CLIMA Client Report

Sample Deliverable – Full Engagement Scope

Climate-Linked Infrastructure & Mortgage Analytics

Confidential – For Discussion Purposes

1. Executive Summary

This sample report illustrates the full scope of deliverables CLIMA provides to mortgage lenders and investors when they provide their loan tape. All figures below are illustrative and represent the structure and depth of a typical engagement.

How this differs from the Predictive Loan Advantage: The Predictive feature (enter a ZIP on the website) shows a hypothetical “$500M in this geography” comparison (traditional vs CLIMA)—no loan tape needed. This report is built from your actual loans: we score each loan, summarize your portfolio, run stress tests on your book, and deliver examiner-ready analytics. Same models; your data.

Existing loans vs new origination: Most loans on your tape are already originated—you typically can’t change their terms. This report separates: Existing book = visibility, CECL/capital, concentration, stress, and reporting (we don’t imply you can alter closed loans). New origination = where LTV, pricing, and insurance recommendations apply when you underwrite future loans.

        Key takeaways (illustrative): Production ML models (0.842 default AUC, 0.946 disaster AUC) support reserving, capital, and stress for your existing book, and underwriting guidance for new loans. CLIMA-based policy on new origination reduces disaster-linked losses over time. Lending recommendations (LTV, pricing, insurance) apply to new loans; use scores for CECL and Basel III on the full book.
    

2. Portfolio / ZIP-Level Risk Scores and Tiers

For existing exposure: use for reserving and monitoring. For new loans in that geography: “New-loan rec” applies at origination.

ZIP	CLIMA Score	Risk Tier	Disaster 1yr %	New-loan rec (at origination)
90210	7.2	Low	2.1%	Approve, standard terms
33139	5.8	Moderate	4.3%	Approve, +0.25% rate
77001	4.1	Elevated	6.8%	LTV cap 80%, insurance required
70001	2.9	High	12.1%	Decline or significant pricing

3. Disaster Probabilities (Illustrative)

Horizon	Low-Risk ZIP	Moderate ZIP	High-Risk ZIP
1-year	2.1%	4.3%	12.1%
5-year	10.2%	19.8%	48.5%
30-year	51.0%	72.0%	98.0%

4. Credit Impact (PD, LGD, Expected Loss)

CLIMA provides probability-of-default (PD) and loss-given-default (LGD) adjustments by risk tier for use in internal models and CECL.

Tier	PD adjustment	LGD adjustment	Expected Loss (bps)
Low (7+)	Baseline	Baseline	25
Moderate (5–6.9)	+0.5%	+5%	45
Elevated (4–4.9)	+1.2%	+15%	85
High (<4)	+2.5%	+25%	180

5. Lending Recommendations (New Origination Only)

For existing loans: use scores for CECL, capital, and monitoring—you typically can’t change terms already closed. For new loans, per-risk-tier guidance (illustrative):

Low (7+): LTV up to 95%, no climate add-on, no mandatory insurance beyond standard.
Moderate (5–6.9): LTV up to 90%, +0.25% rate add-on, flood insurance per FEMA determination.
Elevated (4–4.9): LTV up to 85%, +0.50% rate, required flood + wind where applicable.
High (<4): LTV cap 80%, +0.75–1.00% add-on, full peril coverage; consider decline.

6. Property-Level Drill-Downs (Sample)

For individual properties, CLIMA can supply elevation, flood zone, distance to water, and other attributes that drive score adjustments.

Address (sample)	Elev (ft)	Flood zone	Dist. water (mi)	Score adj.
123 Main St, 90210	320	X	2.1	+0.3
456 Oak Ave, 33139	8	AE	0.3	-0.5

7. Scenario Analysis (SSP2-4.5 vs SSP5-8.5)

Climate scenarios impact long-horizon disaster probabilities and stress tests. CLIMA supports SSP2-4.5 (moderate) and SSP5-8.5 (high) for sensitivity analysis.

ZIP	SSP2-4.5 (30yr)	SSP5-8.5 (30yr)
90210	48%	62%
33139	68%	85%

8. Portfolio / Concentration Metrics

Concentration limits and Herfindahl-style metrics by geography support capital and risk governance.

Max exposure per ZIP: 15% of portfolio (illustrative).
Max exposure per state: 35%.
High-risk (score <5) cap: 20% of origination volume.

9. Traditional vs CLIMA Comparison (Illustrative)

On your book: existing loans = current risk and reserving impact (you don’t alter closed loans). “CLIMA” upside = using CLIMA for new origination and runoff over time. Same geography, same loan count; CLIMA-style policy reduces disaster-linked losses as the book rolls.

Metric	Traditional	CLIMA-based	Improvement
Disaster rate	20.7%	6.2%	70% lower
Expected losses (sample $10B ptf)	$124.9M	$107.5M	$17.4M
Default rate (portfolio)	6.3%	1.3%	Freddie Mac (15M loans) + selection

10. Data Sources and Methodology Summary

FEMA (disaster declarations, PA, NFIP claims), Census ACS, BLS, NOAA/NASA climate projections.
Five-factor model: Climate progression (30%), Relief per capita (20%), Fiscal stress (20%), Household resilience (15%), Insurance availability (15%).
Production models: 0.842 default AUC, 0.946 disaster AUC; validated on 145,452 observations and 68,485 FEMA disasters and 68,485 disasters.

11. Regulatory / Compliance Notes

CLIMA outputs are designed to support Basel III risk-weighted capital, CECL expected-loss estimates, and concentration limits. They are not a substitute for legal or compliance advice. Fair lending: risk factors are applied at the property/geography level and are documented for disparate-impact review.

This is a sample report. Actual deliverables are tailored to client data, scope, and engagement terms. Contact CLIMA for a live demo or custom proposal.