to me the primary purpose of fannie and freddie is countercyclical liquidity.a time of stress -- that has to be important even for good quality loans. even for good quality loans. it was only until the 1990's when credit quality at fannie and freddie started to decline. they have an important role that can support quality lending and we want to make sure that is what they are focused on. michael: in terms of the role, what is your goal? it used to be we wanted everybody to own a house. where are we? mark: we want homeownership to be sustainable. we saw last time we got a lot of people going into the top of the market and they got wiped out, lost a lot of wealth, lost their jobs, found themselves underwater. we are focused on phone homeownershipn that is sustainable homeownership. we get somebody in, they are into stay. this will be a success story. michael: let's talk about the timetable for getting them out. you're talking about it as a 2021 event? mark: it is process dependent, not calendar dependent. what we are focused on is the things we need to do will ta

mac --loans were freddie of loans for freddie mac and 50% of loans for fannie mae. non-bank mortgage originators were designated as a potential systemic risk. of are a member of a sock -- fsoc. does that concern you? chair powell: it was mentioned that they thought being these are now very important channels through which mortgages are originated, and in the case of a downturn, the banks have high capital. if got lots of regulation, lots of liquidity, and that is a good place, but these institutions are operating sometimes under funding themselves with credit lines which might not be available. so there is risk there, and we are in the process of assessing that and determining what to do about it. we have highlighted it is a risk, and we are doing work on it. rep. luetkemeyer: do you have a timetable on when you will or will not? chair powell: i can come back to you. this is something the treasury has the lead on. rep. luetkemeyer: one of the things that concerns me is also with regards on lending, the stack of forms you have to go through. we had a gentleman who re

we are looking at a portrait of fannie lou hamer, a great activist, especially in the 1964 democratic convention. she gave a speech that galvanized the american public, because it was televised. she said, i'm sick and tired of being sick and tired". she was alluding to her long struggle to have a life as an african-american, citizenship right in the united states. earlier she had attempted to vote in the early 50s and was denied because she was illiterate. as a young woman she had to give up going to school in order to help her family and so she never learned to read. this is one example of an activist whose words are spoken from the heart, and she really had this unmeasurable success in influencing the american public at large, because her speech was televised in 1964. so, the voting rights act was signed in 1965, in part because of that convention in which fannie lou hamer played a major role, and it was signed by president lyndon b. johnson. this is a later portrait of patsy mink she also had been working on the voting rights act. she also seen and witnessed the infringement of her

over government sponsored entities like fannie and freddie, right?ay to buy into something like that. >> there are a variety of fixed income instruments that target areas of structure credit and predominantly mortgage credit. we favor, we favor mortgage-backed securities that are not guaranteed by the government sponsored entities as you mentioned, fannie mae and freddie mac. just due tote high current credit spread, high current income those bonds offer you with relatively speaking shorter duration profiles or less interest rate sensitivity in this environment. protecting investors perhaps from a big rate move higher but giving that high stable current income. liz: specifically a fund, plx and dlbtx. those are the ones that mimic exactly what you are talking about. [closing bell rings] sam, thank you for your ideas. sam dunlap. another all-time record close for the nasdaq and the s&p too. that will do it for "the claman countdown." melissa: new highs on wall street. all three major averages ending the day in the green. the dow up 14 points. i'm meli

the bottom of the fannies at the last dragon which corners has called a halt to your. debris but. hey there good to have you here on the 77 percent the show that the 5 the voice of off because you my name is wind you cobol are good to have you with us. today it's all about young africans who shipped all future with digital technologies and it's a special show too because we have an exciting guest joining us in this studio. j.j. or would you or is one of them more influential on the point he's here to talk about .

the bottom of the fannies at the last dragon this word has called the hard truth. on. have fun in pyongyang. the capital city of north korea is reinventing itself.

first time fanny's event was. really realize how much you've done took us to actually meet. i think you're the bell. 2006 i received a letter. she was basically writing to say hey you want to be. a hope to. situations you know turn out for the best at least our correspondent. but when i began to speak about the idea a lot of creating. some conditions sure i'll bother to support 'd you in a few what happened. it was just a match it happened between in. the spirit dish. the spirit and the image of the. ship back rectitude of it and i mean it and i mean it in a good. image from is you think your child services icons are. the next one is or is it was on. system as so as you knew this to play the wants of it's own i bagged. up a tele by the mohawk guy just a simple section of the show for my for the moment comes out it's my fave on the mortgage that cannot money son of a professor missing because it to. me. that actually says he can. get in your. case it doesn't mean you have to get beyond cars assume you are simple thumper massacres are trip more the most trim on the more teresa

. >> i like the fanny packs!e are you going? >> you want hand sanitizer >> all four hours, for the first time, we're going on a trip together we've never taken all four >> shotgun >> we're going to let loose and ride some rides, eat some food and play some games. and universal resort is part of our parent company >> we're not the only ones little big town is coming with us live concert in orlando. they're going to do some of the biggest hits, that we all love new ones that we love even more. fanny pack is packed >> i'm looking forward to this >> so am i i can't believe we haven't done this before. >>> coming up in a few minutes, guys, our series honoring black history month, we caught up with the nfl's youngest general manager ever, just 32. just getting started his story is sure to inspire trying to turn the cleveland browns around. >> 32 and a gm job >> love me some cleveland. >>> and guy fieri is here. we're going to have a little competition. he had us bring in our favorite lunch foods and he's going to dial

and a long range pile driver from my fanny. but to no victory for some power only helps keep them safe heads hamburg's promotion hopes and most importantly hands extra bragging rights to the brown and white side of the city ruining both of the season's dobby's for the 1st time ever. and the 1st division is also pretty lively fire and stay one point above life's issues with the top 5 still separated by just 6 points and remember to have that have that game in hand. lower down things are really heating up the part of all brain one of those will go on hence the bell and drop further after being lashed and leapfrog by a ton of all inspired cologne. in a season what we've learned to expect the unexpected the only thing we're sure of is next week's fixtures inspired want to stay ahead of the pack will have to be to hop in time in sin time but 1st they have to face chelsea in the champions league need week. after those. reasons for those clubs back we'll head to elsewhere hoping to shake off their last minute slip up. meanwhile dortmu

merging fanny and freddie strengthening the protection agencies.> bad news for bloomberg is he's going to get it from the left and from the right and good news from bloomberg is all about him so able to perry these attacks have good responseses. come off well it could boost his campaign. >> just funny right that the guy they hate in the white house more than anybody, billionaire, white, new yorker -- they want to you know now maybe nominate the billionaire white new yorker, the party will do that ao c allow that to happen. don't think so. >> what a new york story by the way you've got real estate developer, president donald trump. you've got financial titan who built his business by, you know, connecting markets globally. michael bloomberg, and potentially hillary clinton. [laughter] also in the mix there. according to drudge we'll see good to see you. thank you so much joe joining us. coming up hit hadding huawei and u.s. reportedly limiting access to vital technology. the strategy coming up on huawei. and then love hurts why too many partners cou

visited jordan and a sign of improving relations king abdullah welcome shake to maiman home it all fanny to the capital amman the meeting is the 1st sense the imposition of this out of the saudi led blockade 3 years ago when jordan downgraded relations with katara correspondent has more from the jordanian capital on the significance of the visit . this is the 1st visits by the i mean of qatar to jordan since the 2017 blockade that was imposed by saudi arabia the united arab emirates egypt and bahrain jordan didn't blockade qatar however it did participate somewhat in the early stages of that's crisis by recalling its ambassador from qatar those relations have improved with full diplomatic representation being restored over the past few months rather than sending a resounding is somebody that a true. reciprocating but what's making this visit so significant isn't just that it is both the regional files that are going to be discussed as well as bilateral relations with regards to the regional issues at the top of that is the palestinian issue in the struggle for freedom there both jordan a

that bank wells fargo, quicken, they're going to make that loan and then they're gonna sell it to fannieever it is. there's going to be a buyer there. that's not going to change. if not a down the middle kind of potential homeowner with credit score loan-to-value ratio debt to income ratio you're not in the sweet spot of the loans the bank's gonna make that on their own balance sheet they're gonna take the risk. you may have a problem that might be more difficult for you. if you look at house prices relative to incomes, rents, things like that you think housing in america broadly speaking is a good deal right now? >> depends on where you are if you are out west, west of the mississippi house prices are very sharply very high relative to income and rent. valuation becoming an issue but with a downdraft in interest rates, that's going to give another jump up and house prices. here's what i say, abstract and from near-term things. the housing market, particularly for affordable housing, workforce housing, the plain-vanilla housing is vastly undersupplied, we don't have enough homes and we a

the 4th time flew down the hall of the host machine and at its number that was the bottom of the fannies at the last dragons this word has called the hard truth. to agree books are not. to know that 77 percent topic are younger than 6. that's me and me and you. and you know what it's time all voices. on the 77 percent talk about the issue. for all the politics to flash from housing boom boom town this is where they are. welcome to the 77 percent. this weekend on g.w. . whatever we begin to the day will affect the bout of c o 2 in the atmosphere of the increase of the temperature. 2050 they have to start by starting to decrease the amount of c o 2 for the habs now this is actually not a hard problem that just takes will power over there are very important economic interests to all and all the heart of coal will own a lot of oil that are doing everything possible to make sure this doesn't happen we have to fight the fight. 25th will be well on the way to reliable or adorable solar wind about the best that. are not totally gets a piece of. this is g.w. news from berlin tonight the details o

community who are woven into the tapestry of this great nation local mechs martin luther king jr fannie lou hamer jackie robinson thurgood marshall james baldwin another come to mind we follow the passage of the civil rights and voting rights act separate but unequal education outlawed restrictive covenants ruled unconstitutional and other gains but sadly we also watched as many of those cornerstones of justice disintegrated before our eyes during black history month we often acknowledge the great black leaders who paved the way for progress in advancing civil rights and equity but it is also incumbent upon us to recognize today's leaders in our community in our own backyard who are fighting to preserve the work our black forefathers started and build upon their successes today we are tasked with meeting the moment much like our predecessors building on the tools they use devising strategies that meet the demands of an ever changing environment and breaking the shackles designed and legally codified to hold the black community back as we reflect on our leaders of old we must also look t

fannie cheered to the principles of our coordination cooperation us debility in. we should work together to keep china u.s. relations along the right track and china will deepen cooperation with europe across the board and with a focus on upgrading china relations in housing cooperation and green development and the digital economy and expanding china's central eastern european country corporation into more fields and young as always we support european integration which usually support a united and a strong europe and we support europe's active role in multilateral affairs. 3rd digital to uphold multilateralism we should uphold international norms multilateralism is not untypical so unilateral moves instead it supports greater democracy in an international relations based on international rule of law and justice which. there will be the principles in finding the un charter including respect for national sovereignty for peaceful resolution of disputes and not interference in enteral affairs so are the bedrock of modern international law. as the 1st founding member

that's what fannie and freddie did or announced this week. >> to follow up on mr. stiver's question with regard to community banks, do you see any pluses or minuses in using sofer over libor for community banks? >> libor itself is really a problem in the sense that the rate -- there's no guarantee that the rate will continue to be published after the end of 2021. but there's a question about having a credit sensitive rate in addition to sofer, the main substitute for libor. we are working with regional and some of the larger banks, too, about the idea of also having a credit sensitive rate. and that's something that is ongoing. >> okay. and we've had a little conversation about the coronavirus, china, the impacts on the economy. the president just signed into law the usmca. do you see that as creating a runway for further economic expansion in the u.s., job opportunities and wage growth? >> we don't give advice on trade policy, and that -- but i will just say this. the signing and the enactment of an implementation of usmca will be a positive, at least in the sense

fannie mae and freddie mac, and some agencies have been taking this step separately. is there any uniform effort at a high level to be able to coordinate the adoption of it? >> yes, there is, very much so, and we're doing that. we're coordinating with the other agencies and with the market participants as well. and you will see more of that. you will see more instances in which libor will no longer work, no longer be useable in particular context. that's what fannie and freddie did this week or announced this week. >> to follow up on mr. stiver's question in regards to community banks, do you see any pluses/minuses in regard to using sofr over libor for community banks? >> libor itself is really a problem in the sense that the rate -- there's no guarantee that the rate will continue to be published after the end of 2021. but there's a question about having a credit sensitive rate in addition to sofr. sofr will be the main institute for libor. but we are working with regional and some of the larger banks too about the idea of also having a credit sensitive rate. and th

ymir shape to me fanny has ordered evacuation of cattery and kuwaiti citizens from iran just spread of infections there this after the rain in president hassan rouhani said iran had no plans to quarantine any cities or districts in response to the country's credit virus outbreak so far just killed 19 people and infected more than $130.00 others including iran's deputy health minister and the u.s. concern over whether the government is prepared for an outbreak president trump is expected to hold a news conference on the virus in the next hour i want to ask question of can be held at joins us live from washington kimberly the u.s. president in the past has downplayed the threat from the virus what can we expect from his address. well the u.s. president has almost taken the criticisms that his administration is not prepared personally he early this morning blamed on twitter the media for perhaps exaggerating the threat trying to reassure the american public but it's been the president's own statements that have caused alarm among some lawmakers even members of his own republican party not

i'm fannie-mae. connell: i'm connell mcshane. glad to be back in new york.sa: i'm glad you're back. i missed you. connell: down sound genuine. she likes having the studio to herself. melissa: that's true. connell: s&p was very close last time we checked to a record at the close and it looks like it will get there. it needed,

fha was created and fannie mae was created around that time. mr. fink: around what time? >> the 1930's. would that have been gone to the house making committee? ] glas mr. fink: glass was a center. my guess is he a post it. he a post, believe it or not, somebody has done a study of the 90 new deal or 80 or 70 new deal laws, he opposed 81% of them. you can bet he almost, he probably opposed fha. certainly if anything out of a social ben, make the world better. glass was probably opposed. -- if anything had a social bent. he was honest. the best quota had to have a he react to the gold standard? when roosevelt first came in failing all over the country. and roosevelt ordered all the banks in the united states to be friendnd glass said to a the president of united states has no more right to close every bank in the united states than my stable boy. glass was always, he played country. too.l tinge there, bet he opposed most other things. >> [inaudible] mr. fink: i don't know. >> [inaudible] why he opposed what wall street was doing before the crash. was he against speculation

. >> my first campaign never done it before, i got knocked on my fan fanny multiple times during thatpaign. you know what i did? every single time i got back up. and on election day, a bunch of folks saying not which way this could go. i beat him by 7 1/2 points. >> reporter: and, ali, saying could go this way, that way, that's sort of a question to hear on the ground here about elizabeth warren but her campaign pretty even keel group of people. you were and down not frustrated and making the argument of a beginning of a protracted primary and in this for the long haul and the thing that makes this hard is they need the resources to keep it going and the numbers to look at is whatever the fec puts out for her next, ali. >> all right. thank you. mike with joe biden. mike, according to the new suffolk university poll we just saw, you know, if joe biden thought iowa was rough on him he needs to come out ahead of elizabeth warren and or amy klobuchar to place third in new hampshire or he pulls some kind of a rabbit out of a hat and does better than that. right now, joe biden at least got

purchasing more than 6400 single-family properties from the government-sponsored lender fannie mae at an average price of $8000 and then resold on land contracts. by that time he and his family had grown to love the area. newly painted walls of brown carpet, family photograph photographs, leather sofas and humming radiators. hosting extended family on the lawn after he was at the house for months suddenly directed him to send money orders to a po box he wondered about the change but decided not to ask questions and did not want to threaten the homeownership nearly within his reach. so now i will pass the ball to you. [applause] >> i want to start with the big picture question. when you read the stories in the book it's impossible not to think back to a time when things were different with more opportunity and it seemed as though the possibility. i'm born in the city in 1970 in a neighborhood that looks a lot like what is described of where they live and very familiar with the stories you are telling in the book. i can remember that neighborhood being much more safer than it is today.

he was also the son of fanny garrison who was an important suffragists, and the grandson of william garrison, the abolitionist and suffragists. she wrote to him, remembering that when he was at harvard in 1904 he made us each -- a speech at the massachusetts suffrage organization and wanted him to the kata convention -- and wanted him to speak at a convention. he did not think he could commit to anything of that nature, but he thought it was a good idea that a group of men of prominence would come together not to do much more than lend their names and trotted to albany or washington and speak to legislatures and politicians if the need arose. she wrote back and said this was not a new idea, the suffrage organization was very much in the doldrums and had had the idea before. there was a men's suffrage league that started in 1874, 1875 that started in the east village in new york. it met about 80 times and then fell out of existence. she said the men who have been willing to engage are so full of isms. and we have so many women full of isms, it's the last thing we need. the men we really need,

an a friend of his in the embassy in paris her fanny was the person who recruited. these 2 prostitutes and had them and sent them to yemen and i remember her as sami he also cried when he told me that story he was a true believer in the end the role that al handy. was going to hopefully play in the development of yemen so 100 shani just thought terrible that he had been the person who had recruited these 2 prostitutes prostitutes who were then killed and thrown into a room with the brothers in order to bring shame in. this respect the respect upon the 100 brothers their family. is the most sort of not put. this into fam. question kitty but you are more. wrong the affair you may need tell a book. you don't agree you know them or. miss you are the last measure get their ms affair contrail a key review on the. law although i was told this a don't don't isn't the icky marco patience the more calm or fair to. say the farmer. or i lay open or. because it doesn't give it the shots they decide to miss you are more easily to patsy off that you ever did to plan their lines. o

i'm fannie-mae. connell: i'm connell mcshane. glad to be back in new york. melissa: i'm glad you're back. i missed you. connell: down sound genuine. she likes having the studio to herself. melissa: that's true. connell: s&p was very close last time we checked to a record at the close and it looks like it will get there. it needed, up 37 points. that is good enough for a record as it settles in. that is record for the s&p. definitely a record for the nasdaq up 47 points. if you want a stat for the nasdaq -- melissa: i do. connell: 149th record close for nasdaq composite since election day 2016. melissa: love it. connell: fox team coverage. it will be a busy hour. edward lawrence on capitol hill where the vote will be taking place. kristina partsinevelos on the floor where the rally has been taking place. phil flynn in chicago and edward, let's start with you. reporter: 2 1/2 weeks in the making. at the moment the senate stan in recess. they're waiting for that vote to start. senate majority leader mitch mcconnell just spoke. one republican senator at least wi

wells and fannie lou hamer spoke truth to power and were dr. king recognize that our greatest power sometimes isn't lifting our voices when it seems hardest to be heard. i say because i believe if we march on ballot boxes in 2020 and 2021 and 2022, if we march on ballot boxes and we start writing down the names and the ideas and the challenges we face and we demand action from those we elect whether we like them or not, if we march on ballot boxes we will get not what we deserve, we will get what we desire, and that is how we went in the future. thank you so much. [applause] >> i love this phone. we have to turn our mics on. >> i am fully on. >> is yours green? >> it's green but it's not -- >> try it now. >> good evening. hello? >> your good. thank you. good evening, ms. abrams. can we get another round of applause for stacey abrams. [applause] it's a true honor to be here tonight in your company and in your presence. my name is david wall rice, i'm a professor of psychology at morehouse and director of the institute for social justice so this

street, including a financial transaction tax, tougher regulations, strengthening the bureau, merging fanniefreddie and reforming student loan payments. joining us now, economic policy analyst at the american enterprise institute and jared bernstein, senior fellow at the budget at the center on budget and policy priorities. welcome to you both. i got through that now i have to take a breath so i'm going to let you guys talk. this is a what, a .1 tax or tenth? is that going to mean, i know it will raise revenues, jimmy will it change behavior at all >> right, well it's a trillion dollars. that's hardly a small amount and that comes on top of somewhere between 3 and 5 trillion of other tax increases. mike bloomberg called for. i think studies suggest it would have an effect it would raise the cost of capital. make it harder to raise money. anytime, listen, you like your financial markets to be frictionless you like them to operate smoothly and this puts fans in the gears of the financial market maybe not a lot, but it does put some fans in there >> item going to guess, jared, that you disagree

. >> my mother had had it in a fanny farmer box in a secret drawer in a piece of our furniture. >> whenrence grows up, she moves to massachusetts, gets married, and then divorced. over time, the family is drawn back together by old age and illness. eventually, flo convinces her parents to move up to massachusetts and live with her. >> the fellow i was dating at the time was an architect, and he designed an addition for us. >> how much did that cost? >> $125,000. >> did you have that money? >> no. i had to remortgage the house. >> flo's dad dies in 1995. her mom, mildred, inherits the card. mildred is well aware flo has gone into debt and wishes she could help. but it never strikes her that she has the means until great-great-uncle archibald comes up in a genealogy class at the senior center. so he suggested that that card could be worth what? that's next. >> but first, our "strange inheritance" quiz question. who in 1888 declared baseball "the american game"? queen victoria of england, indian chief sitting bull, or poet walt whitman? the answer in a moment. i'm your mother in law. and i

that financial crisis get blamed on the free market when it was caused by the federal reserve and fannieae and freddie mac. connell: he wouldn't running at time for re-election but john mccain certainly most people think was hurt desperately by that in 2018. this, you know, tough to blame someone politically for a virus but does that blame matter politically you think if the economy is slowing down? maybe people don't care why it is slowing down but when it is seems more than anything else? >> normally i would agree with you. voters all they care about is the bottom line, what is happening, disposable income. that is a key variable, determines their optimism. determines the country going in the right direction, wrong direction, so much stems from that, however if you have something obviously external, not the fault of anybody in the united states, and if trump get as oh, boy, we're dealing with this problem, can you imagine how much worse it would be if we had a socialist in the white house trying to turn our economy into greece at the same time? this is where trump, because he does not

hilton, fannie/freddie, lowe's, utx, agelant, which was new, berkshire hathaway, pretty good. >> hilton.7% stake that has been a strong performer fundamentally. i think there's a lot of tailwinds there. i would stay with that one chipotle, 6.5% stake and has reiterated his belief there's significant potential for chipotle to consider. >> i think he has a double in chipotle, which is what i can't understand 80 something times earnings on a restaurant company i don't know that i've ever seen that for a sustained period. >> i believe he commented that there is unrealized potential still in chipotle, even where it stands. >> may get the multiple down to 60 times. >> trying to go through this thing on live tv which isn't the easiest thing in the world he is making the case still for activism, one of his core strategies since the beginning he is talking about idea generation remaining robust in the marketplace. in the two new positions he established over the past year, agelant and berkshire. he has disciple of warren buffett and perhaps not much of a surprise and activism, howard hughes, chi

big names like quicken, loan depot and better.com they accounted for more than 2-thirds like fanny mayccording to inside mortgage finance growing much faster than the total market and they don't have banking licenses and they're improved more quickly online but generally the same underwriting standards because they mostly sell their loans to fanny and freddie and originate most at fha. in a recent report the financial stability oversite counsel said nonbanks could pose a risk because they rely on short-term funding sources and have relatively limited resources to absorb financial shocks. it encouraged regulators to take additional steps to address the risk and that's the issue there. >> it may or may not pose the market and we have two sides on that the former fha commissioner and former nba ceo also the former president and ceo. i think you are the one that has the general problem or at least thinks it poses a bigger risk right now. >> why is that what do you see is the risk that the market is missing? >> well, the issue you have is they do a great job of good quality loans, good oper

>> mortgage rates could be even lower but lenders are pricing in the risk of what will happen to fanniereddie mac, which seems to be moving to an exit on conservatorship. >>> obviously, the virus fears contributing to the downturn the who whov w.h.oorld health on says the status in china has peaked it's not witnessing an uncontrollable global spread they say it's too early to speak of a pandemic. blackstone joins us with this take, byron wien would you grade the action as being methodical and rational? >> well, i don't know about that i think it's a very strong reaction to a change in the outlook. i think people were expecting that the coronavirus would be brought under control by the end of the second quarter and now that's being called into doubt the central banks were moving to ameliorate the economic effects of the coronavirus and now the feeling is that what they're doing may not be enough. and there may be recessions in europe and elsewhere the final thing, in the opposite direction, it looks like bernie sanders is going to be the democratic candidate and the popular perception is

wells and fannie lou hamer smoke truth to power and where dr. king recognized that our greatest power is sometimes in lifting our voices when it seems hardest to be heard. i'm here today because i believe if we march on ballot boxes in 2020 and 2021 and 2022, if we march on ballot boxes and we start writing down the names and the ideas and the challenges we face and demand action from those we elect, whether we like them or not if we march on ballot boxes we will get not what we deserve, we will get what we desire and that is how we win in the future. thank you so much. [applause] [captions copyright national cable satellite corp. 2020] [captioning performed by the national captioning institute, which is responsible for its caption content and accuracy. visit ncicap.org] >> thank you. good evening, ms. abrams. can we get another round of applause for stacey abrams please. [applause] it's a true honor to be here tonight in your company and your presence. my name is david wall rice. i'm a professor of psychology here at morehouse. director of the

that bank wells fargo, quicken, they're going to make that loan and then they're gonna sell it to fannieer it is. there's going to be a buyer there. that's not going to change. if not a down the middle kind of potential homeowner with credit score loan-to-value ratio debt to income ratio you're not in the sweet spot of the loans the bank's gonna make that on their own balance sheet they're gonna take the risk. you may have a problem that might be more difficult for you. if you look at house prices relative to incomes, rents, things like that you think housing in america broadly speaking is a good deal right now? >> depends on where you are if you are out west, west of the mississippi house prices are very sharply very high relative to income and rent. valuation becoming an issue but with a downdraft in interest rates, that's going to give another jump up and house prices. here's what i say, abstract and from near-term things. the housing market, particularly for affordable housing, workforce housing, the plain-vanilla housing is vastly undersupplied, we don't have enough homes and we are

you may have seen that fannie mae and freddie mac have said they won't accept those mortgages after some point later this year. that sort of thing will begin to happen now i think well in advance of the deadline, which is the end of 2021 >> okay. and chairman powell, your fed board recently finalized its rule on tailoring the hopes of providing more clear and well-defined risk indicators to determine the regulatory requirements that are placed on firms based on their size and risk but the board has never disclosed, nor provided clear and quantitative criteria under which firms are placed under its enhanced supervisory regime that is called large institutions, supervision coordinated committee. even your vice chairman, mr. corals, recently gave a speech where he said this. he said he would like to align their portfolio with the tailoring categories and make the designation criteria transparent. and you even recently indicated you agreed on the need for brighter lines so could you outline what changes the board is considering to make in this supervisory framework? >> we're just in the proc

fanny rabasse who's been at the moulin rouge for a quarter century is our guide.something when you look around. yes, and i like the warm atmosphere. you know, the red and you know the little red lamps? they are made only for us. >> the red mill the red mill, that's the english translation for moulin rouge, sits in montmartre a section of paris that was filled with windmills. a few still stand today. >> so so it was a way to pay tribute to these windmills of montmartre. and you know why it was painted in red? >> no. that was my next question. >> yes, no, that was my next question. yes, because they wanted it to be seen from everywhere. it didn't hurt that joseph oller and charles zidler, the two businessmen behind the moulin rouge, also put on an eye-popping show. why here? why the moulin rouge? >> because because here was the, the party. here were the girls. here was the music. here was the freedom. and here all the classes were mixed together. there were the bourgeois. there were the aristocrats. there were the laundry girls. there was everybody. >> the author au

that is what fannie and freddie did this week or announced this week. to follow up on his question i think it is really a problem in the sense that there's no guarantee the rate will be published after the end of 2021 but there's a question of having it because it sensitive rate in addition to sofer, it'll be the main substitute for libor but we are working with regional and the larger banks of the idea of having a credit sensitive rate, that something ongoing. >> we have had some conversation about the coronavirus, the impact on the economy, the president signed into law the usmca, do you see that as creating a runway for further economic expansion in the u.s., job opportunities and wage growth? >> i would say this that we are signing in the enactment of implementation of usmca will be a positive in the sense it removes uncertainty around trade policy and that has been the issue over the last year or so, not knowing what the rules of the game are going to be in getting those settled is certainly a positive thing. thank you my time has expired. >> the g

that's what fannie and freddie did this week, or announced this week. mr. tipton: to follow up on the question about community banks, do you see any pluses or minuses to using sofere over libor for community banks? mr. powell: libor itself is really a problem in the sense that there's no rate the -- no guarantee the rate will continue to be published but there's a question about having a credit sensitive rate in addition to sofere. sofere will be the main substitute for libor but we are working with liegal and larger banks about thed in of -- about the idea of also having a credit sensitive rate and that's omething that's ongoing. mr. tipton: we've had a conversation about the coronavirus and the impact on the economy. the president just signed into law the us mmbing ca -- usmca, do you see that providing opportunities for wage growth? mr. powell: we don't give advice on trade policy but i think the signing and enactment and implementation of usmca will be a positive in the sense that it removes up certainty around trade policy. i think that's been part of

he wants to merge fannie and freddie. lenders carry more reserves and volcker rule and tougher banking regulations. we're looking at his past stances if we can bring it up. before we talked about the punitive actions of the volcker rule. he talked about red lining which was biased practice not giving low income individuals, mostly minorities, mortgages. he also criticized trading on wall street as well. that you can fine trading that hurts middle america and the average person on main street. what about tuition? he says he needs the money, needs the .1% to pay for tuition-free community colleges. this will cost $700 billion. be debt-free for the lowest income student. parents who make less than $30,000. double the value of pell grant, 12,000, cut income-based repayment in half to just around 5%. as i mentioned to you, as you know, neil, tonight on the stage he mass to answer to previous stances as well, controversial like "stop-and-frisk for one. something he is in favor of, he recently apologized for. paid sick leave and

and investment bank houlihan low hired to help the trump administration free freddie mac and fannie maent control. during the financial crisis, the mortgage giants were seized by regulators. they've returned to profitability and repaid the cost of the bailout, plus billions in dividends. that is your bloomberg business flash. romaine: thank you. let's turn now to wall street beat, where we cover three things wall street is buzzing about this morning. onst up, the bernie brokes wall street -- the bernie bros on wall street. bernie has some secret bankers who support him. then, a goldman tech leader makes a surprise exit. and degeneration of greed. a hedge fund says this time may go down in history as a generation of greed. joining us to talk about all of these stories is bloomberg's shree natarajan. ost's talk about the bernie br on wall street. is this a real thing? it is a bit of a surprise, but i guess it speaks to the issue that we will hear more about going into the election in november. in the come of the terrible skew we have with the wealth. i don't thing a lot of lost readers ar

and fanny may and a federal reserve surplus funds should not be used as a pig bank. public transportation is an area that is known for over plumbing, and bipartisan support. i intend to work with senator brown to continue the bipartisan tradition as we seek to balance the needs of bus, rail and urban systems across the country. on demand service, transitions to electric vehicles and deployment of autonomous that should be addressed in a comprehensive bill. traditional fixed rate services and central backbone for conference of transportation networks. however, there have been numerous technological advances that can enable a higher quality of service at a lower costs. for example, transit agencies should incorporate these technologies to complement outside of service hours to provide non emergency medical transportation, to bring riders from fixed route services to their final destinations and to modernize fair pavement collection, just to name a few. federal policies should provide more treason transparency by addressing regulatory burdens in order to invite more inn

when fannie and freddie held at precrisis, they hedged. the fed did not hedge.wrist back -- whoever holds the mortgage bonds will have to hedge. that just means you are selling in the same direction as price. yields start going up, bond prices are going down. you are selling more bonds to keep your duration at the level you wanted to keep it at. it is selling into a down market and buying into an upmarket. in this case will be selling into a down market. alix: odeta, if we wind up seeing no more cuts except from the fed, how is that wind up playing into the refinance world and new millennium homebuyers. odeta: mortgage rates are not as highly determined by the fed, but more by economic and global uncertainty. the irony here from the coronavirus and some of the uncertainty going on in the world's mortgage rates have benefited from that. 3.45%e mortgage rates at and they follow the 10 year treasury yield. as that floods to safety happens , we see a decline in mortgage rates and that is where your first-time homebuyers are benefiting from the affordability boost. t