Starkey Citizens for a Clean & Healthy Environment
Impact on Property Values, Mortgages, Insurance

Natural gas leasing could have staggering implications for New York’s lenders, homeowners and real estate investors given the potential scope of horizontal hydrofracturing in our state’s Marcellus Shale formation. Current lending policies and practices can preclude existing/potential homeowners and property investors from purchasing or selling real estate with gas leases due to the inability to obtain mortgage loans. Even properties located near parcels with gas leases might not qualify for mortgage loans due to “secondary” market requirements.

Individuals who have signed gas leases very likely had no inkling of these onerous implications. There has been extensive discussion of the alleged economic benefits of gas drilling in New York. The banking documents I am providing raise profound concerns that gas leasing could impair the state’s mortgage lending and real estate markets. Even Wall Street’s securitization of bundled mortgage loans could be impacted.


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Starkey Citizens for a Clean & Healthy Environment - frackfreestarkey.com