Need a home mortgage? Here's how climate change could hit your credit score

Climate has therefore become an increasingly important consideration in assessing credit score risk, right along with a consumer's debt, income and collateral in the home, according to a new report from First Street, a climate risk assessment firm. Just 10 years from now, as weather events grow more frequent and more destructive, those credit losses could increase to $5.36 billion, representing nearly 30% of foreclosure losses. If lenders start factoring climate into their underwriting, then a consumer's credit score could fall or even rise depending on the risk to their property. "Mortgage markets are now on the front lines of climate risk," said Jeremy Porter, head of climate implications at First Street. "Our modeling demonstrates that physical hazards are already eroding foundational assumptions of loan underwriting, property valuation, and credit servicing—introducing systemic financial risk."