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Climate change should be considered a new core aspect of creditworthiness when prospective home buyers apply for a mortgage, a new report suggests.

The analysis from the climate risk financial modeling firm First Street is a groundbreaking nationwide look at the ties between the growing risks from extreme weather such as floods and wildfires, and a long-suspected spike in mortgage defaults in hard-hit areas.

It finds that lenders and borrowers are exposed to more financial risk than they are aware of because current ways of determining creditworthiness leave out exposure to climate disasters as a factor.

If climate risk were to be taken int

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