U.S. Department of Energy Energy Efficiency and Renewable Energy

Implementation Process Flow

The implementation process flow for residential financing is represented below by two models:  a generic one for primary markets and a conceptual one under discussion for secondary markets.

You can download the guide’s entire chapter on Implementation Process Flowpdf with these models.

A Generic Model – Primary Market

An image of a process chart. The first step, "Customer Contacts Contractor and Arranges for Work to be Performed," has an arrow pointing to the next step, "Customer Fills Out Loan Application Provided by Contractor. Application is Done Through 1-800 number or Online:" It has an arrow pointing to "Lender Rejects Application" and the next step, "Primary Lender Processes Loan Application Giving Conditional Approval or Rejection with Minutes," which has another step pointing to it that says, "Grantee Escrows Loss Reserve," and it points to the next step, "Loan Approved." "Loan Approved" points to the next step, "Contractor Completes Work and, Subject to Approval by Program Administrator, is Approved for Payment," which points to the next step, "Lender Pays Contractor," which points to the next step, "Lender Bills Borrower for Principal and Interest," which points to the next step "Customer Pays Lender," which points to the last step, "In Case of Default, Loan Loss Reserve Program Administrator Pays Lender According to Loss Reserve Terms."

A Conceptual Model under Discussion – Secondary Market

An image of a process chart. It starts with the first step, "Customer Contacts Contractor and Arranges for Work to be Performed," which points to the next step, "Customer Fills Out a Loan Application Provided by Contractor," which points to the next step, "Lender Processes Loan Application," which points to two possible steps: "Lender Rejects Application" and "Loan Approved within XX hours." A step called, "3rd Party Escrows Loss Reserve" points to "Loan Approved within XX hours," which points to the next step, "Contractor Completes Work and, Subject to Approval by Program Administrator, Is Approved for Payment," which points to the next step, "Lender Pays Contractor," which points to the next step, "Lender Sells Loan to Secondary Market Investor," which points to the next step, "Customer is Billed and Pays Loan Servicer," which points to the last step, "In Case of Default, Loan Loss Reserve Admininstrator Pays Investor According to Loss Reserve Terms," which has an arrow pointing to the previous step, "Lender Sells Loan to Secondary Market Investor."