The economic losses, which could easily number in the billions of dollars, are shouldered by the federal government - and ultimately taxpayers. Private sector investors in the housing market back away from communities facing severe climate risks, like rising sea levels, repeated flooding, and more severe wildfires. Fannie Mae and Freddie Mac, the massive government-backed companies charged with supporting affordable housing, continue issuing loans in risky areas, subsidizing homes in harm’s way. The ballooning financial losses force lenders to ratchet up interest rates. Their predictions are dire: As climate change worsens and natural disasters wreak havoc on America’s housing stock, homeowners increasingly default on their mortgages. This story was originally published by Grist and is reproduced here as part of the Climate Desk collaboration.Īn unexpected constituency is sounding the alarm on climate change: US mortgage bankers. Sign up for the free Mother Jones newsletter. Get a daily recap of the facts that matter.
