An unexpected constituency is sounding the alarm on climate change: US mortgage bankers.
Their predictions are dire: As climate change worsens and natural disasters wreak havoc on America’s housing stock, homeowners increasingly default on their mortgages. The ballooning financial losses force lenders to ratchet up interest rates. 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. 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….