5 days ago
Banks are avoiding mortgage loans in California's wildfire zones, study says
California's growing wildfire risk is affecting the state's mortgage market, a new study has found, with brick-and-mortar banks approving fewer home loans in risky areas — while their online counterparts are continuing to lend there.
The findings suggest growing concern among traditional lenders that fires in California could cause borrowers to default, as mounting losses from wildfires make it harder for residents to adequately insure their homes. Online lenders have taken the opposite approach, the study found, offering better loan terms to borrowers in high-risk areas.
