Consumer watchdog alerts feds about alleged climate activist scam

Consumers’ Research sent a letter to several members of the Trump administration Thursday, urging agencies to ditch any association with the company First Street over its allegedly inaccurate climate risk modeling.

In the letter, Consumers’ Research Executive Director Will Hild notes that recent reports captured doubts from homeowners and industry insiders over the reliability of First Street’s flood risk assessments and calls for “an interagency review of how federal collaborations are referenced in First Street press.” Consumers’ Research addressed the letter to the Environmental Protection Agency Administrator Lee Zeldin, Federal Reserve Chair Jerome Powell, Transportation Secretary Sean Duffy and Consumer Financial Protection Board Acting Director Russ Vought, among several other agency heads.

“First Street is attempting to push a radical climate agenda onto consumers by implying federal agencies endorse its politically motivated climate risk models. This practice is purposefully misleading, as First Street’s climate models undermine [Federal Emergency Management Agency] FEMA’s role as the legal and regulatory standard for climate risk scoring and arbitrarily distorts consumer property values,” Hild told the Daily Caller News Foundation. “This is why we are urging these federal agencies clarify they do not endorse First Street and demand the removal of agency branding from all public materials. Consumers’ Research stands with homeowners and buyers who deserve accurate, transparent, and federally-validated information, not metrics driven by climate activists.”

CR Letter to Agencies RE First Street Final by audreystreb

Hild notes in the letter that some federal agency announcements and materials referenced First Street’s risk assessment data and argues that this is a concern due to recent reports and complaints that the company’s data may not accurately reflect flood risks. Major real estate platforms like Zillow, Redfin and Realtor.com have factored First Street’s flood data into their listings, the letter notes.

“Recent reporting and public complaints indicate that First Street’s property‑level scores can be materially wrong and difficult to remedy,” the letter states. “Your agencies’ names and logos — through formal agreements, data integrations, or research use — are cited by First Street as evidence of federal alignment with its property‑level climate risk scores. … I write to urge your agencies to (1) publicly renounce or suspend any partnership language and implied endorsements that lend federal imprimatur to First Street Foundation and its affiliated public‑benefit corporation, First Street Technology, and (2) clearly state that First Street/Risk Factor outputs must not be used in lieu of FEMA flood maps for regulatory, insurance, lending, disclosure, or listing purposes.”

First Street states on its website that the FEMA’s flood risk differs from its estimations as it “calculates flood risk on the property level, accounts for changing climate conditions, and considers the risk of flooding due to high-intensity rainfall,” whereas FEMA “determines flood risk on the community level, their risk projections capture risk from a single 1-in-100 or 1-in-500 event from storm surges and overflowing rivers and streams.”

First Street’s website states that “we exist to make the connection between climate and financial risk at scale for financial institutions, companies and governments.”

Several local homeowners told North Carolina-based ABC News 13 that they believed they were struggling to sell their homes due to receiving high flood warning designations from First Street data. The homeowners argued that the data did not make sense as their close neighbors had vastly different flood warnings despite no seemingly feasible explanation.

One Tennessee-based real estate broker told the DCNF that she believes she and others in the industry have lost sales due to First Street flood data being displayed on real estate platforms.

“Buyer interest dropped off. Before we realized what was going on, we had canceled showings,” Stephanie Cross told the DCNF. “It’s crippling the seller. It’s crippling by putting this misinformation out there — and at the same time, basically devalues the property.”

A spokesperson for Realtor.com referred the DCNF to its flood risk information website page and noted that every listing displays both FEMA data and First Street data.

“A home is often a family’s most valuable asset, which is why Realtor.com believes it’s essential to help homeowners, sellers, buyers and renters understand any potential risks to a property so they can make informed decisions,” the spokesperson told the DCNF. “We think providing both ratings on the property listing paints a clearer picture of potential risks. If a home’s flood ratings appear particularly low or high, or in conflict, consumers are encouraged to consult a real estate agent or local floodplain official for guidance.”

First Street, Zillow and Redfin did not respond to the DCNF’s requests for comment.

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