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65 August 2025 J O U R N A L themortgagepoint.com August 2025 » • Flood risk materially impacts prop- erty values and credit risk: Rising flood hazards, insurance costs, and insurance availability concerns can reduce home values, lengthen sales cycles, and increase foreclosure risk, creating material financial impacts for homeowners, lenders, and local housing markets. • Private market cannot fully replace NFIP coverage: While private insurers now cover 12% of all flood insurance policies while the NFIP covers the rest, 5% of current NFIP policies (about 235,000 properties) are too risky for the private market, meaning if the NFIP were to be dissolved, hundreds of thousands of homeowners would be left uninsured. FOX Weather reports that recent flooding from the Guadalupe River in Texas that destroyed homes and summer camps in the early morning hours of July 4 has claimed at least 129 lives, with more than 170 still unaccounted for. The National Oceanic and Atmospher- ic Administration (NOAA) reports that flooding is the most damaging physical cli- mate hazard in the United States. Between 1980 and 2024, flood-related damages across both inland and hurricane events have totaled an estimated $1.7 trillion, ac- counting for nearly 60% of all billion-dol- lar disaster losses across hazard types, and it's not improving. The frequency and intensity of these events have also surged in the last decade alone; flooding has grown to be 3.7 times more likely and 13.6 times more costly than in the 1980s. Should the Trump administration begin to restructure or dismantle FEMA, lenders would lose the framework they have long relied upon for assessing flood risk in mortgage portfolios. Past lapses in the NFIP show how disruptions can ripple through the system. Because the NFIP requires periodic congressional reauthorization, policy delays can halt the issuance and renewal of flood insurance, creating backlogs and uncertainty in the mortgage pipeline. A recent lapse in 2010 delayed or canceled an estimated 1,400 home sales per day, stalling around 40,000 transac- tions before the program was reinstated. FEMA restructuring could lead to more frequent credit losses and deepen hous- ing affordability and financing challenges in flood-prone regions. LEGISLATION AIMS TO BAN HIDDEN FEES, BOOST TRANSPARENCY FOR TENANTS R ep. Maxwell Alejandro Frost and Sen. Jeff Merkley have announced the introduction of bicameral legislation aimed at addressing the housing crisis and standing firmly with working-class renters—the End Junk Fees for Renters Act. Rep. Frost's bill, which is being co-led by Rep. Jimmy Gomez in the House, Chair of the Congressional Renters Caucus, comes as Florida and the United States. face a housing affordability crisis that continues to squeeze working people and renters, forcing people to slip into homelessness at a time when cities are criminalizing folks who cannot afford to keep a roof over their heads. Reps. Frost and Gomez first intro- duced the bill in July of 2023 to put an end to the growing number of excessive and dishonest junk fees renters face when looking for and securing housing. Rep. Frost said: "This is about standing firmly on the side of renters and working people while holding greedy landlords and leasing companies accountable for nickel and diming people every chance they get. It's time to end the ridiculous fees and fight for housing justice and transparency." The End Junk Fees for Renters Act seeks to protect tenants by cracking down on junk fees, specifically by: • Banning application and screening fees; • Putting an end to late fee profiteer- ing by capping late fees at 3% of monthly rent and requiring a 15-day grace period; • Requiring that landlords disclose in the rental contract: past and present litigation with tenants; ongoing pest and maintenance issues; rent increase percentages year after year over the last 10 years; and the total amount due each month to effectively eliminate surprise fees. • Helping consumers comparison shop and making more informed choices when it comes to renting, inevitably driving down overall costs in the rental market, and improving living conditions. "Billionaire corporations and huge rental companies are hiding fees and added costs to drive up rents and line their own pockets," Sen. Merkley said. "The End Junk Fees for Renters Act fights back against corporate landlords trying to squeeze every dime out of renters that they possibly can. Let's crack down on these junk fees to ensure all Americans have a fair shot at a safe, affordable roof overhead and the power to fight back against absurd costs." According to a recent Redfin study, the median asking rent in the United States dropped 0.5% year over year (YoY) to $1,642 in June, marking the fourth consecutive month of yearly decreases. Overall, asking rents increased by an estimated 0.6% month over month. The median asking rent is only $63 below the all-time high of $1,705 set in August 2022, despite being lower than it was a year ago. For the past year or so, rents have general- ly been quite stable, with yearly decreases or rises of 1% or less since March 2024. This comes after significant fluctuations during the pandemic era, when the medi- an asking rent rose by up to 18% annually and fell by up to 4% annually. "Renters have the upper hand—at least for now—because there are a near-record number of apartments coming on the market that landlords are scrambling to lease," said Sheharyar Bokhari, Senior Economist at Redfin. "In certain parts of the country, renters may be able to negotiate discounted rent, flexi- ble leases, or free parking. But these perks may be short-lived given that apartment