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Lenders & servicers: navigating the 2026 "Super El Niño"
['Nazeefa Ahmed Is A Reporting Associate For National Mortgage News Through The Dow Jones News Fund. Awards', 'Nazeefa Was Formerly A South Asian...', 'Originations Editor', 'Capital Markets Editor', 'Technology Reporter']
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Properties located within the 100-year flood plain mapped by the Federal Emergency Management Agency are required to enroll in flood insurance.
The National Flood Insurance Program insures these at-risk homes, backing over 4.7 million policies with more than $1.3 trillion in coverage.
Over $405.5 billion in residential property sit in X-Zones, still at high risk for hurricane-driven flooding, according to Cotality's 2026 hurricane risk report.
Unlike a regular El Nino, which raises equatorial sea surface temperatures by up to 1.5 °C, a super El Niño exceeds a 2.0 °C increase, triggering much more severe global weather extremes.
Servicers should proactively educate borrowers and provide contact information and resources to prevent early delinquencies after a hurricane, said Mason.