Beyond the Buildings

Wildfires are an annual occurrence in many areas of the U.S. However, as our climate changes, fires are beginning to ignite in areas that are traditionally at low risk. Just look at the Hawaiian island of Maui.Despite the increasing number of regions experiencing wildfires, only about 9% of U.S. properties meet the threshold for high or extreme wildfire risk. So how exactly is this risk measured and what role can mitigation play in reducing this natural danger?In this episode host Maiclaire Bolton Smith sits down with CoreLogic Chief Actuary Howard Kunst to talk about this subject. The two will discuss the wildfire season with a focus on California — one of the most high-profile, wildfire-burdened states in the country — and how the historic rainfall from earlier this year will influence upcoming wildfire risk.In This Episode:1:25 – California had one of the wettest winters on record last year. How has that changed wildfire risk in the state? Hint: It didn’t necessarily improve things.4:08 – Why is awareness of wildfires important for mitigation and how do we create awareness in low-risk areas?6:07 – Is climate change really making wildfires worse?7:30 – Erika Stanley talks about extreme weather events in the Natural Disaster Digest.Links:U.S. Home Price Insights ReportWildfire Risk ReportHow Will Property Data Help Manage the California Insurance Crisis?Up Next: Does Low Wildfire Risk Create a False Sense of Security?Find full episodes with all our guests in our podcast archive here: https://clgx.co/3zqhBZt

Knowing the wildfire risk of a home is becoming increasingly important — both for homeowners and insurers. However, it is insufficient to simply know that there is a probability of a wildfire occurring at a certain property. It is imperative to understand the development of historic risks into current risks and how this score will evolve in the future. After all, low risk today does not mean no risk tomorrow.While only about 9% of U.S. properties meet the threshold for high or extreme wildfire risk, it is worth questioning why wildfires are creating increasingly large damage figures for homeowners and insurers. In short, climate change, where homes are built, and their construction type all play a role.However, that is not the full story.Understanding how risk scores are created, what a property’s risk score actually means, and knowing how to promote mitigation — even among homes that qualify as low risk — are essential strategies for maintaining safety in environments that are experiencing prolonged and more frequent wildfire seasons than usual.In this episode, host Maiclaire Bolton Smith sits down with CoreLogic Chief Actuary Howard Kunst to talk about wildfire risk, how to use a risk score to map those potential threats, and what different actions insurers can take based on the score.In this Episode:2:14 – How do we calculate wildfire risk?3:25 – How are these scores used and why are they different than probabilistic models?7:04 – How long is a risk score valid, and why is it wise to annually evaluate risk scores across a property portfolio?8:52 – What are the thresholds for low, medium and high risk? Why are nearly all U.S. properties low risk?12:08 – Erika Stanley goes over the numbers in the property market with The Sip.13:15 – Why are low-risk areas like Maui, Hawaii seeing wildfire events that cause widespread devastation?Links:U.S. Home Price Insights ReportWildfire Risk ReportHow Will Property Data Help Manage the California Insurance Crisis?Up Next: Can Wildfire Mitigation Stop the California Insurer Exodus?Find full episodes with all our guests in our podcast archive here: https://clgx.co/3zqhBZt

El Niño has undoubtedly impacted the 2023 hurricane season. But it is not the only weather pattern that is exerting influence. Ocean temperature — also known as sea surface temperature — is also driving the storms swirling in the Atlantic Ocean. As reports of record-breaking temperatures in the Atlantic appeared this summer, scientists at the National Oceanic and Atmospheric Administration (NOAA) began to postulate that this season will be an above-average one.As the season progresses, the question has now become: How will insurers fare if one, two or even several storms bring damage to the U.S. housing market?Another burning question that this conversation touches on is how this summer’s Typhoon Dora in the Pacific Ocean may have created weather patterns that influenced the August wildfire on the Hawaiian island of Maui.In this episode, host Maiclaire Bolton Smith continues the conversation with CoreLogic's Director of Catastrophe Response Jon Schneyer to talk about if insurers are ready for another storm to hit the U.S. and what this season could bring.In This Episode:0:44 - How is the insurance industry going to fare if we get multiple bad storms this year?3:45 – What does the appearance of EL Niño mean for Pacific hurricane activity? Are the devastating wildfires of Maui connected to this climate phenomenon?6:18 – Erika Stanley talks about what is going on in the world of weather in the Natural Disaster Digest.U.S. Home Price Insights ReportWildfire Risk ReportHazard HQ Command CentralUp Next: Will Scorching Ocean Temps or El Niño Define Hurricane Season?Find full episodes with all our guests in our podcast archive here: https://clgx.co/3zqhBZt

The 2023 hurricane season has so far been a wild ride — but that shouldn't be a surprise. With the El Niño Southern Oscillation (ENSO) swinging into an El Niño pattern and reports of triple-digit ocean temperatures in the Gulf of Mexico, June through November was bound to bring some noteworthy activity, and that pattern could continue.But what does the combination of El Niño — which is known to dampen hurricane activity — and record-breaking sea surface temperatures in the Atlantic have to do with an active 2023 hurricane season? Well, a lot.The influence of these weather phenomena is readily apparent from the activity in the Gulf of Mexico at the end of August. From Hurricane Idalia, which brought considerable damage to the Florida coast, to Hurricane Franklin, which soaked Hispaniola and spun a little too close for comfort off the coast of Bermuda, the 2023 hurricane season is peaking. Not to mention that the season started off with the simultaneous appearance of Hurricanes Bret and Cindy.In this episode, host Maiclaire Bolton Smith sits down again with CoreLogic Director of Catastrophe Response Jon Schneyer to talk about the science behind the interaction between ENSO and sea surface temperatures and how knowing a little science can help with seasonal hurricane predictions.In This Episode:2:20 – What is El Niño and what does it mean as we shift from La Niña to El Niño conditions?3:50 – Are the patterns we are seeing this year abnormal?6:42 – Erika Stanley goes over the numbers in the property market.7:53 – How do ocean patterns affect hurricane activity?12:03 – Are we on track to fulfill NOAA's predictions of an above-average hurricane season in 2023? 13:51 – Update on the 2023 hurricane season.Links:CoreLogic monthly economic reportsWeather response and analysis by Jon SchneyerUp Next: Can Wildfire Mitigation Stop the California Insurer Exodus?Find full episodes with all our guests in our podcast archive here: https://clgx.co/3zqhBZt

More and more people live in high wildfire-risk areas across the United States. In fact, according to CoreLogic’s 2023 Wildfire Risk Report, California, Colorado and Texas lead the nation in the number of at-risk homes and their total reconstruction cost value. The influx of people into these areas means that there is continued demand for insurers to provide coverage, even though climate change is increasing the potential for and the severity of these wildfires.While some insurance companies have elected to no longer write new policies in California – a state that is particularly burdened by wildfires – there are opportunities to reduce risk both for homeowners and for carriers. Mitigation is a major component.Mitigation is not just a trend but a long-term solution. When individuals, governments and insurers work together to create a buffer around a community by fortifying structures and removing potential sources of ignition, CoreLogic and Milliman showed that these efforts could correspond to a 55% reduction in the average total premium (not including reinsurance costs).In part two of this Core Conversations episode, host Maiclaire Bolton Smith talks to Senior Product Manager Jamie Knippen about how preparedness for a hazard through education and mitigation is the key to creating resilience for individuals, communities, governments and the insurance industry.In This Episode:0:51 – What is the advantage of using models to determine wildfire risk?1:46 – CoreLogic and Milliman studied how significantly mitigation would have affected the outcome of the fire in Paradise, California.4:19 – How did CoreLogic and Milliman get involved in this study?6:13 – How can understanding a view of future risk rather than looking at historic wildfire events improve outcomes?6:52 – Erika Stanley goes over the Natural Disaster Digest7:53 – Adopting probabilistic models: the when, why and how.8:50 – What is the future of wildfire insurance across the U.S.?Links:U.S. Home Price Insights ReportWildfire Risk ReportUp Next: How Will Property Data Help Manage the California Insurance Crisis?Find full episodes with all our guests in our podcast archive here: https://clgx.co/3zqhBZt

Home insurance is a critical consideration when applying for a mortgage. Without insurance, it’s exceedingly difficult to purchase a property. However, with climate change influencing weather patterns and contributing to the increasing severity of natural disasters, some insurers are reassessing their coverage to better manage their risk.Insurance risk management is a topic that has cropped up in several U.S. states. This summer, Allstate and State Farm announced that they would no longer write new policies in California and indicated that the frequency and intensity of natural disasters contributed to their decision.What drove two of the largest insurers in the U.S. to make this decision? How can regulators help manage risk for insurers, carriers and homeowners?In this episode of Core Conversations, host Maiclaire Bolton Smith sits down with Senior Product Manager Jamie Knippen to talk about these questions and how understanding wildfire risk scores can help indicate where there are opportunities for risk mitigation.In This Episode:3:01 - What happened when two major insurers stopped writing new policies in California?4:35 – Why are insurers only now saying “This is enough”?5:54 – Are governmental regulations and mitigation requirements the only answer to rising risk?8:37 – Erika Stanley gives an overview of the housing market in The Sip9:36 – How do property, structural and community-level mitigation differ?12:15 – Maiclaire and Jamie discuss how their jobs have made them hyper-aware of property-level riskLinks:U.S. Home Price Insights ReportWildfire Risk ReportUp Next: Will Wildfire Risk Mitigation Requirements Change the California Insurance Industry?Find full episodes with all our guests in our podcast archive here: https://clgx.co/3zqhBZt

In the ever-evolving landscape of the property market, recent years have been marked by volatility and unprecedented challenges. However, amidst this shifting environment, there is an opportunity for lenders to reassess their back-of-house operations and embrace the transformative potential of modern technology.As the market cools, the stage is set for lenders to revolutionize their processes and cater to the demands of today's discerning consumers. The key lies in embracing automation and digitization to streamline operations and create a seamless borrower experience.In this episode of Core Conversations, host Maiclaire Bolton Smith sits down with Praveen Chandramohan, an executive in origination solutions at CoreLogic to discuss how automated underwriting, digital mortgage software, and property technology intertwine to define the future of the mortgage market. From improved borrower experiences to cost optimization, this conversation unveils the transformative power of embracing property technology and mortgage software in the ever-evolving mortgage landscape.In This Episode0:54 – What are the top priorities for lenders according to a Fannie Mae survey? And how will these priorities solve the “industry conundrum”?4:28 – Digitizing a cumbersome process begins behind the scenes.8:53 - Are there ways that technology can widen that net and increase business?10:21 – How will technology lead the charge in creating new business?12:42 – Erika Stanley provides the Natural Disaster Digest.13:33 – Praveen offers some real-life examples of how technology is opening the door for self-employed borrowers and those who prefer to use digital currencies.Links: 2023 Hurricane Risk ReportUp Next: Modernizing Loan Origination Workflows: A Shortcut Through the Mortgage MazeFind full episodes with all our guests in our podcast archive here: https://clgx.co/3zqhBZt

The last several years have been volatile for the property market. However, as the market is slowing, that is freeing up space for lenders to consider their back-of-house processes and rehabilitate them to accommodate the demands of modern consumers. Largely, that means automating and digitizing processes. Think automated underwriting of the borrower and the property, think about a fully digital experience to close alone.And this is really where the future lies for the mortgage industry.By separating out run-of-the mill applications to accelerate their processing, lenders are freed up to address the more complex cases that may require counseling or human expertise to fulfil the requirements and close the process.In this episode of Core Conversations, host Maiclaire Bolton Smith sits down with Praveen Chandramohan, an executive in origination solutions at CoreLogic to discuss why improving the mortgage workflow through technology is an essential next step for the industry.In This Episode:3:40 – The etymology of the word “mortgage” and why homeownership will remain the American dream.6:15 – Why the mortgage industry is decades behind in technological advancements and what can be done.8:15 – What are the key areas lenders can focus on to improve customer retention and acquisition?12:32 – How the U.S. mortgage market is unique and what that means for both borrowers and lenders.17:15 – The future of the mortgage industry lies in accelerating processing speeds.Links: Learn about CLIP (CoreLogic Integrated Property number)Up Next: Modernizing Loan Origination Workflows: A Shortcut Through the Mortgage MazeFind full episodes with all our guests in our podcast archive here: https://clgx.co/3zqhBZt

When it comes to financing a home in the current real estate market, the interest rate on a loan is of chief concern for buyers. That has resulted in a growing interest in rate locks from buyers, sellers, builders and lenders.In fact, rate locks as a negotiation technique have bubbled up to the surface as another tactic for lenders looking to secure loans in the current economy.In Part 2 of this episode, host Maiclaire Bolton Smith continues the conversation with CoreLogic Principal Economist Molly Boesel to discuss what rate locks are, why they are trending in the housing market and what that may mean for lenders looking to retain or gain new business.In This Episode:1:31 – By how much can an extra payment lower the total cost of a mortgage?5:55 – Are people starting to come back to the market, or are they still locked into their homes due to mortgage rates?7:27 – Are first-time homebuyers the ones who will begin to break the cycle?9:36 – Erika Stanley gives us insight into what is happening globally with natural disasters.11:00 – What is the forecast for mortgage interest rates? How will inflation affect that?Links: 2023 Hurricane Risk ReportUp Next: Are Rate Locks the Negotiation Key for Lenders to Secure Loans in this Economy?Find full episodes with all our guests in our podcast archive here: https://clgx.co/3zqhBZt

Anyone who is buying a home with a mortgage almost certainly talks to their lender about interest rates. With real estate market trends defined by some of the highest interest rates in decades and annual home price growth reaching its lowest level in more than a decade, purchasing a property is an undertaking that requires buyers to look at the data and do the math.The current environment is also opening up rate locks to become a negotiation tactic — a technique that falls in and out of favor with real estate trends.  In this episode, host Maiclaire Bolton Smith sits down with CoreLogic Principal Economist Molly Boesel to discuss what rate locks are, why they are trending in the housing market and what that may mean for lenders looking to retain or gain new business.In This Episode:3:19 – What are rate locks and why are they trending?6:24 – Mortgage rate locks come at a price. Does that make them a valuable negotiation tactic?10:11 – Erika Stanley goes over the numbers in the housing market.11:31 – Maiclaire talks about using rate locks as a negotiation tactic when buying her home.13:09 – Are mortgage rate buydowns also becoming more common in this market?16:30 – Are mortgage rate buydowns and rate locks the only tactics available to reduce monthly mortgage payments?Links: CoreLogic’s monthly Home Price Index (HPI) Up Next: Has the Economy Locked in US Housing Market Price Stagnation?Find full episodes with all our guests in our podcast archive here: https://clgx.co/3zqhBZt