Mortgage giant Fannie Mae tackles climate risk, but changes to underwriting may take several years
Publishing timestamp: 2023-03-20 15:46:58
Summary
The United States housing market is not currently pricing climate risk into home values, despite the increasing frequency and severity of climate-related disasters. Fannie Mae, which backs over 40% of all residential mortgages, is hiring climate risk modeling firms to help incorporate climate risk into mortgage underwriting. However, the project is proving difficult due to the wide variation in climate impact models from different firms and government agencies. The estimated number of US homes significantly impacted by climate-related disasters is set to rise from less than a million in 2030 to over 62 million by 2050, with losses of up to $9 billion in any given year.
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Keywords: climate, wells fargo & co, real estate, united states, business, business news,
Source: https://www.cnbc.com/2023/03/20/mortgage-giant-fannie-mae-tackles-climate-risk.html