This podcast is part three of a three-part series between Summit andMillimanabout mortgage finance. Check out other partshere.
In part one of the podcast series, Ken Bjurstrom of Milliman and Josh Goldberg of Summit discussed the special role of the Federal Housing Administration in mortgage finance, and in part two, they talked about the more technical aspects of risk management within a federal government context.
Late last year, the Office of Management and Budget released action steps to address climate related fiscal risk, including creating a Climate-Related Financial Risk Task Force under the Federal Credit Policy Council to “advance interagency analysis and opportunities for better integrating climate-related financial risk into Federal underwriting standards, loan terms and conditions, and asset management and servicing procedures.” This is a big undertaking! In the final part of our three-part podcast series with Ken and Josh, Ken describes the analytical and actuarial approaches to modeling climate-related risk.
They also discuss priorities on equity and fair lending, both at the U.S. Department of Housing and Urban Development and the Consumer Financial Protection Bureau. This is an important administration priority and also one that lends itself to—and moreover requires—statistical evidence and analysis. In the mortgage industry, this includes appraisal discrimination but stretches to all aspects of the lending life cycle, from origination to servicing and loss mitigation.
Listen to part three of the podcast below, and let us know what you think!