"press here" is sponsored by barracuda. this week, can a computer do a better job than a mortgage broker? the trump administration worries about spies and the micro wave and a high tech ceo who didn't touch a computer until college. our reporters of fortune and "usa today's" john tour this week on "press here." good morning, everyone. i'm scott mcgrew. every time a robot makes the news i am quick to remind you that economists are deeply concerned about jobs that may be lost to automation. i delivered papers as a kid, and

it's not hard to imagine this robot would get up earlier and be a whole lot more diligent than i ever was, but it's not just simple tasks that are at risk. the silicon company ellie mae is developing computers replacing mortgage brokers. jonathan coor is head of ell ellie mae. before i get to the questions about how all of that works, i want to kind of understand what your company does. where are you in this mortgage chain at ellie mae? >> we go from the initial consumer touch point all the way through the process to the mortgage asset being sold to the investor. >> all the way through? >> all the way through the entire process with, you know, kind of our vision which has been with established 18, 19

years ago was the mortgage process, it's all about data and yet it is such an inefficient disconnected process for the consumer. how can we embrace technology to create a much more seamless stream. >> i want to ask you much more about the technology but i want one more clarification. ellie mae sounds like freddie mac but you are not a -- >> clearly named. >> we went public five, six years ago. we've been on a run. it just happens to be named that. >> just happens. >> started by a woman named ellie. >> the company was originally called electronic mortgage affiliates. >> you're right. >> not a great name. not a great name. back in 2000 fannie mae, freddie

mac, they were one of the most respected companies. we're a small technology company. electronic mortgage affiliates, let's call it ellie mae. >> do people get confused? >> they used to. it was kind of cool. you'd call up on the phone and we were a small company in 2000, 2 2001. the person on the other side, ellie mae is calling, you better take this call. fannie mae was an early strategic investor. pmi, genworth. at the time i used to go to washington, d.c., i'd come in to fannie mae and the security person would stop me and say, fannie mae, we're ellie mae, who are you? >> we're fannie mae's little

sister. >> let's talk about the technology. >> how much of this process is automated today? >> very little is truly automated. really what we're trying to do is to take the pieces that, you know, can be automated, things like capturing income information, asset information, types of things you might do through personal financial management solution and then as you go through the process there's a lot of regulation that is part of the mortgage process, whether it be at the federal level, at the state level and so for a human being, for a set of folks to sit there and look at every single loan and look at, you know, what is relevant in this local, that state, that region, that is incredibly costly, incredibly inefficient. >> and can be done by computer. >> and that can be done by computers. >> computers have created

subprime mortgage loan mess or do you think that that would have been -- is there any way that would have been avoided? >> it probably would have been avoided. if you actually had, you know, some of the things -- the subprime mortgage crisis and that mess was more around, you know, decisions made by investors to basically buy loans, do loans that really weren't being under written, things without, you know, stated income, stated assets, no income, no assets with the premise like in any bubble like we had our dotcom bubble back in 2000, things will go up forever. when you think things will go up forever you can always refi out of things. you don't worry about it. >> automateds process is going to make things much more accurate and timely. more broadly what impact does that have on the jobs market within this industry? >> so i actually think that for the foreseeable future as long as we're around and, you know,

probably our kids are around we're going to see a mortgage origination process that really is a combination of high tech and high touch, right? it is such a big transaction, although we can use technology to create a better experience up front if a consumer wants to be, you know, do things on a mobile phone or they want to do some research, they want to capture information, that's the front end of the process, but as you go through the process, right, you need people there to help you through that decision. it's big. it's emotional, right? biggest transaction most people go through, and so what you'll see happen is that folks that are in the business that are doing kind of menial tasks or checking and rechecking and triple checking every i being dotted, every t being crossed, they'll get to spend the time sitting with the consumer helping them work through, advising them. value added. >> mundane tasks and more on -- >> value added. >> it results in less people

needed to do these kinds of jobs and these are for the large part white collar jobs. >> well, in some cases what you have is -- i mean, if we look back at what's happened over the last six or seven years, you know, people have thrown as demand in terms of quality, investors expecting everything being done comprehensively, as regulation has been introduced and been enforced and in a lot of cases makes a lot of sense to protect consumers, what people have initially done rather than embrace technology, right, which is a natural thing you do with an industry that's all about data, they throw bodies at the problem. we've increased the cost for the consumer inordinately, i think, in terms of what you look at over the time versus what is possible and so, you know, you don't need people to just go in and check everything multiple times. you can basically have them do value added. >> if the regulation changes, it

seems like the new administration will change a lot of dodd-frank. in banking a computer would understand new regulations quicker than retraining 1,000 of your mortgage brokers or whatnot. you could -- you could adapt more quickly. >> yes. you can aid those folks. so if you have a loan advisor that does their mortgage broker, interacting with a consumer, what do they need to really focus on? they need to focus on what's the best thing for the consumer. figuring out their financial situation. things like the rules, they should know them, but allowing the system to point out when things might be going awry and alert them and/or, you know, get them to make adjustments, that's a great value add. >> jonathan corr is with ell ellie mae. thank you for being with us. >> thank you very much. >> "press here" will be back in a few minutes.

welcome back to "press here." my next guest started far away from silicon valley. did not touch a computer until he started college. he grew up in ghana in western africa. he was supposed to go to college there but the local university was on strike so he ended up at cal tech. add in a stint at harvard business school and jobs all over silicon valley. he runs his own startup. thanks for being with us this morning. i've got to ask you about the computer thing. seriously? >> yeah. yeah. that's exactly how it started. i grew up in ghana, went to high school in ghana and pretty much a lot of the curriculum was math and science, that's what i did. and the first time i actually got to use a computer was when i was a freshman at cal tech. >> what was that like? were you instantly drawn? >> i was drawn to it. i knew -- i did a lot of

studying on the math and sciences but one of the things that the allure of computers to me was you heard a lot about bill gates growing up in ghana, all right? and so with sort of a technology background and sort of -- i basically decided i wanted to do engineering so that's how my career started. i kind of grew up in the engineering ranks off to college drawing the semiconductor company out of my grew. we grew that startup before it was inquired by intel and then moved on to business school. >> i want to go back to childhood. i read somewhere you scored the second highest in math and science in the entire country. is that -- >> yeah. yeah. i could have been the first but -- >> do you know? do you know the name of the first? >> i do. i do. i actually have some of my co-workers keep asking me. it was actually a girl, did she start a company? because we have a friend looking for a job. >> pretty funny.

so in toerms erms of starting yn condition, what was the impetus for that, becoming an entrepreneur? >> my parents have always been entrepreneurs. i've been curious about problems. i decided to study computer science. the entrepreneurial journey really had a background across the enterprise networking environment from the silicon side of things to networking systems to what we do today which is the software there. so a lot of my background i came across problems that just felt unattended to, right? and more over and over again when i work with different customers at different times i kept hearing about problems that these customers had and no one was attending to them, right? fundamentally any time you see a problem that is shifting and it's becoming more and more of a pervasive problem, it felt like an opportunity to build an

enduring company. then you go about the process of putting a team together. how do you actually put a team together? how do you go about really creating a culture that built an enduring company. that's how we got started. >> created a company with three founders. >> two other co-founders. >> they're all from different countries. given what's going on, it's a second attempt at a travel ban, version 2.0 flopped so far. i'm wondering as an immigrant, hiring ceo what impact that might have on your company and other startups in a similar situation. >> yeah, you know, i find this whole immigration conversation especially from a silicon valley context quite interesting. america with immigration has a chance to get the world's best advice. i moved to the silicon valley because i felt this was the place to build an enduring company and do something with technology. you know, i'll say it's a little early to kind of figure out exactly where this whole immigration ban and the whole

talk around immigration will go, but from a technology standpoint and within the context of silicon valley i think in the long term it will do the country a disservice. also there's the talk of executive order affecting h 1 bv. that was brought up and the timing and time line was a little fuzzy. that might exacerbate the problem, i think. this is the one where i think a limit on h 1 b the basic salary should be -- >> how many employees do you have? >> 25 of us. >> are any of them on h 1 b? >> yes. >> how many? >> we have four. >> so as a hiring ceo, i mean, the complaint is we can't find the talent. is that what you are finding? there's an awful lot -- it's not because the americans aren't smart, it's because there are so many companies hiring. >> yeah. yeah. so any kind of new idea requires bringing together sort of such a

cross functional team of folks who are the who dare to dream, right? how do you find people to work together? it's one thing to build a product or a widget. part of the whole entrepreneurial journ bey is bringing people together who are passionate so for us it's building the team together and also putting together a culture. part of the culture is around fostering diversity, right? because diversity tends to be a good crucible for good ideas. >> the funny thing is some of the people who might work for you might start their own company. >> it seems so obvious, doesn't it. >> it does but we don't live in obvious times. >> but does the relatively widespread support, i mean, i understand there have been blocks, but our president was elected for a reason. does the support for these kind of measures, does it surprise you or no? >> so i think one of the things that this whole election cycle,

it was eye opening in the sense that i think different communities live in a bubble, right? i've lived in silicon valley, i've lived in los angeles, i've lived in boston, but i think the election cycle spoke to other problems in the country that a lot of us in the bay area are probably oblivious to. there's something there. now how it's been dealt with, i think people have different opinions how it could be dealt with in a much more effective way but i think there's something that clearly spoke to where we are today. >> with a minute ago left, when is a first principled thinker? >> the whole concept of first principled thinking is how do you take a problem and break it down? and it's been april pretty powerful way to think about problems and do entrepreneurship, right? any time you build something from the ground up and it's never existed before, we are

basically google analytics for corporate networks. it's never been done before. how do you take the problem from its essence and listen to what customers ultimately want and build a product that basically applies to the bigger market. that's what we do. >> thank you. >> thanks for having me. up next, your micro wave is not spying on you but your kids' stuffed animal might be.

welcome back to "press: here." there's stuffed animals with a blue tooth and they are vulnerable. a security researcher said what you say and what you do with a toy all ends up at a mysterious company in romania. donald trump advisor kellyanne conway got a lot of grief saying

microwaves can turn into cameras, they cannot, but the spirit of what she said is not lost. we knew what she meant. internet enabled devices are vulnerable. sam heywood is director of cyber security at cloud dara, a company backed by all kinds of venture capital including the cia. are you going to tell us microwaves cannot spy on us? >> we're going with the jack don donnahy school of business. >> the spirit of getting what she tried to say is good enough for us. >> i know. >> new standard. >> new segment, you know what i meant. >> yes. >> yes, absolutely. this is a realistic fear. it's not just stuffed animals. there are huge turbines now that are connected to the internet that have got to be protected, right? >> yeah, exactly. i mean, over the past 20 years

we really moved into a hyper connected world. circa 1990 internet connectivity was somewhat of a new thing but today we all have this shared expectation of always on, global mobile access to the most sensitive corporate documents and more and more of the technology that's deployed within the consumer environment is internet connected for our convenience. >> i was just at south by southwest and the architect of the internet mentioned the dangers and risks of i.o.t. with the wikileaks disclosure about vault 7, it stands to reason that beyond the iphone or computer or tv that this will filter down into our house. should consumers be concerned about that? are think a fire alarm or device? >> actually, the concept of i.o.t. is not new, right? i'm from texas, right? i was raised in houston.

my dad did oil field and pipeline technology, and they've been deploying kind of rudimentary versions of what you would call i.o.t. for years and years and years. it's not that the concept is brand new, but what it does raise is it infiltrates the consumer's environment more and more and it violates the number one rules of security which is the most vulnerable link in the human chain which is humans. >> go ahead. >> what do you use? a good pa rom met ter, do you have any of these smart devices in your home or would you have them? >> i do not have them but it's not based on any type of philosophical position. you know, our house is very simple. i don't have the internet deployed devices simply because my experience with interconnected technology is from time to time they inject a layer of hassle that i simply don't want to deal with. >> i had some light switches

that i connected it alexa mostly for fun. then when aws went down about a week ago or something they didn't work. and now i can still go over and turn on the light. it was not a panic situation, i was fine. it was a reminder that i've gotten -- i depend on something outside of my house for all of this to work. >> going to your point about the human being, the key security breach. i was talking to an ieee member and they were saying there should be safety instructions with a lot of these products. before you use it, with the yahoo! breach that's tied to a fishing scam. >> i don't know why anybody hacked yahoo!. what they should be doing is hacking maybe not our amazons or clouds, but they should be hacking the giant turbines. wouldn't that be the biggest ha

hareharvesters. the motivation tied back to the actor is the number one thing. it's hard to build an argument around -- i am not in a position to build an argument about what the motivation are for an actor to attack our turbine. there's a whole bunch of reasons why they would. i won't get into them here. if you're flig money to health care administration there is a way to get a slightly softer response. >> when you give advice to employees or just consumers, what's the number one thing that people should be doing that they're not doing besides the password issue? >> i think the number one thing, if we're talking about consumers, simply be aware, right? it's very easy for your information to quickly travel the globe, right? use basic password management. when we talk the word invasion,

companies, federal agencies, whatever. ensure they have the appropriate insig insight. >> i know with corporations, the thing is now that you should just assume you've already been hacked, that's how you respond to it. and what kind of steps you take after. but as consumers, i mean, is that something we should also start assuming, that our information has been breached in some way or another? do you think we're at that point? >> well, i mean, it would -- i don't think it would be accurate to say that every citizen in the city united states has had their data exposed to bad actors, however, a large number of people have, right? and i think the other thing that's interesting is, you know, the whole microwave comment. it's on the end of a long arc of very public breaches that go back for a number of years now, right? so my basic philosophy in terms

of internet services i use and how widely i share information, i kind of apply the old thing, why did you rob the bank? that's where the money is. what i personally try to do is avoid sharing highly sensitive information in a location. >> let me ask you a question about texas and california. you're not in austin. you're avoiding south by southwest. you bounce between austin and palo alto fairly often? >> uh-huh. >> i know there is a lot of movement out of silicon valley towards texas. other than high house prices, is there any other motivation? why would we have a brain drain going to texas other than maybe high house prices or is that it? >> we have lower house prices actually. >> yes, i meant your how house prices. >> texas has home values, no state income tax.

it's a highly diversified economy. most of the major cities are growing. houston slowed down. houston is an amazing, vibrant economy. a very multi-national city. texas is a great place to do business. austin, in particular, you have the hill country which is absolutely fantastic. it's the home of several international events a year, south by southwest, only formula one racetrack. >> and stubs barbecue. >> the other thing -- >> no, i haven't got time for you to say anything else. >> okay. >> sam heywood, thank you. we'll be back in just a minute.

that's our show for this week. my thanks to our guests mps reminder, all of our interviews are here at "press: here"

tv.com. search here. i'm scott mcgrew. thank you for making us part of your sunday morning.

it's sunday! >> you are watching us across the united states. we appreciate your company on a sunday afternoon. welcome to premier league sunday in the east of manchester city england for one of the great matchups. manchester city with yaya toure', a point behind in fourth. both teams are trailing in the wake of the leaders chelsea but both are desperate toward their cause of finishing in the top four and to qualify for next season's champion's league. we have two of the world's most high profile managers