<html><head><meta http-equiv="Content-Type" content="text/html; charset=utf-8"></head><body style="word-wrap: break-word; -webkit-nbsp-mode: space; line-break: after-white-space;" class=""><div style="margin: 0px; font-stretch: normal; line-height: normal;" class="">CNBC jan 17 2019</div><div style="-webkit-text-stroke-width: initial; margin: 0px; font-stretch: normal; line-height: normal; color: rgb(51, 51, 51); -webkit-text-stroke-color: rgb(51, 51, 51);" class=""><span style="-webkit-font-kerning: none;" class=""><b class="">The <span style="background-color: rgb(255, 251, 0);" class="">mortgage industry isn't ready</span> for a foreclosure crisis created by climate change</b></span></div><ul class=""><li style="margin: 0px 0px 7px; font-stretch: normal; line-height: normal; -webkit-text-stroke-width: initial; -webkit-text-stroke-color: rgb(0, 0, 0);" class=""><span style="-webkit-text-stroke-color: rgb(51, 51, 51);" class=""></span><span style="-webkit-font-kerning: none;" class="">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.</span></li><li style="margin: 0px 0px 7px; font-stretch: normal; line-height: normal; -webkit-text-stroke-width: initial; -webkit-text-stroke-color: rgb(0, 0, 0);" class=""><span style="-webkit-font-kerning: none;" class="">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.</span></li><li style="margin: 0px 0px 7px; font-stretch: normal; line-height: normal; -webkit-text-stroke-width: initial; -webkit-text-stroke-color: rgb(0, 0, 0);" class=""><span style="-webkit-font-kerning: none;" class="">Serious mortgage delinquencies on damaged homes jumped more than 200 percent, according to CoreLogic.</span></li></ul><div style="-webkit-text-stroke-width: initial; margin: 0px; font-stretch: normal; line-height: normal; color: rgb(32, 119, 182); -webkit-text-stroke-color: rgb(32, 119, 182);" class=""><span style="-webkit-font-kerning: none;" class=""><a href="https://www.cnbc.com/diana-olick/" class="">Diana Olick</a></span><span style="-webkit-font-kerning: none; color: rgb(51, 51, 51); -webkit-text-stroke-color: rgb(51, 51, 51);" class=""> | <a href="https://www.cnbc.com/erica-posse/" class=""><span style="-webkit-font-kerning: none; color: rgb(32, 119, 182); -webkit-text-stroke-color: rgb(32, 119, 182);" class="">Erica Posse</span></a></span></div><div style="-webkit-text-stroke-width: initial; margin: 0px; font-stretch: normal; line-height: normal; color: rgb(51, 51, 51); -webkit-text-stroke-color: rgb(51, 51, 51);" class=""><span style="-webkit-font-kerning: none;" class="">Published 7:01 AM ET Thu, 17 Jan 2019 Updated 11:29 AM ET Thu, 17 Jan 2019</span></div><div style="-webkit-text-stroke-width: initial; margin: 0px; font-stretch: normal; line-height: normal; -webkit-text-stroke-color: rgb(0, 0, 0); min-height: 18px;" class=""><span style="-webkit-font-kerning: none;" class=""></span><br class=""></div><div style="-webkit-text-stroke-width: initial; margin: 0px; font-stretch: normal; line-height: normal; -webkit-text-stroke-color: rgb(0, 0, 0);" class=""><span style="-webkit-font-kerning: none; background-color: rgb(0, 253, 255);" class=""><a href="https://www.cnbc.com/2019/01/16/potential-for-foreclosure-crisis-because-of-climate-change-is-real.html" class="">https://www.cnbc.com/2019/01/16/potential-for-foreclosure-crisis-because-of-climate-change-is-real.html</a></span></div><div style="-webkit-text-stroke-width: initial; margin: 0px; font-stretch: normal; line-height: normal; -webkit-text-stroke-color: rgb(0, 0, 0); min-height: 18px;" class=""><span style="-webkit-font-kerning: none;" class=""></span><br class=""></div><div style="-webkit-text-stroke-width: initial; margin: 0px; font-stretch: normal; line-height: normal; -webkit-text-stroke-color: rgb(0, 0, 0);" class=""><span style="-webkit-font-kerning: none;" class=""><b class="">Excerpts</b></span></div><p style="-webkit-text-stroke-width: initial; margin: 0px 0px 18px; font-stretch: normal; line-height: normal; color: rgb(66, 72, 88); -webkit-text-stroke-color: rgb(66, 72, 88); background-color: rgb(255, 255, 255);" class=""><span style="-webkit-font-kerning: none;" class="">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.</span></p><p style="-webkit-text-stroke-width: initial; margin: 0px 0px 18px; font-stretch: normal; line-height: normal; color: rgb(66, 72, 88); -webkit-text-stroke-color: rgb(66, 72, 88); background-color: rgb(255, 255, 255);" class=""><span style="-webkit-font-kerning: none;" class="">"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.</span></p><p style="-webkit-text-stroke-width: initial; margin: 0px 0px 18px; font-stretch: normal; line-height: normal; color: rgb(66, 72, 88); -webkit-text-stroke-color: rgb(66, 72, 88); background-color: rgb(255, 255, 255);" class=""><span style="-webkit-font-kerning: none;" class="">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.</span></p><p style="-webkit-text-stroke-width: initial; margin: 0px 0px 18px; font-stretch: normal; line-height: normal; color: rgb(66, 72, 88); -webkit-text-stroke-color: rgb(66, 72, 88); background-color: rgb(255, 255, 255);" class=""><span style="-webkit-text-stroke-width: initial;" class="">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</span><b style="-webkit-text-stroke-width: initial;" class="">.</b></p><p style="-webkit-text-stroke-width: initial; margin: 0px 0px 18px; font-stretch: normal; line-height: normal; color: rgb(66, 72, 88); -webkit-text-stroke-color: rgb(66, 72, 88); background-color: rgb(255, 255, 255);" class=""><span style="-webkit-font-kerning: none;" class="">"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."</span></p><div class=""><div dir="auto" style="word-wrap: break-word; -webkit-nbsp-mode: space; line-break: after-white-space;" class=""><div dir="auto" style="word-wrap: break-word; -webkit-nbsp-mode: space; line-break: after-white-space;" class=""><div dir="auto" style="word-wrap: break-word; -webkit-nbsp-mode: space; line-break: after-white-space;" class=""><div dir="auto" style="word-wrap: break-word; -webkit-nbsp-mode: space; line-break: after-white-space;" class=""><div dir="auto" style="word-wrap: break-word; -webkit-nbsp-mode: space; line-break: after-white-space;" class=""><div dir="auto" style="word-wrap: break-word; -webkit-nbsp-mode: space; line-break: after-white-space;" class="">####################################<br class="">The poorest half of the world population is responsible for “only around 10% of total global emissions attributed to individual consumption.”<br class=""><br class=""><<<a href="https://www.oxfam.org/sites/www.oxfam.org/files/file_attachments/mb-extreme-carbon-inequality-021215-en.pdf" class="">https://www.oxfam.org/sites/www.oxfam.org/files/file_attachments/mb-extreme-carbon-inequality-021215-en.pdf</a>>> <br class=""><br class="">That leaves the rest of us responsible for about 90% of consumption-driven emissions. <br class=""><br class="">~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~<br class="">"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.”<br class=""><br class="">Sonja van Renssen.The inconvenient truth of failed climate policies. Nature Climate Change MAY 2018<br class=""></div></div></div></div></div></div></div><div class="">
<div dir="auto" style="caret-color: rgb(0, 0, 0); color: rgb(0, 0, 0); letter-spacing: normal; text-align: start; text-indent: 0px; text-transform: none; white-space: normal; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration: none; word-wrap: break-word; -webkit-nbsp-mode: space; line-break: after-white-space;" class=""><div dir="auto" style="caret-color: rgb(0, 0, 0); color: rgb(0, 0, 0); letter-spacing: normal; text-align: start; text-indent: 0px; text-transform: none; white-space: normal; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration: none; word-wrap: break-word; -webkit-nbsp-mode: space; line-break: after-white-space;" class=""><div dir="auto" style="caret-color: rgb(0, 0, 0); color: rgb(0, 0, 0); letter-spacing: normal; text-align: start; text-indent: 0px; text-transform: none; white-space: normal; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration: none; word-wrap: break-word; -webkit-nbsp-mode: space; line-break: after-white-space;" class=""><div dir="auto" style="caret-color: rgb(0, 0, 0); color: rgb(0, 0, 0); letter-spacing: normal; text-align: start; text-indent: 0px; text-transform: none; white-space: normal; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration: none; word-wrap: break-word; -webkit-nbsp-mode: space; line-break: after-white-space;" class=""><div dir="auto" style="caret-color: rgb(0, 0, 0); color: rgb(0, 0, 0); letter-spacing: normal; text-align: start; text-indent: 0px; text-transform: none; white-space: normal; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration: none; word-wrap: break-word; -webkit-nbsp-mode: space; line-break: after-white-space;" class=""><div dir="auto" style="caret-color: rgb(0, 0, 0); color: rgb(0, 0, 0); letter-spacing: normal; text-align: start; text-indent: 0px; text-transform: none; white-space: normal; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration: none; word-wrap: break-word; -webkit-nbsp-mode: space; line-break: after-white-space;" class="">####################################<br class="">The poorest half of the world population is responsible for “only around 10% of total global emissions attributed to individual consumption.”<br class=""><br class=""><<<a href="https://www.oxfam.org/sites/www.oxfam.org/files/file_attachments/mb-extreme-carbon-inequality-021215-en.pdf" class="">https://www.oxfam.org/sites/www.oxfam.org/files/file_attachments/mb-extreme-carbon-inequality-021215-en.pdf</a>>> <br class=""><br class="">That leaves the rest of us responsible for about 90% of consumption-driven emissions. <br class=""><br class="">~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~<br class="">"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.”<br class=""><br class="">Sonja van Renssen.The inconvenient truth of failed climate policies. Nature Climate Change MAY 2018<br class=""><br class=""></div></div></div></div></div></div>
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