Climate change is changing many things. One of the many things that it is changing is the future of the 30 year mortgage. What will happen when people take out mortgages that they can walk away from? What will happen when people can’t get mortgages?

Well, it appears that the market may finally stop people from buying in flood prone areas. Maybe.

There is a bigger question as well. When these mortgages are transferred to Fannie or Ginnie Mae, guess who will ultimately pay for the loans? Go on, guess?

Yes, that is right, we will.

It is time that development at the shore and flood prone areas STOP. We all want to live near water..it is nice…but there is a price to pay for that. IF people want to live near water….they should:

1.Pay whatever the premium is needed to get a mortgage on their own dime.
2.Pay the true cost of insurance for flood protection.
3.Move if they can do neither…

However, we need to beef up the Blue Acres type programs to buy out people who are stuck in these areas because:

1.They are in poorer communities that were built in a flood plain….This is all too common.
2.They are incapable of moving for financial reasons.

People who bought in these areas who are either buying vacation homes or living large on the water should be cut loose.

We will see.

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Rising Seas Threaten an American Institution: The 30-Year Mortgage