With climate change remaining a prominent issue globally, many former U.S. housing officials are warning market participants that failing to address these issues could significantly damage the mortgage housing market enough to lead the U.S. into another recession – or worse. Flooding is one area impacting the market. Specifically, rising sea levels are leading to more sites be subjectable to intense flooding. Still, outdated flood maps don’t require these sites to have flood insurance, thus putting the burden on the government if homes on these sites are destroyed. Experts note that this applies beyond flooding. If private companies feel that any loans they hold are in areas that are too damaged by climate change, they can transfer those loans to Fannie and Freddie, thus transferring the risk to the taxpayer. Some note that such risk will pose significant challenges for the community down the line.