we are about to see with mortgage giants fannie mae and freddie mac.gency director is with the government and he is looking to say enough. we are going to end the government stronghold on the mortgage industry's most famous or infamous names, fannie and freddie. charlie gasparino with the internal timetable floating for this releasing of the hounds. >> i like that analogy. i was thinking of mr. ed. remember, wilbur? liz: no, i'm too young. >> a talking horse. by the way, that show was for adults. just shows you where we were in the '60s. you had a talking horse. liz: innocent time. >> before vietnam or before vietnam heated up. here's what we know. the trump administration led largely by steve mnuchin and mr. callabria have a timetable drawn up right now for the release of fannie and freddie essentially from what it is now, conservatorship, government controlled, taking all their profits, to something more private. here is the timetable. i can't tell you the trade off this thing. i can just tell you this is in the mind of the government, looking to mak

originally designed to help individual homeowners the federal national mortgage association or fannie mae and institution founded as part of franklin d. roosevelt new deal of the 1930 s. provided more than $200000000.00 in financing in 2018 to help private equity firm t p g capital by a dozens of manufactured home communities fannie mae also backed a 1000000000 dollar loan to yes communities which is majority owned by private equity firms g i c p s e r s so again you know we've also covered this theme of socialism for the elite the wealthy and the top 0 point one percent. and capitalism for everybody else only let me throw another metaphor here the idea of financial irrigation right so under f.d.r. the government built a pipeline of cash from the government to aspiring homeowners to. subsidize their home buying so using financial engineering the type that was leading from washington to homeowners was rerouted so it goes now to blackstone and then they intern cycle it through to their slums so that kind of financial engineering again made possible by lower interest rates 0 percent interest

talking about fannie mae and freddie mac conservatorship. applied to come out of that, they already paid $100 billion. >> build capital, you need to be able to end the sweeps to retain earnings that's start number one. emphasize, however, still in negotiations with treasuries and looking for the administration's plan not calendar dependent it's process. >> so no win but you just lost the chief adviser on that. craig phillips just resigned is that going to slow down the process of taking them out >> i hope not. my understanding is that the report is done, secretary mnuchin and i have a long working relationship and i was with the vice president. i'm absolutely confident that secretary mnuchin and i can get to a good agreement. >> you said changing the treasury sweep would not be good enough but recapitalize by taking them public how would that work and when would that work and what would it mean to current shareholders worth about 2.5 bucks now? >> emphasize that we've been on the job about a month. looking to treasury and reports forthcoming

by the way you know any loan mortgage loan backed by fannie mae and freddie mac. and those are u.s. government sponsored entities and they won't back and they won't give a mortgage for any property near fracking but here's china single party rule and this is what has happened a march twenty ninth teen just a month ago china experiences a fracking boom and all the problems that go with it this is in the new york times again there's a thing called a richter scale and it's measured by geologists in the u.s. geological service have at will also backed the facts of you know maybe nato might contradict this but the actual scientists say there were three big earthquakes and douse shann in china and the locals got very angry because of the fracking operations nearby which they believe caused these three earthquakes killed two people and wounded thirteen more than twenty thousand homes and three villages suffered damage and nine collapsed completely according to a statement by the county about one thousand six hundred people were displaced forced to move in with relatives or live temporarily

one is the fed balance sheet, and other is fannie mae and freddie mac and their balance sheet. we have had no hearings about .hose two issues this year it is important we have that conversation. fed, when they announced about interest rates, that became the news. the real news is that the end of the year, i do not understand why, their long-term economic view that has not been directly answered in many media outlets and even with the new transparency of the fed and what powell has attempted to do which is built on yellen and the opens effort of public posture. i think we need to get deeper on why they are stopping the balance sheet runoff that was what they agreed upon two years ago, and has now been halted. it is a consequential decision without much public clarity. are you not in favor of the fed holding a large balance sheet? rep. mchenry: i do not know why they are making that decision as a policy maker. is that decision borne out of government deficits long-term and debt long-term? is it what our economic activity looks like globally? between the euw economy, the question

. >>> fannie mae and freddie mac have to raise capital before they c privatized so said their head regulator at a conference today who also noted there are a lot of options on the table. >> treasury has 80% of the stock so we're going to lookwh a treasury is going to do. we're going to look what we can do to build equity. one option on the table is give a public offering. we don't know. that's one of the options t build large capital. >>> as we reported, the trump administration wan to release the two from federal control which they went into during the financial crisis. >>> oil prices rose today after opec hinted at an extension of its cuts. meer companiesecided to explore options that will be ultimately decided at the june summit coming up in. vien they moved to cut output by more than 1 million barrels per day. domestic crude settled at $63 a barrel, just under 40% s far this year. >>> ford is cutting 7,000 jobs. at's about 10% of its global white collar work force. the job cuts, which include voluntary buyouts, are expected to save the company about $600 million annually and they are par

>> you know, fannie mae and freddie mac are really important in our market -- in our mortgage marketso have some resolution of crisis. i don't know what's going to work out, but it's important that they're capitalize is and they continue to operate funding u.s. housing markets >> is it better -- would they be better capitalized the way they are or if they're private? without having an opinion, what would be a better capitalization structure? >> the biggest problem over a decade ago was not the mortgages that they guaranteed, but it was the private and sub-prime mortgages that came from outside of the gsc universe. nigs that passes their credit standards that is well funded is probably going to be good for the u.s. housing market. >> they got stuck with it as well >> all right the aqr, which is wufrt -- or the nq, one of the biggest etfs following reits out there. i don't want to say it's on fire up 17% this year from your 30,000 square foot perch, the commercial real estate market, is it really that solid right now? >> it slowed a bit we've seen it across a bunch of areas. we did see

kevin: something else i talked about what the ending of the conservatorship for fannie mae and freddieac. he said he wanted to get that leaves up by the time he the administration, the conclusion of the president second term -- first term. vonnie: a resolution to the fannie/freddie question as well. you have something else you want to share with us? kevin: president trump tweeting his condolences to the late senator cochran, but also pressing against the late senator john mccain. this back and forth in washington continues between president trump and the mccain family. vonnie: coming up, "commodities edge" with alix steel. looking at the impact of flooding and agricultural futures. ♪ the latest innovation from xfinity isn't just a store. it's a save more with a new kind of wireless network store. it's a look what your wifi can do now store. a get your questions answered by awesome experts store. it's a now there's one store that connects your life like never before store. the xfinity store is here. and it's simple, easy, awesome. alix: crops in crisis. tornadoes pummel kansas. rain and

. >> and fannie mae, those government-sponsored entities which are behind the whole mess. >> i guessaughter] >> you and your kids details against amazon echo dock kids over allegations of spying on your children. that is up next. hopes you drive safely. but allstate actually helps you drive safely... with drivewise. it lets you know when you go too fast... ...and brake too hard. with feedback to help you drive safer. giving you the power to actually lower your cost. unfortunately, it can't do anything about that. now that you know the truth... are you in good hands? investment opportunities beyfirsthand, like biotech.ne because your investments deserve the full story. t. rowe price invest with confidence. what is the harm, amazon knowsÉn buy the pokÉmon for your kids, of course it knows, i think it does make a lot of people question. what is the value of having the speaker in your house besides to ask it what the weather is going to be that day. >> i think they're trying to create a situation where there is a lot of value and because it ties you into the amazon infrastructure, you sa

more than a decade after the financial crisis, fannie mae and freddie mac are still in conservatorshipfannie and freddie still dominate the market with no real competition from the private sector. and the taxpayers are still on the hook should another crisis happened. this is a pretty urgent problem. we are doing well with it now is it is great -- and it well managed but it is a big problem. a problem that other than government should be working. we have many geniuses looking at it and we'll figure something out but fannie and fred a could be doing better than they are doing. that is why i recently directed the department of treasury and hud to development a framework for a modern housing finance system. are you working on that, ben? i know you have some incredible talent from wall street coming in. i want to get people to do this. and one that welcomes the private sector, competition, and preservesyers homeownership for future generations to come. so, we will be working closely with congress to pass these critical reforms and we will consider taking other administrative actions to mod

equally excited about the manufacturing and housing side fannie mae and freddie mac announced with theoof and foundation, finance on par with additional housing and appraise those. >> new finance, new innovation no limits to what you can do. >> that important price point of the 149 to 200 and try to bring the housing site too >> thank you so much kevin klay to clayton homes. back to you. >> thank you fascinating story. >>> bitcoin up more than 50% since the stock draft less than three weeks ago. what does oz know? who picked bitcoin will join us. >>> something happening tonight with a huge impact on another stock draft picker we'll explain when "power lunch" returns. >>> the obituary's been written for this time and time again crypto is dead i don't think so we're down nearly 40% in the past year. a rebound is under way i'm going bitcoin for next year. >> well, that was the wall street mentalist oz pearlman making his pick in the second round of our cnbc stock draft a few weeks ago. since then bitcoin, bitcoin is up more than 50% it just hit a ten-month high that is pushing team oz kno

i do agree with the director that fannie mae and freddie mac need to raise significant capital, i strongly believe that we should start reforms in housing finance. how much housing finance form can be done within administration? >> a lot can be done and straight if they, we are working on that, we are also working on a report for the president and i would also encourage an opportunity for congress on the bipartisan basis to make some significant reforms. these were not entities that were intended to be under government control forever. and funded by taxpayer money, forever. i hope that congress would look at this with us, if not, we will do things administrative leave. >> the administration will work with congress to make some significant reforms? >> absolutely, i look forward to working with this committee and with others. this is a priority. >> i'm also encourage that there is a strong interest in absorbing risk, does the administers and plan to expand involvement in these categories in the housing finance system? >> yes, the fundamental view is that there should be risk capital in front

fha insurance, fannie mae guaranteed mortgages, but hud finds itself at a cross roads. in the 20th century frame work with 19th century technology in is not a recipe for success. secretary carson did what dr. carson has done countless times before while he was a surgeon. he rolled up his clooefs and set to work to find things no matter how big the challenge. he implemented reformed for fraud and abuse. hiring a chief financial officer for hud to protect taxpayers and combat wasteful spending. hud also stood up for housing when they filed housing. they failed to uphold alleges under the fair housing act until hud steps in the new york city housing authority put real people in harm's way. serious arm's way. and repeacedly misled hud about their wrong doings. he took the fight against housing discrimination into consideration by looking at digital ads that may have violated the fair housing act. additionally secretary carson worked to promote the public and private model by chairing the interagency without opportunity and white house reviet ltalizar. opportunity zones are

but he reemphasized the need to reform the mortgage market, specifically getting freddie mac and fannie maehe lead treasury adviser on that craig phillips resigned on monday mark calabria will be speaking with a mortgage bankers conference i'll be there with more details his own plans to recapitalize the mortgage giants, potentially make them public companies again. we also get a read on sales of both new and existing homes for april as well as toll brothers earnings back to you guys >> diana, thank you. meghan, your thoughts on housing and the data we could get next week >> housing has definitely picked up this year and we've been happy to see that. of course it's very tied to the drop in interest rates, the drop in mortgage rates. what's interesting to us is mortgage rates are pretty much right around where they were when the fed started their tightening cycle we've done a round trip now. that's a good thing for those areas of the economy like autos, like housing that are tied to interest rates but we don't see housing being a huge driver really in any direction. we didn't see it as a big

i do agree with the fhfa director that fannie mae and freddie mac need to raise significant capital but i strongly believe that we should start reforms in housing finance. how much housing finance reform can be done administratively? >> i think a lot can be done administratively. we're working on that. we're also working on a report for the president. but i would also encourage, there is an opportunity for congress, on a basically basis, to make some significant reforms. these were not entities that were intended to be under government control forever. and funded by taxpayer money forever. so i'd hope that congress would look at this with us. but if not, we will do things administratively. >> so is the administration willing to work with congress to make some significant reforms. >> absolutely. i would work with this committee and others. this is a priority of ours. >> i'm also encouraged that several private sector industries, mortgage insurers and reinsurers, for example, have a strong interest in absorbing risk from the gses. does the administration plan to erchl pand the involvement

for example, fannie mae and hasdie mac's base loan since obama took office when he left, it was 4.17%since trump took office, has gone up every year. now. it's 4.83% that is a good indication that we are doing pretty good economically. my question is, if you know of into thetigation server, from the democrats -- you never hear about that. and an employee of nsa, who said many programs -- he there was no way russia hacked the dnc server. it was an inside job, downloaded onto a thumb drive. turn thewould not server over to the fbi. they destroyed it, just like hillary destroyed all her devices and bleached her hard drive. i am wondering if there is an investigation into that and why they did not turn the server over into the fbi. guest: republicans want an investigation into that. hillary clinton's emails is something we heard them talk about. but now we are seeing the mueller report wrap up, you will start to hear republicans say what about these other issues we do not hear about, what about private email servers, what about the fbi's role and the obama administration's role. you will