority of which is unstructured. As the volume and velocity of this unstructured data increases, the costs, risks and usability challenges associated with managing the unstructured data (regardless of file type, size or device) increases simultaneously, including end-to-...
The excitement around the possibilities enabled by Big Data is being tempered by the daunting task of feeding the analytics engines with high quality data on a continuous basis. As the once distinct fields of data integration and data management increasingly converge, cloud-based data solutions providers have emerged that can buffer your organization from the complexities of this continuous data cleansing and management so that you’re free to focus on the end goal: actionable insight.
The truth is, today’s databases are anything but agile – they are effectively static repositories that are cumbersome to work with, difficult to change, and cannot keep pace with application demands. Performance suffers as a result, and it takes far longer than it should to deliver new features and capabilities needed to make your organization competitive. As your application and business needs change, data repositories and structures get outmoded rapidly, resulting in increased work for applica...
DevOps tends to focus on the relationship between Dev and Ops, putting an emphasis on the ops and application infrastructure. But that’s changing with microservices architectures. In her session at DevOps Summit, Lori MacVittie, Evangelist for F5 Networks, will focus on how microservices are changing the underlying architectures needed to scale, secure and deliver applications based on highly distributed (micro) services and why that means an expansion into “the network” for DevOps.
We’re no longer looking to the future for the IoT wave. It’s no longer a distant dream but a reality that has arrived. It’s now time to make sure the industry is in alignment to meet the IoT growing pains – cooperate and collaborate as well as innovate. In his session at @ThingsExpo, Jim Hunter, Chief Scientist & Technology Evangelist at Greenwave Systems, will examine the key ingredients to IoT success and identify solutions to challenges the industry is facing. The deep industry expertise be...