Jon welcome to the daily show my name is jon stewart. We have a good one for you tonight. Thank you very much. My guest tonight, Julian Castro will be joining us secretary of housing and urban development. But first those of you outside of the northeast may not be aware of this, there is an enormous blizzard hitting our area currently. My guess is if you are watching this program, new york is gone. I hope you remember us for our worldclass pizza and bridges and not for our tendency to tell people to if they happen to have their eyes locked with our eyes to [bleep]. I hope. Obviously i cannot believe these people showed up. cheers and applause ill tell you this im going to do a little impression for you this is an impression of me if i was one of their friends and they called me up to go to the daily show today. Okay. Here we go. Let me get in character. Im me, being called by one of these people. Yes [bleep] that. Beyond that we have exciting stuff to get to. A lot of republicans will who will never be president met this weekend. And its the subject of tonights democalypse 2016 correspondent audition. 2016 hopefuls are gathering for the iowa Freedom Summit jon the freeh dom summit. A taste of freedom. All downhill from the summit freedomwise. Whoses running this show . Congressman steve kings Freedom Summit. Jon steve king, wait scary stephen king . No, no no no. Not the lovable author the scary stephen king. Congressman king says many undocumented children the vast majority, in fact are drugged mules. Maybe they are hauling 75 pounds of marijuana across the desert. Jon yes you know let me that statement is naive and and ignorant. That statement is like ignorance, like if you just take all of the stupid and just cook it down just cook it, cook it down and then scrape, just the pure ignorance like crystal duh. Its like crystal duh. Now no one is going to show up to the cant hope camp retreat this guy is just flat out offensive. Hes been called the cattle came running. Wisconsin scott walker was one of the summits biggest stars. If you are not afraid to go big and bold, you can actually get results. Jon isnt that the tag line for tide . laughter this summit probably does get your whites whiter. But no one else is showing up. No one. In a republican primary, every candidate is going to come in front of you and say im the most conservative guy to ever live. Gosh darn it who diddley im conservative. Jon who diddley was i believe it was bo diddleys less fall ented brother. Who diddley he appears to be crossing over from down home conservative into ned flanders tore territory. Okilydokily voterinos listen the other candidates werent going to let ted cruz claim all of corn pon country. There are two things you should never see. You should never see a law or a sausage made. laughter i have seen both. And i still eat sausage. If you ares going to have some sausage you have to kill some pigs. And folks, there are a lot of people in america who want the sausage they just dont want to kill any pigs. We need to do some pigkilling. To get the to the sausage. Jon my point is, people of iowa, i am incredibly hungry right now. Does anyone have any sausage . Or the very least a pig that i can kill and eat in front of with you mire bare hands. Wow that is a deep ledisturbing metaphor about killing pigs. Going to be hard to outback woods that. America is looking for a new path forward and starting today, right here in iowa lets give it to em. laughter jon apparently rick perry said to himself you know that thing howard dean did in iowa . laughter the enthusiasm bordering on insanity that essentially destroyed his president ial campaign . I what if i doubled down on that [bleep]. I mean honestly governor perry why bother buying the smart guy glasses if the real affectation you are going for is a big red mustache and a couple of six shooters camed at a rabbit. Were going to show them here in iowa. Ba binge ba binge. Now lets go make some sausages ba pink ba pink. Of course no president ial summit can complete without a speech by someone who will never ever ever, ever run for president. We have to build a fence. And its got to be a beauty. Who can build better than trump. I build its what i do. What i do hey. Build a fence yeah skip dop diddley do border fence, yeah. Ladies and gentlemen, i give you the trump border fence and hotel condominium tower and golf course and wayne bar. Its the best classiest way to keep mexicans out that you can imagine. You could take that to the trump. Thats what he calls the bank. laughter well thats it. It cannot get more entertaining and less electable than trump. You betcha. Jon no it it cant be. You betcha laughter jon ladies and gentlemen i believe it may be the rare brown haired alaska podium speaker. Our president must have missed growing up because of his insistence of lawlessness of trying to get his way it trampled our constitution. So from i wont even get into all the details of everything. laughter jon no, no no. Dont dont get into the details of everything not here during a 40 minute speech outlining your president ial ambition. Well, it was all going fine until tragically her subject stopped talking to her bid. Our government look at it. It isnt too big to fail. Its too big to succeed. Its too big to succeed, so we can afford no retrades or nothing will change with the 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 getting taken for a ride. laughter cheers and applause jon that kind of talk you normally hear right before the pharmacist says maam youve got to leave the walgreens. laughter jon now we know what it is like to get cornered by palin at an open bar wedding. Solis en, this iowa Freedom Summit speech wasnt just regular persons it was palin incoherence. Apparently governor palin had been forced to improvise after the teleprompter froze. But i have got to tell you it is not that different from her on script. Finally stop this overreaching bureaucracy. We get on nesn and we drive in solutions. And we debolt. Jon sarah palin doesnt believe in your liberal elitist grammar and sin tax. She be bold. She no play by your ribbles that is what she calls rules. And thats when it hit me. Incoherent rambling unintelligible folksy idiot. She is not speaking at a political event. Sarah palin is trying to sell america a lincoln. You know the man can only ride ya when your back is bent. So strengthen it. Then the man cant ride ya and america wont be taken for a ride. cheers and applause jon all right all right all right. Well be right baba its the family plan families are flocking to. Now at tmobile, get 4 lines for just a 100. With unlimited talk, text, and up to 10gb of 4g lte data, plus devices like the galaxy note 4 for 0 down. Well even buy out your Family Service contracts. So switch to tmobile and get 4 lines for a 100 today. Every cookie here at left twix® is extra crisp so it stays crunchy when we apply caramel and chocolate. Right twix has the same thing. They have packing tape like that over at right twix . Try both. Pick a side. Twix jon welcome back. Republican president ial candidates are marching to 20167 2016 specifically marching over the korpts of their loss in 2012. John mccain, mitt romney all of whom are good, honorable decent men but every one of them lost. We need new energy, we need new blood. No, no no to mitt romney running again. No, no no no, never. Mitt romney. A loser. He lost. Jon hes the losingest loser that lost the losingest loss ive ever lost. Vote trump. 2016 is a new opportunity a new chapter for the Republican Party eager to prove that it is the party of the people. We are have this tremendous opportunity to put forward this progrowth agenda that allows the middleclass families to once again climb the ladder of success. An economy on the side of the middle class instead of the side of their crony capitalists. Middle income workers and the working poor who are the backbone of every american community. I think republicans are and should be the party of the 47 percent. Jon oh i think you were the party of the 47 percent thats your popular vote. Listen what you are talking about the 47 of americans, your last candidate thought were and spent his entire campaign alienating. 47 were with him who it is not to worry about the freeloading they. Jon it is so weird how people didnt want a president who didnt like them but its great to see republicans distance themselves from their old rich policy, now they can apply all their intelligence and resource and energy towards Innovative New policies to help working americans. What you have got for us . Were going keep lowering taxes. We need to stop straejing Small Businesses with overregulation. We need to repeal every word of bamacare. Jon see . A complete turnaround from what mitt romney with his 47 percent moocher class rhetoric was running on. Im looking to bring tax rates down for everyone. The government regulators were strangling small business. I will repeal o bombacare on day one with all the energy i can muster. Jon oh its the exact same [bleep]. So there 2012 2012 if you want to free job creators from the moocher class, the solution is deregulation and repeal og bama health plan. In 2016 if you want to empower the moocher class the solution is apparently deregulating and repealing obama health plan. Basically it is obama it is like penicillin if penicillin never cleared your chlamydia and just made your doctor really rich. Well be right back. Coughequence 5. The sleepless night. Sorry. 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Id ra cheers and applause welcome back my guest tonight is the secretary of the United States department of housing and urban development. Please welcome secretary Julian Castro. How are you . Im doing great. How are you . Jon very well, thank you. You are so much better looking than your brother. Youve got some new program, talking about this new program that your fha a new loan program w what are you doing . Are you giving us money . Ive been on this job about six months. And we call ourselve ourselves the department of opportunity. The president is very focused on making opportunity more available for middleclass families. Jon you changed the name of hud to the department of opportunity. We havent put it on the building yet,. Jon what about this trump. Doesnt have the same ring. Jon so we the president announced a couple of weeks ago a reduction in mortgage insurance premiums and that sounded boring, but it is actually going to mean that folks new borrowers under fhl fha would get about a saving its of 900 a year. 2 million folks. Jon if they are going get their first house. Mostly firsttime home buyers but it could also apply to people who refinance as well. So. Now people get nervous when you Start Talking about mortgages and refinancing we remember in 2008 something about mortgages and refinancing that collapsed the global economy. And i think fha got like a billion dollar bailout or billion and a half dollar bailout. What is different now . Why is fha different, and why is this different and we shouldnt worry . First the fha was not an institution that engaged in the riskier mortgage product line. People remember those loans no doc loans. So what happened was that a few years ago we were at one extreme. It was too easy to get a home loan in general out there. Today it is at the other extreme. Folks may remember a couple weeks ago ben bernanke former fed chair saying he couldnt refinance his mortgage because he couldnt get a lender to do that. So what were trying to achieve in general is to keep strong safeguards in place. Like we set a credit score floor. If you have a credit score a we need 580 you need to put ten down inside of three and a half. How do they capital ice fha, do they have to have money in reserve. Thats right we have about 40 in reserve. The fha has gotten much stronger. That is one of the things that allows us to do this new and to keep safeguards in place and meet the mission as well of insurancing this. What percentage do you have to be at for your cap . Like what is it they make the banks at 5 they have to have Capital Investment of 5 on there. So it is a 2 capital reserve ratio. So you guys are beyond that with your 40 billion. No, no were at. 41 but on a very strong trajectory to get 2 in the next couple of years. Jon okay i was with you for a second. You were talking about 40 billion and then just a second ago you said we have. 41 percent. We have our capital reserve ratio is. 41 percent. Now. Jon that is low, is that low . Its not 29 , but its on a very strong trajectory to get 2 in the next couple of years. Jon i would hope you are on this traject ory. When you are at. 41 percent there is not much trajectory. A couple of years ago t to give you a sense when we the fha needed a mandatory draw t was at negative 1. 11. So it actually. Jon boy youre selling the hell out of this. Yeah. Jon here is what i am telling you. We were bankrupt but now we got Walking Around money. And more than that were on a very strong trajectory to hit our goal. Jon people have been working with you on that word trajectory. But there is here is what i never understood. So all this cart money comes in billions and billions of dollars. Why didnt they just help homeowners pay down the principal of their mortgages that were underwater . Why were we bailing out these Insurance Companies when we could have just bailed out individuals with houses that were underwater on their principal . Part of the making home affordable effort a couple of years ago was that. What essentially working with homeowners to help them stay in their homes. Jon right. There were many homeowners under the Obama Administration approach of making Homes Affordable that were able to stay in their homes even today because of that. Jon how much of that money have how much of that tarp money, it was like 30 billion allocated to that . Yeah, i dont want to be inaccurate. Jon be inaccurate its the daily show be inaccurate. But it was significant in the lives of middleclass families and regular folks out there who were trying to hold on. Jon are people taking advantage do they not know about it . No they did. They did take advantage of it. We go to places like florida nevada arizona were some of the hardest hit places during the housing crisis. Folks were able to take advantage of that and stay in their homes. Jon so you are doing good. Youre putting out some money and you are still helping to pay down principal or refinancing with this other tarp money. Thats right. Jon how much is that left. And there is a good amount of that left thats right. Jon so people should contact you. Or the Treasury Department for that fha for the mortgage insurance premium. Jon and you guys arent going to but were not getting into this. Ones you give people mortgages, you are not selling them bundling them making derivatives, handing them over to other banks. Were not doing any of that stuff any more . Just say no, just say no. Not in the same way, no. Not in the same way. Theres still a secondary mortgage market, jon. Jon fha mortgages even the ones you guys are doing. Those are secure ties sure. But the difference is that now the laws have changed. Youre not going to see with fannie and freddie the same kind of a risky product. Those things really didnt apply. And theyre out of the business. They are in conservatorship right now. So the landscape of lending and secondary mortgage products has changed significantly since then. And you know, for the better obviously. Jon so we have confidence. We do. Jon just show me with a hand signal which way the trajectory is going. Its going very well. Jon all right, all right, all right. Normally i would keep you around for a long time but i dont know if you know this but it is the movie alive outside. Thats what i hear. Im getting out of here. Jon i know you have to get out of here. Thank you so much for coming by. Secretary Julian Castro we appreciate it this is a pip. Its part of a hersheys bar. We break it. We bite it. We sneak it. We smoosh it. We savor it. We love it. Hersheys is mine, yours, our chocolate. The lightest or nothing. The smartest or nothing. The quietest or nothing. The sleekest. Sexiest. Baddest. Safest,. Tightest,. Quickest,. Harshest. Or nothing. At mercedesbenz, we do things one way or we dont do them at all. Introducing the allnew cclass. See your authorized mercedesbenz dealer for exceptional offers through mercedesbenz financial services. Double coverage . No problem. Triple covered . Yes, please. For a limited time at pizza hut get the triple cheese covered stuffed crust pizza. Order a large for just 11. 99. Now thats gamechanging flavor. Only at pizza hut. Break the ice, with breath freshening cooling crystals. Ice breakers. Jon thats our show but as we do every monday, we check in, week two Larry Wilmore at the nightly show hello sir. Good job, last week, how are you feeling there . The city is freezing, jon. Jon yes whans is that stuff coming down from the sky. Jon i know you were from Southern California larry, its he called snow. Does it stop . Jon eventually it stops. You know i never thought i what say this but i miss earthquakes. Jon its all right. Stay bundled. Have another great show. Well talk to you later. That is our show, here it is your moment of zen. He who was the one now with teatime on the mind he is so over it. America hes just not that into you larry tonightly, controversial weekend at the box office. American sniper raises the question is this guy an asshole or a hero . While mortdecai raises the question whos the asshole who