Adrian Johnson
TLDR: Servicing, Accounting, TPO Products; What Every Lender and Servicer Should Know About Catastrophes
- Climate and catastrophe risk modeling is impacting the pricing of loans and servicing.
- Insurers are ahead of lenders and servicers in assessing risk and adjusting costs.
As many from the conference fly home, there was a lot of information flying around the conference this week. The article covers the increasing costs associated with obtaining credit reports, how technology companies in the mortgage industry are enhancing their products, and the growth of TPO Go in the wholesale lending market.
The article stresses the importance of understanding and incorporating climate and catastrophe risk modeling into the valuation of assets, loan servicing, and insurance policies. It highlights the dynamic nature of catastrophe modeling and the need for lenders and servicers to update their models accordingly.
Additionally, the article discusses the recent increase in weather and climate-related disasters, the impact on insurance rates, and the challenges faced by homeowners and servicers in high-risk areas. It emphasizes the need for comprehensive disclosures and more granular climate and catastrophe information to be integrated into loan servicing and asset valuation practices.
