from Green Hell
Subprime lending returns, now colored green
As we continue to dig out of the mess caused by liar loans and other subprime hijinks, the New York Times reports that “green banks” are springing up.
How will green banks decide to lend money? In the case of the start-up e3bank,
Instead of following the industry standard — basing loans on a borrower’s
ability to pay and the up-front costs of the building — e3bank officers will be
authorized to modify debt-to-income and loan-to-value proposals. Financial
products would be tailored to account for the up-front costs of more expensive
green projects but also factor in cost savings from lower energy consumption
that would be netted over the course of the loan.
Looks like there won’t be any rest for the weary FDIC.
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