Rising Tides, Sinking Approval Rates: Examining SLR Risk and Mortgage Credit Access

Chengbo Fu; Qiping Huang; Meimei Lin; Salman Tahsin

doi:10.1111/eufm.12543

Rising Tides, Sinking Approval Rates: Examining SLR Risk and Mortgage Credit Access

Chengbo Fu, Qiping Huang, Meimei Lin, Salman Tahsin

Earth, Environment & Sustainability

Research output: Contribution to journal › Article › peer-review

Abstract

We measure sea-level rise (SLR) risk using two indicators: SLR Impact (whether a census tract would be inundated under a 1-ft SLR) and SLR Exposure (percentage of land inundated under a 1-ft SLR). SLR-impacted areas see 0.36%–1% lower mortgage approval rates, with a 10% increase in SLR Exposure reducing approvals by 14 basis points. These patterns reflect future SLR risk expectations rather than past flood or hurricane events. We also find higher denial rates in regions with stronger climate risk beliefs and greater SLR risk. Additionally, SLR-related mortgage denials disproportionately affect minority groups.

Original language	English
Journal	European Financial Management
DOIs	https://doi.org/10.1111/eufm.12543
State	Accepted/In press - 2025

Scopus Subject Areas

Accounting
General Economics, Econometrics and Finance

Keywords

climate risk belief
loan acceptance
mortgage
sea-level rise

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

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10.1111/eufm.12543

Cite this

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title = "Rising Tides, Sinking Approval Rates: Examining SLR Risk and Mortgage Credit Access",

abstract = "We measure sea-level rise (SLR) risk using two indicators: SLR Impact (whether a census tract would be inundated under a 1-ft SLR) and SLR Exposure (percentage of land inundated under a 1-ft SLR). SLR-impacted areas see 0.36%–1% lower mortgage approval rates, with a 10% increase in SLR Exposure reducing approvals by 14 basis points. These patterns reflect future SLR risk expectations rather than past flood or hurricane events. We also find higher denial rates in regions with stronger climate risk beliefs and greater SLR risk. Additionally, SLR-related mortgage denials disproportionately affect minority groups.",

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author = "Chengbo Fu and Qiping Huang and Meimei Lin and Salman Tahsin",

note = "Publisher Copyright: {\textcopyright} 2025 John Wiley & Sons Ltd.",

year = "2025",

doi = "10.1111/eufm.12543",

language = "English",

journal = "European Financial Management",

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T1 - Rising Tides, Sinking Approval Rates

T2 - Examining SLR Risk and Mortgage Credit Access

AU - Fu, Chengbo

AU - Huang, Qiping

AU - Lin, Meimei

AU - Tahsin, Salman

PY - 2025

Y1 - 2025

N2 - We measure sea-level rise (SLR) risk using two indicators: SLR Impact (whether a census tract would be inundated under a 1-ft SLR) and SLR Exposure (percentage of land inundated under a 1-ft SLR). SLR-impacted areas see 0.36%–1% lower mortgage approval rates, with a 10% increase in SLR Exposure reducing approvals by 14 basis points. These patterns reflect future SLR risk expectations rather than past flood or hurricane events. We also find higher denial rates in regions with stronger climate risk beliefs and greater SLR risk. Additionally, SLR-related mortgage denials disproportionately affect minority groups.

AB - We measure sea-level rise (SLR) risk using two indicators: SLR Impact (whether a census tract would be inundated under a 1-ft SLR) and SLR Exposure (percentage of land inundated under a 1-ft SLR). SLR-impacted areas see 0.36%–1% lower mortgage approval rates, with a 10% increase in SLR Exposure reducing approvals by 14 basis points. These patterns reflect future SLR risk expectations rather than past flood or hurricane events. We also find higher denial rates in regions with stronger climate risk beliefs and greater SLR risk. Additionally, SLR-related mortgage denials disproportionately affect minority groups.

KW - climate risk belief

KW - loan acceptance

KW - mortgage

KW - sea-level rise

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DO - 10.1111/eufm.12543

M3 - Article

AN - SCOPUS:85215405593

SN - 1354-7798

JO - European Financial Management

JF - European Financial Management

ER -

Rising Tides, Sinking Approval Rates: Examining SLR Risk and Mortgage Credit Access

Abstract

Scopus Subject Areas

Keywords

UN SDGs

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