Hurricane Irma – Another Non-Event for RMBS Investors
We are updating our Irma exposure mapping to reflect the current FEMA Major Disaster Declarations:
Florida Hurricane Irma (DR-4337) – 9 counties ONLY (out of 67) Major Disaster Declaration declared on September 10, 2017 Individual Assistance
Charlotte, Collier, Hillsborough, Lee, Manatee, Miami-Dade, Monroe, Pinellas, Sarasota,
Puerto Rico Hurricane Irma (DR-4336) Major Disaster Declaration declared on September 10, 2017 Culebra, Vieques
U.S. Virgin Islands Hurricane Irma (DR-4335) Major Disaster Declaration declared on September 07, 2017 St. John (Island) (County-equivalent), St. Thomas (Island) (County-equivalent)
Fortunately, this was not the “Nuclear Hurricane” that the Miami Beach mayor predicted. A nuclear anything implies total and complete devastation to people and property. Below is a text I received from my former colleague at RBS now retired in Florida, who was part of the mandatory evacuation from Ft Meyers Beach and stayed in Bradenton during the peak of Irma. We all expected his home to have been destroyed by the 10-15 foot storm surge that was predicted.
“All is well. Never lost electricity or cable. I spoke to one of my neighbor. They went by my house and it’s all intact. Little bit of gutter problems but the house is still standing so that’s great news”
We do not expect to see any noticeable deterioration in performance due to Irma or Harvey. The bright side of RMBS is that the properties backing most bonds are pretty well distributed across the county. Only low loan count deals may not have sufficient geographic diversification and therefore could be affected by these natural disasters. Time to get back to worrying about servicer and trustee issues and call right! See pages 5-7.
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