Fannie and Freddie, the Big Mortgage Backers, Face Climate Risks

Published On Dec 7, 2024, 5:02 AM

Fannie Mae and Freddie Mac are facing significant challenges as climate change increases the risk of natural disasters, particularly in vulnerable coastal and mountain areas. Despite recognition from financial regulators that these risks could destabilize the mortgage market, concrete actions have not been taken to protect homeowners or the financial system. The limited guidance from regulatory bodies raises concerns about the potential need for government intervention if these entities incur large losses due to climate-related risks.