Texans hit hard by flooding in the wake of Harvey have been given 90 days of forbearance by Fannie Mae and Freddie Mac, the Federal Housing Administration (FHA) announced Wednesday. The offer may extend up to a year in certain cases.
Under the terms of the forbearance, borrowers would not have to make their monthly payments, and no penalty fees would be charged, though interest would still accrue.
“This is an unprecedented crisis in the region as it relates to housing. We are not even at the point where we can evaluate the total costs, walkaways, insurance coverage, homes uninsured, jobs lost, not being able to make your mortgage payments…” said Dave Stevens, CEO of the Mortgage Bankers Association.
With much of South-East Texas focused on surviving and looking for shelter, the forbearance isn’t a surprise.
Via CNBC:
In the Houston area and outlying areas hit by Hurricane Harvey, there are more than twice as many mortgage properties with nearly four times the unpaid principal balance as there were in the Louisiana and Mississippi counties hit by Hurricane Katrina in 2005. If the impact on homes is similar, more than 75,000 Houston borrowers could become unable to make a mortgage payment within the next two months and 45,000 could become seriously delinquent on their loans in the next four months, according to Black Knight Financial Services.
Via USA Today:
All these people taken out in boats, they have a second problem: They have no insurance,” said Robert Hunter, director of insurance at the Consumer Federation of America.
Harvey made landfall in Texas late Friday as a Category 4 hurricane and has lingered off the coast, dropping heavy rain as a tropical storm. Hunter expects flood damage alone from the storm to cost at least $35 billion, about what Katrina cost. But in that 2005 hurricane about half of flooded homes were covered by flood insurance.
With Harvey, only two of 10 homeowners have coverage, Hunter estimates.
Homeowner’s insurance typically covers wind damage, while floods are generally covered with separate riders. With most of the Houston area falling outside historic flood zones, most homeowners skipped coverage in the nation’s fourth largest city.
About 1.2 million properties in the Houston-Sugarland-Baytown area are at high/moderate risk of flooding but are not in a designated flood zone requiring insurance, research firm CoreLogic estimates. That’s roughly half of all properties — residential and commercial — in that area. –USA Today
“There’s going to be a huge uninsured economic loss here,” said Pete Mills of the Mortgage Bankers Association.
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So 20% have flood insurance and these are the folks that got flooded. The 80% that did not get flooded and are not in a flood plain do not need flood insurance.
THE WHOLE CITY DID NOT FLOOD, ONLY PORTIONS. THE CITY IS 1800 SQUARE MILES.
FAKENEWS
Where the fuck are you getting that from?
“Insurance experts say only a small fraction of homeowners in Harvey’s path of destruction have flood insurance.”
“Unlike Corpus Christi and Rockport, much of the Houston area was damaged by flooding, not winds.”
“All these people taken out in boats, they have a second problem: They have no insurance,” said Robert Hunter, director of insurance at the Consumer Federation of America.”
Only 5% of my neighborhood flooded because there are some morons who want to live by the bayou and FLOOD INSURANCE IS MANDATORY for them, so they are covered and they were out there today throwing their furniture, rugs, carpet, flooring out the front door.
And just like out of the millions of homes in Houston, only 100,000 homes are without power
Next time I will draw a picture for you.
There are still a lot of people in Houston who have been flooded that do not carry flood insurance mainly because this flood exceeded statistical norms in size and scope. If you live near the bayous, yes, you likely have flood insurance since living in flood planes require it. Much of the flooding from this hurricane flooded homes outside of the 100 year plane.
hey mooby, I’m here in Houston, everything flooded. This is spot on and its going to be a shit show.