if you take aig and citigroup and wachovia and washington mutual and freddie mac and fannie mae, theholders of those companies lost hundreds and hundreds of billions of dollars. citigroup did not go under, but when the stock holders lose 90% of their value, it really does not make much difference if you have $1000 invested and you end up with $100 or not. so there in my view, there has been no moral hazard created for stockholders by the fact that the government came in and rescuethosinitutions. the moral hazard exists i think with the top executives who walked away with hundreds of millions of dollars and really did not pay the price for their failure. we had bigger and bigger financial institutions that had all kinds of activities where their problems became other people's problems. and then we had improper incentives, we had people running the huge institutions whose upside was lots of money and lots of glory, and the downside was still a lot of money and no glory. thomas: one of the points my teacher makes, when you're in a world that is a flat and technically interconnected, it

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 mortg

freddie mac has warned about climate change impact on the real estate sector, and i quote, the economic losses and social disruption may happen gradually but they are likely to be greater in total than those experienced in the housing crisis of the great recession. well, when you think what we went through in the housing crisis of the great recession, wow, when freddie mac is warning that the economic losses and social disruption from climate change in our housing markets are likely to be worse. these are all serious investors and they have serious warnings for us, and ignoring all of them just to please fossil fuel industry patrons is a big, big mistake. even president trump's nominee to head the securities and exchange commission, jay clayton, thinks we need action. for years his firm has want the climate change risks to be disclosed to investors. i hope they will disclose the existing s.e.c. risk and clarify that it should include asset valuations based on global compliance with international treaties. investors need climate change risks disclosed against a reality check baseline tha

some effects of climate change may not even be insurable, freddie mac says. and unlike the 2008 housing crash, owners of homes that are literally under water and not just financially under water can have little expectation of their home's value ever recovering, and therefore, little incentive to keep making mortgage payments which would in turn add to steeper losses for lenders and for insurers. this is deadly serious economic business. shoreline counties also, although we're just 18% of the united states in land area, account for around 38% of the country's employment and 43% of our g.d.p. so each year the sea and the storms will take a higher toll on the roads, the bridges, the sea walls, the power and wastewater treatment plants and the military facilities that serve that economically productive shore. despite all this, president trump's proposed america's first budget blueprint zeros out the climate change initiative globally ends the u.s.'s contributions to international climate change programs, eliminates e.p.a. programs that conduct climate change rese

. >> rates for home loans fell slightly in the latest week according to freddie mac the 30 year fixed rate mortgage averaged 4.1%. rates this year have not followed the typical patterns. they have not been tracking the yield on the 10 year treasury as closely as they once did and they've also not been rising as many predicted and that is helped keep refinancing activity steady. >> so if you're thinking of selling your home this spring, you probably know the housing market is hot pretty much everywhere. but when exactly is it the hottest time to list in your neighborhood? diana olick has the answers. >> reporter: this spring housing market is barely underway but it's already one of the most competitive in years thanks to low supply and high demand. sellers are in the driver's seat but if they want to drive faster sales and even bigger prices timing is key. homes listed between may 1st and may 15th sell nine days faster. not only do they sell faster but they sell for a $1,500 premium, why? because of the competition. many home buyers who started looking for homes in the early spring wil

according to freddie mac, the average rate on the 30-year fixed rate climbed to 4.3%. it was 3.7% a year ago. the move higher was last week was in anticipation of that rate increase by the federal reserve. >>> higher mortgage rates did not hurt home construction last month. new residential construction climbed 3% to a four month high led by the strongest pace of single family home building since 2007. and it's the lack of single family homes on the market that have helped keep prices high. in the increase in home build kog help alleviate housing's supply issues. >> still ahead, a hot wall street debut for an apparel maker. even as the broader retail industry struggles. >>> new evidence today that labor market remains taught. the number of job openings rose 3% in january from the prior month. the labor department report also showed that more than three million people quit their jobs in january. most in nearly 16 years. a rise in quitting tends to push up wages and it's usually sign of confidence in the job market since workers quit if they think they can find another jo

fannie mae, freddie mac, the federal reserve, anything but trump.oncerns about the other issues. but i have a lot of concerns about the president's refusal to disclose his tax returns. the fact we don't know where the president is getting his money for his global business empire at a time when another country has been conducting espionage inside the united states. we need more transparency in this administration. we need to get to the bottom of what happened with respect to the russians. we need to find out who was helping the russians. we need to make sure those people are not in our government and probably they ought to be in jail. >> the fbi is conducting what is surely the most important investigation because that's the one that could actually lead to indictments, trials, convictions possibly. but it's the one about which we will know the least. they have no public aspect to those kinds of investigations. what are you hoping for from the congress in the meantime while the fbi is doing that work? >> congress ought to be investigating this. the in

freddie mac. the president proposes to eliminate 500 million for the rural water and waste water program in the department of allege tur. in my congressional district lone, this has funded for poor ommunities like boman that had previously limited access to clean water. the president also proposes to eliminate the transportation economic recovery or tiger grants which invests in roads, projects on , port a competitive basis all around the count try. in south carolina, tiger grants 3018 funded the i-95- interchange, main street revite laysation in columbia and upgrades fee port of charleston to the tune of $32 million sm the result of economic and community development have proved to be well worth the federal investment. the president's proposal would eliminate the legal services corporation. and liheap. that is the program for low-income home energy assistance that allows homes to other erized and meals wheels. this can only be seen as an attack on the poor and the elderly. these cuts will leave t

you're moving out to riskier loans, outside the credit box, loans you cannot sell to fannie mae and freddie macwhy take on the risk? >> i would agree with you that these are outside the box but i would disagree that they're riskier loans. they don't fit inside the box as described by fannie and freddie. >> explain what that buyer is. >> fico score for a borrower would be about 700. now in the old days 700 used to be fantastic. debt to income is about 40%. loan to value is about 80%. these are fantastic borrowers that the mainstream lending has left behind that we are lending to and we found that the risk profile has been fantastic in the last two years. it's been really a great market for us. >> and you found investors for these loans? >> we have. those have been rated. one has been rated aaa. pretty solid institution demand. >> you see more private investors getting into this? you, as we know, were the former ceo of citi manage. rising mortgage rates. that doesn't concern you on these loans? >> no. these are not loans that are not fully documented. these are loans that are thorough thoroughly

it didn't touch fannie mae and freddie mac. there wasn't kind of root and branch look at one of the bigger centers of the financial industry collapse. it wasn't there. we don't know if these banks are now too big to fail or not. because we're not going to see it until the next financial crisis. if you think that there's not going to be a next financial crisis, i would point to you to the signing ceremony of sarbanes-oxley. when george w. bush said, this is the most sweeping reforms that we've had since the new deal and the great depression and there will be no more enrons. that's it. we're done. we're all in this shiny new future. so i fear that we're going to look not just at foreign policy, which i don't think has been a success at all, i would characterize them like jonathan, libya as a very important failure as well as giving donald trump a loaded gun on a lot of different ways. i think we're going to look five years from now when the next bad things happens, and we're going to see, what did this guy do for us to help prepa