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Climate change could impact your mortgage even if you live nowhere near a coast

“Fannie and Freddie, with their added liquidity in a huge mortgage market, essentially make possible the popular 30-year, fixed-rate mortgage” writes Rachel Koning Beals for marketwatch.com. They found that, after those hurricanes, lenders increased by almost 10% the share of coastal mortgages offloaded to Fannie and Freddie.That puts the health of the mortgage market at risk, a potential repeat of the financial conditions at the root of the banking crisis a decade ago, a research paper published Monday argues. But the worrisome lag, as the Ouazad and Kahn paper suggests, lies with the multitrillion-dollar lending market and an increasingly exposed Fannie and Freddie.
 
Source: marketwatch.com



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