yesterday. number of total hospitalizations in erie three-day average, again, basically flat. these numbers i would not take any of these one-day numbers, even three-day numbers, as absolute this is a new reporting mechanism that just was put in place, so from a statistical point of view, i don't know exactly what the margin of error is with all due respect to the great stat tatitions doing this, we've been watching the spread all across the state because this is like stamping out a brush fire you need to run to where the fire is and put it out there we were watching for a spread of the fire from down state new york towards upstate whenever we see a small fire starting, we jump on it right away, testing, isolation, et cetera but that's remained fairly constant and that's also good

news but the point that different regions of the country have different quote/unquote curves, the virus does not hit at the same time at the same rate to you hear about different states in the country and when they're going to hit their apex, when they're going to hit their top and when they're going to come down, it's different all across the country. it's also different across the state. we've been talking about states like they're uniform, homogenous entities some are more homogenous than others when i was in the federal government i worked in every state, so you have a whole different variety of states. this state, we have very different regions within new york when you say new york, people think new york city. yeah one of the densest places on the globe. you also have upstate new york where in some counties you have

more cows than people. people don't think of new york that way as you see variety across the country, we have variety across the state of new york and you have to watch each one of those individual curves and when does that region hit a high point and where is that. because depending on that region's curve, is how you have to calculate your strategy and you're looking at those curves, how long is the ascent up the mountain and then how long are we on that plateau, and then how long is the descent from the plateau western new york, i believe we're on the plateau all right. now the question is how long are we on that plateau, is it a plateau or might it ascend down state new york it appears

we're on the descent in down state new york, how quickly do we descend? the worst news and the really ugliest part of my job these days is telling new yorkers this news, in erie county, we lost seven hospital deaths yesterday for a total of 125 in the state we lost 481 people. 452 in hospitals, 29 in nursing homes nursing homes are a central focus and priority for all of us going through that where are we today >> that is new york governor andrew cuomo with somewhat heartening data on hospitalizations in new york state. he does say the definition of what's good these days, though, has changed. good, he says, is now not terrible we'll keep our eye on that as he makes his way down to the white house later on today good tuesday morning, everybody.

i'm carl quintanilla with morgan brennan and jon fortt. welcome to "squawk alley," coming to you live from separate location looking for a turnaround tuesday. so far not being able to bust into the green as of the dow session low was down 600 and change we're going to begin with historic moves in oil from yesterday. our brian sullivan has more on that as we sees the president tweet, stories about texas regulators, more opec source stories on reuters, good morning to you >> is it a good morning, carl? throwing that out there. what a couple days oil prices are down. t you mentioned texas. with everything else going on, the texas railroad commission has their hearing right now that is basically going to vote later on today on whether or not to what they call pro rags or basically instill quotas on texas oil producers. that hearing was brought by

scott sheffield of pioneer and parsley energy unbelievably it is number 309 on the agenda at the texas rail commission hearing today and last time i checked, they just got down with like number 25 i'm not joking so not sure when that vote will come down, but that's something to watch today look at the moves there. the may contract which got all the attention, actually, you know, we're seeing a positive number there, really some screwy stuff going on with trading yesterday, very thin volumes everybody i talked to last night and today is like people jammed that contract down people are selling it at any price. we pointed out on worldwide exchange this morning, actually appeared to move the market a bit, guys, that there's 50 million barrels of oil currently on the way mostly from saudi arabia via a super tanker, most of those ships are going around the cape of africa right now and should be here in about two weeks. we got too much oil now, but the good news is, and i'm being

sarcastic, there's 50 million barrels on the way this oil story is a long way from being done, guys. the opec plus cuts go into effect may 1st right now it's still every man, every country, every county perhaps in the united states for itself >> in my social media feeds are friends talking about oil prices but they were over the past 24 hours. let's turn back to the broader markets. greg battle of bnp parabass and jim lowell of adviser investments join us now. guys, good morning greg, i wonder how you see things like oil continuing to effect the markets and whether the character of volatility has changed over the past couple weeks. >> well, i think we look at something like oil and yes, there's ed yo sin crattic issues but i view it as a red flag for

the broader health of the economy. what's driven oil to capitulate so badly has been the lack of demand and that's something going to affect risky assets we think equity volatility may not go back to the peaks in march, those elevated levels, but we thinks the s&p could potentially make new lows. we don't think the worst is behind us. >> jim, let's talk about that sort of demand issue from a different perspective. we just got ibm earnings last night and they talked about a pause in demand from certain large customers, most of ibm's customers are large. you see that stock down this morning, but hey, the broader markets are down too relatively speaking it's not down that much how much is that sort of signaling from ibm going to be taken just as an overall sign of what's happening to demand >> jim, do we have you

>> we are expecting to -- yes. you should be able to have me. >> go ahead. i would say ibm's report is likely to be a map of the markets. you can overlay it across the board with a few exceptions, we did see good earnings and guidance out of j&j last week. in terms of the overall market the suspension of orders coming from your customers is likely going to continue to affect businesses large, medium, small, really across the board. the question is, whether or not the turnaround comes hopefully as early as the third quarter or if the medical data remains uneven at best whether this pro tracts we agree we don't think the market is off to the races we saw headlines a week ago suggesting that we're entering a new bull market. we think that's putting the bull before the horns so we remain defensively

oriented, cautious, well diversified among not just stocks and bonds but cash reserves, not just on the defense but the medical data to have greater confidence in the economic data. we look forward to going hunting at good discounted prices. >> you both sound cautious right now. the fact that you don't feel the worst is behind us and we could test new lows here, what are the data points you're watching closely over the coming days and coming weeks and how are you counseling investors, your clients, to be positioned right now given that fact? >> well, i think earnings season -- >> from our -- >> go ahead. >> greg. >> we had the banks report last week and the financials really under perform the broader market we get a cross section this week and next week of different corporates reporting from different sectors. the numbers, the beats, misses, maybe you can look through that but the guidance that we get, what their intentions are in

terms of cap x and means for the broader market, they have on their forward earnings is likely to drive analysts to cut forecasts further. we have to remain cautious we've been talking to clients about quality rather than value, not chasing the under performers but looking at stocks that have robust balance sheets and able to weather the storm and thinking about hedging portfolios. >> jim, quick, on earnings season, we've only got 50 or so companies on the s&p in, but i mean the average miss on earnings is 27 the average miss -- average aggregate top line miss is less than 1%. is that a reflection of having no guidance or what kind of lessons do you think are embedded in that. >> we think looking at any sort of guidance or earnings data for that matter, economic data, at this juncture is like looking through a kaleidoscope rather than a telescope

it's going to be confusing and confounding. everything rest upon the medical data to provide a clear path for us to be able to trust the economic and earnings data all that said and done, you know, i think we probably have a very difficult quarter ahead of us doesn't mean there aren't opportunities inside of the -- inside of this kind of market duress there absolutely are we continue to have great trust in the active managers that we invest in alongside of our clients who are experts at selectively managing not just return opportunity but risk events >> yeah. do not envy the analysts trying to develop system for the current quarter at all greg battle and jim lowell, thank you. >> thank you just getting a check on the markets and where we stand right now in today's trade as we head to break it's pretty ugly dow is moving back towards session lows down 582 points or

2.5% s&p is down 3% and the nasdaq is down 3.7% as investors parse through more earnings and, of course, the historic moves, the historic price action we'veeeinhe sn t crude oil market as well we'll be back in two you've served our country. if you're a vet and you're experiencing any symptoms of the coronavirus, please contact your local va hospital. protecting your health is our greatest duty.

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the white house is turning to industry leaders to chart the path forward on covid.

california real estate mogul rick caruso is part of the president's economic council, joins us this morning. rick, thanks for coming on good to see you again. >> good seeing you, carl, how are you? >> not bad so we got at least seven states with plans to start reopening in the next two weeks obviously all the attention is on georgia this week ahead of friday why do you think they chose the industry's they chose to open first and what's going to determine whether it's called a success or not >> well, i can't tell you why other states did what they did i'm going to be working with governor newsom. he asked me to be on his committee that's looking at this i will tell you what i feel strongly about i think that small businesses should really get the head start on reopening they're the backbone of this economy. and certainly california, los angeles, but i believe around the country, we should have small businesses leading the

way. it also gives us an opportunity because they're typically smaller formats in restaurants and retail, we can monitor it better and test it better and see what is happening from a health standpoint. and then the larger businesses can follow on after that so they also have a lot of power of rehiring back people and getting people off the unemployment lines and putting them back to work. there's another component i feel strongly about is, the local retailer provides a sense of connection to the community. safely, methodically, and carefully. >> right how do you do that safely and methodically without more stringent maybe nationwide testing standards, maybe you can speak to how -- i know testing has been a real focus for the california governor with stanford and the like, but are

there guardrails in place where we will not regret this in a couple weeks >> well, you have to put guardrails in place. i think that's what all of these committees are working very closely on with the governors. we will be with governor newsom. you have to have strict protocols in terms of cleaning, in terms of occupancy level and you need to keep the physical distancing in places so you have to have enough guardrails that you're monitoring it well, you're testing as much as you can, you're seeing what trend lines are. if it's spiking in the wrong direction or going in the wrong direction, you need to be able to pull back again, you have a lot more flexibility in my opinion starting with small businesses than opening up larger formats that's why i really like that idea because what we don't want to do is go back and have a double hit and then we have to go back into quarantining. i think it's critical that we take this very methodically.

>> rick, hi, it's jon fortt. i wonder -- >> hi, jon. >> when do you think you will have the standard set for businesses that operate in your properties for how to do those sorts of testing, have those guardrails in place and do you think businesses will have to fundamentally change how they operate and put some form of e-commerce in place as well, operating out of that physical location, perhaps for some period of months in order to survive and thrive >> so, what we're doing right now is we're drafting a whole set of protocols that are very detailed our operations department is doingthat. we just retained usc, the head of their infectious disease department to help us guide through that we're also going to be hiring a full rn in infectious disease that will be at all of our properties as we reopen them to make sure all of the crews are following the cleaning protocols to make it as safe as possible

i'm sure all of our employees will be in masks and we'll all be protected i want to make sure we're creating a very safe environment. companies around the country, i'm spending as lot of time talking to ceos, it's amazing the amount of work that's being done on being careful on the reopening. nobody wants to get this wrong so we're sharing a lot of information, competition is gone, which is great, because everybody is in this together. in terms of how we survive, i feel like we're all going to be creative ingenuity right now is really great and i'm seeing local restauranteurs doing really creative things like making not only delivery and pick-up, but having the food kits so you pick it up, you come home and you cook it. it becomes an event. it becomes a family thing to be doing together and i think what you're going to see is there's going to be re-emerging types of businesses and streams of revenue that restauranteurs and retailers didn't have before

clearly on the large format, i think retailers need to reimagine how they're going to be relevant after all of this is over because if it's the same old same old, with these large box formats, i just don't think they're going to survive there's clearly going to be winners who are using their ingenuity and creativity and there's clearly going to be some losers >> yeah. certainly we're seeing that in terms of some of the bankrupts that are continuing in retail when you have high-profile anchor tenants like neiman marcus, for example, poised to file for bankruptcy before the week is out. key piece of the whole reopening puzzle, rick, seems to be the liability piece and i wonder how you're assessing that and what those conversations look like on a federal or in the case of california state level, because it doesn't seem clear yet at least, heaven forbid you have businesses or you have places of work that open up, consumers,

employees go back, there's some is sort of flare-up, people end up catching covid again and there's lawsuits, what that looks like and who ends up being responsible? >> it's a very complicated issue. there's no doubt about it. i can't give you an easy answer on that. the answer may be eventually and ultimately that there has to be legislation to deal with the liability side of this because it's also very difficult to trace back where somebody caught it it could turn out to be very messy. the legislature may have to step in, state by state, and deal with the liability side. >> and rick, just want to talk to you about real estate as well and what you're seeing in terms of pricing, how you're working with tenants potentially in terms of deferred payments and also i guess just from an investor standpoint what that means for a company like yours in terms of the ability to maybe once the worst is over find more

properties to develop? >> well, fortunately we came into this crisis in good financial shape, so we've had the where with all to ride it out. nobody knows how long this is going to go on for our plan is to ride it out small retailers the rule is simple, we're working with them, we are abating and deferring rent and going to help them out and get restarted. i think the soul of retailing communities and certainly on our property are the small, local, independent retailers and restauranteurs and we want to not only have them survive, i want them to thrive. so we're working with them very closely. the large retailers that are credit-based, publicly traded, national tenants, our expectation is they should pay their rent we are having conversations with everyone, but this is really a partnership to get everybody back in business and as a landlord, i have to lean in and

discount rents or eliminate rents for some period of time. the larger retailers that can afford it should pay so that there is more money in the system to support the smaller ones the government programs are important also there will be opportunities in real estate. there's no question. people that have a lot of debt on their properties may not be able to service them, that are looking for capital, there's going to be those problems, but that's for another day i think we get through this crisis, i'm not looking to take advantage of anybody's misfortune through this crisis i would rather have everybody survive, be robust and have a really competitive economy because that's where we do our best >> finally, rick, as we're talking i'm looking at a jpmorgan note that cites a document out of dhs which says that sunlight destroys the virus very quickly within two minutes. this may make sunlight exposure the most important factor to

consider for a limited reopening of the economy we're going to start to parse and that's good news for southern california, i don't know about northern, but we're going to look at areas where the degree to which you get sun is a factor. >> carl you're right the head of infectious disease at usc who we have engaged told me that sunlight is the best disinfectant out there and our properties being outdoor properties, certainly give us an advantage, certain in southern california as they say with the beautiful weather that we have here, so i think people are going to be more inclined to be outside, they're going to be on the streets, they're going to be in outdoor centers like ours and want to sit outside and have dinner and have lunch or breakfast and i think fresh air is going to be an important component to give people the confidence to engage we can do everything in the world to make our properties safe, but we need consumer confidence in order to have them

start spending money in all of these stores >> rick, it's good to see you again. i really appreciate the time. >> thanks, carl. good seeing you. >> see you soon. >> thanks, jon, morgan >> now let's get a check on where we stand across the major averages all of them bouncing off session lows in the past ten minutes the dow still down about 2.5%. 580 points or so the s&p down nearly 3. the nasdaq faring worst of all down more than 3.5%. stay with us breaking news coverage continues in a moment. during trying times. today, being on your side means staying home... "nationwide office of customer advocacy." ...but we can still support you and the heroes who are with you. we're giving refunds on auto insurance premiums, assisting customers with financial hardships, and our foundation is contributing millions of dollars to charities

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welcome back european markets are set to close in just a moment and seema moody has the breakdown overseas >> the reaction to the plunge in oil prices follows three consecutive days of gains. sitting on a 3 to 4% decline for the european oil giants but all of the names worth noting averaging a loss of 40% for the year yields headed lower, financials under pressure again and that does include insurance giant swiss rate sitting at the bottom gradually ease their lockdown measures td security says transportation in key cities are -- at least by cars. we see big reversals in oslo, copenhagen and stock home from their lows and follows a

decrease in air and road traffic resulting in a decline in fuel consumption and this is the type of alternative data that economists will be tracking as europe tends to gradually get back to normal life. jo jon, back to you. >> let's get the latest on the coronavirus outbreak and efforts to battle it s sue herera that ha that for us. >> within the last 30 minutes a major milestone confirmed cases of coronavirus worldwide have topped 2.5 million according to the johns hopkins count. new york's governor andrew cuomo says, quote, our definition of good has changed here, announcing about a 1300 coronavirus patients were hospitalized yesterday nurses are protesting in front of the white house this morning to call attention to the shortage of personal protective equipment for those caring for people suffering from the coronavirus symptoms >> right now, people think of us

as heros, but we're feeling like martyrs. we're feeling like we're being left on the battlefield with nothing and i think that we should be paying more attention to what nurses and doctors and other health care workers are going through right now. >> the food and drug administration has issued its first emergency approval of an at home collection kit for the coronavirus. that kit is produced by lab corps that allows people to collect their own sample and send it to the company to be tested there as always get more on the coronavirus coverage at cnbc by going to cnbc.com. carl i'll send it back to you. >> all right sue, thank you very much watching the session lows here dow down 650 as we're trying to hang on to 23k the chairman of the cftc on this week for wti in a moment

. wti turning negative

yesterday as you know after -- before coming back to positive territory this morning as we pay more attention to futures contracts than we have maybe ever joining us this morning is the chairman of the commodity futures trading commission heath tarbert. thank you for coming on the show and good to talk to you this morning. >> thank you so much for having me >> i think people sort of get the front month aspect of physical delivery and maybe even conceptually what happened yesterday, but now this morning with headlines about the usos and oils how do you explain to our viewers what's happening in contracts right now regarding crude? >> sure. so really the cftc is watching these markets can closely and in real time and our main job as a regulator is to make sure whatever is going on in the markets is actually reflective of real supply and demand and not anything else. and i think when we look at this situation, it does appear to be a fundamental supply and demand

issue. on the supply side, we've got oil production that continues to increase, it's very hard to cap an oil well to reduce supply and we also have a storage capacity issue. we've run out of storage space effectively. on the demand side people are asking the question, when will the economy restart and so all of that is coming together and led to at least yesterday the temporary dip in the wti contract and in fact, it was somewhat expected because as many of the viewers know, futures contract ultimately relies on convergence at the end of the day the futures trading the price needs to be the same as the cash surprise we've seen spot physical cash prices of crude approach zero and go negative. the market participants and the cftc have actually been preparing for some time to make sure that our trading systems could handle negative prices but ultimately it's a fundamental supply and demand issue more generally but also

specifically with the wti contract >> when the issue is that fundamental to what degree then does it leave room for other scenarios that ininvolve forced liquidations, things that point to more counter-party risks? >> it's a great question the good news here is that very few people stay in the contract when it goes into the delivery period, so the amount of people that are actually in these markets is reduced significantly to a very small number, in some cases mainly those already hedging. they've reduced their exposure by this contract when you get to the delivery period and, of course, the contract, the may contract expires today and closes at 2:00 p.m. central. very few people were actually in the contracts compared to who are normally in the contracts. so that reduces counterparty

risk i'm pleased to stay that all of our clearing houses which collect variation and initial margin payments all variation and initial margin payments were made yesterday throughout the day. no one missed margin payments. >> heith, i'm glad you brought up the margin patients when we see price go up, we see volatility go in the other direction. so in light of the lack of liquidity and the lack of buyers we're seeing in crude right now are you engaged in discussions to consider actually lowering the initial margin requirements? >> no. i think not at this time the initial margins were increased due to the last big spike that we saw in mid-march and as a result, those initial margins have actually served as a cushion against defaults the thing to think about here we don't think initial margins will rise dramatically because this

was a single contract on a single month we didn't see the level of volatility in the june contract and the july contract, just this closing period for this one contract, so we're not expecting initial margin levels to increase as a result of what happened yesterday >> so you don't think we're going to see continued volt, extreme volatility, into the june contract? i ask that in part because which saw the uso, the etf that is offers investors, retail investors, potential exposure to wti crude oil futures temporarily halted earlier today. they were looking to take on more shares. it looks like the sec is not moving forward with that and now you have some investors out there warning you could actually see a break from fundamentals there and given the fact that it is tied to the futures contract and the uso is essentially the biggest buyer or -- of those contracts in the market, how concerning is that >> yeah. i think we're going to continue

to see volatility as those key inputs that i mentioned earlier on the supply side both the actual availability of supply and then the storage costs as well as the question as to when the economy will open, all of those will continue to drive the futures price as well as the spot market price and i think as a result, if there continues to be uncertainty on any one of those three factors and all combined we'll continue to see volatility it's just that yesterday because the negativity only occurred within the may front month contract, the volatility was actually not as extreme as the volatility that we saw last month because it went across the curve and into the curve so today, if you look, for example, the july brent contract and the july wti contract are pretty tight in terms of spread. they're not as wide as we saw yesterday. and so -- but again, time will tell and it's going to be the three fundamental factors that will dictate it. >> chairman, if i understand you

correctly, it sounds like you're still saying this is not a crisis as far as how the market is operating, despite what might actually be happening for oil producers? is that the case >> yeah. it's not a financial market issue at this point. obviously we're looking into it to make sure we understand all the factors, but basically it can be explained by what's actually going on in the real markets which obviously is a tremendous amount of dislocation with respect to storage, supply, capacity, and dramatically decreased demand the markets are just simply reflecting at this point what's going on in the real economy which obviously is a lot of volatility >> are we seeing any similar signs of stress in contracts regarding any other kinds of commodity classes, grains, metals, anything like that. >> not to the same degree, no. we obviously saw a lot of stress last month when the coronavirus itself sort of it and it was big

and very clear that we were going to have a temporary economic slowdown as a result we did see tremendous volatility across asset classes and we even saw assets that traditional -- traditionally are negatively correlated like gold, for example, with economic downturns, actually become positively correlated. so yesterday we haven't seen anything like that, that we saw in march the volatility that we saw yesterday, even though the wti contract reached a historic low, we didn't see that across other commodity classes. >> yeah. i'm curious, heath, how you are thinking about liquidity in general. i go back a couple years ago and, you know, the cftc allowed the cme to shut down, since then over the years we've seen some investors complain they can't find liquidity in the more complex trading strategies where something like energy is concerned, in the past maybe they could call the trading floor, so how are you thinking about that now and i guess given

some of these extreme moves we're seeing, and i realize you're saying some of it is temporary potentially right now, do you feel like allowing them to close was the right move? >> i think so, yes as far as open goes, i think we've seen a dramatic increase in likt as far as electronic markets. the other thing that's a key point in this time of coronavirus, morgan, is that if we had open outcry nobody would be trading the electrification and the electronic trading systems that have been put in place for the last 20 years allowed trading to continue even in an era of social distancing. but your point about liquidity is absolutely critical our main goal is to ensure our markets remain orderly and liquid and we've been doing everything we can to ensure trading can continue with social distancing, even with traders operating from home. i think if we had a situation where the only markets we had

available were those of open outcry it would be difficult to allow trading at all with social distancing >> indeed. we're all testament to the trading from home phenomenon and thankful that it works heath, we look forward to talking to you again, thanks for some of the helpful information. see you soon. >> bye-bye >> we're going to take a quick commercial break stay with us here's the thing about managing multiple clouds for your business. when you've got public clouds, and private clouds, and hybrid clouds- things can get a bit cloudy for you. but now, there's the dell technologies cloud,

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3d printing companies have stepped in to fill a crucial coronavirus testing void, and our josh lipton has that story josh >> so, jon, one of the keys to reopening this economy is increasing testing and a key component to that testing nasal swabs. president trump now says he plans to use the defense production act to increase swab

production by at least 20 million per month. >> this is what it's about right. does it remind you of something? it reminds you of this, right? one is a swab, one is a q tip. it's actually different. it's very sophisticated, actually, but it's a little bit like so this is the swab. >> in this effort, help is now on the way from a group of tech companies, specifically 3d printing companies this started back in early march when physicians at beth israel deacon medical center in boston identified the shortage of nasal swabs as a serious issue and invited others to join in and find a solution. national consortiums companies like hp, desk metal and u.s. military labs just 22 days, there was a clinically validated prototype specifically for nasal

swabs came from this clinical trial. three manufacturers are 3d printing the swabs in high volume including carbon. its technology is being used to produce 100,000 swabs this week alone. in three weeks the ceo tells me 1 million. envision tech and its network of users is producing 500,000 a day and fs based origin is producing more than 250,000 a week a source tells cnbc hp is poised to start printing these swabs in the millions desktop metal ceo rick tells me one hope he has is corporate customers remember after the crisis is over how flexible, useful and efficient 3d printing technology can be. back to you. >> thank you we're going to take a quick commercial break but major indices pretty much at session lows right now, the exception of the nasdaq slightly above its

session low but not much stay with us

. markets are down and in a bit of a switch technology is not helping any of the indices out, especially the dow. ibm the biggest laggard down 6 plus intel also in there. microsoft, cisco ahead of texas instruments' earnings tonight. we're back in a minute it's best we stay apart for a bit,

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welcome back nearly 6% of home loans are now in forbearance bob, thanks for being with us today. d i do want to get to that survey. some of the news that broke this morning that fannie mae and f d freddie mac moved it it's been capped at four mounnts

how meaningful is this what does it do for the market? >> that's an important move. it reduces the servicers obligations to make payments for borrowers who are unable to make payments to advance those to the investors. there was a chance it could have gone on for up to a year and this helps reduce the worst case scenario >> in term offense the ss of th just released, what are we seeing in terms of those numbers. the jump we seen have been so closely tied to jobless claims and we're seeing tens of millions of americans start to file for unemployment. is it safe to say we're seeing peak yet in the fore bebearance numbers or is the worst yet to come >> the worst is yet to come. remember, we really only had one mortgage payment due since the

pandemic took effect, the april 1st payment. we expect it will be another spike as the may 1st approaches. the borrowers who made the april payment, may not be able to make the may one. >> do you have any sense of how many of the people requesting forbearance are going to continue to need that and how many might be just requesting it just in case, as a stopgap because it was so easy under the cares act to do that >> we are very concerned that some borrowers who have not had a hardship related to the pandemic, which is a qualifying requirement, are taking advantage of it, which we discourage if you can make your payment, you should continue to make your payments there may be some borrowers who

were worried and things worked out okay we would encourage borrowers who have a hardship to get in touch with your servicers and there will be some for whom whether it's the stimulus payments or unemployment benefits allow them to keep making the mortgage payments >> as we'ring the requests and activity take root, the flip side is what it's doing to credit conditions, more broadly. it's something cnbc has been reporting on homeowner have a record collective 6.2 trillion in home equity and they can't tap the way they could month ago what are you seeing in terms of those conditions and how worrisome is it for people that want to do things like refi or buy a home right now in. >> the good news is credit is still flowing through our members at the mortgage bankers association whether it's for a purchase or a refinance. there's been a lot of

accommodations made by buyers of mortgages so that things that used to have to happen face-to-face like apray sapraise no longer required for the loans. one can get a a cash out refinance still with the lenders. that's positive. we need to make hur tsure the ls a home but that credit is still flowing which is positive. >> we have seen some lending standards tighten up heloc opportunities havelessened a bit where people could use credit do you see that being temporary in nature and how sensitive will banks be to signs the economy is beginning to reopen? >> i do see that as temporary and another way to access the cash we have seen some tightening is through a cash out refinance which all of our left-hand sind.

as soon as people start to see the economy reopen and some of the unemployment figures improve, i think they'll take stock and they will look at their loan terms again and make that credit available because we came into this at a recordlow delinquency rate it hasn't been this low since 1979 very good credit quality and strong underwriting standards. we're not having a credit crisis this is a temporary increase in unemployment that's affecting a lot of people. >> bob, i've heard from some folks who are considering either taking out a heloc or trying to do or doing a cash out refinance. they are concerned about what the standards are now. whether employment is being verified in the same way whether, perhaps, institutions aring loe looking at what type institution employs you. if you're employed by an

airline, for example, will it be harder to get approval >> sure. i think they ensuring that the borrowers is employed when the loan application is taken but still employed right up to the day of closing we don't want to provide unsustainable home financing for anybody. if somebody has suffered a job loss between the time of application and the time the loan close, you can't expect lenders to be inquiring into that for any existing loan, if you're looking at a refinance, your existing loan you can apply for forbearance if you have an interruinte interruption to your income. >> finally, when we talk about liquidity facilities and some of these programs being stood up by the government and regulators, are there areas within the mortgage market where you feel like more still needs to be

done >> yes, bsolutely. it's very welcome and the working well also, handle the taxes and insurance that our mortgage servicers advance to the locality as well as to the insurance companies to ensure the property remains well insured. the fed and the treasury need to act on that side of it >> bob, thank you for joining us today. >> thanks for having me. >> a couple of interesting notes as we close out the show one is that reuters has seen a m memo out of jpmorgan saying it's developing plan for a strategy for the employees to return to work oil will be a story.

texas energy regular lators tako action on a proposal to limit the state's oil output they will revisit that on may 5th. that's probably why we have see the june contract to fall. netflix, later on tonight, let's get to the judge in the half welcome to the halftime report the pressure on stocks our top story this hour. watching the crude collapse again along with the latest on the virus. the state of georgia getting set to reopen on friday. we'll be joined by morgan stanley's mike wilson. he's making a big call on the market today first, the investment committee. stephanie link, josh brown it's good to see everybody back with us today.