Study finds fintech lenders approve more mortgages in wildfire-prone areas
1 report, 1 independent
Updated Oct 13
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What happened
A study examining over 730,000 California mortgage applications from 2018 through 2020 found that traditional mortgage lenders became less likely to approve loans and charged more in areas with high wildfire risk. In contrast, fintech lenders were more likely to approve mortgages in these high-risk areas and charged relatively lower interest rates there.
From insurancejournal.com
Why it matters
The findings suggest that climate change is influencing lending practices, forcing traditional lenders to adjust their risk assessment for homes in fire-prone regions. This contrast in lending behavior between traditional and online lenders could affect housing market access and costs.
From insurancejournal.com
Who's involved
- Jesse KeenanResearcher who co-authored the study on mortgage lending practices.
- FloridaState whose climate impacts are addressed in Keenan's research.
- New York UniversityUniversity mentioned in connection to Keenan's research.