[{"@context":"https:\/\/schema.org\/","@type":"BlogPosting","@id":"https:\/\/www.fight13.com\/how-climate-change-is-affecting-the-mortgage-industry-and-foreclosures#BlogPosting","mainEntityOfPage":"https:\/\/www.fight13.com\/how-climate-change-is-affecting-the-mortgage-industry-and-foreclosures","headline":"How Climate Change Is Affecting The Mortgage Industry and Foreclosures","name":"How Climate Change Is Affecting The Mortgage Industry and Foreclosures","description":"Climate change poses an imminent threat to the mortgage industry. In recent years, extreme storms, natural disasters, and precarious shifts in climate are damaging homes in areas where borrowers might not have invested in flood or fire insurance. According to CoreLogic, mortgage delinquencies on damaged homes increased more than 200%...","datePublished":"2019-02-18","dateModified":"2025-09-19","author":{"@type":"Person","@id":"https:\/\/www.fight13.com\/attorneys\/matis-h-abarbanel#Person","name":"Matis Abarbanel","url":"https:\/\/www.fight13.com\/attorneys\/matis-h-abarbanel","identifier":55,"image":{"@type":"ImageObject","@id":"https:\/\/www.fight13.com\/wp-content\/uploads\/2025\/09\/matis-abarbanel_avatar-96x96.png","url":"https:\/\/www.fight13.com\/wp-content\/uploads\/2025\/09\/matis-abarbanel_avatar-96x96.png","height":96,"width":96}},"publisher":{"@type":"Organization","name":"Loan Lawyers, LLC","logo":{"@type":"ImageObject","@id":"https:\/\/www.fight13.com\/wp-content\/uploads\/2020\/03\/icon-logo.png","url":"https:\/\/www.fight13.com\/wp-content\/uploads\/2020\/03\/icon-logo.png","width":600,"height":60}},"image":{"@type":"ImageObject","@id":"https:\/\/www.fight13.com\/wp-content\/uploads\/2020\/03\/climate-change.jpg","url":"https:\/\/www.fight13.com\/wp-content\/uploads\/2020\/03\/climate-change.jpg","height":667,"width":1000},"url":"https:\/\/www.fight13.com\/how-climate-change-is-affecting-the-mortgage-industry-and-foreclosures","about":["Foreclosure Defense"],"wordCount":732,"keywords":["climate change","foreclosure","mortgage industry"],"articleBody":"Climate change poses an imminent threat to the mortgage industry. In recent years, extreme storms, natural disasters, and precarious shifts in climate are damaging homes in areas where borrowers might not have invested in flood or fire insurance. According to CoreLogic, mortgage delinquencies on damaged homes increased more than 200% (source). With the prediction of stronger storms and more extreme weather phenomena in the future, the mortgage industry is growing more and more concerned about a foreclosure crisis that could be coming.Natural Disasters And ForeclosuresThe mortgage industry fears that they aren\u2019t prepared for the increase in foreclosures that are bound to result from rising sea levels and more extreme natural disasters. In light of this, Ed Delgado, CEO of Five Star Institute, explains, \u201cIf we look at the basic foundation of what drives the mortgage market, it is the application of credit risk. What\u2019s missing is the understanding of weather risk and where those weather events take place\u2026whether it\u2019s fires and mudslides in California, flooding in Texas, or tornadoes in the Oklahoma region, it\u2019s going to be a problem if the banks don\u2019t start to pay closer attention to what those weather risks are\u201d (source). Unfortunately, many of these mortgage systems don\u2019t include the concept of climate change which is proving to be a major problem for housing markets across the US.Here\u2019s what the current guidelines usually entail:Temporary postponement of foreclosures and loan forbearance programs are usually put in place which extends the length of the loan, allowing borrowers to miss a few payments. This system is put in place to help homeowners who are waiting for insurance payments to repair damage made to their homes.While the guidelines may be helpful in singular events, mortgage markets have not taken into consideration the risk associated with underwriting loans while factoring the potential losses associated with borrowers leaving behind their damaged homes.Hurricane HarveyFor example, back in 2017, Hurricane Harvey flooded and destroyed over 100,000 homes throughout the Houston area. In the aftermath of that detrimental storm, researchers found that 80% of those homes did not have flood insurance. This is because Houston is not an area that\u2019s typically prone to flooding. Due to homeowners\u2019 inability to pay for the damages made to their home (without insurance), many Houston homes went into foreclosure and were later auctioned off. In light of significant investor demand in the market, Houston narrowly avoided a foreclosure crisis. Unfortunately, in the coming years, many cities won\u2019t be as lucky as Houston was in the investor market.For homes that aren\u2019t within a hot housing market, foreclosures will occur far and wide in the wake of a detrimental storm or natural disaster. This is especially true for homes that are not listed in the FEMA floodplains. Across the country, countless lenders (and the federal government) base their risk on FEMA\u2019s flood maps. However, FEMA is only required to update their maps every five years. After Hurricane Harvey, researchers found that many of the damaged homes in the area were far off of FEMA\u2019s flood plain, which can be problematic in years to come as sea levels continue to rise and natural disasters grow more fierce.Climate-induced foreclosures are sure to increase in the coming years. It\u2019s up to mortgage companies to incorporate the risk of natural disasters in their borrowing terms to reduce the financial damage that could follow.Our Fort Lauderdale foreclosure attorneys are here to help. Contact us today at 954-523-HELP (4357).About the AuthorLatest PostsMatis AbarbanelMatis Abarbanel is the founding partner and senior attorney at Loan Lawyers in South Florida. He focuses his practice on consumer rights, helping homeowners navigate issues such as foreclosure and financial hardship. Matis also brings a wealth of experience from his previous work in personal injury law. As a devout Chasidic Jew, he is committed to making a positive impact in his community and dedicates his efforts to charitable initiatives through his non-profit organization, The Center, which aids at-risk Jewish youth. Matis actively serves clients across South Florida and is passionate about empowering individuals to secure their rights and achieve a better future.When Foreclosure Errors by Lenders Lead to Legal Remedies for Homeowners in Fort LauderdaleWhat Homeowners Can Do When Loan Documents Contain Forged or Altered SignaturesUnderstanding Florida\u2019s Debt Forgiveness Programs and IRS Rules"},{"@context":"https:\/\/schema.org\/","@type":"BreadcrumbList","itemListElement":[{"@type":"ListItem","position":1,"name":"How Climate Change Is Affecting The Mortgage Industry and Foreclosures","item":"https:\/\/www.fight13.com\/how-climate-change-is-affecting-the-mortgage-industry-and-foreclosures#breadcrumbitem"}]}]