Green Homes have significantly reduced mortgage default risk - U.S. study

"The risk of mortgage default is one-third lower for energy-efficient Energy-Star rated homes"... quoted in a Bloomberg financial news article of last year we uncovered while undertaking our own green mortgage research. Conclusive evidence that energy efficiency is good for bank's mortgage loan portfolios and that the greater the energy efficiency, the lower the risk default.

See the Bloomberg article here: Energy Efficient Home Reduce Risk of Mortgage Default

Other studies have concluded that issues with one's own or one's family's health is the leading cause of personal bankruptcy. Given the improving understanding of the importance of lowering or eliminating toxicity from building products we can conclude that banks should also consider in their underwriting practices that healthier homes will lead to less financial risk for their portfolio.

Our analysis concludes that many of the conclusions drawn from this study in the U.S.-based study are directly applicable to Europe. We are convening a research group to analyze further European data to expand this field of research. Please contact me if interested to be involved.