hi, everyone welcome to "on the money." i'm contessa brewer in for becky quick. rising risk. what the changing climate means in the mortgage market and what it could mean to you now that the new year's resolution crowd has stopped going to the gym, it's still important to keep a healthy lifestyle. the ceo of nutrisystem has some ideas to help. we found out so many americans have no emergency savings. found that out during the government shutdown. how to make sure you have some cash just in case and sweet for the sweet. mr. chocolate jacques torres joins us for some tasty treats for valentine's day. "on the money" starts right now.

this is "on the money. your money, your life, your future we begin with your home. a new government report warns climate change will cost the u.s. economy hundreds of billions of dollars in annual losses by the end of the century and we're already seeing the beginnings of this in the mortgage market. rising risks is this week's cover story and diana olick has more >> reporter: hurricane harvey flooded close to 100,000 houston area homes, and the vast majority of them had no flood insurance. >> ultimately we ended up with about four feet. >> reporter: jennifer and andy taylor did have insurance and at the time vowed to rebuild. >> the fabric of the community has been amazing. >> reporter: but as they watched several homes on their street go into foreclosure and the fabric of their community seem to unravel, they joined other struggling neighbors and sold to hungry investors who descended

on the city. houston's strong economy made it a hot housing market before the storm and investors are still swarming foreclosure options like this one now. rekindling images from the foreclosure crisis a decade ago. >> i've heard plenty of stories of homeowners who had no choice. >> reporter: in harvey federally declared disaster areas 80% of the homes had flood insurance because they weren't normally prone to flooding. serious mortgage delinquencies jumped more than 200% according to core logic. houston could have seen a massive foreclosure crisis were it not for that strong investor demand the next city to get hit by a natural disaster might not be so lucky. in houston, investor purchases of ten or more properties jumped nearly 50% in the year following harvey according to adam data solutions. some were large buyers like home

vestors, others were smaller home flippers like j.p. patel. >> it was a perfect opportunity. >> patel and his team have bought more than 80 flooded properties >> we literally can avoid the whole problematic nature of the foreclosure process. >> reporter: and it's not over yelled. >> sold. >> reporter: even a year after harvey neighborhoods like this one are still rebuilding littered with empty houses and empty lots some say all of this should be a wake-up call to the nation's banks and mortgage lenders we asked ed delgado if the mortgage market is prepared for increasingly severe weather. >> i don't think they are. i think if we look at the foundation and what drives the mortgage market is the application of credit risk >> reporter: delgado emphasized that most of the damaged homes in houston were not in fema flood plains. >> we have this tremendous urbanization

where does the water go? is there an underlying risk for us to examine with respect to our portfolio? >> lenders today and the federal government which back most home loans base their risk on current fema flood maps but even top fema experts admit the maps do not take into account extremely increasingly extreme weather. >> are they going to change the maps >> reporter: they're required to upgrade the maps but it doesn't take into account climate change they rely on local municipalities for their information. a lot of communities don't want to report flood risks because they're afraid that their insurance premiums will go up. >> what a mess diana, thank you for bringing us the story and laying out the risks for us spring is just around the corner it marks one of the most popular times of the year to go out and look for homes or to put your home on the market extreme weather risk is one area that could have a major risk on housing. what can we expect in 2019

joining us is nela richardso of edward jones vents. great to talk to you today >> thanks. >> how is the housing market looking overall? >> we are at a point where it's bruised but not broken it won't be the record level of sales we saw in 2017 but we have seen mortgage rates come down considerably over the course of even the new year and that is a good advantage for buyers. >> can you lay out some of the factors that caused buyers to maybe pull back a little bit >> it's only really one factor it's affordability you know, houston was actually a bright light when it comes to cities because it was fast growing and affordable harvey changed that trajectory but around the country we've seen house prices rise in places like grand rapids, seattle, san francisco. when you add that increased rate, it changed the calculus for home buyers who are focused on that monthly payment. it went up and became unaffordable.

>> we have been focused on the lack of inventory, especially at that entry level point people who needed to buy their first home or if people were looking to downsize into retirement, there just weren't homes like that available. has that changed >> no, it hasn't that's going to be the myth that you'll see play out in the housing market in 2019 you'll see reports that inventory is increasing, that it's increasing at price points that are not affordable to millennials or first-time buyers that has been persistent for the last five years. >> then we have this big tax overhaul that changed what people could write off in terms of how much of their mortgage interest they could write off and also the taxes that they pay, their property taxes and their state taxes and things like that which make it more expensive to live in places like california and new york. are you seeing more of an impact on the housing market in those high priced states >> we haven't seen an impact from the tax cuts yet. i think this will take a few

years to play out, but the bottom line is if you combine high taxes, slowly but higher interest rates and high prices you get a mix that demands a solution and that solution is more homes and yet our zoning regulations don't accommodate that. >> i was sharing with you, nela, that i lost my own home in hurricane sandy and it took us 16 months to get back in and even then we were living in a construction zone for a year it has changed the way i look at purchasing real estate is that something that you're seeing buyers beginning to assess can i get flood insurance? would i need flood insurance how much does that add to the affordability of the home? >> no. the risk is so hidden. it is not top of mind for the buyer. the buyer is counting the bedrooms they're looking at their monthly wages. they're not looking at i could live in a place that could flood. especially if it's not on any kind of flood map. the fact is our flood system does not take into account these

extreme weather events that are becoming more prevalent and more damaging so it's another thing but it's a hidden thing that buyers have to be concerned with. >> i want to ask you one more thing that always gets me. when people are buying a home, real estate agents commission can cost 5 to 6% of the over all sale that significantly eats into the profit that the sellers is making and what the buyer is paying are the days where that's essential over >> they're ending. being in the industry for so long i understand the value of the real estate agent but there is a point where technology can improve and make that relationship more efficient, lower costs and that is the ultimate hope for home buyers and sellers going into tomorrow but we're not there yet. >> nela, thank you so much for sharing your expertise with us >> it's great to be here with you. up next, we're "on the money. eating healthier and getting more exercise are among the top new year's resolutions how to get back on track if you've fallen into your old habits. during the government

shutdown many paychecks were stopped. would you have had enough savings to get through a break in your income now let's take a look at how the stock market ended the week.

each year losing weight is among the top new year's goals but it's difficult to go from resolution to result don zear is head of nutrisystem. as a middle aged woman i've made a lot of resolutions this year i decided to look for something attainable my resolution was to curse

more i'm doing pretty good sticking to my resolution how about your clients are they sticking to your new year's resolution? >> i think our clients are we offer structured plans. by january 12th people are dropping their new year's resolutions. so i think for us it's more of a structured program. >> how does nutrisystem help people the advice really is the same as it's been for a long time. eat less, eat healthier, eat more exercise more. >> we will deliver the food to your home so where they'll bring food the way customers want it these days it's easier to prepare i think we help break through that. >> what does that mean, the way customers want it? >> customers want everything delivered to their home. they want to order everything online we transact the way america trans acts we deliver the products to home as america increasingly wants. i think we're very on trend with that

it's no longer about one size fits all losing weight. >> i have all of these friends on the keto diet raving about it you're cutting out sugar and processed carbohydrates or a lot of carbohydrates in general. does nutrisystem tailor to people who want that plan? >> absolutely. we have the south beach diet which was founded by a leading cardiologist you know what happens is two weeks in you find your sugar cravings are gone. >> is that something people can stick to >> i find it's easy. i find that it's really easy you know what to eat and whatnot to eat after you do it for a couple of weeks the carb cravings disappear. >> is it the right plan for everybody? would everybody benefit? >> i think the right plan is a program you can stick with different people have different needs. if you love your carbs, south beach is probably not the program for you. nutrisystem would be the way to go. >> tell me a little bit about

the future for you guys here is it about appealing to a younger audience is it about pairing with a company that's more health centric? >> i think it is about, you know, the conversation has changed over the last five or six years from vanity to real health and wellness which i'm so thrilled to see as a woman that's where the conversation is going. we recently announced that we're being acquired by tivity health which is great that will give us the opportunity to talk about calories in which is nutrition for us and calories out which is fitness for them we'll be able to do what everybody is talking about. >> thank you for joining us. appreciate it. >> nice to be up here. up next, we're "on the money. it's not easy but you can build an emergency fund. steps to get you started on saving money. later, looking for a sweet treat for your sweetie we'll see surprising trends when it comes to chocolate.

the latest innovation from xfinity isn't just a store. it's a save more with a new kind of wireless network store. it's a look what your wifi can do now store.

a get your questions answered by awesome experts store. it's a now there's one store that connects your life like never before store. the xfinity store is here. and it's simple, easy, awesome. one thing that the recent government shutdown has made abundantly clear is most americans are not saving for a rainy day. in fact, 78% of workers recently told job posting site career builder, they are living paycheck to paycheck sharon epperson has tips on how to build a cash cushion and be prepared

how much money do you need to be prepared for an emergency? >> well, you know, financial advisors say you need at least six months' worth of your living expenses to be prepared for a loss in income largely because if you lose your job in a loss in income, it can take that long to find a new one or longer. the reality is many americans are so far away from that. 58% have less than $1,000 saved according to one report. another report says if they had an unexpected expense they'd have to pay for it in cash 30% say they were faced with unexpected bills in the last year. >> the thing is, when i was first out of college, i had all of this college debt, i was barely making all of this money. i felt i had no money to save so i didn't. >> you go to credit cards, take out a personal loan, go to

family or friends. here's the problem the average rate on a credit card is 17.5%. think about how much money you're paying back in interest to use that card if you take a cash advance, the interest rate could be as high as 30% if you're doing it with family and friends, that can work as long as it's set up like a business deal. be responsible about paying that back a personal loan can be great the rates can be low if you have great credit instead of getting a 5% interest rate, maybe you get 30% on a personal loan. again, not a great option. better ways to stash that cash. >> you think starting small like think of what you would think of buying that coffee, at the end of the month you have something tangible. >> think about that $5 a day, $25 a week -- >> where would you put that? >> in a high yield savings account so that you can -- if you need access to that in an

emergency. you want to try to automate it as best as possible. my favorite app is my bank app. that lets me know where i stand every day. i get a text alert it lets me know when i go over starting small, one month's worth. financial advisors say six months that is so daunting to so many people. >> that is such a big number. >> do you know how much it costs to live for one month? many people don't know what that would be once you calculate that and you try to build to that goal. that will start the discipline. >> when we go to work for a big company, they make it easy for us to save for retirement. couldn't they make it easy to save for emergencies too >> many of them are thinking about it because they call it us leakage. we dip into our 401(k) some companies like prudential are setting up emergency savings

programs they're doing it for their employees and other companies as well you can have an after-tax contribution go to a money market fund, stable fund, you can put in $500 to six months worth of savings depending on your goals. they don't want people to take loans from the 401k. that will jeopardize your future if more companies can realize this is an important benefit we'll see more of that >> thank you >> my pleasure. up next "on the money", a look at the news ahead and not sure what to get your valentine this valentine's day? how about chocolate? seems like a classic to me bon-bon. emoji chocolates we have a sweet selection to choose from.

my mom washes the dishes... ...before she puts them in the dishwasher. so what does the dishwasher do? cascade platinum does the work for you, prewashing and removing stuck-on foods, the first time. wow, that's clean! cascade platinum.

here are the stories coming up that could affect your money this week. on monday a sure sign warmer weather is coming. pitchers and catchers report for spring training. wednesday, a key measure for consumers, the consumer price index comes out. on thursday, the producer price index will be released that measures inflation for wholesalers. and happy valentine's day. we'll see how busy factories are with industrial production report for january we're just days away from valentine's day, and this year more than half the americans say they plan to celebrate the day

or should i say only half of americans plan to celebrate the day. but they're going to spend $2 billion on candy according to the national retail federation joining us now is chocolatier jacques torres valentine's day is chocolate, of course, but when we hear that 51% of the people say, yeah, i plan to celebrate, that leaves al of people month don't plan on buying chocolate >> you can buy this chocolate that says love stinks. >> you're catering to people who don't believe in valentine's day? >> we try to not discriminate. we send chocolates for everyone. that's the goal here are you having a hard time

selling chocolate amid this effort to key toe everything i just started the j. lo 10 day sugar detox. i'm vowing not to have chocolate. >> look, a little bit of chocolate is not going to kill your diet. i still eat some chocolate. >> what's your secret? >> i eat some chocolate. >> the national retail federation says there's a dip in the number of people who are going to participate you are offering different options. >> this year i wanted to do something new. i realized that the younger generation love to text and use emoji. we put a bunch of emoji here if you don't want to ask something, if you are a little bit shy, you can put some emoji you want. >> do you want to go out and have mexican with me would you like to have some fruit? >> exactly that's what you mean or it's raining outside. that's exactly what that means.

>> here we have a box of chocolates here. >> this is beautiful >> nice, white chocolates. it's very feminine. >> are you finding as well that it's harder, you said you are appealing to younger people who want to use the emoji. younger people, studies show they want to give experiences. how much of an effort is it for you to think outside the box >> i do that constantly now. this is -- my primary job is research and development i will do -- instead of doing the traditional heart box with the big ribbon, i'm going to do something like this. this is interactive. i have another box of chocolates where you pull the chocolates and you say, wear to this. kiss me on the neck. or kiss me on the coffee table i try to do fun, phaoufamusing u

experience >> how important is valentine's day to your bottom line? >> i think if i don't have valentine, we will not sustain the year the first holy day for chocolate maker is christmas then right after that is valentine. and the third one is easter. so valentine is extremely important. if we don't have it, we cannot do this. >> merci. >> contessa, i love your name. >> my parents have high hopes for me that's the show for today. i'm contessa brewer. thank you for joining us becky will be back next week would you want solar panels on your roof one state is requiring all homes to have them have a great one we'll see you next weekend

hey there. the guys getting behind me in the meantime, here's what's coming up on the show. >> do you like coca-cola >> the chart master sure does. he said the sleepy stock is about to pop reports earnings next week plus, nvidia share have