Servicing

Risks include pushing debt-to-income ratios too high for qualifying and rising costs leading to defaults, all of which affect the secondary markets.

Borrowers are reacting to more media coverage of wider windstorm activity and events like a Tri-State earthquake, experts said.

The Congressional Budget Office acknowledged limitations in its research of expected flood damage data.

The total insured wind and storm surge losses in Texas will be between $700 million and $1.5 billion, Corelogic estimates.

In the three years since the Surfside condo collapse, Fannie Mae and Freddie Mac have made policy changes intended to address safety concerns.

There's temporary leeway on formal compliance with replacement-cost value requirements in order to sort out insurer concerns with a recent re-emphasis on them.

"Lax regulation and monitoring of property insurers makes Florida mortgage markets far more exposed to climate risk than people might think," said Parinitha Sastry, an author of a working paper by researchers at Harvard University, Columbia University and the Federal Reserve.

Cost of property coverage rose more than 55% over the last five years and it'll likely keep rising through 2024, a report from Guaranteed Rate found.

More borrowers are taking action but lack good information, Fannie Mae finds. Meanwhile, premiums are up yet insurers struggle to profit, a separate KBRA study shows.

The market could find out next year how well foreclosure prevention innovations and home equity protect borrowers from growing strains on affordability.