MORTGAGE AND LENDING

First Street Foundation Finds Over 30.4 Million Properties Have a 1% or Greater Chance of Experiencing a Wildfire During the Course of a Mortgage

First Street Foundation | May 16, 2022

Mortgage
First Street Foundation released the First Street Foundation Wildfire Model, the only nationwide, probabilistic, climate adjusted, peer reviewed, property specific wildfire risk model for properties in the contiguous United States. Detailed in the 5th National Risk Assessment: Fueling the Flames, the model provides a first of its kind analysis of the risk individual properties face from damaging wildfires, and up to 30 years in the future as a result of climate changes.

Nationwide, the report finds nearly 20 million properties face "Moderate" risk, (up to a 6% chance of experiencing a wildfire over 30 years); 6 million properties face "Major" risk (up to 14% risk over 30 years); nearly 3 million face "Severe" risk (up to 26% over 30 years); and approximately 1.5 million face "Extreme" risk (greater than 26% risk over 30 years). Over 49 million properties face less than 1% chance of experiencing a wildfire over a 30-year period, or "Minor" risk in the model.

Wildfire has become one of the most common and dangerous climate perils, increasingly spreading from heavily forested areas to more populous urban and suburban environments. According to NOAA, damage associated with wildfires has grown substantially, with $81.7 billion, or 66% of all direct losses since 1980, occurring in the last five years. Yet today, neither the public nor private sector have developed a simple methodology or tool to help homeowners, buyers or renters understand a property's wildfire risk, and make informed decisions to protect them.

Existing tools like USDA Forest Service's wildfire risk assessment are designed to help fire officials understand how risk varies across a state, region, or county; it is explicitly not meant to help homeowners understand their personal risk. To address this gap, First Street Foundation will make this critical wildfire risk information available to users for free through Risk FactorTM, where Fire FactorTM data will be presented alongside Flood Factor and other future perils, giving users a comprehensive understanding of their homes from physical climate risk today and 30 years into the future. Like Flood Factor, Fire Factor data will be integrated into Realtor.com, providing visitors to the site a property-level wildfire risk assessment in the form of a risk ranking from 1 (Minimal) to 10 (Extreme) for each property on the site. Users interested in commercial real estate can also find this data integrated with Crexi.

"The lack of a property specific, climate adjusted wildfire risk for individual properties has severely hindered everyone from the federal government to your average American," said Matthew Eby, Founder and Executive Director of First Street Foundation. "As a changing climate drives more frequent and severe wildfire events, Fire Factor will prove critical in ensuring everyone has the insights they need to understand their personal risk to avoid and protect against the devastating impact of a wildfire."

According to a recent Realtor.com survey, seven out of ten recent homebuyers considered the risk of natural disasters when deciding where to live. Realtor.com is adding Fire Factor to maps and properties to help home shoppers and homeowners make informed decisions. Wildfire risk information empowers consumers to protect their homes against the increasing threat of wildfire damage."

Sara Brinton, Lead Product Manager, Realtor.com

Building the model brought together top climate and data scientists, technologists, and modelers from other leading organizations; the Spatial Informatics Group, Reax Engineering, and Eagle Rock Analytics who are members of the Pyregrence Consortium as well as the USGS, and architectural design & engineering consulting group Arup.  This group combined decades of peer reviewed research and expertise in next-generation modeling techniques to create an open source, freely available wildfire model that accounts for current and future climate conditions.

Spotlight

In the 2015 Profile of Home Buyers and Sellers, for the first time recent buyers and sellers were asked the following in the questionnaire: “Are you or your spouse or partner currently: 1) an active-duty service member; 2) a veterans; or 3) neither.


Other News
REAL ESTATE TECHNOLOGY

EMPIRE STATE REALTY TRUST SIGNS THREE NEW RETAIL TENANTS AT TWO NYC PROPERTIES

EMPIRE STATE REALTY TRUST | February 02, 2022

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REAL ESTATE TECHNOLOGY

National Association of Realtors: Why Industrial Spaces Lead Commercial Real Estate in Bouncing Back From COVID

National Association of Realtors (NAR) | March 28, 2022

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REAL ESTATE INVESTMENT

JLL Income Property Trust Acquires Kansas City Medical Office Portfolio

JLL Income Property Trust | March 30, 2022

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REAL ESTATE TECHNOLOGY

Cian Announces Changes to Its Board of Directors and Committees

Cian | March 14, 2022

Cian PLC, a leading online real estate classifieds platform in Russia, announced that Ms. Cloe Harford has tendered her resignation as a member of the board of directors of the Company, effective as of 4:02 p.m. Eastern time on March 8, 2022. Ms. Harford informed the Company that she has resigned as a result of recent geopolitical developments. Ms. Harford served as a member of each of the Audit Committee of the Board, the Compensation, Governance and Nominating Committee of the Board and the Strategy Committee of the Board. On March 10, 2022, upon recommendation of the Compensation, Governance and Nominating Committee, the Board appointed Gilles Blanchard to the Audit Committee, with effect immediately following the Effective Time. The Board has determined that, after due consideration of all relevant factors, Mr. Blanchard qualifies as independent under the rules of the Securities and Exchange Commission (SEC) and the New York Stock Exchange (NYSE). The Board has also determined that, based on his education and experience, Mr. Blanchard is financially literate in accordance with the requirements of the NYSE. Following Mr. Blanchard’s appointment, the Audit Committee consists of Douglas Gardner, Simon Baker and Gilles Blanchard, with Mr. Gardner serving as Chairperson. On March 10, 2022, upon recommendation of the Compensation, Governance and Nominating Committee, the Board appointed Maksim Melnikov to the Compensation, Governance and Nominating Committee, with effect immediately following the Effective Time. Following Mr. Melnikov’s appointment, the Compensation, Governance and Nominating consists of Gilles Blanchard, Dmitry Antipov and Maksim Melnikov, with Mr. Blanchard serving as Chairperson. Further, following the resignation of Ms. Harford, the Strategy Committee consists solely of Simon Baker, who serves as Chairperson. The Company has previously disclosed in its registration statement on Form F-1, declared effective by the SEC on November 4, 2021, that it follows the corporate governance practices of its home country, Cyprus, in lieu of certain of the corporate governance requirements of the NYSE. In addition to the previously disclosed practices, the Company intends to rely on this "foreign private issuer exemption" with respect to: NYSE Rule 303A.01, which requires an issuer to have, among other things, a majority of its board members be independent; NYSE Rule 303A.4, which requires an issuer to have a nominating/corporate governance committee composed entirely of independent directors; (iii) NYSE Rule 303A.05, which requires an issuer to have a compensation committee comprised entirely of independent directors. About Cian Cian is a leading online real estate classifieds platform in the large, underpenetrated and growing Russian real estate classifieds market, with a strong presence across Russia and leading positions in the country’s key metropolitan areas. The Company ranks among the top ten most popular online real estate classifieds globally in terms of traffic (based on SimilarWeb traffic data for other online real estate classifieds and Google Analytics data for Cian for September 2021). Cian’s networked real estate platform connects millions of real estate buyers and renters to millions of high-quality real estate listings of all types — residential and commercial, primary and secondary, urban and suburban. In the third quarter of 2021, the Company had over 1.9 million listings available through its platform and an average UMV of over 18.7 million. Through its technology-driven platform and deep insights into the Russian real estate market the Company provides an end-to-end experience for its customers and users and helps them address multiple pain points on their journey to a new home or place to work.

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Spotlight

In the 2015 Profile of Home Buyers and Sellers, for the first time recent buyers and sellers were asked the following in the questionnaire: “Are you or your spouse or partner currently: 1) an active-duty service member; 2) a veterans; or 3) neither.

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