[MCN] Mortgage lenders not ready for hits from climate

[Lance Olsen]

CNBC  jan 17 2019
The mortgage industry isn't ready for a foreclosure crisis created by climate change
The threat to real estate from increasingly extreme weather brought on by climate change is clear, but the threat to the nation's mortgage market is only beginning to come into focus.
In Hurricane Harvey's federally declared disaster areas, 80 percent of the homes had no flood insurance, because they weren't normally prone to flooding.
Serious mortgage delinquencies on damaged homes jumped more than 200 percent, according to CoreLogic.
Diana Olick <https://www.cnbc.com/diana-olick/> | Erica Posse <https://www.cnbc.com/erica-posse/>
Published 7:01 AM ET Thu, 17 Jan 2019  Updated 11:29 AM ET Thu, 17 Jan 2019

https://www.cnbc.com/2019/01/16/potential-for-foreclosure-crisis-because-of-climate-change-is-real.html

Excerpts
The industry is not prepared for the effects of such extreme weather and rising sea levels, according to Ed Delgado, CEO of national mortgage trade association the Five Star institute and a former executive at Freddie Mac.

"If we look at the basic foundation of what drives the mortgage market, it is the application of credit risk. What's missing is the understanding of weather risk and where those weather events can take place," Delgado said.

The current system is reactive and local and doesn't include plans for the widespread effects of climate change. That could affect several major housing markets at once.

The mortgage market is not factoring the overall risk into its loan underwriting and is not quantifying the amount of potential losses should a wide swath of borrowers walk away from damaged or destroyed homes.

"Whether it's fires and mudslides in California, flooding in Texas, or tornadoes in the Oklahoma region," Delgado said. "It's going to be a problem if the banks don't start to pay closer attention to what those weather risks are."

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The poorest half of the world population is responsible for “only around 10% of total global emissions attributed to individual consumption.”

<<https://www.oxfam.org/sites/www.oxfam.org/files/file_attachments/mb-extreme-carbon-inequality-021215-en.pdf>> 

That leaves the rest of us responsible for about 90% of consumption-driven emissions. 

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"The big challenge is still to deliver emissions reductions at the pace and scale needed, especially in a world where economies are driven by consumption.”

Sonja van Renssen.The inconvenient truth of failed climate policies. Nature Climate Change  MAY 2018
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The poorest half of the world population is responsible for “only around 10% of total global emissions attributed to individual consumption.”

<<https://www.oxfam.org/sites/www.oxfam.org/files/file_attachments/mb-extreme-carbon-inequality-021215-en.pdf>> 

That leaves the rest of us responsible for about 90% of consumption-driven emissions. 

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
"The big challenge is still to deliver emissions reductions at the pace and scale needed, especially in a world where economies are driven by consumption.”

Sonja van Renssen.The inconvenient truth of failed climate policies. Nature Climate Change  MAY 2018


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