Ted Tozer explains the climate threat for lenders and servicers

Ted Tozer warns lenders and servicers to heed the consequences of climate change, which could devalue the service and lead to repurchases.

The former Ginnie Mae leader and housing strategist, outspoken on mortgage issues Since leaving his post in 2017, he has raised many concerns at the Americatalyst conference in Washington DC last week about the threats that warming temperatures and severe weather pose to lenders, servicers, property insurers and borrowers.

Tozer, in an interview with National Mortgage News, defined the climate challenge for mortgage companies, including increased underwriting fees, buybacks and devalued services. While acknowledging the term “climate change” is a sensitive topic for some, Tozer emphasized that the industry should not focus on the causes of the worsening weather, but rather on the impacts that changes like rising waters could have on the U.S. housing financing system .

Editor’s note: This interview has been edited for length and clarity. Questions from reporters are in bold and Mr. Tozer’s answers are below in body text.