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

University of Northern British Columbia
University of Dayton
San Jose State University

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

4 Scopus citations

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
Pages (from-to)	1421-1444
Number of pages	24
Journal	European Financial Management
Volume	31
Issue number	4
DOIs	https://doi.org/10.1111/eufm.12543
State	Published - Jan 21 2025

UN SDGs

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

SDG 13 Climate Action

Scopus Subject Areas

Accounting
General Economics, Econometrics and Finance

Keywords

climate risk belief
loan acceptance
mortgage
sea-level rise

Access to Document

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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AU - Fu, Chengbo

AU - Huang, Qiping

AU - Lin, Meimei

AU - Tahsin, Salman

PY - 2025/1/21

Y1 - 2025/1/21

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.

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KW - loan acceptance

KW - mortgage

KW - sea-level rise

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JF - European Financial Management

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ER -

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

Abstract

UN SDGs

Scopus Subject Areas

Keywords

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