Mortgage Lenders Are Shifting Climate Risks Onto Taxpayers, Study Finds
Banks are attempting to shield themselves from climate change at taxpayers’ expense, by shifting riskier mortgages — such as those in coastal areas — off their books and over to the federal government, new research suggests. The findings, presented in a paper to be released Monday, represent “a potential threat to the stability of financial institutions,” according to the authors. They warn that the threat will grow as global warming leads to more frequent and more severe disasters, forcing more loans to go into default as homeowners cannot or would not make mortgage payments.
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