it was a major issue because fannie and freddie were making draws. their financial conditions have stabilized and while a lot of their income in the last two or aree years has been recoveries, financial recoveries, tax adjustments that will not be sustainable in the future to my we want them to continue to operate in a sound that.d we are focused on we do not spend time fixing .bout things we cannot control i am sure i would think that treasury would feel the same way but i have not had any discussions about that. me, ither thing intrigued will get the quote correct or close enough. you said that your goal is to reduce taxpayer risk through increasing the role of private capital. but after that you rejected the goal of contracting the enterprise's market presence. to increase the role of capital. i am figuring out how you square those two. and then you said this is a decision to come so i know that you're are not going to announce it now. in my view you can look at an increase in the guarantees fees as either of those, contracting of the market prese

now, if somebody says, fannie and freddie are out of business, then they will tell us how to unwind fannie and freddie. i don't think that's my role to make that determination. >> fhfa every quarter allows fannie and freddie to give all their profits to the u.s. treasury. this is something that creating a lot of unrest among the company shareholders. is that a fair arrangement would you say? do you think shareholders are right in airing aggrieve yenses -- grievances about this. >> my responsibility is to the taxpayer. i don't lay wake in night worrying about what's fair to the shareholders. my responsibility is to think about how i can do what is responsible to the taxpayers. those responsibilities include doing only what is safe and sound in the lending space and maintaining an efficient housing market in the housing space. walking that balance is sometimes difficult to walk. that's a full time job. i just don't have time to think about what might happen in the future with the shareholders. it's not my responsibility. >> you have talked about how the fhfa's job is so conserve and preserve

now, if somebody says ok, fannie and freddie are out of business, a new statute says fan fannie and freddie are out of business then they will tell us how to unwind fannie and freddie. i don't any that's my role to make that determination. >> well, fhfa every quarter allows fannie and freddie or requires fannie and freddie to give all of their profits to the u.s. treasury. this is something that's creating a lot of unrest among the company shareholders. folks make the point that fannie and freddie can't really be healthy companies if it they're not allowed to recapitalize and have some cushion standing between them, you know, taxpayers and the next crisis. is that a fair arrangement would you say? do you think shareholders are right in airing a grievance about this? >> not my job to talk about whether it's fair or not. i have a responsibility to the taxpayers. my responsibility in the conservatorship is not to the shareholders really. i don't lay awake at night worrying about what's fair to the shareholders. my responsibility is to think about how can i do what is responsible for the taxpay

and this includes the regulator of fannie mae and freddie mac. many of these decisions and responsibilities are considered routine and they may go unnoticed and they are absolutely critical to the effective and efficient operation of the housing financu market. i can't touch on all of thesemas responsibilities and rum embarks today, but i do want to give you a summary of what fhfa has been working on since i arrived. and i hope that this will provide you some insight into the direction that we will be headed in the future, particularly with reference to fannie mae and freddie mac. inva in addition to overseeing our day-to-day operations, my work has of also involved in an overe assessment of fhfa and this includes the tenacity and dedication of the employees ofna fannie mae and freddie mac to continue to stay the course during these most difficult and uncertain times. and i would be remiss not to acknowledge and thank the staff for their hard work. this has been a constant urgency since the financial market and it has been a marathon. but this ha

we can control their relationships with fannie and freddie, right? that's the space in which we operate. and we have looked very carefully, in some cases much, much longer and more carefully than a lot of people would like for us to look, at evaluating when these requests for transfers are made to see, are these people responsible to whom, are the companies responsible to whom the transferring servicing rights are being transferred. what is their expertise? what is their history in this space? what kind of capital do they have these things start going bad? what kind of backup will the lender provide to take the servicing back, if necessary, if the service or doesn't? to all of those are factors, and will look at them very carefully in making our evaluations. and then sometimes there's a short-term versus long-term competing considerations. short term, the service or might actually to the servicing better. the longer-term concern you are worried about can they sustain it over long periods of time. and we have to balance those. and i think we've been r

it was a major issue because fannie and freddie were making draws. their financial conditions have stabilized and while a lot of their income in the last two or aree years has been recoveries, financial recoveries, tax adjustments that will not be sustainable in the future to my we want them to continue to operate in a sound that.d we are focused on we do not spend time fixing .bout things we cannot control i am sure i would think that

the goal extends to fannie and freddie's multifamily loan businesses.his is a critical part of the plan,trategic particularly in light of the increasing number of households who are renting and in recent of owning years, and the fact that the affordability continues to be a significant concern for many households. consequently, our way 14 -- our 2014 strategic plan does not require a reduction in fannie and freddie's multifamily production levels and it provides additional capacity for affordable multifamily projects. consistent with safety and soundness, our affordability focus will include multifamily lending for small properties and manufactured housing rental communities, much of which takes place in rural immunities. we expect market competition in 2014 to actually result in lower multifamily levels for the enterprises but fhfa will not mandate that the enterprises prematurely shrink their multifamily footprint. i am on to the second goal. [laughter] strategic goal number two. reduce taxpayer risk through capital in the mortgage market. reduce taxp

there were many -- freddie and fannie don't only nate mortgages. the originators were willing to give mortgages to people who didn't have down payments, who didn't necessarily have the history or the credit score that would allow them to undertake the mortgage. so i was primarily originators who made those decisions on underwriting, and then it was the purchasers of the mortgages, frayedie and fannie were part of the purchasing of the mortgages, but so were other investors, what we call private label securities. >> mr. fettig hinted at this and we have a viewer asked what happens to the 30 years mortgage if this change is enacted. is there potential change to this? >> that's one of the big issues here, is that there's a debate ruth now about what would happen to the 30-year mortgage-depending on the amount of support that the government provides for mortgages. there's one camp says they government has to guarantee securities in order for the 30-year mortgage to be widely available. another group will say, still be available, probably at a slightly

>> fannie and freddie have done these. right now fannie and freddie are mortgage guarantors. they don't make mortgages. they buy loans. they sell them back to investors in the form of securities and they provide guarantees to those investors. that has created a very deep liquid mark for mortgages in the company. fannie and freddie take all the credit risks on the loans. fannie and freddie began to sale pieces of the mortgages, derivatives that fannie and freddie do not guarantee credit list. you begin it see companies wind up those sales so that private investors are standing ahead of fannie and freddie. that's probably the most significant way now as we look at reducing the taxpayer footprint. >> thank you very much for your questions for direct watt this week. >> thank you. >> can you remember who first influenced judith. >> it was my father and mother. i was so impressed by it. i put in the book called "17 traditions." it was conversation around the dinner table. there was no looking at tv or listening to radio. we talked. they challenged us in a nice way and asked us ques

it was a major issue because fannie and freddie were making draws. their financial conditions have stabilized and while a lot of their income in the last two or aree years has been recoveries, financial recoveries, tax adjustments that will not be sustainable in the future to my we want them to continue to operate in a sound that.d we are focused on we do not spend time fixing .bout things we cannot control i am sure i would think that treasury would feel the same way but i have not had any discussions about that. me, ither thing intrigued will get the quote correct or close enough. you said that your goal is to reduce taxpayer risk through increasing the role of private capital. but after that you rejected the goal of contracting the enterprise's market presence. to increase the role of capital. i am figuring out how you square those two. and then you said this is a decision to come so i know that you're are not going to announce it now. in my view you can look at an increase in the guarantees fees as either of those, contracting of the market prese

it involved fannie mae and freddie mac.hey almost went bankrupt and are now controlled by the government. they buy loans and package them into securities, lots of loans. the man now running the regulator for fanny and freddy could make it easier for americans to finance home purchases. this is a reversal of the government reversing the role of fanny and freddy in the market. here to explain it darren blomquist. what is the main take away? >> it's a shift in focus. the fanny and freddy were in protective mode. they and many of the big banks had gotten burned from the housing crisis because of lending standards that were way too loose, and allowed anyone who could fog a mirror as famously said, to get a loan. in the past few years they've been in protective loan. what we see with mel watt coming out and making a speech they'll become more proactive and providing more credit to consumers. i think that it's a shift in focus. many of the things he said are continuations of policies that have been in place. but putting the emphas

we're wining down the old version of fannie and freddie, the fannie and freddie that got in trouble andhough in this case we think the brand names are very valuable. wouldn't want to go away from the fannie and freddie brand names because that makes their mortgage-backed securities popular in china and around the world, paper that people think of lam like government paper. >> let's talk about valiant and allergen. remains a lot of criticism about the way that you're able to build your stake in allergen knowing that a bid was going to be coming. you know exactly what i'm talking about. you've heard the criticism yourself and you've been asked about it. mario bobelli, very well-known investor was on "squawk box" and said the following. what ackman did is a tactic that needs more exposure so that it doesn't happen again. it's not fair. people say it was legal front-running for illegal insider trading. >> who is being helped and who, if anyone, is being harmed? everyone we make as a shareholder activist we have a plan so canadian pacific, we had hunter harrison in our pocket, agreed to come

then they should put them up for sale to companies like fannie and freddie and fannie and freddie shouldwn underwriting individually of each loan. if they think the loan is appropriate, they should purchase it. i think if that happens, then you know, the taxpayer will not find themselves at risk. rather the taxpayer will collect a huge amount of money because the taxpayer today owns fannie and freddie. david: at the same time that you're sort of agreeing with the administration and medical watt on this issue of fannie and freddie, you disagree with so-called consumer financial protection. you think some of the regs that have gone along with that really hurt the banking industry? >> let's forget the banking industry and say we don't care what happens to the banking industry and think about homeowners or first-time home buyers because we know they can't come up with a 20% down payment. we know they can't put 50% of their income in the monthly payment for the home. so what the consumer financial protection bureau has done is it is basically wiped away the opportunity for a large portion of

. >>> did fannie mae and freddie mac just make it easier for americans to get home loans? >>> and open for business, small business owners are feeling more optimistic but does that mean more jobs and will the economy roar back? we have all that and more on "nightly business report" this tuesday may 13th. >>> good evening, everyone, and welcome. records fell again on wall street today as the dow industrials and the s&p 500 each closed at record highs, more on that in a moment. but we begin with big changes being rolled out at a company that as much as any defines the permanent blue chip, you may earn more in portfolios or funds, it contributed not one bit to the rising markets, the shares were off slightly. the ceo sat down with a rare television interview, the conversation was extensive and expansive, and david fab oer jo his us from new york city, good evening, it was a long interview, i don't think i had ever seen her on tv before. >> no, in fact, you would be right about that, tyler, she has not been on tv, certainly not with us. almost two years into her tenure, remett

hard controls, fannie and freddie.icy was for fannie and freddie to buy more subprime mortgages, and they did that by pressuring the banks to lower their origination requirements. the guest you had on the other day, jesse and zinger ger, who said that fannie and freddie were not pressured to buy subprime mortgages is totally inaccurate. for him to say it was a republican conspiracy, it is totally off the wall. if you read the book "reckless endangerment, she explains that it was government policy -- naturally the banks were at fault also because they comply with what was going on and took advantage of the situation. host: next call up is from new jersey. caller: good morning, pedro. i want to say a couple of things about the gas tax, the federal gas tax. i drive from new jersey down to florida every year, and one of the things that i find is the dot or the politicians are allowing the interstate highway system to be used as local roads. if you drive on 95 around washington, the traffic is terrible. ,he interstate highw

and fannie and freddie for a long time have had goals. they had to buy a certain number of mortgages from people in underserved areas. the bill that passed yesterday would eliminate those goals and just set aside a bunch of money for that purpose. and so that was one of the major stumbling blocks for the bill number is a lot of liberal democrats did not think the access issue was there. fa and whatis the fh is the goal? guest: it is the agency that took over fannie and freddie and it oversees them. there's a lot of focus on the agency because ittime north car. he is basically saying that until congress comes up with a reducee does not want to the footprint of the fannie mae and freddie mac. huge reversal from his predecessor. he was reducing the footprint. that was a major policy shift. there have been a rash of articles about the fact that student loans may be the bad housing market. have you seen those? what is your take? guest: is interesting. it makes sense. we do not have the data specifically. it makes sense that if you have a bunch

cambiando de tema, estÁ lista para viajar al mundial de fÚtbol en brasil, pero antes, la cantante fannyararme en la grama, ver a la selecciÓn, y cantar con el respeto que siento por el himno, y la pasiÓn que tengo por mi paÍs y la selecciÓn, m y por lo que va a pasar en el mundial,me sentÍ feliz. >> fanny espera unirse en brasil al grupo de artistas colombianos que apoyaran a la selecciÓn durante el mundial, pero si no logra llegar, tiene otro plan. >> vamos a ver si puedo ir, y si los apoyarÉ desde donde esté. >> en pocos meses fanny lÚ estrenarÁ su cuarta producciÓn discogrÁfica de la cual no ha querido revelar su nombre hasta que estÉ completamente terminada. >> componiendo con gente tan chÉvere, gente increÍble para este prÓximo Álbum, creo que le les va a gustar mucho. >> sobre su nuevo look, la actriz asegura que se siente feliz y cÓmoda, ademÁs ha resultado un hit entre sus seguidores. ♪ ♪ >>gracias, melisa, faltan sÓlo 17 dÍas por el inicio de la copa y miembros del comitÉ organizador de la fifa, en rÍo de janeiro le dieron una probadita a los periodistas de lo que podrÁn disfru

that fannie and freddie are at the epicenter of a financial crisis. and the boom,it bust bailout cycle in the united states of america. think of my friends in the housing industry. i may have a few left. the best program in america is not a subsidy and it is not a federal guarantee. it is a growing economy. that is how the program works. it is time for the republican party to live up to its promise to end the reign of fannie mae and freddie mac. to into the almost $200 billion of bailout. that is exactly what this act does. i certainly want to thank all of those who are associated with parroted foundation. for their work to help fund this legislation. stand for protecting american taxpayers. it has passed the house financial services committee. to the end its voyage crony corrupted mortgage giants once and for all. it is time for action. i am calling on every congressman and congress to support the hatch act today. [applause] the last issue i wish to discuss today is the federally charge it -- target import and export act. suspect fewer than one out o

fannie and freddie have to take those loans back to the insurance insurance process a number two what you have going on here is you have the investors that i have these foreclosures. the agents list these things and don't really listen. they are not exposed to the market in a reasonable amount of time. the only thing you have on these houses are investors paying cash and buying them 40 cents on the dollar and then they are renting in driving up rents. that is what happens to supply and you have builders who have all foreclosed and millions of dollars in land. there back on the market now building under a different name in a different subsidy. they still get $12 million worth of loans from these banks again. it's beyond me rate i'm watching the data watching the date in the atlanta market and is just flat out crazy. fhfa is prime and the va system the whole appraisal process is a flat-out joke. you are not getting jirga valuations on what you are a fan bind that i will tell you what 50% on commission is just nuts while we are still paying that is crazy. >> host: todd you sound awfully

fannie mae and freddie mac are not sturdy enough to withstand another severe downturn in the economy. recent stress tests by federal regulators reveal- fannie and freddie would need another $190 billion dollar bailout from the government if the economy collapses. the rebound in home prices is boosting fortunes at fannie and freddie, which have returned 203-billion dollars to the treasury. and both are expected to remain profitable. under the terms of the bailout, fannie and freddie are not allowed to retain earnings, which accounts for the current weakness. treasuries were a terrific place to park money during the month of april as prices rose and yields fell. chris gersch of altimus capital has this outlook for what to expect in the month of may. i think that it will continue into may the situation right now wtih the 10 year yield. gersch tells us his client are mostly going into cash and are hoping to later buy stocks that pay a dividend. the obama administration warns the treasury department will be cracking down on corporations that are counting on mergers to avoid paying u-s taxe

and fannie and freddie for a long time have had goals.hey had to buy a certain number of mortgages from people in underserved areas. the bill that passed yesterday would eliminate those goals and just set aside a bunch of money for that purpose. and so that was one of the major stumbling blocks for the bill number is a lot of liberal democrats did not think the access issue was there. fa and whatis the fh is the goal? guest: it is the agency that took over fannie and freddie and it oversees them. there's a lot of focus on the agency because ittime north car. he is basically saying that until congress comes up with a reducee does not want to the footprint of the fannie mae and freddie mac. huge reversal from his predecessor. he was reducing the footprint. that was a major policy shift. there have been a rash of articles about the fact that student loans may be the bad housing market. have you seen those? what is your take? guest: is interesting. it makes sense. we do not have the data specifically. it makes sense that if you have a bunch o

we think the right answer with fannie and freddie is in some sense we should wind down the old fannieebirth of them as new fannie and freddie. they go back to the old business. it is just being a guarantor of mortgages, winding down the business of fixed income arbitrage focusing on guaranteeing middle-class or worse. interesting enough, the taxpayer makes about $400 billion. the taxpayer owned 79.9%. >> that is what i don't get. they have a massive amount. >> that is right. >> assuming they are worth 40 bucks, that is $320 billion of taxpayer money. if they went away, it would be wiped out. why don't more people care about that? >> i do not think people have or even focused on it. all we have heard from washington is that we're are going to wind down fannie and freddie. they were pretty abusive in the way they walked the halls of congress and through their weight around as lobbyists years ago. that leaves a lot of people with that taste in their mouth. the 12,000 people who did not cause the problem have real jobs. the government looked at the companies, took stakes in them when thin

fannie mae and freddie mac are closer to 750.long time that the problem is and not a lack of credibility as much as it's fundamental demand for first-time homebuyers is a problem. is it not a fact that fannie mae and freddie mac loosening underwriting standards involves 's?e risk for those gse >> as long as they continue to have -- with the risk they are taking, that is not a problem. the problem is you have two companies that are not allowed to build capital. if we end up seeing the economy , we see substantially china falling off the cliff and hurting our economy coming up two countries that will be on government life support. >> why now? to give a first speech. today was a good day for the first speech. seriousness, i think why now is because there has been concern that the credit box is to type. the recovery is covered -- running out of steam. >> what would the real reasons be? >> there is no household formation until you hit about 54 years old. is, student debt. we have record levels of people under 34 living at home with th

us into the guest: steve -- guest: you support fannie and freddie.ere the principal partners in this crime. guest: watch the tape and listen better. host: the greenroom is right next door. you two can continue this conversation. stephen moore, chief economist the heritage foundation, dennis kelleher, president and markets, inc.er thank you for a lively discussion on the tim geithner book. it.ppreciate just a reminder, we thank you for watching or spending your c-span'srning here on "washington journal." you can listen to those other sunday shows on c-span radio. with that, nancy is keeping track of the guests and topics. preview. a >> on today's sunday television talk shows some of the topics 60th anniversary of the supreme court decision in brown v. board of education. also, veterans' healthcare, n.s.a. surveillance, and politics. rebroadcasts of the programs on c-span radio beginning at noon eastern time "meet the press." guests today include the chair of the republican national committee, also democratic and themccass keel, author of "no place to

fannie and freddie's mortgages have performed vastly better than private mortgages. the entities that were the worst of theers and the heart housing mortgage bubble will actually not subject to the community reinvestment act, and int of the crisis was collateralized debt obligations and credit default swaps with aig, which were -- have nothing community the reinvestment act or mortgages, so this was really a private problem. this was not caused by the government. that is not to say that there a normative government regulatory failures, but they were regulatory failures of deregulation and lack of regulation rather than overregulation of the mortgages, and i encourage you to read more widely because that is basically not true. from steve is up next california on our independent line for jesse eisinger. caller: mr. eisinger, a lot of what happened started here in the inland empire in california. i do not understand -- it took me a long time to understand what happened. it was not illegal, like you said, and no money down? stated income? and these adjustable's they came

after freedom summit, went to mississippi, and one of the places we went to visit was the home of fannie lou hamer, and may not been known to most of view but she was one of the leaders of the mississippi freedom democratic party and what they're trying to do was dislodge the segregationist all white mississippi democratic party from their seats at the 1964 atlantic city convention being held by the democrats to nominate lbj. in the course of this, one of the critical moments is when she testified before the credentials committee and this was on national tv in and you had this woman without much education, a generation to testify about being beaten by people who simply didn't want her to register to vote and asking what kind of democratic party is this? what kind of country is this? is this america? it was so powerful the president of the united states decided it was going to upset his chances for peaceful nomination. he immediately called a press conference at the white house to get the networks to shift their coverage away from fannie lou hamer and to him and was successful. i cite it

that's how many mortgages are freddieby fannie and now in the market. so if he puts in place a policy that might change mortgage rates or might mean you can't get a bigger or smaller loan, that's going to affect people who are to buy a house. >> it's difficult for the public to react to his speech. other constituencies have voices. how good they react to the things he laid out this week? think people were generally impressed with the thoughtfulness of the speech. were areas -- as he said today, he didn't go into. beenme people may have disappointed by that people have hopes that he's going to do more to help particularly on the left to help troubled borrowers. i think the interesting question congress can't get to an answer which increasingly won't whilehey barack obama is president -- you're looking at over the next two years congress isn't going do anything. these companies are out there. they have employees -- there's a of uncertainty there. tot is mel watt going to do end the conservatorship? and freddie in a position for whatever comes next? he mad

on paper the idea of fannie and freddie were perfectly designed. when the execution went -- when it allowed to grow and became the piggy bank of every president going back generations. >> don't forget barney frank, part of his piggy bank, too. >> all part of the government process, it's not a private enterprise. >> i just want to hear what you think about this as well, because the problem is forget who all contributed to it. where we stand today is in the following situation. if we try to get rid of fannie and freddie everybody's home value is probably going to decline. >> it's been six years, kelly! what do you mean on the dime? what have they been doing? >> i don't think that's going to happen. >> taking it for what it is today, for what it is, what do you do with it now, diane? >> apologist for the government. >> ladies, this is their turn. >> there's almost no situations where the government has the opportunity to step in and perform in the long run better than the private sector. >> never happens. >> it never happens. if you think about compan

think about what these are for american culture. >> they should wind down the old fannie and freddiend rebirth them as new fannie and freddie, and they go back to the old business, which is just being a guarantor of mortgages, winding down the business of fixed income arbitrage, which is a business they never should have entered, and working with middle-class borrowers, and if they do that, the taxpayer makes money. it is the taxpayer owns parts of these companies. >> and bill ackman is not just here with big ideas. he was at the investment idea .onference and a professional hedge fund managers and others put their best ideas in, and there were business school students from columbia university. one is with me now. michael, you got the attention of jewel gleam brat -- joel greenblat, bill ackman, and others. tomorrow, a five-year plan. >> it is timely. >> they have not been doing very well now, have they? >> they have done quite well. plan, theal five-year thing that people do not recognize the came out in 2010, they could not have foreseen the 2011 european crisis, so obviously, targ

number one, on fannie and freddie, i agree, we need to solve that problem. it is an intractable problem right now because housing is such a sacred word in the united states. i do not see an easy solution coming out of that anytime. i do not see a solution coming as quickly as some do. >> in the traditional banking sector right now, there has been a question about succession planning. in addition to the debate on too big to fail, there is the too big to jail debate. also, our banks too big to manage? citigroup is such a sprawling institution, you might know what your vision is, it is nearly impossible to implement it uniformly across the entire organization. how hard is it for the current readers of these institutions to pick someone equally complement to runlly competent these institutions going forward? >> it is a challenging environment. setting aside risk, systematic complexity, just answering your question about the size, even if you were to conclude they are very large and therefore resent some challenges some challenges, it is not the governments job t

politically, and hot topic, replacing freddie and fannie may. we will talk to them head of the mortgage bankers association. >> lust, pay tv is in the midst of consolidation. makers at&t "market approached directv. this is "market makers" on bloomberg television -- this is "market makers" on bloomberg television. >> everywhere. >> nowhere on earth you can't watch bloomberg tv. >> no excuse. ♪ >> media bankers are having a very busy year. we have already seen hundred $60 billion announced m&a deals in billionour -- $160 announced m&a deals and a lot more candy coming, sprint is expected to make a bid for t-mobile and today "the wall street journal" is reporting at&t may make an offer for directv. what is driving this activity? bb.will bring in porter bi ra, to the realization their business models are flawed or trauma story frenzy? bighe ground underneath media is quaking and it will evolve into a whole new spectrum of distribution and content delivery. out now there is only one way that can save themselves, and that is through scale. >> is it re

let's get to fannie and freddie. to be holding up the market in many ways and i just wonder are we getting back into bad behavior of underwriting too many mortgages where people are tentative if they lose their job, they might let these things foreclose and, go under? or, do you feel that fannie and freddie are serving a good role? mel watt, finally come out and started to talk. tell me what you think of him and fannie and freddie? >> mel watt, liked him in "star wars." absolute love him at fhfa. he is fantastic. he came out. went into hiding for a long time. then he popped up. first thing he said, hey, we don't have any money. could you keep taking it all away. that is probably not a good thing. we like that. then he comes around and says i will make it easier on warrants like brian described so more lending can get done. we're fans. we're watt fans. >> he needs to go spend vacation time in the bahama a mass with charlie wrangle and anything else. >> we're good to go. liz: give him for at least assessing the situati

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we can control their relationships with fannie and freddie, right? that is the space in which we operate. we have looked very carefully, in some cases much longer and more carefully than a lot of people would like for us to look at evaluating when these requests for transfers are made to see if -- are these people responsible, to whom are the companies responsible, to whom the transferring servicing rights are being transferred. what is their expertise, what is their history in the space. what kind of capital do they have if things start going bad, what kind of backup will the lender provide to take the servicing back if necessary if the service does not. all those factors and we look at them very carefully in making our evaluations. and then sometimes there are short-term versus long-term competing considerations. the service or might do the servicing better. the longer-term concerns you are worried about, can they sustain it over a long time and we have to balance those. we have been responsible in that space and we are doing a lot of work to try t

combined fannie and freddie generated a blockbuster fs first quarter of $9.3 billion in net income.firms will pay back $10 billion to the u.s. treasury in june. bringing the total to $213 billion topping the taxpayer bailout of $188 billion. a cash craze is happening in the housing market. realty track reports a record of home sales were in cash in the first quarter. "all cash" deals work in favor of buyers-- who get around strict lending rules. mortgage rates hit a new low 2014. the 30-year fixed dropped to 4.21%, the 15 year is down to 3.32. the next move by russian president vladimir puting is becoming a guessing game. but a researcher at mit believes... sanctions are taking a larger toll on the russian economy. "it's clear that certain businesses have pulled back and russian debt has been downgraded to just above junk bond status, and people are really sort of waiting to see what the next round of sanctions will be, depending on what happens with ukraine itself." on úgúgúgwednesday, putin urged pr- rebels in east ukraine to postponeúgúg a vote this weed onúóúóúo autonomy. rebels

looking at fannie mae and freddie mac reform. that seems to be dying at the moment. there is an action. lockdowns, nos or progress. >> congratulations on the new neutral. talking about it at link here in a bit. for washington, what is their new neutral? well, dok you said it no harm. this year everyone is focused on running election for the house and those that are not our positioning for 2016 the vikings them busy and not screwing up the economy. them busy.ps >> does pimco believe in this? >> there is a new neutral policy rate. much higher than previous cycles. there is an overhang of leverage in the global economy and the equilibrium. is thecritical point leverage is not in washington. a much in group budget deficit. >> you read it, fantastic. i want to try to understand, first there was a new normal. the way i thought about that is the new normal. now you have the new neutral. the global economy converging to a two percent rate. >> the new normal in 2009 was a two speed world. we are in a multi-speed world now. no longer recovering. that is key. >> the new neutral

regulators also saying they will not shrink the size of the loans that fannie and freddie do, still upmost market. is that enough? you have to look at what is stalling the housing recovery. first look at mortgage rates. they were actually coming down a bit, but at the same time you have home prices rising faster than anyone expected and faster than historical norms. they're coming down off the huge annual gains we saw last year, but they're still way up. if rates keeping moving down, that does help to offset the higher prices a bit, but then we're back to the question of tight credit. the fha is offering a break on its insurance premiums if you go ahead credit counseling, so that helps, and that said, fannie and freddie are easing up a bit. but is it enough? if first-time buyers buy, then other people can sell and buy to move up, and that helps the recovery. a lot more on this on realtycheck.cnbc.com. >> diana, stick around. >>> matthew graham, welcome, good to have you with us. you know, diana reported yesterday and just recapped today of the sort of i guess i would call them moves it

no discussion of bailouts would be complete without mentioning bailouts of all freddie and fannie mae. these virtual monopolies allowed them to monopolize their losses and restore their losses. 's time to end the boom/bust bailout cycle in the united states of america. and i say this to my friends in the housing industry, think i may have a few left. the best housing program in america, it's not a subsidy and it's not a federal guarantee. it's a growing economy that's the housing program that works. it's time for the republican party to live up to its pledge to end the reign of fannie mae and freddie mac. to end the almost 2 $200 billion bailout and that's exactly ha the pass act does and i certainly want to thank all those who are associated with the heritage foundation for their good work to help further this legislation. for ss act it stands protecting american tax acts. it will end these crony corrupted giants once and for all. it's time for action. i call on every republican in congress to support the path act today. [applause] the last issue i wish to discuss with you today is t

so, let's preserve and strengthen fannie mae and freddie mac. there really could be no place like home. trwith secure wifie for your business. it also comes with public wifi for your customers. not so with internet from the phone company. i would email the phone company to inquire as to why they have shortchanged these customers. but that would require wifi. switch to comcast business internet and get two wifi networks included. comcast business built for business. >>> join the news nation on twitter and find us on our page @newsnation and you're about to see 67-year-old chris wilkinson in action. here he is in wilkin son in action in training on his bike in the shadow of the brooklyn bridge in new york. right now chris is getting ready to ride in sunday's annual 40-mile bike tour which winds through new york's five boroughs and taking part in more than 32,000 other cyclists and what makes chris absolutely unique and amazing is that he is blind. chris joins me now in the studio to talk about his upcoming adventure. all smiles, i ride my bike pre

you had the bill that also made them very nervous, to get rid of fannie and freddie.u have it as a backstop. is it enough? we're going to have to find out. interest rates are 4% right now for 30-year loans. that's a positive. a very good thing. we've got to see the first-time home buyers get into the market and they knew that. the administration had no choice but to back off of these incredibly ridiculous stifling regulations that they put into play. >> fannie and fahd freddie are going to make it easier for people to qualify for more mortgages. are we going to see a return to easy money that led to the problem? >> there is a lot of concern about another bubble coming up. that's not going to happen. why would a bank want to go back to the days of 2008 in the financial crisis? i mean, we've got the opposite problem right now but do you really think -- people are talking about nobody down loans five years ago when this blew up in 2008. you don't have a job in we'll give you a us hoing loan, no problem. take a house. that's never going to happen again. the banks, the sha

the benefit of fannie and freddie, which of course makes sense as a joint venture. setting the stage with competition and entry. and the second part, the resurgent of private will securitization our balance sheet lending goes very well with the credit box issue that everyone has discussed. until there is the certainty on, you know, the warranties and then the fair housing, lawsuits and the sort of state attorney generals from of a variety of factors that is in ending the resurgence of private lending is going to be tough to restart. and it is necessary to have a better system. .. >> and he is really taking that approach now, which is i am going to reduce the credit list held by the gsc is, but i'm not necessarily going to pull myself out of the market and allow private-label capital directly participate in the securitization of investor process. it is that is a change, it may be that there doesn't seem to be a lot of private market interest participating in this old way. and even the sheer size and scale, some are saying that there could be enough capital out there

>> spinnake >> that was the agency created after fannie and freddie and it oversees fannie and freddie and there is a lot of attention focused on this now because it has a new director and he is basically saying until congress comes up with a plan he doesn't want to reduce the footprint that is a huge reversal from his predecessor who said these institutions have to be wound down and dirty thing i can and he was reducing the footprint so that was a major policy shift. we are sitting here in a city designed by a frenchman of the engineer and architect, the great symbolic work of the sculpture in the gateway. countless rivers and universities and colleges followed for the country. we don't pronounce them the way they do but if this country is greater than most americans appreciate. >> we've read the interview along with other noted the storytellers from 25 years with the booknotes and conversations on sunday at eight published by public affairs books and available at your favorite bookseller. spin it earlier today former secretary of state hillary clinton spoke to the new america foundat

so, let's preserve and strengthen fannie mae and freddie mac. because without them there really could be no place like home. female announcer: sleep train's interest free for 3 event ends sunday. it's your last chance to get three years interest-free financing on beautyrest black, stearns & foster, serta icomfort; even tempur-pedic. plus, get free delivery, and sleep train's 100-day low price guarantee. but hurry! sleep train's interest free for 3 event, ends sunday. ♪ sleep train ♪ ♪ your ticket to a better night's sleep ♪ >>> okay, welcome back. bond yields are falling pretty sharply today following weaker than expected economic data. ahead of tomorrow's important jobs report, for a look at how to make money on fixed income now, we bring in rich sapper steen, managing partner at hightower and just ranked number six on barons list of the top 100 financial advisers in the country. welcome to "the halftime show." what do you make of what is happening in fixed income now? just speak to this move that we have seen in rates and what you think it mea