Excited to see this report linking climate exposure risk to mortgage performance through both direct flood exposure and increasing insurance costs. A special thanks to two outstanding researchers, Jasmina Buresch and Juan Sebastián Herrera, for being such great collaborators on thos report!!
The protective layer of insurance is breaking down—and mortgage markets are feeling it. As insurers retreat from high-risk regions and premiums rise, homeowners are struggling to maintain coverage. First Street’s 13th National Risk Assessment: 𝘊𝘭𝘪𝘮𝘢𝘵𝘦, 𝘵𝘩𝘦 𝘚𝘪𝘹𝘵𝘩 “𝘊” 𝘰𝘧 𝘊𝘳𝘦𝘥𝘪𝘵, reveals how this crisis is driving an increase in mortgage defaults. Foreclosure spikes are most acute after flood events—especially outside of FEMA flood zones, where insurance is often lacking. The result? Hidden losses that conventional models fail to capture. 𝗞𝗲𝘆 𝗳𝗶𝗻𝗱𝗶𝗻𝗴: The report finds that in a severe year, weather-driven mortgage foreclosures could result in $1.2 billion in foreclosures, with potential credit exposures projected to grow fourfold to $5.4 billion by 2035. Want to dig into the data? 🔗 Read the Full Report: https://lnkd.in/gdNx_N_D Join us on May 22nd for a webinar led by the report's lead author, where we’ll delve into the key findings and address your questions. 🔗 Register here: https://lnkd.in/gNhyZdK5
