Insurance

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.

Roughly 13% of homeowners in the top state are uninsured.

The Congressional Budget Office acknowledged limitations in its research of expected flood damage data.

Even with rising premiums, the disincentive is not enough to drive homeowners away from risky areas, said the chairman of Swiss Re.

Advocates and critics weigh in on condo title-risk mitigants that cost less upfront than traditional insurance as climate risks add to broader coverage costs.

Western utilities and beyond are finding it prohibitively expensive, if not impossible, to insure against potential fire-related claims. The issue will become more pressing as climate change makes droughts more intense and frequent, heightening the chances of more destructive infernos.

Nearly one-in-five homeowners have to borrow to pay unexpected expenses related to their property, although 24% claim to have a rainy day fund, according to Bankrate.

Unusual spikes in property taxes and insurance in many areas are causing servicing concerns that mortgage companies may not be used to managing.

There's temporary leeway on formal compliance with replacement-cost value requirements in order to sort out insurer concerns with a recent re-emphasis on them.

Above and beyond the obvious damage, wildfires levied a hidden cost on the finance industry: Mortgage lenders and investors lost more than $30 billion between 2020 and 2022, due to both accelerated defaults and prepayments following disastrous blazes.

Technology is helping carriers to better manage their risk portfolios when it comes to underwriting and managing weather-related property risks.