As fires rage in Utah, thousands of acres have already burned, and a new study has revealed that more than a third of homes across the state are in danger due to dry conditions and population density. Natural disasters of any kind can be both terrifying and devastating for those who live through them. The financial hardships that ensue are often considerable, and when it comes to real estate transactions caught in the middle, it can be ruinous. The costs of closing on a home impacted by a flood, tornado, hurricane, fire, severe winter storm or another type of natural disaster is a risk no lender should take.
That’s why it is critically important for lenders to see what is headed their way with any natural disaster, pivot quickly to make the right decisions and communicate proactively with borrowers. Doing so will not only save a significant amount of money and time for the business but create a better experience and relationship with borrowers when next steps are determined.
To visualize risks, including quantifying loss exposure, lenders need the most up-to-date and accurate data for specific loans. But often, lenders are left waiting on FEMA disaster information, which can put them days, weeks or months behind the curve. In addition to time, another challenge of relying on FEMA data is not knowing that the boundaries of a natural disaster have changed day-to-day. The ability to manage performance and allocate staff is key to an organization’s success, but in jeopardy if a loan involved in a disaster. Without crucial analytics, lenders could close on a loan that has been in the crosshairs of devastation.
This is where Black Knight’s Early Warning Suite can help prevent closing on loans for affected properties, while proactively letting borrowers know the next steps for the loan. Whether that means a reappraisal, an inspection, or another step the parties involved in the transaction deem necessary. With early, reliable data, lenders are better positioned to make these decisions and mitigate risk.
Get ahead of a pre-FEMA or FEMA-declared event, see the impact down to the property address-level and follow the changing course of a flood, tornado, hurricane, forest fire, severe winter storm or another type of natural disaster. This allows for employees to focus on problem loans at the earliest sign and for organizations to properly plan for their workforce without stressing-out staff. By preventing even one closing on a loan affected by a natural disaster, the cost of the Early Warning Suite can be recouped.
As residents across the Western U.S. brace for more dry weather and potential fires, activity in the Atlantic started before the designated hurricane season – proving natural disasters operate on their own schedule. With the Early Warning Suite, part of our Actionable Intelligence Platform℠, you close with confidence, keep borrowers informed, save money, and avoid a lending disaster.