Disease? Fuzzy white mold like

Does someone know what this is I have on my apple tree?

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Looks like Wooly Apple Aphids

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What can I do to treat them?

Smoosh’em

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neem oil will suffocate them.

Good article
I squish when i see them. They crawl up from the roots - some neem low on the trunk should stop them from getting to leaves

http://treefruit.wsu.edu/crop-protection/opm/woolly-apple-aphid/

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Go after where they are breeding
Beneficial nematodes HB/SC/SF