Bank Blue Lining will reduce house prices to zero and no one is talking about it
Your house will have no value. No bank will lend against it. Your net worth is now zero. Welcome to a future practice called “Blue Lining”. Never heard of it? Most have not heard about Blue Lining. No one is talking about it. Politicians dare not bring it up.
Blue Lining is intended to be a legal discriminatory lending practice that will shape the future of cities, neighborhoods and entire areas of country.
Before we outcry that politicians will never let banks declare entire cities worthless, let’s get some substance. Let me tell you who supports this view. Let’s review the United States Federal Reserve. Blue Lining is a scary proposition but we can navigate it to a positive place by the time you’re done with this article.
THE US FED
This month the Federal Reserve Bank of San Francisco sounded an economic alarm. The Federal Reserve warning bells revealed the real financial risks of climate change. A collection of 18 papers by outside experts contained information revealing dire dangers posed to businesses and communities in the United States. The threat is so significant the United States central bank was compelled to address the issue.
The US Fed address on climate risks was slow compared with other foreign central banks. Numerous factors influence an official agency position. The topic of climate change is politically polarized in the United States. Many other countries accept the need to change climate policies. The United States still has pockets denying climate change existence despite mounting evidence in support of climate change. Some pockets denying climate change existence occupy current official government offices. When the US Fed discusses the issue, an organization meant to be politically independent, it becomes subject to accusations it is entering partisan territory. The central bank is a frequent target of President Trump.
We have long known about climate change. The impact of climate change on the environment is recognized by nearly all scientific communities. To date most scientific discussions detailed unknown species extinction, sea level changes and temperature shifts.
The new revelation in climate change should make people stand to their feet.
Never before has a monetary body directly cited an impending catastrophe in bank policies as a result of climate change. The bank policies discussed can instantly wipe out most American net-worth overnight. The impending bank policies are called “Blue Lining”.
Blue Lining looks to take aim at the single largest asset class of American wealth…your house.
According to the New York Times in 2017, the average homeowner in the U.S. had a net worth of $195,400. To put that figure in perspective, the average American renter according to the New York Times in 2017 only had a net worth of $5,400–36 times less than that of the typical homeowner. Household net worth in the United States is at an astronomical high. In the last quarter of 2017 household net worth was at a record $98.74 trillion per US Federal Reserve figures. According to Statista home ownership rates in the United States amounted to 64.8%.
It is an understatement to say the predominate factor of American net-worth is the equity in their personal residences.
If Blue Lining rolls out as an official practice many could see their entire net worth reduced to that of a renter. The real issue is being upside down in a mortgage. Many young adults today missed the 2008 real estate crisis. I remember what it was like to owe debt twice as much as the value of a house.
The new crisis that shows signs of emerging could leave many Americans owing a debt on worthless real estate. The issue we are discussing affects nearly 7 out of 10 Americans.
Sorry you’re in a food plane…we don’t lend there. Sorry we can’t approve this mortgage to buy this house it’s in a flood prone area. Sorry we don’t accept that appraisal because it’s not insured against climate forecast. These are some of the remarks waiting for people in the next few years.
Blue Lining is a practice where banks will refuse to make loan in areas they deem susceptible to flooding or being submerged.
The preliminary underwriting guidelines are circulating behind closed doors according to a business source I have. I’ve been in real estate for a while. I owned a mortgage company back in 2007 through the collapse. I still have my contacts and everyone is worried about what it means for areas like Miami.
On the record we find Mr. Berman. “At some point in the next 20 to 30 years, absent substantial new approaches to reducing and managing flood risk, there may be a threat to the availability of the 30-year mortgage in various vulnerable and highly exposed areas,” wrote Mr. Berman, who is president and chief executive of M & T Realty Capital Corporation, a major mortgage lender.
Mr. Berman continued with this dialogue, “There is a real possibility that real estate values in communities will be decreasing due to increased flood risk just as the real estate tax base is being relied on for funding of new flood mitigation infrastructure,”
In June of 2019, the National Association of Realtors reported that just 16% of home buyers paid in cash. Applications for home loans jumped 9.5% last month from a month earlier according to the Mortgage Bankers Association.
According to recent statistics nearly 9 out of 10 people rely upon mortgages to buy a house. If banks stop lending to areas prone to flooding real estate values will plummet. Americans living in flood plains will see their net worth demolished by Blue Lining.
HOW YOU CAN PROTECT YOURSELF
Every American needs to look at their flood plain. If you are in a high risk area certain factors need to be considered. You need to 1) move, 2) refuse to buy a house there, 3) sell your house while a bank still doesn’t have policies against your area, or 4) get an insurance policy to cover your loan gap in the case of a disaster.
Number 4 is a temporary solution. At some point insurance companies will write off areas prone to flooding. With global warming climate change is bleeding into your pockets. The humanitarian in me says we should care about other species. That is enough to motivate me but not everyone. Hopefully the impending crisis of wiping out someone’s net worth will spur change. Regardless, a little bit of knowledge can serve you a lot of value preservation. I’m here to broaden your mind and teach you something. Sometimes to awaken the humanitarian you just need to jingle someone’s pocket book. Gain prospective on the real issue driving institutional and bank decisions. Follow me on Medium or subscribe to my newsletter to learn more insightful advice.
To your knowledge success!
About Christopher: Christopher Knight Lopez is a Professional Entrepreneur. Christopher has opened over 7 businesses in his 14-year career. Christopher’s purpose is to take advantage of various market-driven opportunities. Christopher is a certified Master Project Manager (MPM), Master Financial Planner (MFP) and Accredited Financial Analyst (AFA). Christopher previously held his Series 65 securities license. Christopher also has his General Lines — Life, Accident, Health & HMO. Christopher has managed a combined 286mm USD in reported Assets Under Management & Assets Under Advisement. Christopher has work experience in 29 countries, raised over 50mm USD for various businesses, and grossed over 7.5mm in his personal career. Christopher worked in the highly technical industries of: biotechnology, finance, securities, manufacturing, real estate, and residential mortgages. Christopher is a United States Air Force Veteran. Christopher has a passion for family, competitive sports, fishing, martial arts and advocacy for entrepreneurs. Christopher provides self-help classes for up-and-coming entrepreneurs. Christopher’s passion to mentor comes from belief that entrepreneurs need guidance. The world is full of conflicting information about entrepreneur identity. See more at www.christopherklopez.com.