Podcast Episode 1.07

Housing Market Climate Risk with Amine Ouazad

Dr. Amine Ouazad speaks with Climate Now about how climate could spark the next financial crisis.

Sea levels are rising, storms are worsening, and flooding is consistently exceeding FEMA’s 100-year floodplain maps. Yet, an increasing percentage of new mortgages are used to purchase homes in at-risk areas. And lenders are selling mortgages in areas hit by hurricanes at higher rates to Fannie Mae and Freddie Mac, who are backed by American taxpayers, according to research done by Dr. Amine Ouazad, Professor of Economics at HEC Montreal.

Featuring:

Amine Ouazad
Professor of Economics

X

Amine Ouazad

Professor of Economics

Dr. Amine Ouazad is a professor of economics at HEC Montreal where he holds the endowed research professorship in “Urban and Real Estate Economics.” Dr. Ouazad is also a Senior Fellow at Johns Hopkins 21st Century Cities Initiative.

Hosted By:

Katherine Gorman
Climate Now Host

X

Katherine Gorman

Climate Now Host

Katherine Gorman is a podcast host for Climate Now. She has worked for terrestrial public radio stations across the US, and is also co-host of the podcast “The Talking Machines”. She is excited to democratize the climate conversation and to learn and share knowledge from experts in the field.

James Lawler
Climate Now Host

X

James Lawler

Climate Now Host
James Lawler is the founder of Climate Now. James started Climate Now as a way to learn about climate change and our energy system. Climate Now’s mission is to distill and communicate the science of our changing climate, the technologies that could help us avoid a climate crisis, and the economic and policy pathways to achieve net zero emissions globally. James is also the founder of Osmosis Films, a creative studio.

 

Sources

Ouazad A., and Kahn M.E., Mortgage Finance and Climate Change: Securitization Dynamics in the Aftermath of Natural Disasters, The Review of Financial Studies, forthcoming.

Jelesnianski, C., Chen, J., Shaffer, W. and Gilad, A., 1984, September. SLOSH-A hurricane storm surge forecast model. In OCEANS 1984 (pp. 314-317). IEEE.

Gete, P., Tsouderou, A. and Wachter, S.M., 2020. Mortgage Stress without Government Guarantees. Lessons from Hurricanes and the Credit Risk Transfers.

Ouazad, A., 2020. Coastal Flood Risk in the Mortgage Market: Storm Surge Models’ Predictions vs. Flood Insurance Maps. arXiv preprint arXiv:2006.02977.

Keys, B.J. and Mulder, P., 2020. Neglected No More: Housing Markets, Mortgage Lending, and Sea Level Rise (No. w27930). National Bureau of Economic Research.

Goodman et al, 2021. Housing finance at a glance, Urban Institute, April 2021, “Overview, Market Size Overview”.

NOAA, 2020. Sea Level Rise Viewer v. 3.0, https://coast.noaa.gov/slr/

Kousky, C., 2018. Financing Flood Losses: A Discussion of the National Flood Insurance Program, Risk Management and Insurance Review, https://doi.org/10.1111/rmir.12090

Federal Reserve Bank of New York, 2019. Household Debt and Credit. Center for Microeconomic Data, https://www.newyorkfed.org/medialibrary/interactives/householdcredit/data/pdf/hhdc_2019q1.pdf

Share podcast: