fannie mae and freddie mac. could require another bailout like the great recession if lockdown stretches into summer warning analysts as many 30 percent of americans with home loans or some 15000000 households could default if the nation's economy remains closed throughout the summer right well let me speculate on something because this fannie mae freddie mac. bail out another bailout before they even pay off the 1st bailout or during the cold recapitalization reorganization or collapse of the fed that ponzi scheme that is fannie mae and freddie mac. and they have to go through that again i am making this prediction and i've been saying this for a few years but i think this could actually happen now that actually fannie mae freddie macas sold to people's bank of china p b o c so that china effectively becomes the landlord for a 3rd of american households number one number 2 we could see another make a deal like exxon sold to saudi arabia i think we're going to see some mega deals like that as part of the new wor

fannie mae and freddie mac. and they have to go through that again i am making this prediction and i've been saying this for a few years but i think this could actually happen now that actually fannie mae freddie macas sold to people's bank of china p b o c so that china effectively becomes the landlord for a 3rd of american households number one number 2 we could see another make a deal like exxon sold to saudi arabia i think we're going to see some mega deals like that as part of the new world order finally i mean the bit this bit kind of a stretch but i think that alaska could be sold to russia well i don't know about that but certainly they're predicting that up to 15000000 households could default on their debts on their mortgages nearly half of all u.s. mortgages are under written by. fannie mae and freddie mac. remember leading up into the 2008 financial crisis there was this theory this argument that we're not going to bail them out because they're just they're not nationalized right the government doesn

mortgages are under written by fannie mae and freddie mac. remember leading up into the 2008 financial crisis they were is this theory this argument that we're not going to bail them out because they're just they're not. nationalize right the government doesn't stand behind these bonds and at that time china was one of the biggest holders of those bonds and they said well you better buy these bonds and bail out the system and lo and behold they did at that time there was a big theory and a lot of people out there in the audience who might be generation the don't remember the last crash because they were only like 1213 years old but at that time there was a theory that china would take over the whole thing and. then the became a national security issue but in terms of this situation we have 50 percent of the mortgage market is is basically underwritten by the united states government about 60 percent of all health care is underwritten by the u.s. government through medicaid and medicare. 90 percent of student loans are underwritten by the u.s.

attempted to assist banks in making loans by guaranteeing those loans and ensuring those loans and if fannie mae was established in late 1938 also part of the new deal. and this was to provide the quantity to banks. they could then sell the mortgage to make fanni fannie md then make more mortgages so is all very helpful in inducing more home sales in the united states. that was be the beginning. the government really got much more involved in the 50s when they actually started adjusting the fha fees the federal housing administration standards in order to improve housing in the united states or increase the amount of housing in the united states and and a desire to help the economy. that is when we sort of got off of the rails because once the government started using housing as a way to improve the economy and of course to improve the american people's view of their government and how successful it is, then it became a political issue instead of what it had been before which was simply a question of making sure that the market functioned well. sudeep: and this stretches across the democratic an

>> looking at the housing system and dodd frank i'm sorry fannie mae and freddie mac for quite a while before i got on the commission. so i have background on what was happening in the housing sector. so i was looking for the commission to look into what happened with fannie mae and freddie mac and the role they played in the housing crisis and ultimately the financial crisis and the commission was not interested in that and they wouldn't look at it to the degree that i tried to interest them. i was just told i was given all kinds of signals that something they would do so i decided i would dissent so the differences with the other republicans came from the fact that my view our responsibility on the commission was to make sure the american people understood what happened in the crisis to be outside the partisan differences that we just were not agree with anything the democrat said and they didn't want to indict the bush administration so i felt i had to speak with the independent voice. >> so to vote for that commission in the late stages of that inquiry but in your book you have a l

grow and there was a great deal of pushing the bush and administration much more regulation of fannie maeand freddie mac. and from their point of view especially fannie which was much more political from their point of view, to avoid more relation, they had to rely on the democrats of congress. the difference in congress are very focused on making sure that fannie and freddie in low-income housing. even though they work beginning in the 2000, defined that they were buying mortgages that was ultimately would cause them to suffer tremendous losses, they could go to congress ago to hud and say we won't comply with these anymore. because it is driving us out of business. they couldn't do that because if they did that, the democrats in congress no longer support them. in the effort of the bush administration to place them under much greater regulation. this was in 2003 - 2004 and 2005. that would become successful and then so profitable so that they were caught in the spice between on the one hand, having to keep the democrats on their side and on the other hand, having to comply with the affo

strictly there was a great deal of push in the bush administration for much more regulation from fannie mae and freddie mac and from their point of view, especially fannie so they had to rely on the democrats of congress. they were focus to make sure that fannie and freddie supported low income housing. even though they were beginning in the 2000's to find they were buying mortgages that ultimately would cause them to suffer tremendous losses they could not go to congress or head to one - - or head to say we will not comply anymore because it's driving us out of business. they could not do that because the democrats in congress would no longer support them and the effort of the bush administration to place them under greater regulation in 2003 through 2005, would be calm successful. so they were caught in this vice on the one hand to keep the democrats on their side with the affordable housing requirements driven to insolvencies >> i have read various economists but i've never heard a more eloquent statement that succinctly sums up the economic world that george bush made september 2008 and

fannie mae and freddie mac have -- they haveisely withdrawn the ability to do evictions and a host ofcial leniency's, but the public has not been educated on this and that is where the significant pain will be lying. francine: meaning what? if people cannot pay their rent, they do not have anyone to turn to? or is it people have been forgotten? kevin: both. that is a good question. when i speak with lawmakers on both sides of the aisle, and yesterday, it has increased the pressure for there to be another innd of economic stimulus the month, six weeks ahead. however, right now we are in the fog of this crisis as the president said yesterday, and the economic data as it relates to housing has not been able to come in yet. tom: that is all well and good and i am hearing it where we have institutional, almost technocratic processes in crisis. what we need like the united kingdom is to admit that we have x millions of people who need a check cut for their landlord. is there any discussion of that in washington? kevin: no, right now there is not, but i hear your point. beyond that, the chec

the wall street journal reports the government may allow fannie mae and freddie mac to buy home loanse into forbearance, it would help mortgage companies facing a cash union. oil turned negative for the first time ever yesterday, crude oil demand reached an all-time low as the world economy stalls due to the coronavirus. take a look at oil this morning at $31.38 a barrel, the unprecedented selloff revealing that the saudi arabia deal did little to ease investor fears, leaving investors struggling to find a solution to this demand issue. joining me now is the american petroleum institute ceo, mike summers. thank you very much for joining us. >> great to be with you. maria: explain to us what took place yesterday with that expiring contract sending oil prices into negative territory. >> so what you had yesterday was really a combination of events. you have an extreme amount of surplus oil on the market. but you also have historic demand low as a consequence of the coronavirus. and of course, you had that futures contract expiring today and that confluence of events led to these negative

fannie mae has automatically taken some action. we've had conversations with the fhfa about what they will do for and to thefreddie, extent they need certain authority from the treasury, we will accommodate that. frankly, we have been studying this way before covid and concerns about some non-bank servicers not being looked at. but we will make sure that the market functions properly. >> thank you, sir. we've seen in a number of relief bills that democrats and republicans have been able to push forward non-coronavirus-specific funding priorities. are you trying to keep funding specific to coronavirus, and is there going to be other additions, for instance a change to labor rules, many on the left, some on the right, are wondering if you should push for their preferred path. sec. mnuchin: our expectation is this will be covid related. some people have a broad view of what covid-related is, because it has impacted almost every business. i think the president talked about the kennedy center, which is a good institution. obviously, tha

twitter our handle is a j inside story from a bird it's myth and the entire team here in doha by fannie. mae . will president rodriguez it saturday succeed in shutting down t.v. giant a.b.s. c b n by may the full will have special coverage al-jazeera world selection of the best network documentaries includes the story of on sunday gyptian composer and musician alley smile despite the coronavirus pandemic process ahead of the presidential elections michael steele the emmy award winning food license is investigating the united states and its role. in the u.s. election primaries presumptive democratic nominee joe biden strives to reach the official delegate threshold made on al jazeera. 67 words that spelled promise for one people. but disaster for another. the bled to the establishment of the jewish homeland at the expense of the palestinians. the story of the british declaration that changed the middle east for seeds of discord on al-jazeera. rewind returns can bring your people back to life i'm sorry and brand new updates on the best of al-jazeera documentaries in liberal i was the 1st and n

. >> it comment -- common for a commercial mortgage to be done through fannie mae? >> just apartment buildings. not the others. >> not commercial properties. >> right. the only commercial property would be an apartment building. because that is fannie mae has the market on the apartment buildings. >> that is the point that you're making is the federal government has not provided the same sort of flexibility to lenders with respect to commercial mortgages. >> correct. >> ok. i think that is an important point. >> president laguana, this is commission kerr ortiz. you mentioned nit your memo but also the equitable. definitely in our neighborhood, you can start seeing the predatory speculators and from our cultural aspect, our businesses have been barely holding on and trying to keep the neighborhood culturally centrc and we're in great fear we'll be replaced. the gentrification will take [inaudible] hype drive because of this. thank you for mutting -- putting that in the memo. for certain neighborhood, we're really scared. >> there is a very real concern and threat tha

to the point and something andy raised here, thank you, my friend, freddie mac and fannie mae, the lending agencies that back up a lot of mortgage loans and all, they're considering doing something that could be helpful in the freeze among mortgage lenders, backing them up in the process of when you're applying for a mortgage. we'll have a little bit more on that. it as you new wrinkle that could boost the real estate industry. it needs boosting as we've been telling you between new home sales, existing home sales, construction. it is like flat, flat. going nowhere fast. we're on that a little bit later. we're on the comeback in oil prices right now. exxon, chevron mobile, you heard this drill beef. premier components within the dow. they are boosting this puppy up. keep in mind a little more than 72 hours ago we were looking at negative prices for oil. $17.58 for a barrel of oil? yeah it is still low but the markets are taking it and liking it, after this. ♪. so i listen to audible almost any time that i can. it's my own thing that i can do for me. since i don't have time to read, i mean

is an exact repeat of the arrangement the us government has had with the mortgage agencies like fannie mae and freddie mac. and now finally as we turn over to the oil front is down another 2 percent today as we wait for further guidance out of saudi arabia and russia rotisseries has reported that they are meeting on thursday or more likely to agree on a production cut but only if the u.s. joins the effort without the us there will be no deal other countries mentioned by opec to collectively reduce production include canada and brazil. kristie i thank you for that analysis but from where we are now joined by editorial director of the american institute for economic research jeffrey tucker and he started just above the trading todd at the horowitz gentlemen thank you for joining me today markets seem to be rallying a little bit at least for now jeff i want to start with you will we see more fiscal policy being rolled out in the coming months and when will we start seeing it's a facts actually taking hold what kind of policies should we really expect to see. there's no chance for there to be

fannie mae threaten and freddie mac, needing more cash. shery ahn: were running out of time.ly, how much does trading revenue help given the volatility in the markets? >> it depends on how good you are at managing your business. j.p. morgan has been extremely adept. i salute him. the other banks make money on volatility, but new issue business is really gone, so we m things down and get the investment-grade corporate sector back, asset-backed securities, everything else. that is what we need to see. shery ahn: right. thank you very much. hour, nowin the next is a once in a decade opportunity to buy high-yield credit. this is bloomberg. ♪ shery: welcome to "daybreak asia ." i am shery ahn in new york. haidi: i am haidi stroud-watts in sydney. we are counting you down to asia's major market open. halts u.s.rump funding to the world health organization, saying it has failed to share coronavirus at data. the imf warns a downturn will be worse than the great depression. u.s. bank earnings get off to a pretty abysmal start.

for the private sector is the sheer size and scope of this was given no support by particularly fanny maey mac who can create this liquidity advance for the private industry could have done so they didn't. it's inexcusable, in my view, that federal government did not step in after creating such a massive program and provide the support for industry it's getting worse i'll just give you one example i have spoken to variety of lenders across the country mortgages are drying up especially for first time home buyers and those that need a mortgage the most because of all of this uncertainty. the question of whether these companies will be able to survive, we need to back up what we do as a federal government whether it's the congressional legislation or through the regulatory community by rolling out these programs to make sure the industry can survive and continue to provide liquidity to the housing market which we will desperately need as we start coming out of this recessionary period >> commissioner, it's kelly back here in the studio i want to clarify something because it seems big part o

fannie mae that is the organization that buys and guarantees mortgages is predicting house sales will fall 15% this year, and that's understandable. who wants to move in the middle of all of this, right? also, who wants to hold an open house. what is interesting, marcus and laura, when you don't have house sales house prices remains static, because there's no data to go on and nothing gets sold. we saw this during the .com bust. so prices nationwide are going up a bit. >>> here's something good we want to share with you. this involves a fedex employee. he's being recognized for going above and beyond. justin bradshaw was dropping off a package when he came across the note posted, and it said somebody in the house has an autoimmune disease and requested packages to be left at the door. >> and he went further, and he wiped down the package and left a note saying it had been sanitized. the homeowner posted this on her facebook, the extra step he did. >> he didn't have to do that, and it's good to see that. >>> and then the penguins at the shed aquarium in chicago got a new soundtrack to

also look at if we are paying a mortgage, if you have an fha loan, federal loan or freddie mac or fannie mae loan. those are federal loan. because it's the federal government they will suspend payments for the rest of the year. you have to talk to your lender. if you have an fha loan they will halt foreclosures or evictions. it's important you do that. yes sir. >> i wanted to ask you. people are not gonna be make payments in a timely manner what about credit rating x do you think the major credit bureaus will get together and say, if you were late for your mortgage payment or whatever payment that will impact your credit score, will there be leniency from the major credit bureau at this time? >> it's very likely there will be an appeal process. there's a lot of detail in these things. when you scale so quickly in terms of having a recession in 45 days, we have over 10 million people applying for unemployment. people are missing payments on things, it will be a very crowded space to get that resolved. but it can be done. people have to remain calm and stay with the program and keep working to

a major break from the fhfa regarding loans sold to fannie mae and freddie mac. it will buy mortgages that went into forbearance after they closed that's the government's program which allows borrows hit by covid-19 to miss mortgage payments they stopped doing that. that froze up the credit market and made it more difficult to get a loan, because most lenders sell their loans either to fannie mae, freddie mac. they were worried they were going to be stuck with some of the loans. they will buy the loans that meet specific criteria for a limited period of time that is up to may 31st the say the loans must have closed on or before february 1st and no cashout refies on this and the loan cannot be more than 30 days delinquent the fhfa regulator said we're focussed on keeping the mortgage market working during these challenging times. purchases of these loans will allow originators to keep lending. there will be a price premium on this for the lenders 5% for first-time home buyers and 7% for nonfirst time home buyers it may increase the rates on the loans because they'

if your mortgage is backed by fannie mae or freddie mac, you are eligible for several months of forbearanceral months of pushed off payments during this period of time. if you're not backed by fannie or freddie, talk to your lender. talk to your lender about what they're able to do to help you and also talk to your tenants. your tenants still owe you this money. they may need some sort of payment plan, they may need some sort of leniency, but they do owe you the money and you should try to work out the terms under which they're able to pay it. there are also these helpful associations for apartment owners in various states. california has a good one called the apartment owner, california apartment owners association. and they got language on their website that you can use to deal with your tenants to suggest this sort of a payment plan. >> jean, great advice. great to have you here. thank you so much. >> sure. >>> okay, we have a lot of new developments. "new day" continues right now. >> our forecast now is for 74,000 deaths, but our best estimate is going up. >> opening texas must occur in

some of the news that broke this morning that fannie mae and f d freddie mac moved it it's been capped at four mounnts how meaningful is this what does it do for the market? >> that's an important move. it reduces the servicers obligations to make payments for borrowers who are unable to make payments to advance those to the investors. there was a chance it could have gone on for up to a year and this helps reduce the worst case scenario >> in term offense the ss of th just released, what are we seeing in terms of those numbers. the jump we seen have been so closely tied to jobless claims and we're seeing tens of millions of americans start to file for unemployment. is it safe to say we're seeing peak yet in the fore bebearance numbers or is the worst yet to come >> the worst is yet to come. remember, we really only had one mortgage payment due since the pandemic took effect, the april 1st payment. we expect it will be another spike as the may 1st approaches. the borrowers who made the april payment, may not be able to make the may one. >> do you have any sense of how many of the peopl

owes a mortgage payment so we'd like too to see more direct cash fusions or programs similar to fannie mae and freddie mac to spread into banking, insurance companies then the conduits. more direct support which would prevent more leniency on rent relief >> one thing we learned when you lose your house it goes back to the bapgs and the banks didn't have the where with all to deal with them and were damned if they did or didn't what happens to commercial real estate on default? does it go back to the banks on clal rat >> if you're a landlord and own a shopping center and can't pay your mortgage, you will ultimately be what's known as foreclosed upon, same thing as single family and it will go back to the bank or special servicer so the implications for commercial real estate landlords are just as serious and significant in single family from the standpoint of the potential to lose their assets zpl thanks we'. >> thanks. we'll see what else is on the way. the head of research tyler. >> the dow is on pace to finish the week lower now down 29% from its record highs just six or eight weeks ago.

. >> it comment -- common for a commercial mortgage to be done through fannie mae? >> just apartment buildings. not the others. >> not commercial properties. >> right. the only commercial property would be an apartment building. because that is fannie mae has the market on the apartment buildings. >> that is the point that you're making is the federal government has not provided the same sort of flexibility to lenders with respect to commercial mortgages. >> correct. >> ok. i think that is an important point. >> president laguana, this is commission kerr ortiz. you mentioned nit your memo but also the equitable. definitely in our neighborhood, you can start seeing the predatory speculators and from our cultural aspect, our businesses have been barely holding on and trying to keep the neighborhood culturally centrc and we're in great fear we'll be replaced. the gentrification will take [inaudible] hype drive because of this. thank you for mutting -- putting that in the memo. for certain neighborhood, we're really scared. >> there is a very real concern and threat tha

they expect to get paid and make money, when we took over fannie mae and freddie mac they made obsceneunt of money. the government will make an investment in the airline industry, the taxpayer should and expects to get paid. dagen: in gm bankruptcy i think the u.s. lost $11 billion. >> big risk. dagen: the american taxpayers should expect never to get back the money. a lost that we have oh to eat, dom, good to see you. dominick tavella. impact on commercial real estate and this does go straight to everything that was wrong in the economy before we went into this shutdown and in the 7:00 o'clock hour pennsylvania congressman guy tells us about his move to block u.s. funding for the world health organization. andy on the end to long standing saudi-russia oil feud. how the deal could impact prices at the pump. apple metro ceo, owner of 32 applebee's on the future of the business as they are beg to go reopen. at 8:00 o'clock i will talk to labor secretary eugene scalia how they would recover, the unemployment claims, what he can do to make sure they are processed at state level and washing

fannie mae says home sales will fall about 15% this year with both supply and demand being down. we did just get a report on new home building housing starts in march, they fell more than 22%. but i wanted to give you some information about permits, future home building. we saw the multi-family category rise. what does that say to you? it says when we come out of this, we might not have as much money, we might be looking to rent rather than buy. so multi-family construction would be more popular in that event. that's what came up in the data we just crunched. stuart: that is absolutely fascinating, isn't it. all right. thanks very much, lauren. now, one of the other blockbusters from the president's news conference yesterday afternoon, the virus update, was his threat to adjourn both chambers of congress. that's something that's never been done by any president. listen to this. watch the tape. >> the senate should either fulfill its duty and vote on my nominees or it should formally adjourn so that i can make recess appointments. if the house will not agree to that adjournment, i

all right, fannie mae predicting the coronavirus will lead to a 15% decline in home sales this year up next, we'll have the ceo of real estate brokerage fed fin about whether he's seeing fewer sellers listing their homes and buyers in the market when we come back. when we first opened our doors, it didn't take us long to realize ... ...we weren't in the car business. at lexus, we were in the people business. we needed to be helpful . . . . . . respectful . . . and compassionate. to treat people like guests. it's what we all signed up for. and now when people need this most, we will do what we've always done. take care of people first. the rest will follow. say hi. ♪ a pandemic has the possibility of bringing us together in ways none of us would have been able to expect. ♪ i'm so small said the mole. yes said the boy, but you make a huge difference. ♪ ♪ ♪ >>> a new report that says home sales will fall 15%. despite this, our next guest says he thinks his company will be able to weather the storm great to see you, glenn. before we get to company specifics, where do you stand in term of o

. >> reporter: with fannie mae and freddie mac you won't have to pay back the missed payments in a lump recommend requesting an extension, asking for a payment plan and asking to move the missed payments to the end of the loan term. and in this case, you have to be proactive. that is the most important thing. it is so much harder to turn back those fees, robin, than it is to ask for the forbearance up front. >> that's true, but something people also want to know, rebecca, i know you have answers to this, will your credit score be affected if you have to skip a payment? >> reporter: and, of course this is a big concern because if your credit score gets affected, that means your ability to borrow in the future becomes more difficult. in this case, if you request forbearance, no. your credit score should not be impact impacted, but you do want to confirm that with your lender. because of the coronavirus, there are special dispensations now such that lenders are not reporting this to the credit bureaus but, again, double-check. it should not affect your credit score but double-check, robin.

that is 3 million borrowers who are delaying their mortgage payments the fhfa, the regulator for fannie mae freddie mac announced the servicers usually on the hook to pay bond holders for up to a year even if you don't make your mortgage payment are only on the hook for four months after that, fannie and freddie will pick up the tab this is not the full liquidity line that the mortgage market was looking for from the fed and treasury but sources are telling me that could be coming as early as this week it does say, though, that for only four months, they will have to pay at this point, gse-backed loans 4.6% of them according to the mortgage bankers association are now in the forbearance program that's triple what it was just three weeks ago. is it enough well, some say that if this were to hit 20% to 30% of that market, a $5 trillion market, that mortgage servicers wouldn't be able to hold up for four months but it f is stays close to this level it will be of helpful. the fhfa director who had been pushing back hard said the four-month service advance obligation limit for loans and forbeara

the government backed mortgages through fannie and freddie -- fannie mae and freddie mac are also safess providers who have now signed on, the keep americans connected. that means wireless services will not turn off your wireless service if you are behind on wireless bills because of coronavirus. the auto companies both ford and gm have places on their website that are set up for americans who are behind on their car payments and as far as renters go, a number of states and cities at least 34 states have now signed a moratorium on evictions, michael, which means if you are behind on your rent, you will not be kicked out of your home, and one last thing, michael. i would highly recommend people start looking online for this information because of the fact that so many are calling. there are big delays and big wait times. so you're better off going online if you have the ability to do that to look for this information, michael. >> go online then reach out to those providers and let them know your situation. rebecca, thank you so much for that. >>> coming up our exclusive with the ceo of

stop payments but the mortgage servicers still have to pay the bond holders and that falls back to fannie maend freddie mac. we interviewed the head of the fhfa, governor mark colabria. everyone else in the industry sent out a plea begging this facility because they'll not be able to handle that amount of cash to bow roars. it will be in the billions, no question >> diana olick, thank you. >>> you know, jim, we were talking about some of the positives and obviously the investors are in a good mood these days and we've seen this powerful rally, including the bending of the curve early signs of that, of course, and oil and the debt markets, but then there's the question about how much more work we have to do there was a great piece in the "new york times" today about how we will know when it's time to reopen the nation, and it's stuff that you and i and we all talk about but it synthesized really well in terms of the four pillars that we need to look for and it's a reminder we still have work to do. hospitals need to be able to safely treat all the patients not in the sort of crisis war-like mo

director with a focus on how this is goingto affect the housing market >> yes the they oversee fannie mae mac. borrows can miss payments for up to a year and the payments are tacked on to the end of the loan we've heard from one mortgage ceo who said they got 8,000 calls last sunday from borrowers. are you starting to get a read on how many borrowers are going to ask for forbearance >> we are, and i want to caveat the numbers are rough and preliminary. if you talk to me in two days, they'll probably be different. with that in mind, my estimate now for fanny and freddie's book, we're hearing of a take up of about 1% of their book. april looks like it will be approximately 3 00,000 loans for overall market that translates approximately into 700,000 loans. we're thinking closer to may we'll see closer to a million. by may a little more than 2 million. this is between 3% and 5% of the market i want to emphasize we're not seeing the worst case scenarios of 35% takeup. closer to 1% and the lenders i'm talking to are telling me 70% to 80% of their calls are people who aren't yet facing a hardshi

being barraged with calls for help, albio roers with government back loans, fredfred freddy mac and fannie maers make up 62% of mortgage market. an independent lender which serves those mortgages, phones have been ringing off the hook >> we have set up ibr, which is integrated voice response which basically allows customers to ask for service. on sunday we had ibr requests where people were able to get their own forbearance online >> reporter: he was head of citibank mortgage during the subprime crisis. while the mortgage market today is much more healthy the impact of the coronavirus could be even worse than subprime. back to you guys >> diana, just given how much concern and how much tumult there's been in the mortgage market what does it mean for anybody who is trying refinance with these low rates >> reporter: rates are low and could way to lower that payment especially for people who lost income you can apply for a mortgage refinance and they are moving things online very slowly. owe states you can't sign or notarize we've talked to title companies and they are moving the entire process o

that 2 trillion-dollar rescue package, the cares act, it allowed borrowers with loans freddie mac, fannie maean lose a year's worth of monthly payments an required to remit that at a later date or in a payment plan over time but if you really can't make mortgage payments you have to reach out to your lender because there's hope and help for people who can't make the mortgage payments. chris: no, you're absolutely right, dagen. people need to be aware of resources that are available. don't sit back and assume. you will have to be proactive and the thing that concerns me with the language of forbearance, are they going to put it towards the end of the loan or extending it. people need to be proactive and reach out to mortgage servicer. this is whoever you send your payment to. there's a phone number on the statement. call them and stay on the phone even if you have to be on hold for 15 or 30 minutes or more. please stay on hold until you get somebody on the phone. write down their name and phone number and when you get their information ask them to document your account. you have to be proactiv

in mortgages in particular as you month the servicer is taking the guidance from fannie mae, freddiee marsh ae it's not within our decision-making to figure out what to do for them. our tool right now is something called forbearance we have discussions with clients. it gives you and opportunity to pause your mortgage payments and no impact on your credit but at some time in the future you have to catch that back up right now we're still waiting on guidance what that will be here for this crisis. it leaves the clients a bit uncertain. what we're work with is trying to explain to people what their options are and also understanding if indeed they should skip the payment or shunt skip the payment, because at some point in time you'll be making that payment back, it's just a matter of how we'll figure that out together that's why taking the time, pause, we've grown our servicing call centers by hundreds and hundreds of people all working from their homes, to take the phone calls, answer the question, our technology team stood up a website that allows folks to get those answers as well an

once your bank make as noter, they essentially sell it to a government entity fannie mae and freddy andld a huge percentage much the noters. post-dodd-frank the last great global financial crisis, a lot of nonbank lenders were in there. we're working to get some language for all of the potential ways people could default. again the economy is effectively closed. so we want to prevent people from defaulting. ashley: how big of a problem is this, and how bad could it become and how responsive are the banks right now? as we know there is always red tape to cut through. >> the banks have been very good and the bank regulators were early to get guidance out to the banks to say, you know, as they're looking over late payments they will treat that more favorably than they have in the past. so they're getting support through the whole treasury department to be able to accommodate this, you know, forbearance. but it is a big problem. already in march, you've seen probably 15,000, 1500% increase. so, 15 to 20 times as much interest in this as normal. and we expect that you're going to see more of

fannie mae predicts home sales will be down 15% for the year.hat is interesting for homeowners is that prices are steady. in fact, nationwide, prices are actually rising a bit. the prices stay steady during a time of low sales, and that's something that we have come to expect. we saw this during the om crash, that's when people didn't want to sale their homes because they don't want to have an open house, and when people don't sale homes the price sticks where it is, the prices don't move up or down. >> thank you so much. >>> laura, are you ready to hear about good news? >> oh, boy, do we need it. >> and a fedex employee recognized for going above and beyond. >> he was dropping off packages last week when he came upon a note and it said somebody in the house said somebody in the house has an autoimmune disease, please leave packages on porch, d went a package and left a note that the package had been sanitized. >>> let's take a look. >> isn't that something there, songs were provided for the animals. the aquarium itself is shutdown, but caretake