Housing Finance Strategies’ Post

This week the The Economist featured First Street in a cover story on "The next housing disaster". It's amazing to see how far we have come with recognizing the risk that persists throughout the global economy from physical climate change. Per the piece, “First Street, which aims to track the threats to American property from climate change, calculates that home values in West Palm Beach, a glitzy city up the coast from Miami, would fall by 40% if owners had to pay the true cost of insuring against hurricanes and floods. That would wipe out many homeowners’ equity and leave lots of mortgages without adequate collateral.” The systematic risk we face needs to be quantified and communicated and that's exactly why we are here. Reach out if you need help with your climate programs or regulatory disclosure. https://lnkd.in/dfbJHMGf

FHFA recognizes that climate-related risks and increased natural disasters pose a threat to the housing system. We are working with Fannie Mae, Freddie Mac & the FHLBanks to better assess and monitor climate-related risks into their operations. For more information, click here: https://lnkd.in/eGVEYyhA

The Economist made a direct connection between climate risk and financial risk using insights and data from this report out of First Street, which highlights the link between the shifting insirance landscape and property values: https://lnkd.in/ewEXuNXT

No Down Payment Required: Help Your Clients Start Over Realtors, imagine being able to tell your clients there’s no down payment required! With 100% financing through the Home Again program, you can offer hope to those affected by disaster. Let’s work together to bring your clients the relief they deserve. Contact me for more info! #ZeroDown #MortgageTips #HomeAgainProgram #FHAloan #DisasterRecovery

What is CRS? How does it affect the cost of #FloodInsurance? Can it change over time? Your clients have questions, and we have the answers you need to answer them! Learn all about the Community Rating System (CRS) and how it they can help the communities you serve build back stronger after a flood by learning more about them at https://lnkd.in/ekrVRgAU

The Important Role Of FHA Loans In Disaster Recovery Natural disasters can devastate communities, leaving families without homes and causing significant economic repercussions. As climate change increases the frequency and severity of such events, effective recovery strategies become essential. One crucial yet often overlooked component of disaster recovery is the role of Federal Housing Administration (FHA) Loans. These loans provide vital support for individuals and families looking to rebuild, offering an accessible path to homeownership and stability in the aftermath of a disaster. Link to #blog #article: https://lnkd.in/gDPz7kcR #DisasterRecovery #FHALoans #HomeRebuilding #CommunitySupport #AffordableHousing #RebuildingAfterDisaster #ClimateResilience

The New York Times recently ran a story about America’s climate-driven flooding problem. It offered three things communities could do...fight the water, live with it or move away. But for many families all of these options are out of reach. After all, how can you afford to put your house on stilts if you can barely afford the mortgage? And how can you live with flooding if you can’t afford insurance to help you repair and rebuild? There is no building climate resilience without addressing the housing affordability crisis. The two go hand in hand. https://lnkd.in/eZuPVRES

The #FHLBanks are stepping up for communities affected by disasters. Our latest newsletter highlights how we're providing essential support to help rebuild lives and infrastructure. #DisasterAssistance. http://bit.ly/3Yb2hLV

The term "gentrification" has a deservedly negative status. Because it's irresponsible and unethical to tout the positives of community investment/development if the associated economics or equity challenges result in the forcing out of certain groups. And if community character and identity are made up of, among other things, 'people', ...then how can unwilling migration be considered good for the community? But what if the basis of an unwilling migration is risk financing? I would argue we are seeing, on a grand scale, the beginning of a new form of gentrification based on risk - a national 'risk gentrification' perhaps. The cost of community-level resilience is forcing members of certain demographics to choose between two unwanted options: 1) Leave home for somewhere less desirable or 2) Live with unmanaged risk until some future event devastates your finances and security, at which point you must leave home anyways. Why is this suddenly an issue? Primarily because of disruption in the insurance sector. Lenders require insurance, and so these new risk financing costs are non-negotiable for those who can't afford to just buy out their mortgage. Communities need to understand how this trend will change their communities. On the one hand, there are benefits to an increase in the number of homeowners able to be accountable to their risk... ...but at what cost? Ethics aside, there is an unpredictability that comes with 'unmanaged retreat' of specific groups. By taking a Values-Based Emergency Management (#VBEM) approach to community #resilience and #DRR efforts, community members can refocus on striking a balance between: 1) Encouraging those who can be accountable but are choosing not to be (either willingly or because they lack risk intelligence), and 2) Providing appropriate support to those who lack the skills, resources, or other capacity to be accountable. 'Community resilience' is a feature measured on a collective scale. So is community vision and identity. https://lnkd.in/exRPMu-T

One thing I have always loved about Fifth Third is that we are made up of hundreds of branches that serve communities, staffed with local employees who care deeply about the businesses and people in our neighborhoods. Our hearts go out to everyone impacted by the recent hurricanes in the Southeast, and we are here to help. Please use or share these resources with anyone who could benefit. - Our Fifth Third Emergency Support page offers help and resources around loan payment hardship, insurance-related issues, and more. https://shorturl.at/NTKrQ - FEMA is offering assistance online, by phone, or through the FEMA app. https://shorturl.at/XbVMV - Red Cross offers help and resources and also provides opportunities to lend a hand.  https://shorturl.at/yH4gC “We’re in this together” has always struck me as trite at times like these, but Fifth Third is there, in impacted areas, and working to make a difference. How can we help?