When disaster strikes, it can change the condition of a home in seconds. If these homes are serving as the collateral for new mortgage transactions in the lender’s pipeline, this can put the deal at risk.
ClosingCorp, a provider of residential real estate closing cost data and technology for the mortgage and real estate services industries, has estimated that more than 8,270 pending mortgage transactions currently in progress in Louisiana are in jeopardy, as a result of Hurricane Ida.
The company says these files, which are being originated by more than 120 different lenders, have a combined value of more than $1.7 billion.
ClosingCorp based its estimate on “in-flight” mortgage applications in 62 counties that are due to close between now and the end of the year.
Orleans County, which includes New Orleans, is the county with the most mortgage transactions at risk ($245 million), followed by Jefferson County ($200 million) and Saint Tammany County ($190 million).
ClosingCorp is proactively notifying its lender clients about which loans within these counties may be affected and will be working with them on expanded reviews as requested.