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Residential flood damage from Hurricane Harvey could reach as high as $37 billion, with more than two-thirds of losses not covered by insurance, according to CoreLogic estimates.
Insured flood loss for homes in the 70-county area affected by the storm, including inland, flash and storm surge flooding, is projected to be between $6.5 billion and $9.5 billion; insured damage from wind is estimated to be an additional $1 billion to $2 billion, CoreLogic said.
A mail box narrowly breaks the surface above a flooded street in a suburb of Houston, Texas, as U.S Border Patrol riverine agents evacuate residents in the flooded areas in the aftermath of Hurricane Harvey August 30, 2017. U.S. Customs and Border Protection photo by Glenn Fawcett
Glenn Fawcett
But for the same area, uninsured residential flood loss is expected to be between $18 billion and $27 billion — or 70% of total residential flood losses.
Homeowners without insurance may still be able to receive federal disaster assistance through the Federal Emergency Management Agency. FEMA may be able to assist with loans and grants to cover losses and repairs, unemployment payments and rental payments for temporary housing, according to the Mortgage Bankers Association.
5 ways servicers are helping homeowners affected by Harvey
In the past, the top five most expensive hurricanes to the NFIP were Katrina (2005), Sandy (2012), Ike (2008), Ivan (2004) and Irene (2011). The storms cost the program more than $30 billion in payouts.
The Harvey recovery is expected to be among the most costly natural disaster rebuilding efforts in American history, with rainfall also setting a record for the continental U.S., according to the National Weather Service.
Upon his arrival in Corpus Christi, Texas, on Thursday, Vice President Mike Pence warned that housing for storm victims is emerging as the biggest challenge in Harvey recovery.
Consumer Financial Protection Bureau Director Rohit Chopra said the FICO credit-scoring model has drawbacks in price, predictiveness and market competition, and stakeholders should develop a more open-sourced model that uses artificial intelligence.
Smaller players face challenges when it comes to mortgage servicing rights, and larger ones have varying motivations, experts at an industry meeting say.
The 30-year fixed rate mortgage average resumed its climb that started in September, as the benchmark 10-year Treasury price still reflects views on inflation.
Fannie Mae's latest economic forecast no longer expects mortgage rates to go below 6% next year, and that is affecting its views on loan origination volume.
Amid steady customer growth, USAA's banking arm failed to make the investments necessary to satisfy either its regulators or some decades-long customers. Changes in the executive suite haven't fixed the problems.
The Consumer Financial Protection Bureau has significantly raised the transaction threshold for its larger participant rule — which defines which firms will be affected — from 5 million annual payments to 50 million.
