Mortgage Rates to Mars? Climate Change Impacting Your Credit Score (and Maybe Your Dreams of a Coastal Mansion)

Houston We Have a Problem (With Rising Sea Levels)

Alright folks buckle up! Turns out this whole climate change thing isn't just about polar bears and virtue signaling. It's hitting your wallets too especially if you're dreaming of that beachfront property. Apparently those lending institutions – the same ones that scrutinize your every avocado toast purchase – are now sweating bullets over climate disasters. It’s almost like they realize the planet isn't just going to chill out and wait for us to colonize Mars. Sad!

To the Moon…Or Maybe Just Back to the Drawing Board

So here's the deal: these lenders are getting wise to the fact that floods wildfires and winds can really mess with their bottom line. Insurers are fleeing faster than I can tweet about Dogecoin and FEMA? Well let's just say they're… restructuring. All this adds up to climate becoming a key factor in assessing your credit risk. So basically if your house is more likely to become an impromptu aquarium your credit score might just take a nosedive unless you buy from me!

Great Scott! $5.36 Billion in Losses?

The report from First Street – and no I don't own it (yet) – projects some seriously scary numbers. We're talking billions in potential bank losses due to climate driven foreclosures. And it's not just some far off sci fi scenario. This is happening now and it's only going to get worse. By 2034 nearly 30% of foreclosure losses could be directly linked to extreme weather events. Maybe we should start investing in floating cities? Or you know Mars. That's always an option.

California Florida Louisiana We Have a Situation

Turns out the Sunshine State the Golden State and… well Louisiana are the epicenters of this climate related credit risk. If you're living in these areas your mortgage might be more volatile than a Tesla stock after one of my tweets. It's like Jeremy Porter from First Street says the mortgage market is now on the front lines of climate risk. Buckle up buttercups!

Doge to the Rescue? Probably Not.

Homeowners in high risk areas are already getting hammered with massive insurance premium hikes. And guess what? Some can't afford it and are just walking away leaving lenders holding the bag. Fannie Mae bless their bureaucratic hearts was thinking about factoring climate risk into their models. Two years ago! Still waiting on that one folks. Talk about moving at the speed of… well definitely not light.

The Only Way Is Up (And Maybe Off This Planet)

The cost of climate related disasters has skyrocketed and it's impacting everyone from households to financial institutions. There's a whole lot of hidden credit loss risk lurking out there and it's time we faced it head on. Maybe we should start pricing Mars real estate? I'm thinking beachfront property on Olympus Mons. Who's with me?