Welcome!

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
So, you bought into the current machine learning craze and went on to collect millions/billions of records from this promising new data source. Now, what do you do with them? Too often, the abundance of data quickly turns into an abundance of problems. How do you extract that "magic essence" from your data without falling into the common pitfalls? In her session at @ThingsExpo, Natalia Ponomareva, Software Engineer at Google, will provide tips on how to be successful in large scale machine lear...
If there is anything we have learned by now, is that every business paves their own unique path for releasing software- every pipeline, implementation and practices are a bit different, and DevOps comes in all shapes and sizes. Software delivery practices are often comprised of set of several complementing (or even competing) methodologies – such as leveraging Agile, DevOps and even a mix of ITIL, to create the combination that’s most suitable for your organization and that maximize your busines...
Struggling to keep up with increasing application demand? Learn how Platform as a Service (PaaS) can streamline application development processes and make resource management easy.
In his session at @ThingsExpo, Chris Klein, CEO and Co-founder of Rachio, will discuss next generation communities that are using IoT to create more sustainable, intelligent communities. One example is Sterling Ranch, a 10,000 home development that – with the help of Siemens – will integrate IoT technology into the community to provide residents with energy and water savings as well as intelligent security. Everything from stop lights to sprinkler systems to building infrastructures will run ef...
Whether your IoT service is connecting cars, homes, appliances, wearable, cameras or other devices, one question hangs in the balance – how do you actually make money from this service? The ability to turn your IoT service into profit requires the ability to create a monetization strategy that is flexible, scalable and working for you in real-time. It must be a transparent, smoothly implemented strategy that all stakeholders – from customers to the board – will be able to understand and comprehe...
SYS-CON Events announced today that Peak 10, Inc., a national IT infrastructure and cloud services provider, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. Peak 10 provides reliable, tailored data center and network services, cloud and managed services. Its solutions are designed to scale and adapt to customers’ changing business needs, enabling them to lower costs, improve performance and focus inter...
You think you know what’s in your data. But do you? Most organizations are now aware of the business intelligence represented by their data. Data science stands to take this to a level you never thought of – literally. The techniques of data science, when used with the capabilities of Big Data technologies, can make connections you had not yet imagined, helping you discover new insights and ask new questions of your data. In his session at @ThingsExpo, Sarbjit Sarkaria, data science team lead ...
In the world of DevOps there are ‘known good practices’ – aka ‘patterns’ – and ‘known bad practices’ – aka ‘anti-patterns.' Many of these patterns and anti-patterns have been developed from real world experience, especially by the early adopters of DevOps theory; but many are more feasible in theory than in practice, especially for more recent entrants to the DevOps scene. In this power panel at @DevOpsSummit at 18th Cloud Expo, moderated by DevOps Conference Chair Andi Mann, panelists will dis...
See storage differently! Storage performance problems have only gotten worse and harder to solve as applications have become largely virtualized and moved to a cloud-based infrastructure. Storage performance in a virtualized environment is not just about IOPS, it is about how well that potential performance is guaranteed to individual VMs for these apps as the number of VMs keep going up real time. In his session at 18th Cloud Expo, Dhiraj Sehgal, in product and marketing at Tintri, will discu...
Machine Learning helps make complex systems more efficient. By applying advanced Machine Learning techniques such as Cognitive Fingerprinting, wind project operators can utilize these tools to learn from collected data, detect regular patterns, and optimize their own operations. In his session at 18th Cloud Expo, Stuart Gillen, Director of Business Development at SparkCognition, will discuss how research has demonstrated the value of Machine Learning in delivering next generation analytics to im...
Unless you don’t use the internet, don’t live in California, or haven’t been paying attention to the recent news… you should be aware that self-driving cars are on their way to becoming a reality. I have seen them – they are real. If you believe in the future reality of self-driving cars, then continue reading on. If you don’t believe in the future possibilities, then I am not sure what to do to convince you other than discuss the very real changes that will roll out with the consumer producti...
Up until last year, enterprises that were looking into cloud services usually undertook a long-term pilot with one of the large cloud providers, running test and dev workloads in the cloud. With cloud’s transition to mainstream adoption in 2015, and with enterprises migrating more and more workloads into the cloud and in between public and private environments, the single-provider approach must be revisited. In his session at 18th Cloud Expo, Yoav Mor, multi-cloud solution evangelist at Cloudy...
There is an ever-growing explosion of new devices that are connected to the Internet using “cloud” solutions. This rapid growth is creating a massive new demand for efficient access to data. And it’s not just about connecting to that data anymore. This new demand is bringing new issues and challenges and it is important for companies to scale for the coming growth. And with that scaling comes the need for greater security, gathering and data analysis, storage, connectivity and, of course, the...
This is not a small hotel event. It is also not a big vendor party where politicians and entertainers are more important than real content. This is Cloud Expo, the world's longest-running conference and exhibition focused on Cloud Computing and all that it entails. If you want serious presentations and valuable insight about Cloud Computing for three straight days, then register now for Cloud Expo.
IoT device adoption is growing at staggering rates, and with it comes opportunity for developers to meet consumer demand for an ever more connected world. Wireless communication is the key part of the encompassing components of any IoT device. Wireless connectivity enhances the device utility at the expense of ease of use and deployment challenges. Since connectivity is fundamental for IoT device development, engineers must understand how to overcome the hurdles inherent in incorporating multipl...