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Backers of most U.S. mortgages have done little about climate risks

The article from The Seattle Times discusses how the major backers of U.S. mortgages, such as Fannie Mae and Freddie Mac, have largely ignored the growing risks posed by climate change. Despite the increasing frequency and severity of climate-related events like wildfires, floods, and hurricanes, these government-sponsored enterprises (GSEs) have not significantly altered their policies or risk assessments to account for these threats. The piece highlights that while some private insurers and banks are beginning to factor climate risks into their operations, the GSEs, which underpin a significant portion of the U.S. housing market, continue to operate under outdated models. This inaction could lead to substantial financial exposure for taxpayers, as these entities are implicitly backed by the government. The article also notes that there is a growing call from environmental groups, researchers, and some policymakers for these institutions to adapt their practices to mitigate the financial risks associated with climate change.

Read the Full Seattle Times Article at:
[ https://www.seattletimes.com/business/backers-of-most-u-s-mortgages-have-done-little-about-climate-risks/ ]