." >>> we're starting to see harvey's exposure for mortgage giants fannie mae and freddie mac. fanmy they says there were more than 46,000 fans whose mortgages in the initial impact area with about $5 billion of unpaid balances. meanwhile, freddie mac estimates it has 167,000 mortgages in the 18 counties affected so far but says that number could grow. >>> insurance stocks were hit today as investo wait on the initial estimates of damage from harvey but the insurers aren't sitting idly by. they are using state of the art technology to get a head start on assessing the damage. mo takes us to travelers catastrophe center in windsor, connecticut. >> reporter: as harvey continues to linger over the texas coast, insurers are using technology to model the damage. as they wait out the storm to send resources into the e. travelers has been monitoring harvey from its national catastrophe center using monitors displaying weather analytics, big data, even social media feeds. this center and much of the technology in it is relatively new. it didn't exist for hurricane katrina in 2005 or hu

. >>> the mortgage giants, fannie mae and freddie mac, may need a $100 billion bailout in the event of an economic crisis. that is according to a stress test checking their ability to survive a major recession. that figure sounds like a lot of money and it is but it's actually down from the results of last year's stress test. the annual checkup is mandated for friday may -- fannie mae and freddie mac after they needed a bailout during 2008. >>> apple may be planning to sell a new smart watch that can connect with cellular networks. bloomberg is reporting that an upcoming watch will no longer need to pair with an iphone. right now apple's smart watch depends on a connection with an iphone for anything that requires data. the new option would have its own mobile connect thing much like ipads that offer cellular connections. >>> there is a safety concern about driverless cars. vandalism may confuse autonomous cars, making them ignore or misread roadsigns. for example, a stop sign covered in graffiti or stickers would appear as a stop sign to an ordinary driver. researchers say that situat

according to freddie mac, the average 30-year fixed rate fell. it's dropped three straight weeks yields on the ten-year treasury have fallen as inv investored put more mo bonds. mortgage rates track the neeld yooeld on the enten-year note. >>> another weak sales report out today. existing home sales fell last month. yesterday, you might recall, we told you sales of newly constructed homes also dropped. diana oleic explains why buyers are hold iing back. >> sales of exis lowest level in almost a year. well below exp realtors put the squarely on simply. >> the investors have gobbled up many of the properties and then the market was down and therefore, there's very little available for home buyers for owner occupancy at the lower price point. >> that is where most of the demand from younger, first time buyers is. builders aren't helping much either. still focusing on move up product, even though their sales slumped in july as well. the inventory of homes for sale has been dropping for three straight years and pushing home prices to new highs. july's

freddie mac reports the rate on the 30-year fixed inched up 3.93%. rates have not risen substantially despite the federal reserve having increased i key rate four times in the last year and a half. >> sales of luxury homes had been lagging, that is until now. diana oleic takes a look at what's behind the new boom in top of the line real estate. >> the trouble with these super expensive homes was well, they were too expensive. sale prices had been b lagging the rest of the market for the past few year, but now, they've .urned around for one simple nope, not that. although it didn't hurt. it's really this >> luxury sellers are getting back in sync with reality. which is something that's been lacking for the last several years. buyers won't come up to meet their number. >> sellers lowered prices, buyers came back and now for the first time in three years, luxury home sale prices are seeing bigger gains than the rest of the markets. this according to red fin, which defines luxury as top 5%. again, because sales are up, 19% in the million dollar plus rang

according to freddie mac, the rate on the 30-year fix loan averaged just 3.89%. that's right around its low for . >> the end of the summer slowdown in the housing market has been made worse by higher home prices and less for sale. that has led some to turn to riskier deals to get deals done. >> reporter: so much of the command is from younger buyers, who are already struggling to get into homeownership. that's why more and more are using low down payment loans. >> house prices have risen about 40% cumulatively since 2012. and at the same time, there are a lot of people now with jobs with wages increasing and they see housing as an appreciating ass asset. and so getting a low down payment loan is one of the ways to get into one of these appreciating houses. >n the past 1 months, 1.5 million borrowers bought their homes with down paymentsless than 10n- they now account for 40% of purchase lending. while fha had been the low down payment loan of choice for you borrowers, fannie mae and freddie a c also have 3% down options and are gaining option share. >> loans with

half have loans backed by fannie mae or freddie mac. 45,000 borrowers could face foreclosure in the nexths. >>> fox sports is hoping to capitalize on americans' short attention spans. it plans to debut six-second commercials during the nfl games this season. alongside the more traditional 15-second to 30-second spots. it will air during the world series and in some cases the six-second shots will be shown in a split screen. the goal is to find natural lulls in the action, during a time-out or a replay review. six-second spots. >>> landon, thank you. >>> just ahead, remembering the people's frin seprincess, 20 ye after her shocking death. ...solve problems. how? we eat. we eat almonds... ...strawberries... ...quinoa. and yeah...we eat chocolate. ♪ we eat in sweatpants... ...in skirts. we eat alone... ...and together. women are strong. we eat, and we own it. special k. for 100 years, heritage and innovation have made gillette the #1 shave in america. now get gillette quality at lower prices -- every day. brought to you by 1200 workers in boston -- we're proud of giving you our best. gillet

how to square the circle what about allowing china to take control of america's fannie mae and freddie mac. that it's a multi-trillion dollar asset and china would effectively become america's biggest landlord as a way to pale pay off china your thoughts well as you to as united states slips into from twenty some trade into the thirty trillion in debt you know gap adjusted the united states is somewhere hundreds of trillions of dollars and as that process continues to unfold over the next four or five years nothing's off the table i mean this this week chinese. group buying group state owned begin are looking at to buy chrysler so u.s. is going to be down to two automaker g.m. and ford or chrysler will be sold by fia within you know within the year so chinese buy in essence it is they'd save mostly focused on europe for politics the state of the united states but you know you could continue to see who knows what eventually go for say oh yeah why that you know warren buffett you just sell berkshire hathaway to china for five hundred billion six hundred billion dollars and walk away from the

about half have loans backed by fannie mae or freddie mac and borrowers could face foreclosure in the next four months. >>> staying on harvey, a texas law that sparked concerns for immigrants trying to get away from harvey's wrath and into shelters is blocked. a federal judge temporarily blocked most of the state's new sanctuary cities law. it would have let police officers ask people during traffic stops if they were in the united states legally. houston officials have tried to assure families that shelters would not ask for their immigration status. texas's governor says the state will appeal. >>> there is no doubt about it. it's a pain for a lot of us, wasting time, you're driving around in circles looking for a parking spot and according to a study, d.c. is one of the worst parking cities in the cou in the district causes us all to waste about 65 hours a year. that adds up to $1,300 a year in gas and maintenance on your car and then there's this. $350 that you put in the meter but you never used. news4's mark sea graves is looking at how d.c. is trying to fix your parking pains. >

mortgage finance giant fannie mae and freddie mac could need up to $100 billion in bailout if there isis according to the regulator. the result may be used by those that say they should be allowed to build a bigger capital buffer. right now, they have to overturn all profits to the treasury. that is your bloomberg business flash. francine: thank you. the number of permanent roles grew at the france's rate in more than two years but availability debt grew at the fastest rate in more than two years but availability fell. results show how important it is for the u.k. to have easy axis to labor from nations after brexit. still with us is gilles moec. only about possible labor shortages but inflation expectations and negotiations that are not going anywhere at all, what does it mean for boe? gilles moec: the bank of england last week kind of gave up. that is my main takeaway from the latest, gave up on the rate hike. it was always kind of surprise that you had up to three members of the mpc in favor of such a big move. there was maybe volatility when the rail side was doing well. -- real si

. >> mortgage giants fannie mae and freddie mac will continue to use what many consider an outdated systemll be in place for at least two more years. congress and homeownership advocates lobbied fanny and franny to drop older fico numbers. >> soon you'll be able to catch oprah winfrey at the supermarket. she to launch her own line of refrigerated soups and side dishes. the new brand o, that's goodwill offer comfort foods with added vegetables like mashed potatoes and cauliflower. if oprahs had her name on it why could it be wrong. >> chocolate lovers listen up. krispy kreme is going dark for the eclipse. okay. for the first time krispy kreme's glazed doughnuts will be covered with a chocolate glaze to coincide with the solar eclipse. you can get an early taste on saturday and sunday august 19th and 20th. >> i do not like chocolate doughnuts. >> i'm not a fan either. >> i don't like fancy doughnuts. leave them like they are. >> me too. i like the sour dough kind of one that's plane. >> anyone from krispy kreme that's watching don't listen to these haters this morning. bring those doughnuts

freddie mac says number of mortgages it guaranties reached 167,000. counties affected by harvey but the number could grow if they identify additional counties. both texas and louisiana need help. shares of property and casualty insurers take a hit what could be one of, if not the costliest disaster in history. go to the new york stock exchange and nicole petallides. >> we're watching these insurers because now as we talk about this we have to watch those, particularly those with exposure to texas. 15 trillion gallons of water have fallen on texas. we know that will continue. taking a look at names with texas exposure, like all state, united insurance. allstate down 1 1/2%. but the extend of the damage can't even begin to be calculated at this time until later in the week. obviously we'll start to get some more but we all remember katrina, 2005, 80 billion. sandy 2012. 36 billion. we'll see where this stacks up in the money side of it but obviously a catastrophe any way you describe i had. back to you. lauren: nicole petallides. thank you. we have a ka

investors are snapping up a new type of security sold by fanny may and fannie mae and freddie mac.illing the -- >> these are the basket cases for the public financial class and post or child of stupid decisions sorry that's i'm quoting wall street analyst. so what they do is take in mortgage loan and resell as security and interest rate on it they wouldn't take the credit risk meaning fannie mae kept the risk of homeowners flopping on their loans. now, watch this. it's a huge -- the government was goig to restructure fannie and freddie now they're selling credit risk to hedge funds and to isn't it s so you take on whether that mortgage belly flops not taxpayers so this is the first time. they took on 1 like a fifth of the mortgage portfolio owned by private investor credit risk at mortgage upside down. >> always through that without a single buzz. that's pretty good i have to say >> for easing -- that is please. [applause] there you go get ready for netflix recruiting hit producer shanda rimes luring her away from abc this is a big deal. yourself the stock down? >> i got away from

houston received 7887 million after flooding years ago and on the mortgage side, fannie mae and freddie macservicers are reduce payments or suspend up to 90 days. where do homeowners go now there are 47,000 vacant apartments in houston but the majority of those are very pricepric y. insurance companies may not cover that camden property tust, one of the largest apartment landlorded is based in houston and said all of the properties are operational so they may be able to assist and air bnb is waiving fees and enlisting support from renders director long said manufactured home and travel trailers will only be brought in as a last resort and do not expect to see those any time soon. >> i'm sure, diana, it's a relief to homeowners who have mortgages that they are waived for 90 days but after that they've got a mortgage on a property that may not be worth nearly as much as it when they took the mortgage out. >> exactly we did see that in the aftermath of hurricane katrina big spike in decline celinqueni four closures in houston you see nor home equity because of the way the mortgage market works

within the next four months all of that according to black knight financial services, fannie mae and freddie mac have said they will offer loan forebearance for 90 days the interest does acue and that does not solve the problem long term if the house is totally destroyed or a borrower loses income because of the store. katrina barrorrowers had 20% of borrowers there less than 10% equity in their home not so in houston. today only 4% of borrowers have that little equity so houston homeowners should have more incentive to stay and pay. but if the amount of losses a borrower suffers are considerably higher than the equity in the home they could walk away. one note, they have launched a whole help page for homeowners, you can link to it in our story. >> thanks, diana let's talk more about the issues she raised 10% of assets in the houston area, cheryl palmer is chairman and president and ceo of taylor morrison good to have you here. let's try that one more time we couldn't hear your mike can you hear me now? >> yes, can you hear me? >> perfect how are your employees everybody okay >> you know, that'

freddie mac says so far it counted 167,000 homes with mortgages it secured in the 18 counties affectedey. under fannie mae's disaster relief guidelines a mortgage servicer may suspend or reduce a homeowner's mortgage payments up to 90 days if it believes the natural disaster has adversely affected value and habitability of the property. if the natural disaster had impact on homeowner's ability to make mortgage payments. they will provide -- whose places of employment have been impacted by the storm. neil, these figures are all preliminary as more homes will likely be impacted this week as harvey is forecasted to bring more flooding to these areas. obviously inspectors have not been able to assess the homes. neil: all right, thank you very much, tracee. we've got 9,000 individuals in the houston convention center. the red cross saying texas shelters are housing more than 17 evac you es right now. more likely on the way, 17,000 evacuees. how is it looking? >> thanks for having me, neil. it is a very active situation as you mentioned. close to 9,000 people staying in the brown convention

president trump slashed a program in his budget proposal, both fannie mae and freddie mac have issuedisaster relief guidelines saying they can temporarily suspend or reduce mortgage payments for flood-stricken homeowners for up to 90 days where do homeowners go now there are 47,000 vacant apartments in houston as won struction has been very a construction has been very aggressive they are very pricey, well over $1,000 a month insurance companies will step in they may be able to step in and assist air b&bs are waving fees and enlisting support. manufactured homes and travel trailers would only be brought in as a last resort and he said that would not happen soon >> diana, thank you. >>> let's talk about what it takes to recover we are joined by mary okkay wegner thank you for joining us this morning. >> good morning. thanks for having me >> the fema director says we are not going to bring in manufactured homes and that sort of thing at least at this point as of now. what do you think the best way is to support the population that may need resources down there. >> at service master, res

fannie mae, freddie mac and fha which backs the majority of loans in the area have already said theyl offer loan forbearance for at least 90 days for borrowers hardest hit. that means you don't pay the mortgage but the interest does accrue and that won't solve the problem long-term if the house is totally destroyed or a borrower loses income because of the storm. now, mississippi and louisiana borrowers had more low down payment mortgages. so back in 2005, about 20% of borrowers had less than 10% equity in their homes. compare that to houston today, where only about 4% of borrowers have that little equity. so houston homeowners should have more incentive to stay and pay, but more than half of those at risk of flooding are not in the federal flood zone so, if the amount of losses a borrower suffers are considerably higher than the equity in the home, they could just walk away back to you guys >> diana, thank you very much. folks, when we come back we are just minutes away from the second read of the second quarter gdp. we'll bring you those numbers and the market reaction instantaneou

that is the freddie mac 30-year rate. down from 3.86.for mortgage rates right now. stuart: on the line with us now, is richard moody. he is the chief economist at region as financial. -- regions financial. good to see you. >> good to see you, stuart. stuart: we've been talking with a view the devastation of harvey and money that will have to be spent to restore south texas, is stimulative to the economy. it's a plus for the economy. i think you have the exact opposite point of view. spell it out please, richard. >> not necessarily, stuart. my point you can't go straight to the rebuilding and skip all the destruction that has taken place and the most common measure we use to gauge the economy is gdp growth and to your point gdp growth will capture the rebuilding that takes place whether it is residential, commercial, infrastructure but what gdp can't capture destruction. it doesn't capture the loss of wealth. it doesn't count the lost jobs, lost wages, lost productivity while we're waiting for the economy to be back online. stuart: so, no

experience of what happened with the collapse of the gses, do you agree or not that fannie mae and freddie mac should not under any circumstances be reprivatized as privately owned implicitly government backed institutions? >> so what was the last part of it, implicitly? >> implicitly government backed institutions. in other words, under any circumstances, be reprivatized, as privately owned implicitly government backed institutions. >> i agree, there shouldn't be implicit, if there is something, it should be explicit and paid for. otherwise, it should be very clear, there's no implicit government backing. >> thank you. thank you, mr. secretary. >> time of the gentleman has expired. the chair now recognizes the gentleman with the dashing pink suit from missouri, mr. cleaver. the ranking member of the housing and insurance subcommittee. >> thank you, mr. chairman. mr. secretary, thank you for being here. i do think that in a democracy, once the commonly accepted rules of politeness are breached, it will be painfully difficult for them to be reversed, and maybe we're there now. and in that regar

is where they put their mac down ♪ >> suge was trying to expand death row all over the country but who controlled most of the music in the east at that time? bad boy. >> freddie'sa rap for the east coast. ♪ come over tell your friends i got the chronic ♪ ♪ i love you when you call me big pop ♪ throw your hands in the air ♪ >> i make music about what i know. know what i'm saying? if i worked in mcdonald's i'd have made rhymes about big macs and fries. i see hustling, gambling, girls, cars. that's what i rap about. what's in my environment. >> and the winner is -- notorious -- >> b.i.g.! >> puff daddy in the house. >> i hosted that. mayhem almost broke out in that place that night. >> any of y'all want to be an artist and stay a star and don't want to worry about the producer trying to be all in the video, all on the record, dancing -- come to death row. >> suge calls puffy out. never mentions his name but everybody knows he's talking about puffy. >> the idea of a territorial beef is now being drawn out in front of your eyes in realtime. that was hip-hop's funeral. what powers the digital world. communication. that's why a cutting edge university counts on centur