The latest economic and policy trends facing mortgage servicers

Join this webinar for an in-depth roundtable discussion on economic and policy trends impacting servicers as well as a look ahead at strategies servicers should employ in the next year.

2021 RealTrends Brokerage Compensation Report

For the study, RealTrends surveyed all the firms on the 2021 RealTrends 500 and Nation’s Best rankings, asking for annual compensation data for the 2020 calendar year.

Steve Murray on the importance of protecting property rights

In this episode, Steve Murray, RealTrends advisor and industry stalwart, discusses some of the issues facing private property rights, including how a case in Germany could potentially affect U.S. legislation.

Lenders, it’s time to consider offering non-QM products

The non-QM market is making a comeback following a pause in 2020. As lenders rush to implement, Angel Oak is helping them adopt these new lending products.

Real Estate

Here’s how climate change could also change home values

Chronic flooding may hit areas with the most poverty

Poorer communities in the U.S. are more likely to face falling home values as they struggle to adjust to floods and rising insurance costs, according to an article from Bloomberg.

The Bloomberg article cited analysis from the San Francisco Reserve, which showed that nearly 40% of 175 communities that may see chronic flooding by 2045 also have poverty levels above the national average.

“As the frequency and severity of floods in the U.S. continues to increase due to climate change, the shortcomings of our current tools will be increasingly insufficient to quantify flood risk,” the report said.

Because of increased levels of flood risk, real estate values stand an overwhelming chance of decreasing.

According to Zillow, more than 800,000 existing homes worth $451 billion are at-risk for a 10-year flood by 2050. By 2100, those numbers will jump to 3.4 million existing homes worth $1.75 trillion.

Over the past decade, tidal flooding has risen in many coastal communities. However, since 2009, a third of the nation’s coastal cities have seen an influx of new homes being built, worth trillions.

And those homes, even the ones not directly next to the water, are at an increased risk of flooding. There is a 10% annual risk of this type of devastating flood, reaching farther inland than they do now. These floods cause many problems, leading to an increase in cost of insurance, as well.

While Zillow says Florida is the No. 1 state with the highest risk of chronic flooding by 2100, New Jersey sits No. 2, along with Mississippi and Connecticut, and other coastal states.

“This can be disastrous for a homeowner whose house is their largest asset and a substantial portion of their net worth,’’ the report said. “This will have a disproportionate adverse impact on low- and moderate-income households. Obviously, this can result in a downward spiral of property values for such communities.’’

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3d rendering of a row of luxury townhouses along a street

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