In response to the reductions efforts imparted by the Administration's Department of Government Efficiency (DOGE), the National Oceanic and Atmospheric Administration (NOAA) announced, May 8, it will stop updating its list of billion-dollar weather and climate disasters.
The dataset contains U.S. disaster cost assessments of the total, direct losses inflicted by tropical cyclones, inland floods, drought and heat waves, severe local storms (i.e., tornado, hail, straight-line wind damage), wildfires, crop freeze events and winter storms. This move reflects the Trump administration’s well-documented skepticism of climate science, which comes just as severe weather events are accelerating in frequency and financial impact.
For the mortgage industry, the message is clear: even if federal tracking slows, the risks are not going away. In fact, they’re intensifying.
Severe Weather Costs Are Mounting — Can Lenders Fill The Data Gap?
This shift underscores a critical issue for lenders and servicers: many insurance carriers still rely on legacy portfolio-level models that overlook property-specific vulnerabilities. As hail events and other severe weather incidents grow in severity, understanding individual property risk becomes not just an underwriting issue, but a crucial element in protecting collateral, managing servicing operations, and mitigating financial exposure.
While NOAA steps away, the Federal Emergency Management Agency (FEMA) remains an essential reference point for mortgage professionals, especially as it relates to disaster declarations that directly impact borrowers, property conditions, and investor requirements.
FEMA’s latest actions from May 2025 trigger inspection requirements, possible moratoriums, and servicing adjustments:
Kentucky (DR-4875) — Aid extended to Caldwell, Laurel, Pulaski, Russell, Trigg, and Union counties for March 16–17 storms and tornadoes.
Mississippi (DR-4874) — Eleven counties covered after March 14–15 severe storms and flooding.
Texas (DR-4871) — Cameron, Hidalgo, Starr, and Willacy counties declared after March 26–28 severe storms.
Missouri (DR-4867) — Eighteen counties designated following March 14–15 tornadoes, storms, and wildfires.
Oklahoma (DR-4866) — Seven counties affected by wildfires and straight-line winds from March 14–21.
Arkansas (DR-4873) — Sixteen counties declared disaster zones due to April 2–22 storms, tornadoes, and flooding.
Additionally, recent amendments, such as Kentucky DR-4864 (adding 24 counties) and Arkansas DR-4865, expand the scope of affected areas, requiring careful attention from mortgage servicers to ensure compliance with inspection protocols and borrower communication.
PHH Mortgage and AmeriHome Mortgage are already issuing updated disaster announcements to guide field inspections and portfolio reviews, underscoring the operational complexity lenders face after federal declarations.
Takeaways
With federal agencies pulling back from climate tracking and severe weather events on the rise, mortgage lenders and originators will need to double down on property-level risk awareness. FEMA declarations will continue to drive post-disaster servicing requirements, though it may only scratch the surface of the broader exposure landscape.
