Wildfires Sweep Across Northern California
We updated our Non-Agency Hurricane Major Disaster Exposure to now include the three Northern California counties affected by the California wildfires (Mendocino, Napa and Sonoma). We picked these three counties based on yesterday’s New York Times story. There are a number of pretty large properties in this region with many homes surrounded by vineyards. However, only a few “low loan count” deals have significant exposure to the Northern California wildfires (see attached). Geographic diversity continues to be a good friend to RMBS investors.
VP Pence announced yesterday that President Trump approved a major disaster declaration for the state of California due to wildfires.
According to FEMA, California Wildfires (DR-4344), Last updated 2017-10-11 04:01.
No Individual Assistance has been approved
Public Assistance for emergency work and the repair or replacement of disaster damaged facilities has only been designed for Napa County
Hazard Mitigation Grant Program to prevent or reduce long term risk to life and property from natural hazards has only been designed for Napa County
As we have seen with Irma, these declarations get updated.
Recall that FEMA issued a major disaster declaration for over 40 counties in Florida for Hurricane Irma. As many have seen from our visits to Florida, a major disaster declaration does not imply total property devastation. This is why we have separated out the Florida Keys, Puerto Rico and the US Virgin Islands in our exposure analysis.
On the 25th of this month, we should have data revealing the initial effects of the hurricanes to collateral performance. FYI: Initial != Permanent.
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