“More banks are getting buyers in coastal areas to make bigger down payments—often as much as 40% of the price. And in one of the clearest signs that banks are worried about warming, they are increasingly getting these mortgages off their own books...”
A few months ago, my editor asked me to look into what rising seas mean for the 30-year mortgage. Could it be that banks were already pulling back? It turned out to be a good guess.
“30 years from now, if global-warming emissions follow their current trajectory, almost half a million existing homes will be on land that floods at least once a year.”
With coastal homes at risk of going underwater, does a regular 30-year mortgage still make sense? Banks aren't so sure.
"In one of the clearest signs that banks are worried about global warming, they are increasingly getting these mortgages off their own books by selling them to government-backed buyers, where taxpayers are on the hook financially if any of the loans fail."
“Conventional mortgages have survived many financial crises, but they may not survive the climate crisis,” said Jesse Keenan, an associate professor at Tulane University.
1 of clearest signs banks are worried about global warming, they're increasingly getting these mortgages off their own books by selling them to govt-backed buyers like Fannie Mae, where taxpayers would be on the hook financially if any of the loans fail.
The implications -- not just financial, but more importantly, political -- of this excellent piece by about the end of 30 year mortgages in coastal areas are impossible to overstate.
Banks appear to be worried about climate change along America's coastlines; the evidence is showing up in subtle (so far) shifts in the mortgage market. A stunner from
Banks appear to be worried about climate change along America's coastlines; the evidence is showing up in subtle (so far) shifts in the mortgage market. A stunner from
Up and down the U.S. coastline, rising seas and climate change are transforming a fixture of American homeownership that dates back generations: the classic 30-year mortgage
In 30 yrs, at current rate of global-warming, some half a million US homes worth some $241 billion will be under water for at least part of every year & banks are now unloading those mortgages to Fannie Mae/Freddie Mac so taxpayers will take the losses.
“30 years from now, if global-warming emissions follow their current trajectory, almost half a million existing homes will be on land that floods at least once a year.”
“Conventional mortgages have survived many financial crises, but they may not survive the climate crisis,” said Jesse Keenan, an assistant professor at Tulane University.
When banks change their behavior because of #climatechange, you know that #climatescientists have been right all along.
"Climate change is starting to transform the classic home loan, a fixture of the American experience and financial system that dates back generations."
Rising seas are making banks think twice about 30-year mortgages, new data shows.
With coastal homes at risk of going underwater, does a regular 30-year mortgage still make sense? Banks aren't so sure.
"And in one of the clearest signs that banks are worried about global warming, they are increasingly getting these mortgages off their own books by selling them to government-backed buyers like Fannie Mae, where taxpayers would be on the hook financially"
A prediction? As climate change damages worsen, our time horizon for investment will progressively shorten, until loans become impossible, and the financial system collapses.
“If climate change makes coastal homes uninsurable,Dr. Becketti wrote, their value could fall to nothing,and unlike the 2008 financial crisis,”homeowners will have no expectation that the values of their homes will ever recover.” #climate migration is real
Rising Seas Threaten an American Institution: The 30-Year Mortgage
A privilege to be quoted on the NYT () for our collaboration with Jesse Keenan of on mortgages and climate change. Climate change is also a social issue and we need to tackle this aspect !
Financial ramifications of climate change.
Mortgage lenders know that rising sea levels & more intense storms threaten their business model. These #ClimateCrisis risks could make it tougher for families to buy homes. That's why I've got a bill to make public companies disclose these sort of risks.
More evidence that markets are starting to understand the real economic risks of #climatechange.
Adaptation will be harder than people think, part 18,331,839,991: Rising Seas Threaten an American Institution: The 30-Year Mortgage
Markets: “Hey, you should be worried about climate change.” GSEs: “Shhhhhh!”
Rising Seas Threaten an American Institution: The 30-Year Mortgage
Rising Seas Threaten an American Institution: The 30-Year Mortgage
Rising Seas Threaten an American Institution: The 30-Year Mortgage - via
Another climate casualty: 30-year mortgages. Also another hidden subsidy for the rich, and another bailout for the banks. , with a fitting cameo:
Housing Market REALLY Underwater RT Wrong bets on sea level rise could sink the 30-year mortgage while taxpayers are stuck with the bill
“Conventional mortgages have survived many financial crises, but they may not survive the climate crisis.” Such a smart piece on how rising seas could affect the 30-year mortgage
In the West it is fires that threaten the 30-year mortgage. I have a nephew in Truckee CA who just received a $30k invoice for home insurance next year.
Will the mortgage industry get behind sensible climate mitigation policies? I hope the tide is turning.
Climate change is starting to transform the classic home loan, a fixture of the American experience and financial system that dates back generations 🇺🇸💰🌊
Rising Seas Threaten an American Institution: The 30-Year Mortgage
Great commentary as always from on the long term economic impacts of climate change. Rising Seas Threaten an American Institution: The 30-Year Mortgage
New from Climatic Change - wrong bets on sea level rise could sink the 30-year mortgage while taxpayers are stuck with the bill: Rising Seas Threaten an American Institution: The 30-Year Mortgage
This piece about climate change and mortgages () makes me think of 's great exploration of building for climate change: . Her new book, filled with such gems, is out next week!
Rising Seas Threaten an American Institution: The 30-Year Mortgage