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January 26, 2015 - Julian Castro

  • Episode: 20053
  • Views: 153,011

Presidential hopefuls convene for the Iowa Freedom Summit, Republicans try to appeal to the middle class more, and Julian Castro discusses his work at HUD. (21:28)

>> Jon: WELCOME TO THE DAILY

SHOW, MY NAME IS JONSTEWART.

WE HAVE A GOOD ONE FOR YOUTONIGHT.

THANK YOU VERY MUCH.

MY GUEST TONIGHT, JULIANCASTRO WILL BE JOINING US,

SECRETARY OF HOUSING ANDURBAN DEVELOPMENT.

BUT FIRST, THOSE OF YOUOUTSIDE OF THE NORTHEAST MAY

NOT BE AWARE OF THIS, THEREIS AN ENORMOUS BLIZZARD

HITTING OUR AREA CURRENTLY.

MY GUESS IS IF YOU AREWATCHING THIS PROGRAM, NEW

YORK IS GONE.

>> I HOPE YOU REMEMBER USFOR OUR WORLD-CLASS PIZZA

AND BRIDGES AND NOT FOR OURTENDENCY TO TELL PEOPLE

TO-- IF THEY HAPPEN TO HAVETHEIR EYES LOCKED WITH OUR

EYES TO [BLEEP].

I HOPE.

OBVIOUSLY, I CANNOT BELIEVETHESE PEOPLE SHOWED UP.

(CHEERS AND APPLAUSE)>> I'LL TELL YOU THIS I'M

GOING TO DO A LITTLEIMPRESSION FOR YOU THIS IS

AN IMPRESSION OF ME IF I WASONE OF THEIR FRIENDS AND

THEY CALLED ME UP TO GO TOTHE DAILY SHOW TODAY.

OKAY.

HERE WE GO.

LET ME GET IN CHARACTER.

I'M ME, BEING CALLED BY ONEOF THESE PEOPLE.

>> YES, [BLEEP] THAT.

WE HAVE EXCITING STUFF TO GETTO.

A LOT OF REPUBLICANS WILLWHO WILL NEVER BE PRESIDENT

MET THIS WEEKEND.

AND IT'S THE SUBJECT OFTONIGHT'S DEMOCALYPSE 2016

CORRESPONDENT AUDITION.

2016 HOPEFULS ARE GATHERINGFOR THE IOWA FREEDOM SUMMIT!

>> Jon: THE FREEH DOMSUMMIT.

A TASTE OF FREEDOM.

ALL DOWNHILL FROM THE SUMMIT,FREEDOMWISE.

WHOSE'S RUNNING THIS SHOW?

>> CONGRESSMAN STEVE KING'SFREEDOM SUMMIT.

>> Jon: STEVE KING, WAIT,SCARY STEPHEN KING?

NO, NO, NO, NO.

NOT THE LOVABLE AUTHOR, THESCARY STEPHEN KING.

>> CONGRESSMAN KING SAYSMANY UNDOCUMENTED CHILDREN,

THE VAST MAJORITY, IN FACT,ARE DRUGGED MULES.

>> MAYBE THEY ARE HAULING 75POUNDS OF MARIJUANA ACROSS

THE DESERT.

>> Jon: YES!

YOU KNOW, LET ME-- THATSTATEMENT IS NAIVE

AND-- IGNORANT.

THAT STATEMENT IS LIKEIGNORANCE, LIKE IF YOU JUST

TAKE ALL OF THE STUPID ANDJUST COOK IT DOWN, JUST COOK

IT, COOK IT DOWN, AND THENSCRAPE, JUST THE PURE

IGNORANCE, LIKE CRYSTAL DUH.

IT'S LIKE CRYSTAL DUH.

NOW NO ONE IS GOING TO SHOWUP TO THE CAN'T HOPE CAMP

RETREAT THIS GUY IS JUSTFLAT OUT OFFENSIVE.

>> HE'S BEEN CALLED, THECATTLE CAME RUNNING.

>> WISCONSIN SCOTT WALKERWAS ONE OF THE SUMMIT'S

BIGGEST STARS.

>> IF YOU ARE NOT AFRAID TOGO BIG AND BOLD, YOU CAN

ACTUALLY GET RESULTS.

>> Jon: ISN'T THAT THE TAGLINE FOR TIDE?

(LAUGHTER)THIS SUMMIT PROBABLY DOES

GET YOUR WHITES WHITER.

BUT NO ONE ELSE IS SHOWINGUP.

NO ONE.

>> IN A REPUBLICAN PRIMARY,EVERY CANDIDATE IS GOING TO

COME IN FRONT OF YOU AND SAYI'M THE MOST CONSERVATIVE

GUY TO EVER LIVE.

GOSH DARN IT, WHO DIDDLEYI'M CONSERVATIVE.

>> Jon: WHO DIDDLEY WAS-- IBELIEVE IT WAS BO DIDDLEY'S

LESS FALL ENTED BROTHER.

WHO DIDDLEY, HE APPEARS TOBE CROSSING OVER FROM DOWN

HOME CONSERVATIVE INTO NEDFLANDERS TORE TERRITORY.

OKILY-DOKILY, VOTERINOS,LISTEN, THE OTHER CANDIDATES

WEREN'T GOING TO LET TEDCRUZ CLAIM ALL OF CORN PON

COUNTRY.

>> THERE ARE TWO THINGS YOUSHOULD NEVER SEE.

YOU SHOULD NEVER SEE A LAWOR A SAUSAGE MADE.

(LAUGHTER)I HAVE SEEN BOTH.

AND I STILL EAT SAUSAGE.

IF YOU ARE'S GOING TO HAVESOME SAUSAGE, YOU HAVE TO

KILL SOME PIGS.

AND FOLKS, THERE ARE A LOTOF PEOPLE IN AMERICA WHO

WANT THE SAUSAGE, THEY JUSTDON'T WANT TO KILL ANY PIGS.

WE NEED TO DO SOMEPIG-KILLING.

TO GET THE TO THE SAUSAGE.

>> Jon: MY POINT IS, PEOPLEOF IOWA, I AM INCREDIBLY

HUNGRY RIGHT NOW.

DOES ANYONE HAVE ANY SAUSAGE?

OR THE VERY LEAST A PIG THATI CAN KILL AND EAT IN FRONT

OF WITH YOU MIRE BARE HANDS.

WOW, THAT IS A DEEPLeDISTURBING METAPHOR ABOUT

KILLING PIGS.

GOING TO BE HARD TO OUTBACKWOODS THAT.

>> AMERICA IS LOOKING FOR ANEW PATH FORWARD, AND

STARTING TODAY, RIGHT HEREIN IOWA, LET'S GIVE IT TO

EM.

(LAUGHTER)>> Jon: APPARENTLY RICK

PERRY SAID TO HIMSELF, YOUKNOW THAT THING HOWARD DEAN

DID IN IOWA?

(LAUGHTER)THE ENTHUSIASM BORDERING ON

INSANITY THAT ESSENTIALLYDESTROYED HIS PRESIDENTIAL

CAMPAIGN?

I WHAT IF I DOUBLED DOWN ONTHAT [BLEEP].

I MEAN HONESTLY, GOVERNORPERRY, WHY BOTHER BUYING THE

SMART GUY GLASSES IF THEREAL AFFECTATION YOU ARE

GOING FOR IS A BIG REDMUSTACHE AND A COUPLE OF SIX

SHOOTERS CAMED AT A RABBIT.

>> WE'RE GOING TO SHOW THEMHERE IN IOWA.

BA BINGE, BA BINGE.

NOW LET'S GO MAKE SOMESAUSAGES!

BA PINK, BA PINK.

>> OF COURSE NO PRESIDENTIALSUMMIT CAN COMPLETE WITHOUT

A SPEECH BY SOMEONE WHO WILLNEVER, EVER, EVER, EVER RUN

FOR PRESIDENT.

>> WE HAVE TO BUILD A FENCE.

AND IT'S GOT TO BE A BEAUTY.

WHO CAN BUILD BETTER THANTRUMP.

>> I BUILD, IT'S WHAT I DO.

>> WHAT I DO, HEY.

BUILD A FENCE, YEAH!

SKIP DOP DIDDLEY DO, BORDERFENCE, YEAH.

LADIES AND GENTLEMEN, I GIVEYOU THE TRUMP BORDER FENCE

AND HOTEL CONDOMINIUM TOWERAND GOLF COURSE AND WAYNE

BAR.

IT'S THE BEST CLASSIEST WAYTO KEEP MEXICANS OUT THAT

YOU CAN IMAGINE.

YOU COULD TAKE THAT TO THETRUMP.

THAT'S WHAT HE CALLS THEBANK.

(LAUGHTER)>> WELL, THAT'S IT.

IT CANNOT GET MOREENTERTAINING AND LESS

ELECTABLE THAN TRUMP.

>> YOU BETCHA.

>> Jon: NO, IT-- IT CAN'TBE.

>> YOU BETCHA!

(LAUGHTER)>> Jon: LADIES AND GENTLEMEN,

I BELIEVE IT MAY BE THE RAREBROWN HAIRED ALASKA PODIUM

SPEAKER.

>> OUR PRESIDENT MUST HAVEMISSED, GROWING UP, BECAUSE

OF HIS INSISTENCE OF LAWLESSNESSOF TRYING TO GET HIS WAY, IT

TRAMPLED OUR CONSTITUTION.

SO FROM-- I WON'T EVEN GETINTO ALL THE DETAILS OF

EVERYTHING.

(LAUGHTER)>> Jon: NO, NO, NO.

DON'T-- DON'T GET INTO THEDETAILS OF EVERYTHING, NOT

HERE DURING A 40 MINUTESPEECH OUTLINING YOUR

PRESIDENTIAL AMBITION.

WELL, IT WAS ALL GOING FINEUNTIL TRAGICALLY HER SUBJECT

STOPPED TALKING TO HER BID.

>> OUR GOVERNMENT, LOOK ATIT.

IT ISN'T TOO BIG TO FAIL.

IT'S TOO BIG TO SUCCEED.

IT'S TOO BIG TO SUCCEED, SOWE CAN AFFORD NO RETRADES OR

NOTHING WILL CHANGE, WITHTHE SAME PEOPLE THAT GOT US

INTO THIS STATUS QUO,ANOTHER LATIN WORD, STATUS

QUO, AND IT STANDS FOR MAN,THE MIDDLE CLASS, EVERY DAY

AMERICANS ARE REALLY GETTINGTAKEN FOR A RIDE.

(LAUGHTER)(CHEERS AND APPLAUSE)

>> Jon: THAT KIND OF TALK,YOU NORMALLY HEAR RIGHT

BEFORE THE PHARMACIST SAYSMA'AM, YOU'VE GOT TO LEAVE

THE WALGREEN'S.

(LAUGHTER)>> Jon: NOW WE KNOW WHAT IT

IS LIKE TO GET CORNERED BYPALIN AT AN OPEN BAR WEDDING.

SOLIS EN, THIS IOWA FREEDOMSUMMIT SPEECH WASN'T JUST

REGULAR PERSONS, IT WASPALIN INCOHERENCE.

APPARENTLY GOVERNOR PALINHAD BEEN FORCED TO IMPROVISE

AFTER THE TELEPROMPTERFROZE.

BUT I HAVE GOT TO TELL YOU,IT IS NOT THAT DIFFERENT

FROM HER ON SCRIPT.

>> FINALLY STOP THISOVERREACHING BUREAUCRACY.

WE GET ON NESN AND WE DRIVEIN SOLUTIONS.

AND WE DeBOLT.

>> Jon: SARAH PALIN DOESN'TBELIEVE IN YOUR LIBERAL

ELITIST GRAMMAR AND SIN TAX.

SHE BE BOLD.

SHE NO PLAY BY YOUR RIBBLES,THAT IS WHAT SHE CALLS RULES.

AND THAT'S WHEN IT HIT ME.

INCOHERENT, RAMBLING,UNINTELLIGIBLE, FOLKSY

IDIOT.

SHE IS NOT SPEAKING AT APOLITICAL EVENT.

SARAH PALIN IS TRYING TOSELL AMERICA A LINCOLN.

>> YOU KNOW, THE MAN CANONLY RIDE YA WHEN YOUR BACK

IS BENT.

SO STRENGTHEN IT.

THEN THE MAN CAN'T RIDE YAAND AMERICA WON'T BE TAKEN

FOR A RIDE.

(CHEERS AND APPLAUSE)>> Jon: ALL RIGHT ALL RIGHT

ALL RIGHT.

WE'LL BE RIGHT BACK.

>> Jon: WELCOME BACK.

REPUBLICAN PRESIDENTIALCANDIDATES ARE MARCHING TO

20167,-- 2016 SPECIFICALLYMARCHING OVER THE KORPTS OF

THEIR LOSS IN 2012.

>> JOHN McCAIN, MITT ROMNEY,ALL OF WHOM ARE GOOD,

HONORABLE DECENT MEN BUTEVERY ONE OF THEM LOST.

>> WE NEED NEW ENERGY, WENEED NEW BLOOD.

>> NO, NO, NO TO MITT ROMNEYRUNNING AGAIN.

>> NO, NO, NO, NO, NEVER.

>> MITT ROMNEY.

>> A LOSER.

HE LOST.

>> Jon: HE'S THE LOSINGESTLOSER THAT LOST THE

LOSINGEST LOSS I'VE EVERLOST.

VOTE TRUMP.

2016 IS A NEW OPPORTUNITY, ANEW CHAPTER FOR THE

REPUBLICAN PARTY EAGER TOPROVE THAT IT IS THE PARTY

OF THE PEOPLE.

>> WE ARE HAVE THISTREMENDOUS OPPORTUNITY TO

PUT FORWARD THIS PROGROWTHAGENDA THAT ALLOWS THE

MIDDLE-CLASS FAMILIES TOONCE AGAIN CLIMB THE LADDER

OF SUCCESS.

>> AN ECONOMY ON THE SIDE OFTHE MIDDLE CLASS INSTEAD OF

THE SIDE OF THEIR CRONYCAPITALISTS.

>> MIDDLE INCOME WORKERS,AND THE WORKING POOR WHO ARE

THE BACKBONE OF EVERYAMERICAN COMMUNITY.

>> I THINK REPUBLICANS AREAND SHOULD BE THE PARTY OF

THE 47 PERCENT.

>> Jon: OH, I THINK YOU WERETHE PARTY OF THE 47 PERCENT,

THAT'S YOUR POPULAR VOTE.

>> LISTEN WHAT YOU ARETALKING ABOUT, THE 47% OF

AMERICANS, YOUR LASTCANDIDATE THOUGHT WERE-- AND

SPENT HIS ENTIRE CAMPAIGNALIENATING.

>> 47% WERE WITH HIM, WHO-- ITIS NOT TO WORRY ABOUT THE

FREELOADING, THEY-- .

>> Jon: IT IS SO WEIRD HOWPEOPLE DIDN'T WANT A

PRESIDENT WHO DIDN'T LIKETHEM BUT IT'S GREAT TO SEE

REPUBLICANS DISTANCETHEMSELVES FROM THEIR OLD

RICH POLICY, NOW THEY CANAPPLY ALL THEIR INTELLIGENCE

AND RESOURCE AND ENERGYTOWARDS INNOVATIVE NEW

POLICIES TO HELP WORKINGAMERICANS.

WHAT YOU HAVE GOT FOR US?

>> WE'RE GOING KEEP LOWERINGTAXES.

>> WE NEED TO STOP STRAEJINGSMALL BUSINESSES WITH

OVERREGULATION.

>> WE NEED TO REPEAL EVERYWORD OF BAMACARE.

>> Jon: SEE?

A COMPLETE TURNAROUND FROMWHAT MITT ROMNEY WITH HIS 47

PERCENT MOOCHER CLASSRHETORIC WAS RUNNING ON.

>> I'M LOOKING TO BRING TAXRATES DOWN FOR EVERYONE.

>> THE GOVERNMENT REGULATORSWERE STRANGLING SMALL

BUSINESS.

>> I WILL REPEAL O BOMBACAREON DAY ONE WITH ALL THE

ENERGY I CAN MUSTER.

>> Jon: OH, IT'S THE EXACTSAME [BLEEP].

SO THERE 2012-- 2012 IF YOUWANT TO FREE JOB CREATORS

FROM THE MOOCHER CLASS, THESOLUTION IS DEREGULATION AND

REPEAL OG BAMA HEALTH PLAN.

IN 2016 IF YOU WANT TOEMPOWER THE MOOCHER CLASS,

THE SOLUTION IS APPARENTLYDEREGULATING AND REPEALING

OBAMA HEALTH PLAN.

BASICALLY IT IS OBAMA-- ITIS LIKE PENICILLIN IF

PENICILLIN NEVER CLEAREDYOUR CHLAMYDIA AND JUST MADE

YOUR DOCTOR REALLY RICH.

WE'LL BE RIGHT BACK.

(CHEERS AND APPLAUSE)WELCOME BACK, MY GUEST

TONIGHT IS THE SECRETARY OFTHE UNITED STATES DEPARTMENT

OF HOUSING AND URBANDEVELOPMENT.

PLEASE WELCOME SECRETARYJULIAN CASTRO.

HOW ARE YOU?

>> I'M DOING GREAT.

HOW ARE YOU?

>> Jon: VERY WELL, THANKYOU.

YOU ARE SO MUCH BETTERLOOKING THAN YOUR BROTHER.

YOU'VE GOT SOME NEW PROGRAM,TALKING ABOUT THIS NEW

PROGRAM THAT YOUR FHA, A NEWLOAN PROGRAM W WHAT ARE YOU

DOING?

ARE YOU GIVING US MONEY?

>> I'VE BEEN ON THIS JOBABOUT SIX MONTHS.

AND WE CALL OURSELVEOURSELVES THE DEPARTMENT OF

OPPORTUNITY.

THE PRESIDENT IS VERYFOCUSED ON MAKING

OPPORTUNITY MORE AVAILABLEFOR MIDDLE-CLASS FAMILIES.

>> Jon: YOU CHANGED THE NAMEOF HUD TO THE DEPARTMENT OF

OPPORTUNITY.

>> WE HAVEN'T PUT IT ON THEBUILDING YET,.

>> Jon: WHAT ABOUT THIS,TRUMP.

>> DOESN'T HAVE THE SAMERING.

>> Jon: SO WE, THE PRESIDENTANNOUNCED A COUPLE OF WEEKS

AGO A REDUCTION IN MORTGAGEINSURANCE PREMIUMS AND THAT

SOUNDED BORING, BUT IT ISACTUALLY GOING TO MEAN THAT

FOLKS, NEW BORROWERS UNDERFHL-- FHA WOULD GET ABOUT A

SAVING ITS OF $900 A YEAR.

>> 2 MILLION FOLKS.

>> Jon: IF THEY ARE GOINGGET THEIR FIRST HOUSE.

>> MOSTLY FIRST-TIME HOMEBUYERS, BUT IT COULD ALSO

APPLY TO PEOPLE WHOREFINANCE AS WELL.

SO.

>> NOW PEOPLE GET NERVOUSWHEN YOU START TALKING ABOUT

MORTGAGES AND REFINANCING,WE REMEMBER IN 2008

SOMETHING ABOUT MORTGAGESAND REFINANCING THAT

COLLAPSED THE GLOBALECONOMY.

AND I THINK FHA GOT LIKE ABILLION DOLLAR BAILOUT OR

BILLION AND A HALF DOLLARBAILOUT.

WHAT IS DIFFERENT NOW?

WHY IS FHA DIFFERENT, ANDWHY IS THIS DIFFERENT AND WE

SHOULDN'T WORRY?

>> FIRST THE FHA WAS NOT ANINSTITUTION THAT ENGAGED IN

THE RISKIER MORTGAGE PRODUCTLINE.

PEOPLE REMEMBER THOSE LOANS,NO DOC LOANS.

SO WHAT HAPPENED WAS THAT AFEW YEARS AGO WE WERE AT ONE

EXTREME.

IT WAS TOO EASY TO GET AHOME LOAN IN GENERAL OUT

THERE.

TODAY IT IS AT THE OTHEREXTREME.

>> FOLKS MAY REMEMBER ACOUPLE WEEKS AGO BEN

BERNANKE FORMER FED CHAIRSAYING HE COULDN'T REFINANCE

HIS MORTGAGE BECAUSE HECOULDN'T GET A LENDER TO DO

THAT.

SO WHAT WE'RE TRYING TOACHIEVE IN GENERAL IS TO

KEEP STRONG SAFEGUARDS INPLACE.

LIKE WE SET A CREDIT SCOREFLOOR.

IF YOU HAVE A CREDIT SCORE AWE NEED 580 YOU NEED TO PUT

TEN% DOWN INSIDE OF THREEAND A HALF.

>> HOW DO THEY CAPITAL ICEFHA, DO THEY HAVE TO HAVE

MONEY IN RESERVE.

>> THAT'S RIGHT, WE HAVEABOUT 40 -- IN RESERVE.

THE FHA HAS GOTTEN MUCHSTRONGER.

THAT IS ONE OF THE THINGSTHAT ALLOWS US TO DO THIS

NEW AND TO KEEP SAFEGUARDSIN PLACE AND MEET THE

MISSION AS WELL OFINSURANCING THIS.

>> WHAT PERCENTAGE DO YOUHAVE TO BE AT FOR YOUR CAP?

LIKE WHAT IS IT, THEY MAKETHE BANKS AT 5%, THEY HAVE

TO HAVE CAPITAL INVESTMENTOF 5% ON THERE.

>> SO IT IS A 2% CAPITALRESERVE RATIO.

SO YOU GUYS ARE BEYOND THATWITH YOUR 40 BILLION.

>> NO, NO, WE'RE AT .41% BUTON A VERY STRONG TRAJECTORY

TO GET 2% IN THE NEXT COUPLEOF YEARS.

>> Jon: OKAY, I WAS WITH YOUFOR A SECOND.

YOU WERE TALKING ABOUT 40BILLION AND THEN JUST A

SECOND AGO YOU SAID WE HAVE.41 PERCENT.

>> WE HAVE-- OUR CAPITALRESERVE RATIO IS .41

PERCENT.

NOW-- .

>> Jon: THAT IS LOW, IS THATLOW?

>> IT'S NOT 29%, BUT IT'S ONA VERY STRONG TRAJECTORY TO

GET 2% IN THE NEXT COUPLE OFYEARS.

>> Jon: I WOULD HOPE YOU AREON THIS TRAJECT ORY.

>> WHEN YOU ARE AT .41PERCENT THERE IS NOT MUCH

TRAJECTORY.

>> A COUPLE OF YEARS AGO TTO GIVE YOU A SENSE, WHEN

WE-- THE FHA NEEDED AMANDATORY DRAW T WAS AT

NEGATIVE 1.11.

SO IT ACTUALLY-- .

>> Jon: BOY, YOU'RE SELLINGTHE HELL OUT OF THIS.

>> YEAH.

>> Jon: HERE IS WHAT I AMTELLING YOU.

WE WERE BANKRUPT BUT NOW WEGOT WALKING AROUND MONEY.

>> AND MORE THAN THAT, WE'REON A VERY STRONG TRAJECTORY

TO HIT OUR GOAL.

>> Jon: PEOPLE HAVE BEENWORKING WITH YOU ON THAT

WORD TRAJECTORY.

BUT THERE IS-- HERE IS WHATI NEVER UNDERSTOOD.

SO ALL THIS CART MONEY COMESIN, BILLIONS AND BILLIONS OF

DOLLARS.

WHY DIDN'T THEY JUST HELPHOMEOWNERS PAY DOWN THE

PRINCIPAL OF THEIR MORTGAGESTHAT WERE UNDERWATER?

WHY WERE WE BAILING OUTTHESE INSURANCE COMPANIES

WHEN WE COULD HAVE JUSTBAILED OUT INDIVIDUALS WITH

HOUSES THAT WERE UNDERWATERON THEIR PRINCIPAL?

>> PART OF THE MAKING HOMEAFFORDABLE EFFORT A COUPLE

OF YEARS AGO WAS THAT.

WHAT ESSENTIALLY WORKINGWITH HOMEOWNERS TO HELP THEM

STAY IN THEIR HOMES.

>> Jon: RIGHT.

>> THERE WERE MANYHOMEOWNERS UNDER THE OBAMA

ADMINISTRATION APPROACH OFMAKING HOMES AFFORDABLE THAT

WERE ABLE TO STAY IN THEIRHOMES EVEN TODAY BECAUSE OF

THAT.

>> Jon: HOW MUCH OF THATMONEY HAVE-- HOW MUCH OF

THAT TARP MONEY, IT WAS LIKE30 BILLION ALLOCATED TO

THAT?

>> YEAH, I DON'T WANT TO BEINACCURATE.

>> Jon: BE INACCURATE, IT'STHE DAILY SHOW, BE

INACCURATE.

>> BUT IT WAS SIGNIFICANT,IN THE LIVES OF MIDDLE-CLASS

FAMILIES AND REGULAR FOLKSOUT THERE WHO WERE TRYING TO

HOLD ON.

>> Jon: ARE PEOPLE TAKINGADVANTAGE, DO THEY NOT KNOW

ABOUT IT?

>> NO, THEY DID.

THEY DID TAKE ADVANTAGE OFIT.

WE GO TO PLACES LIKE FLORIDA,NEVADA, ARIZONA, WERE SOME

OF THE HARDEST HIT PLACESDURING THE HOUSING CRISIS.

FOLKS WERE ABLE TO TAKEADVANTAGE OF THAT AND STAY

IN THEIR HOMES.

>> Jon: SO YOU ARE DOINGGOOD.

YOU'RE PUTTING OUT SOMEMONEY AND YOU ARE STILL

HELPING TO PAY DOWNPRINCIPAL OR REFINANCING

WITH THIS OTHER TARP MONEY.

>> THAT'S RIGHT.

>> Jon: HOW MUCH IS THATLEFT.

>> AND THERE IS A GOODAMOUNT OF THAT LEFT, THAT'S

RIGHT.

>> Jon: SO PEOPLE SHOULDCONTACT YOU.

>> OR THE TREASURYDEPARTMENT FOR THAT, FHA

FOR-- THE MORTGAGE INSURANCEPREMIUM.

>> Jon: AND YOU GUYS AREN'TGOING TO-- BUT WE'RE NOT

GETTING INTO THIS.

ONES YOU GIVE PEOPLEMORTGAGES, YOU ARE NOT

SELLING THEM, BUNDLING THEM,MAKING DERIVATIVES, HANDING

THEM OVER TO OTHER BANKS.

WE'RE NOT DOING ANY OF THATSTUFF ANY MORE?

JUST SAY NO, JUST SAY NO.

>> NOT IN THE SAME WAY, NO.

NOT IN THE SAME WAY.

THERE'S STILL A SECONDARYMORTGAGE MARKET, JON.

>> Jon: FHA MORTGAGES, EVENTHE ONES YOU GUYS ARE DOING.

>> THOSE ARE SECURE TIES,SURE.

BUT THE DIFFERENCE IS THATNOW THE LAWS HAVE CHANGED.

YOU'RE NOT GOING TO SEE WITHFANNIE AND FREDDIE THE SAME

KIND OF A RISKY PRODUCT.

THOSE THINGS REALLY DIDN'TAPPLY.

>> AND THEY'RE OUT OF THEBUSINESS.

>> THEY ARE INCONSERVATORSHIP RIGHT NOW.

>> SO THE LANDSCAPE OFLENDING AND SECONDARY

MORTGAGE PRODUCTS HASCHANGED SIGNIFICANTLY SINCE

THEN.

AND YOU KNOW, FOR THE BETTEROBVIOUSLY.

>> Jon: SO WE HAVECONFIDENCE.

>> WE DO.

>> Jon: JUST SHOW ME WITH AHAND SIGNAL WHICH WAY THE

TRAJECTORY IS GOING.

>> IT'S GOING VERY WELL.

>> Jon: ALL RIGHT, ALL RIGHT,ALL RIGHT.

NORMALLY I WOULD KEEP YOUAROUND FOR A LONG TIME, BUT

I DON'T KNOW IF YOU KNOWTHIS, BUT IT IS THE MOVIE

"ALIVE" OUTSIDE.

>> THAT'S WHAT I HEAR.

I'M GETTING OUT OF HERE.

>> Jon: I KNOW YOU HAVE TOGET OUT OF HERE.

THANK YOU SO MUCH FOR COMINGBY.

SECRETARY JULIAN CASTRO, WEAPPRECIATE IT.

>> Jon: THAT'S OUR SHOW BUTAS WE DO EVERY MONDAY, WE

CHECK IN, WEEK TWO, LARRYWILMORE AT THE NIGHTLY SHOW,

HELLO, SIR.

GOOD JOB, LAST WEEK, HOW AREYOU FEELING THERE?

>> THE CITY IS FREEZING,JON.

>> Jon: YES WHANS IS THATSTUFF COMING DOWN FROM THE

SKY.

>> Jon: I KNOW YOU WERE FROMSOUTHERN CALIFORNIA, LARRY,

ITS HE CALLED SNOW.

>> DOES IT STOP?

>> Jon: EVENTUALLY IT STOPS.

>> YOU KNOW, I NEVER THOUGHTI WHAT SAY THIS BUT I MISS

EARTHQUAKES.

>> Jon: IT'S ALL RIGHT.

STAY BUNDLED.

HAVE ANOTHER GREAT SHOW.

WE'LL TALK TO YOU LATER.

THAT IS OUR SHOW, HERE IT IS,YOUR MOMENT OF ZEN.

>> HE WHO WAS THE ONE, NOWWITH TEATIME ON THE MIND, HE

IS SO OVER IT.

AMERICA, HE'S JUST NOT THAT INTOYOU

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