What have you always wondered about the economy? Tell Us

The government is buying up mortgages with climate risk — report

Justin Ho Sep 30, 2019
HTML EMBED:
COPY
A man carries an American flag he found as he walks on the foundations of homes demolished by hurricane Michael in October 2018 in Mexico Beach, Florida. Joe Raedle/Getty Images

The government is buying up mortgages with climate risk — report

Justin Ho Sep 30, 2019
A man carries an American flag he found as he walks on the foundations of homes demolished by hurricane Michael in October 2018 in Mexico Beach, Florida. Joe Raedle/Getty Images
HTML EMBED:
COPY

A natural disaster like a flood or a hurricane can destroy and severely damage property — something we’ve seen happen in coastal regions during every hurricane season. This has, among other things, a big impact on the value of those homes and the mortgages their owners take on. There’s a new paper out today from the National Bureau of Economic Research that says banks have been offloading more of those risky mortgages to the federal government, leaving taxpayers on the hook if homeowners default.

Click the audio player above to hear the full story.

Marketplace is on a mission.

We believe Main Street matters as much as Wall Street, economic news is made relevant and real through human stories, and a touch of humor helps enliven topics you might typically find…well, dull.

Through the signature style that only Marketplace can deliver, we’re on a mission to raise the economic intelligence of the country—but we don’t do it alone. We count on listeners and readers like you to keep this public service free and accessible to all. Will you become a partner in our mission today?

Your donation is critical to the future of public service journalism. Support our work today – for as little as $5 – and help us keep making people smarter.