Insurance

Mortgage professionals are focusing on housing policies and the Federal Reserve this November.

Losses related to natural disasters and other perils rose for the seventh year, and that costs both insurers and consumers more money, LexisNexis said.

As this year's natural disasters bring heightened attention to the cost and availability of homeowners insurance, servicers often find themselves caught in the middle when customers see premium hikes.

Flood maps, which designate areas where mortgage borrowers must buy policies are often out of date and don't focus on the danger of rain-caused issues.

Over 4 million residents in the region, both coastal and inland, face dangers similar to residents in Hurricane-weary Florida, Louisiana and Texas.

The incidence of at least four flood insurance payouts totaling $20,000-plus, or at least two totaling more than the building's market value, is growing.

The disaster underscores Americans' dangerously low levels of flood insurance coverage, especially away from coastal areas. 

The 13 largest homeowners insurance underwriters denied almost half of their climate-related claims last year, adding to property owner and mortgage servicer woes.

The program lapsing would've precluded mortgage applicants from closing on home loans without the required coverage in federally designated flood zones.

Awareness of disaster risk has increased in the public and private sectors, and it appears to be prompting more interest in home improvements in particular.

The Federal Housing Finance Agency has agreed to more regular checks on the government-sponsored enterprises' flood compliance, which impacts mortgage companies.

A Billings, Montana-based First Interstate Bank agreed to a five-figure penalty to resolve charges it engaged in National Flood Insurance Act violations.

The interim procedure applies to nonjudicial foreclosure sales and is aimed to help avert "immediate adverse financial and market impacts" when surplus funds are not available.

A Congressional Budget Office study looks under the hood at homeowners insurance and considers strategies like expanding the federal coverage beyond floods.

How challenges created by climate change and some regulations related to it can create new avenues for business according to Chief Credit Risk Officer of Planet Home Lending.

Risks include pushing debt-to-income ratios too high for qualifying and rising costs leading to defaults, all of which affect the secondary markets.

Soaring insurance costs may add to escrowed funds that servicers can earn money on in some cases, but higher premiums also could lead to affordability issues.

One California insurer received an approved rate change for 56.4%, an increase affecting over 17,000 borrowers.

Borrowers are reacting to more media coverage of wider windstorm activity and events like a Tri-State earthquake, experts said.

InnSure executive director shares how communities can combat higher rates and mitigate climate risk by taking control of their insurability.