welcome to "on the money." i'm becky quick. what could possibly go wrong in the mortgages that led to the housing crisis are back. why it matters and what it could mean. the hidden costs of health care in your retirement. the stunning amount you may need she's the queen of suspense. but there's no surprise about what happens when she writes a book mary higgins clark on her new bestseller and the state of publishing and we buy bottled water why not bottled air? two entrepreneurs from canada with a bright idea. >> why would i buy a can of air? >> it's the freshest air you'll ever have. >> "on the money" starts right now.

>> this is "on the money." your money, your life, your future now, becky quick we begin with mortgages and risk a decade ago, home loans for borrowers with weak credit history and low income were called subprime mortgages. defaults on those loans were a major cause of the financial crisis our diana olick found those mortgages are back risky business this is week's cover story. >> reporter: subprime. the word conjures up these images they disappeared following the financial crisis, now lenders are dipping back in. just don't call them subprime, call them nonprime. >> we're not going to the bad old days of ninja leaned are lending where people with no jobs, no assets no income were getting loans, that was crazy. >> reporter: carrington mortgage, a mid size lender that mostly does fha loans, is expanding into the nonprime space, focusing on 20% of

americans who have fico credit scores below 600 carrington will accept borrowers with credit scores as low as 500. today's average borrower is the mid-700s recent credit events like foreclosure and bankruptcy are okay loans up to $1.5 million and cash out up to $500,000. self-employed borrowers can use bank statements to verify income instead of tax documents carrington says there is big demand from both borrowers and investors. >> we're going to keep some of the loans on our books, we're also going to secure tie some of the loans. we believe there's actually a market today in the secondary market for people whowant to buy nonprime loans that have been properly underwritten >> reporter: properly underwritten, that's the key to watch. carrington claims it will manually underwrite each loan to account for individual risk. so if you're higher risk you might have to have a higher down payment or more cash reserves. your interest rate will be higher but is that enough

>> if we see regulators ease up and loosen the rules as we've been seeing since this administration came in, and if folks in the market haven't learned the lessons from the last crisis, then that could be an issue. >> reporter: and if lenders and borrowers alike look at today's fast-rising home prices and forget that prices can fall too, that could an costly issue as well another nonprime lender, angel oak, estimates it will double the amount of nonprime mortgage originations this year compared to last year, because there is just so much demand out there. >> last week we saw interest rates go up pretty significantly. what does that mean for a nonprime loan? >> it means more demand, it means more people who are on the margins who are not qualifying for those regular fannie mae, freddie mac loans, who have to go somewhere else, and that's where they're going to go. obviously these lower standards for loans could potentially bring higher risk.

kneel la richardson is chief economist at real estate brokerage red fin. is this different? is nonprime different than subprime is this the same thing with a new name >> a rose by any other name, right? i agree with diana, the conditions of which these loans are being originated are different. there's a lot of layering on of risk in 2007, but there is one thing that is eerily similar. >> which is what >> subprime loans coming in right when prices are at their height that is concerning a subprime mortgage and a $1.5 million loan is concerning the whole point of these mortgages, what makes them slightly less risky, is that in the past they have lower loan balances than prime mortgages. now if they're being expanded and trying to keep up with the high price growth in the market, that is a cause of concern. >> i guess that's an interesting point. and you don't want to say that you can't get a loan just if you're somebody who's had a little bit of trouble in the

past, if you're not the perfect person you want to make sure people can get these loans to get into houses that's the key difference is how much you're allowed to qualify for. >> this is a market that needs to be served but we're in an industry that hasn't figured out how to lend responsibly. maybe this is a good toe in the water but time will tell if it can keep up with price increases. >> in the financial crisis you were an economist at freddie mac. >> i started my career in 2005 the housing market was taking off. there was a spot prices could never fall and the housing market would never fall, that it was impenetrable we know that's not the case, things can unravel quickly those of us in the market at that time are really conscious and concerned when we see wrinkles in underwriting. >> i go back to this pull and tug on both sides. you don't want to tell people they can never qualify for a home but if the high price is the concern, maybe we need to look at the underlying factors there. >> what we're starting to see is

people reaching further and further outside of their comfort levels in terms of budget. we're seeing people switch from fixed rate to a.r.m.s, so they can have a lower down payment. more nonprime loans, lower down payments we are seeing risk creep in. not everyone has perfect credit. there are products out there like fha that people can get into and pay responsibly. we just have to make sure that that responsibility threat is through the entire market, both government loans and private loans that are coming out. >> i would guess you would say this is not reminiscent of 2008. maybe not of 2005 when you were starting out what does this remind you of >> you know, we're in a whole new normal inventory is so tight. i mean, the one saving grace in these little specks of subprime is it's so hard to get a mortgage now they're not likely to take off because the market is so competitive. especially in cities it's really hard even with cash to find the home of your dreams.

>> if supply is the problem, what needs to happen to get more construction usually demand is enough to make -- to spur construction and have more homes coming in. why is that not happening? >> builders are scared they were also burned during this process but there are three main reasons. there's not enough labor, there's not enough land, there's not enough financing now with interest rates creeping up so we need to solve those problems that starts with local regulation zoning for density it's a word homeowners don't want to hear there's pushback at the local level. but that needs to happen so we can create the land, the buildable land, to meet the demands of the first-time home buyer. >> neela, thank you for your time, appreciate it. >> thanks for having me. now here's a look at what's making news as we head into a new week "on the money." america's economy grew at a moderate pace. the gross domestic product, measuring size and scope of the

u.s. economy, increased 2.3% january to march that's above the expectations of 1.8% consumer spending was weak business investment and exports were very strong stocks had a turbulent week. the dow tumbling more than 400 points on tuesday on worries about rising interest rates as the 10-year note climbed past 3% for the first time in over four years. though stocks rebounded later in the week the nasdaq climbed more than 1% on thursday on hopes of strong technology earnings that did, in fact, get delivered. stocks were mixed on friday. amazon will deliver to your porch. inside your house. and now directly to your car the company is offering a new service to place packages in the trunks of your car if it's parked in a publicly accessible area you have to be an amazon prime member and the cars have to be either gms or volvos and they have to have the connected technologies those companies offer. you have to trust amazon with your virtual keys to your car

and hope that the delivery guy doesn't hide in your trunk and pop out when you get home. yeah, good luck with that. up next, we're "on the money. if you are near retirement or know someone who is, be prepared, there may be a really big unexpected expense that you may not have thought about the number is alarming later, mary higgins clark on how she creates the pot lines with the twists and turns that keep you in suspense. right now take a look at how the stock market ended the week.

how much money do you need to cover health care costs in your retirement? a new report shows that nearly half of all workers think they will not have enough, and only 1 in 5 have actually crunched the

numbers. our senior personal finance correspondent sharon epperson has done some digging to tell us that number, and sharon, count me in the 4 of 5 who have not tried to crunch the numbers. every time i think about something like this, it seems like there are so many unknown variables, i might as well throw my hands up. >> there are a lot of variables, but it is going to likely be the biggest expense you have in retirement fidelity came out with a study that said that a 65-year-old couple retiring this year will need $280,000 for medical expenses in retirement this number assumes that you're on medicare. if you're not on medicare, that number could fluctuate quite a bit. >> so we think of all the things that could go into it, variables that could change that number. what are some of those, how could that number change if you retire before 65 >> one of the big variables is age. a lot of studies have shown most people actually retire earlier than 65. they retire at 62, some of them. >> crazy. >> they're often doing it

because of the health care issue. so then that adds to the amount of money they may have to spend in retirement. >> how do you get health care coverage if you do retire early? >> if you retire early, the first thing is to see if your employer has a health care plan that you can continue on in retirement if you don't have that option, you could perhaps get a cobra benefit for up to 18 months after you take early retirement. strategically, you want to do that at 63 1/2 so that at 65 you can get the medicare as soon as it kicks in. you want to look at the affordable care act and the options that are available there, whether you're going to a health care marketplace, going to talk to an independent insurance agent. income planning, you may qualify for tax credits, subsidies, and that can help. >> what are the options if you wait until you're 65 to retire >> then you're eligible for medicare the first thing you want to do is sign up for medicare part "b," that covers doctor visits, do that immediately. there's a seven-month initial

enrollment period, if you're late you may have to pay a penalty. look into some of the other medicare-type problems medicare advantage plans see whether that would work for you and cover some things like vision and dental expenses then in terms of co-pays, deductibles, a medigap program through a private insurer. >> how do you figure out if that's right for you >> medicare.gov explains very well as far as the different types of medicare policies you could look into. we're "on the money. what is the secret to writing a successful thriller? we will ask mary higgins clark how she takes readers to the scene of the crime. later, the sky is the limit with this business idea. how these two entrepreneurs are making money out of thin air literally. filled our home is with soft surfaces that trap odors and release them back into the room. so, try febreze fabric refresher. febreze finds odors trapped in fabrics and cleans them away as it dries.

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xfinity x1 customers can "vote for the voice."g, i'm gonna vote for... unless, kelly clarkson, you're a coach, because, you know, that wouldn't be fair. [ whispering ] whatever. which artist will you vote for? vote for... ok, still know it's you.

i just wanna vote! cast your vote during every live show. simply say, "vote for the voice" or your favorite artist's name into your x1 voice remote. come on! she is the first lady of mystery. and the queen of suspense. mary higgins clark has written more than 50 books which have sold more than 100 million copies her newest title is "i've got my eyes on you" and it hit number one on the "new york times" best sellers list thank you so much for being with us today. >> it's a pleasure to see you again. >> it's a pleasure to see you again. i continue to be amazed by how prolific you are, how you can knock out these incredibly well read, well written books congratulations. >> well, it's my only talent can't sing, can't sew, can't

dance. >> i can't sing, i can't sew, i can't dance, and i can't write, so you're up on the rest of us mary this newest book still at the top of the bestseller list even after 40 years of success do you get the same thrill that you used to get with this? >> oh, absolutely. it's like having a baby. you know, is it healthy? is it all the rest of it so putting a new book out, well, you do the best you can on it. but then you wonder how it will be received. years ago an editor said to me, mary, you could write the phone book once. and he's right because readers are smart. and if you try to give them the same story dressed up a bit, they'll say, oh, i used to like her. but now try so-and-so. >> right, right. >> never take a reader for granted. >> so how do you construct the mysteries? i just wonder.

is it a plot comes to you? you get a setting that you like? or do you work it backwards to say, i'm going to wind up at this point and i need to reverse engineer how to get to that point? >> what you have to do is synopsis you should be able to tell in a couple of sentences what the book is about. just to yourself, of course. but then it's, who are the characters and i do a bio of the characters then the names are so important. along the way i've changed a name, no, she's not that, she's this. >> she's not a taylor, she's a christie >> yes. >> something along those lines. >> exactly. >> there are so many more people trying to write crime suspense novels, there's so much more science that's been put into it. have you changed how you tell the stories or how you relate to the readers in those senses? >> no. i can look at my first book, and i really haven't changed my style. not at all

i have never put in sex or four-letter words in the books and i have certainly gotten away with it. >> well, it may be a big part of the reason why people love you so much. you're not throwing all kinds of fancy things around to trick people into it, it's all about the storytelling >> well, i think that if people are anticipating, and it's something like you're alone in the house, it's totally dark, and it's locked, and then you hear footsteps on the stairs and you reach for your cell phone but you drop it. and then the door opens. that's the kind of suspense i like. >> yes, that's why you are so good at this let's talk quickly about publishing the state of the publishing industry today can hardcover books survive in an era where you have people downloading books to the computer or tablet >> i was talking with a

publisher. and she said the market is getting better and oddly enough, small bookstores are opening again so there's hope for us all. >> that's great. mary, i just want to thank you so much. i always enjoy talking to you, i always enjoy reading your books, and we're thrilled to have you here. >> it's a pleasure to be with you. >> thank you very much, mary. up next, you pay for bottled water. what about bottled air the sky is the limit with this business >> what do you think >> oh, it's -- sweet why did i want a crest 3d white smile?

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the beauty of canada's banff national park will leave you breathless and it's breathing life into a startup bottling crisp, clean, canadian air and shipping it to customers all over the world jane wells went to canada to meet the entrepreneurs behind this strange success story >> reporter: i'm in a clean room in canada with cool guys, literally cool guys, who take me on a four-hour drive from edmonton south into the canadian rockies. into canada's banff national park it is one of the most beautiful places on earth. the air here is so clean, it

smells so crisp and fresh, you wish you could put banff in a can. well -- they did why would i buy a can of air >> well, it's the freshest air you'll ever have >> reporter: 32-year-old moses lamb and 39-year-old troy piquet were in the real estate business in edmonton but looking to do something different. >> we got together and looked at a bottle of water and said, hey, we want to try something fun, we want to do something fun and new, let's try bottled air. >> and i was like, oh, wait a minute, this would be funny. but it would be a product. we should try it. >> reporter: as a joke, they put air in a zip-loc bag to see if anybody would buy it. >> our first bag we sold on ebay we sold for 99 cents it cost us $10.99 to ship it so we lost money on that shipment. >> reporter: we've tried it again and the second bag sold for $168 they put in about $1 million to

buy a truck, trailer, tanks, facility that was mostly lamb's money, while piquet, a former welder, created a system to capture the air and put it in a can. they called the vitality air. >> we believe that we're the first company in the world to be selling air to consumers >> reporter: each can has 160 one-second shots of air and costs around $20 to $25. >> what do you think >> oh, it's -- sweet >> reporter: after starting in june 2015, vitality air's 2016 sales hit $230,000 what was the biggest disagreement you've had? >> to date >> reporter: moses lamb and troy piquet acknowledge they are opposites. >> i could live out here i don't need the wi-fi and the cell phones and everything like that i can live in this kind of environment. >> i could live here but i need wi-fi.

>> reporter: i love those guys china is their largest market, so they've expanded and have a subsidiary gathering air in the mountains of south korea the best part of the business model so far, becky, the air doesn't cost them anything they collect it for free >> i have so many questions, jane first of all, i think about the places where i can recognize the smell of the air or when you breathe it in, you know where you are. you said it smelled sweet. could you quantify that? how does that compare to what you're smelling in los angeles >> reporter: well, we'll talk about what it smells like here in a second. it's sort of pine, sort of spruce and just pure. not only coming out of the can, but then when you smell it, it's the first time i've ever been to banff and it's amazing what i'm smelling right now smells like crud we know we have poor air quality

in los angeles, i never realized how bad the air here smelled until i put it in a bag and took it with me to banff to compare it to vitality air. >> that's my concern, do i want to know how bad the air is that i'm breathing now once i start buying this stuff and smelling clean, fresh air >> reporter: i don't know, because we brought a bag of new york air with us and my advice to you is, don't breathe >> thank you, jane that is the show for today i am becky quick thank you so much for joining us next week, is it time for a raise but you're just not sure how to ask it's not always easy we do have some tips for you each week keep it right here "on the money. have a great one and we will see you next weekend happy anniversary dinner, darlin'. can this much love be cleaned by a little bit of dawn ultra? oh yeah one bottle has the grease cleaning power of three bottles of this other liquid. a drop of dawn and grease is gone.

war live at the nasdaq market site, the guys are getting ready behind me. here's what's coming up on the show >> loaded for speed! go >> tesla shares haven't gone to ludicrous speed in months and the charts are pointing to more pain ahead we'll explain. plus how would you like to make money on apple if shares go up, down, or nowhere at all? >> that's incredible >> no it's a simple options trade. we'll teach you how to do it ahead of earnings.