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 inte

. >>> mortgage rates were undeterred by some of the recent movesth i bond market according to freddie mac the average 30-year fixed rate rose just slightly. that gives buyers a little bit of breathing room durin what's expected to be a competitive spring selling>season. so you remember subprime mortgages? they were those faulty loans de to borrows with low credit and high debt and they in part brought down the housing and financial markets a decade ago and now they're back and as diana olick reports for us, there's high demand from both brorz andinvestors. >> reporter: subprime, just the word cons up these images. they disappeared following the financial crisis but now lenders are dipping back in, just don't call them subprime, call them nonprime. >> not going back to the bad old ays of ninja lending when people with nojobs, no income and no assets were getting loans. that was just czy and it was risk. g risk upon >> reporter: now carington mortgage is expanding into thepa nonprime focusing on the estimated 20% of americans who have fico credit scores below 600. borrows withept credit sco

they were able to have access to relationships with the fed and the treasury to get fannie mae freddie mac's sort of big deals on buying a vast amounts of property that were defaulted on and you know foreclosed homes but in this mobile home market you have warm buffett is one of the largest if not the largest owner of mobile homes in america and you have the hurricanes the huge amount of hurricanes this past year harvey irma maria so a lot of people have lost their mobile homes and at the same time the economy has been so bad and property markets out of control in places like new york san francisco los answer. is that a lot of middle class people are competing with these. working class people to buy these mobile homes which can only manufacture so many so there is a complex situation happening here look instant case because he's completely heads because of his relationship and ownership of insurance companies and insurance products producing entities he can be completely hedge against those hurricanes and hedge against all natural disasters and all financial disasters and so he's not actuall

our permanent lender, freddie mac, and our investment lender, bank of member. they made sure there were activities for residents during construction to ease the stress during construction, which tells about the kind of private partner they are. [applause]. >> enterprise community partners, neighbor works america, and the local initiative support corporation all provided chinatown cdc with capacity building funding to make sure that our organization was ready to take on the challenge of bringing on 600 units of public housing into our portfolio. the san francisco -- yes, sure. [applause]. >> the san francisco department of ageing and adult services is funding our program to bring on-site supportive services for residents to this building for the first time in its 47 year history. [applause]. >> and of course, the san francisco housing authority and the mayor's office of housing, it has been so inspiring to work alongside these self-less, hard working city staff to correct 50 years worth of wrongs against our public housing residents of san francisco. this was a

forward because they're also also talk about, we're getting a bit off top i can, reforming gses, freddie mac and fannie mae. trish: about time? >> about time for that to happen. i think loan origination is weak right now for the banks because small businesses and consumers taken out a lot of loans. business or consumer debt is reaching high as precrisis levels. the amount of loans people are demanding right now shrinks. that is, it doesn't mean the economy is slowing. but we've had a booming economy. so the amount of loans that people already took out a lot of loans. trish: not to get too wonky on a viewer, glass seeing -- stegall, glass-steagall one. reasons we don't need to get in all of that but part of 2008 happened removal of glass-steagall so you could create a big supermarket style bank that had both investment banking, sales and trading and mortgage origination. do you foresee this administration trying to go back at all to the way things were? >> no, no, no. not a trump administration, nor a jerome powell federal reserve going back or the fdic for that matter. trish: that was bill c

so they sell them to freddie mac or fannie mae or insured by fha and mortgage securities around the countryhose are established by the regulators involved and you know, you make a very good point. you don't want to go so far as you create another rapid failure, which we saw in communities like detroit and others that were so concentrated with the housing collapse in terms of adverse outcome to minority communities. but at the same time, we collectively can't use that as an excuse to say, hey, we've got a problem here and we need to look at demographics shaping this today. the millennial generation is not white, it's two-thirds minority and our economy depends on thinking differently how we move forward and i think that has to do with fannie mae and freddie mac underwrites credit and focus on efforts on monies being used to build the right kind of housing stock. i mean, all of these have come down to local policies about you to your point, i think it does start at the federal level and it's going to take a concentrated effort to help identify the areas, which is why people think this is a cr

will the witness source for being here but i like to open my questions winning a quotation from freddie mace u.s. mortgage backer. and i quote them here. this is related to harm to coastal housing and property markets. quote the economic losses and social disruption may happen gradually but they are likely to be greater in total than those experiencing the housing crisis and great recession. those of us who are from coastal states make warnings like that from our federal mortgage providers. seriously as i think you would expect that we should. could you tell me this vehr what is the relationship between carbon emissions and sealevel rise? >> in terms. >> cause and effect. spin cause-and-effect? i know there are changes that are occurring in our environment currently that people are studying and i am not an expert in that area so i would have to defer to the studies that others are doing in that area. >> mr. alteri can you do any better than that? >> i'm not sure of that direct relationship between co2 and sealevel rise. spin commissioner baker maybe you can do better. spin in certain areas

i would like to open my question reading a quotation from freddie mac, the u.s. mortgage backer. and i quote them here. this is relating to harm to coastal housing and property markets. the economic losses and social disruption may happen gradually, but there are likely to be greater in total than those experienced in the housing crisis and great recession. now, those of us who are from coastal states take warnings like that from our federal mortgage providers pretty seriously, as i think you would expect that we should. could you tell me, miss vehr, what is the relationship between carbon dioxide emissions and sea level rise? >> in terms of -- >> cause and effect? >> cause and effect. i know that there are changes that are owe kourg in our environment currently that people are studying and i am not an expert in that area so i would have to defer to the studies that others are doing in that area. >> mr. alteri, can you do any better than that? >> no, i'm not certain of the direct relationship between the co2 emissions and sea level rise. >> all right. well you have a coast, commi

talk about them doing most of those don't have balance sheet so they sell them to fannie mae or freddie macose are established by the regulators so you make a very good point to create another rapid failure like detroit and others we cannot use that as an excuse to the demographics shaping america today it is not white it is to have a minority and how we focus our effort on money used in communities for the right kind of housing stock but it does start at the federal level to take a concentrated effort that this is a crisis to look at this that i have called on this for years to look at something on this issue to a president who has teeth and we don't have that today and it is getting worse. is the gap is getting wider. >> pro what makes integration happen? and what it was implemented to the greatest extent and for those affluent areas it sounds good. and to build wealth because they don't own anything. and to have that zoning change at the local level we all understand one of the reasons we have the housing crisis in a rich place like san jose california is because 70% of the community is

today it is down a little, down for the second week in a row at 4.40 on freddie mac fixed.5% even though lack of homes are for sale, prices are going up, but mortgage applications are going up but over time 4.40 is a good rate on 30-year fixed, let's be honest. as the 10-year treasury yields come down. stuart: do people still get 30% fixed loan rates? they certainly should. liz: you can prepay it. stuart: that is true. 4.4%. ashley: yes i remember -- stuart: president trump heads to west virginia today. he will focus on taxes and jobs. white house legislative affairs director marc short is with us now. welcome to the program. always good to see you, stuart. >> thanks for having me back. stuart: the truth of it is the president is going after senator manchin a democrat senator for trump country up for re-election this november, and he will stick it to him on jobs and the economy, isn't he. >> stuart we're excited about the results of the tax plan. we think it benefited to millions of americans. five million americans have received a bonus or increase. many companies in west

time i tweet or post that you are coming on the program, a lot of people ask me about fannie mae, freddie macn changing the -- government -- >> i am glad you asked me about that, it is something that i am very focused on i think it is unlikely that this gets done in this congress, but this is something we are very focused on we have also the ability to replace the fhfa next year that is something that we are going to look at make sure that we have someone in that job that supports the agenda. but i am determined that we have a fixing to gse don't leave them in concertify have a forship. >> a fix they would be publicly held again? >> again i am not going to comment on what the form is what i would say is i think that having a government guarantee on a 30 year he mortgage is important for liquidity in the markets, there is different solutions, what gets done here will need to be on a bipartisan basis we have had conversations, with both democrats and republicans unfortunatelied unfortunately i don't think a focus in this congress we will come back next year a big focus of mine post elections. >

it was the overleverage of the gsc's fannie mae and freddie mac in 2003 and 2004. i had legislation that tried to control for systemic risk, tried to transfer the authority for the regulatory community to take down that overleverage in terms of those portfolios. and the regulatory community, the fed in particular, was very supportive of that. we could not get that legislation through. i would say that they saw that coming. what perhaps they didn't see coming was also the investment banks, the four big investment banks, in doing their own modeling. had leveraged up their ratio from what should have been 10-1 to probably 30-1. and so the combination, first housing collapsing with the gscs and then on top of it the big investment banks, i think that was a major blow here. i think what we're rediscovering in this generation is that this cyclical nature of the economy, because we fail to maybe adjust or regulate for these kinds of problems, are with us. and i think, unfortunately, maybe washington tends to exacerbate, in some ways, rather than mitigating the booms and t