Historically, financial institutions have mandated risk transfer products such as homeowners insurance and, where required, flood insurance, as a protective buffer to avoid credit losses—that buffer has quickly eroded.. Through observed insurance premiums increases and the ever widening coverage gap between FEMA special flood hazard areas and actual disaster locations, lenders are facing a new and urgent financial reality: major weather events and dramatic premium increases are resulting in credit losses and foreclosures.
Join First Street’s climate implications team for a deep dive into the findings of the 13th National Risk Assessment, Climate, the Sixth “C” of Credit, the first national-scale analysis to quantify the connection between flooding, wildfire, and wind—and loan performance. You’ll learn how conventional credit models are missing hidden risk, particularly in areas outside FEMA-designated flood zones, where foreclosure rates are spiking after disasters.
Key finding: in a severe year, weather-driven mortgage foreclosures could lead to $1.2 billion in lender losses, with that number projected to grow to a potential $5.4 billion a year by 2035.
This webinar is essential for financial institutions, investors, insurers, and regulators seeking to understand the evolving credit landscape and apply climate-adjusted risk strategies.