fha issues and also e issue of what changes do we make in this environment that sort of freeze their credit situation is little bit too tightl that we know mistakes were made, how then do we correct it without sort of grabbing the system at sort of a peak of one pointand just sort of grabbing the pendulum a far arc and say okay we want you to stay there because that's them minimizes risk. we all know there's going to risk going forward but as a look at this i still come back to when we see what is going on in fha and some of the debate are we just trying to look at that down payment increase to what was the oposal, 5% i think, the debate surrounding that is that there is going to be i think a strong political and supposed to economic component of this argument going forward and i have to say you are more the expe and that than i am. >> i am new at this game. i have been in politics for two and a half years now, so vy different than physics. [laughte >> john, i want to say allan has the logo of the flying thing when you had the acronym esd, endogenoustabilizing factors. i ink need to

we passed the fha what are two days ago we passed it out of the house. there are things we can do. it is a disappointment. is an awful lot of money. ps a republican, maybe i cannot say this with the elephants in the room. republicans like to see fannie and freddie become in the future. should they be private entities? should they be split have government and half private lacks -- half private? where do you stand? >> i do not think they should be public utilities. that is saying the puulic will guarantee themm the private market is not there now. i think we all agree. it will need to be a slow transition. i think we can make that transition. it may take 10 years. it may take 15 years. in our bill, we have a three or four years of thing. i think that is oveely ambitious. some of our colleagues felt we could do that. i do think the problem was not in the securitization particularly. it was that they were buying so many mmrtgages. i think the benefit that everyone argued is where they would come in and securitized that. there is the implied government guarantees of the chinese know tha

. >> we begin that today with fha reform. [unintelligible] [no audio[unintelligible] >> they don't want restrictions on over leveraging. >> the senate vote will help reform this. [unintelligible] c-span.org>> you have tough regs and several agreements. we will have -- we will toughen the volcker rule. they are not a bigger mess than you think they are. >> how will toughening the volcker rule help? >> that is going in a direction that many people are supporting. the house empowers the regulators. >> [unintelligible] >> did you say you were moving in the direction of murtha 11? >> i will not get into that theme how would you characterize -- >> people want to know what is in the bill. we need to see where our colleagues are. we have to see if there are some modifications that can be made. this is not a predetermined outcome. there are some people who object to the business and that bill. >> i think we should be strengthening the house bill. the republicans think we went too far in this legislation. >> what did you think about wh

later this week, letting that fha raise mortgage rates. president obama makes his first high school graduation speech as president and southwest michigan this evening. he will speak to kalamazoo central high school. we will have live coverage of that event here on c-span at 7:00 eastern. while we wait for the progressive conferenced while they are having lunch, we will look at congressional races from this morning's "washington journal." coversr congress druckeroll call," -- david drucker covers congress for "roll call." clearly the oil spill -- what impact will this have on what congress wants to get done? guest: i want to find out if harry reid's call to his committee chairman over the memorial day break that he wants the kennedy bill on the floor before everyone hightls it, if that will be a reality or whether there be a flurry of activity around the climate change bill beginning today. most of us in washington consider that bill or anything like it, dead. remember, the house passed something like last year. it was very politically toxi

bill that provides the federal housing administration with the authority raise insurance premiums of fha guaranteed mortgages, and possible work on a $30 billion fund for small business loan measures. it creates a fund to increase the availability of credit to small businesses. the house is live on c-span. >> president obama traveled to brando, louisiana yesterday to talk with residents and officials about the government's response to the gulf coast oil spill. he gives his weekly address from there and discusses the effects of the spill on the likelihood of those who live in the region. following him, you'll hear the gop address from a republican national chairman michael steele, who calls for an investigation into the reported job offers by the white house to democratic senatorial candidates process tech and andrew romanoff offcolorado. >> i am speaking to you from grand isle, louisiana, one of the first places to feel the devastation brought by the oil spill in the gulf of mexico. i met with a group of local residents and small business owners. folks like floyd, a fourth generation oys

by 2002, 68% of the subprime mortgages were the result of the activity of fha and the gses.nd i want to go here to a larger point. >> will the gentleman yield briefly on that? >> i will yield. >> that was 2002. >> right. >> what did the study say or did it say anything about the percentage? because my understanding was that the percentage went up subsequent to 2002. >> it wouldn't be odd, reclaiming my time, in the fact that you had government-sponsored enterprises then putting their stamp of approval on the idea these were safe mortgage-backed securities. so you would expect the market to assume, if these are safe for the government-sponsored enterprises, we ought to go -- >> will you yield? >> i will. >> after 2002, the gentle woman's remarks would be accurate? >> no. >> but it was the ult of the poor government market? >> no, that's not true either. of course,ne of my reason we want adoption for these studies is we suspect it will show exactly what the richmond fed has shown, which is the government intervention into the market with the affordable housing goals, which man

but in terms of spending a long time looking at whether fha and ginnie mae also included subprime, that was not -- >> what about fannie mae and freddie mac, did you include those? >> no. fannie mae and freddie mac do not originate loan they buy loans. >> that's right. but they do securitize. tuallyabout $4 trillion in subprime and alt-a loans wer securitized by fannie mae and freddie mac, at the time you're looking at these things in 2007. so did you ake into accot the fact tha they were this number, it turns out to beabout milliony fannie mae and freddie mac, were, in fact, ounding at that time? >> i don't recall tat bein a ctor. that came up in any particular dealcommittee asthma to. >> mr. weill? >> commissioner, on the monitoring side, we would use the infoation. >> i'm sorry stickers on the monitoring side, on the surveillance i'd on the securities, i don't recall that we would use the information. >> and what about the ratings site? i dig at the monitoring ide occurs afterward, but what about thratings site did you have this information at the time that you made the ratings? know

i think there was strong bipartisan support for the fha bill. we're preparing for next week. we will have small business credit -- a small business credit lending built on the floor. that is a very important commitment of this congress. we need capital available to small businesses. we recognize that they are the job creators. we are hard at work on wall street reform legislation. that is what our wheat is like here. any questions? -- our week is like here. any questions? >> first, there is an don't ask, don't tell. i was disappointed when the full measure came to the floor. only nine republicans voted to pass the defense bill. this is historic. the republicans are not voting against the defense authorization bill. only nine dead because of don't ask, don't tell. we will now go after the bill passes to conference. our work is not fairness in that regard. one thing of the time. -- is not finished in that regard. we want to finish don't ask, don't tell. we do not take it for granted. nine republicans voted for the defense authorization bill. five republicans voted for the repea

later this week, raising insurance premiums fha- guaranteed mortgages.live coverage here on c-span. >> president barack obama turns his attention today to the health-care bill. he is going to racing center in wheaton, maryland to answer questions about the new law. the town hall coincides with the release later this week of the first batch of $250 checks to seniors who fall into the medicare prescription drug data known as the doughnut hole. we will have live coverage starting at 11:40 here on c- span. to is the busiest day of the year so far for congressional and gubernatorial elections with 12 states holding primaries or run off to bed. in california, the democratic senator barbara boxer will learn who her republican opponent is. there is a republican primary and the race to succeed arnold schwarzenegger. we will have live coverage starting tonight at 9:00 eastern on the cspan networks. >> no candidate in this race has given voters in new hampshire or america more opportunities to ask them questions and see what they are made up. >> these are the faces

members of the texas congressional delegation has been raising a real fuss in putting pressure on the fhao go faster. there is a hold on the nominee for the number two spot at the faa by one of the texas senator's because they want these along the texas border with mexico. they want to spot illegal aliens, drug smuggling, whenever. the faa has given permission for some use along the taxes-mexico border. -- texas-mexico border. there are people lead their demand in them. we wanted the grounds. host: what is the administration's response? what is their position? guest: i have not heard the white house say anything about this. the faa as part of the administration. their response has been that we want to do this and create a way to do it safely. there is a sense that the gentleman from the faa, krakowski, he says he is very excited because this will revolutionize aviation or be a dramatic a change in aviation as the introduction of jet engines in the 1950 proxy and 1960's. host: next is mike in california on our line for democrats. caller: good morning. i have a few questions. i know that in

that provides the federal housing administration with the authority to raise insurance premiums on fha-guaranteed mortgages. they may also work on a $30 billion fund for small business loan measure. it creates a fund to increase the availability of credit to small businesses. the house is live on c-span. >> the new british prime minister and conservative party leader, david cameron, fields questions from members of parliament in his first "prime minister's questions," as the head of the coalition government. that is sunday at 9:00 on c- span. now sam webb addresses his group's annual convention. he spoke about the 20 term -- the 2010 midterm elections, climate change, and other issues. this is 40 minutes from new york city. >> thank you. >> we welcome you to the 29th convention of the communist party. i am a big basketball fan. conventions, to me, are like an nba final between the lakers and celtics. i am a celtics fan, as well. welcome to the 29th convention. especially, welcome to our allies and friends. i want to mention the deputy chief. he represents the communist party of vietnam -- i repre

we have the fha that the house voted to reform almost unanimously. we have the national mortgage association, the federal home loan banks, private banks with a public mandate. i shouldn't have said that, but we have to look at how that works. we have the private market. there should be entities that helps securitized the balance of mortgages subject to risk retention. not the way fannie mae and freddie mac did it. we have a question, do we want any kind of subsidy for homeowners, now for people at the lowest end, but there is a situation -- are their efforts that could be made in a responsible way to help them afford homes? there is affordability for people on the low-end, you don't want to exclude anybody, but that ought to be the preface. immediately abolishing fannie mae are freddie mac or deciding to do it before we have decided what set of arrangements could be public and could be private would be destabilizing to the economy at a time when it is trying to recover and through the housing market. i supported the first amendment, we should be very

realstate agents, home builders etc., and iemember the fight we had over the down payment assistance on fhaprogram that clearly and we are still fighting that to some extent for the fight to come back. so the death by anecdote oftv reporters, local news reporters coming up with example of why is it so and so in this town has to pay the down payment of this amount whereas across the river or another area they can get by ying this, is that something fa but ultimately defeat the purpose? how do we put something together to try to respond? and i think also been to get the argument of higher ltv and clining marks if you think about the market where prices are ill the going down, does it make sense to require the high year ltv's in the market is showing the pposit of the bubble butore long-term crime and also as i get into the mechanism i tnk it would cause certain ings and unpredictability and the demand for the family units an hw yu finance these departments would sort of occupancy driven by the rapid changes and down payment requiremens to get a feel that therare some other technical issues we

concerns in the gulf of mexico, just to get back to our legislative agenda, and we also passed the fha bill. there were only four votes again, very strong bipartisan support for that bill. that is -- the next step is for us to have a small business credit, a lending credit bill on the floor. that is very important for small businesses, recognizing that they are the job creators. barney frank is working on the wall street reform legislation as well. this is what our week was like here. any questions? >> in the employee nondiscrimination act, how confident are you that if that measure came to the floor it would be able to pass? >> we were able to passed the bill with a 40 vote majority in the council last thursday. we're very proud of that vote. in the senate however, the next day, when the full measure came to the floor to pass a defense authooization bill, only nine republicans voted to pass a defense bill. this is historic. only nine republicans voted for defense authorization because "don't ask, don't tell" was in the the bill. this is a personal priirity for me. because of the defen

the house is finishing up votes on the fha bill, and i will go back for one last boavote.let me echo what the senator said. this will be very open process. i think all of us will agree, nothing will be put into this final bill that is not advanced, openly debated, subject to amendment by the conference process, and voted on. the conference is a unique american institution because we're the only part of the world that has to do when bilateral some in his legissative body. and its legislative body.eralis- it requires a degree of reconciliation, and i beliive we work. i thank you, senator, i wiil be back after resolve any doubt in the minds of the people. >> mr. chairman, we are in the3 before the senators go with their opening statements, if i might briefly make mine? >> i have made my statement. next would be senator shelby. >> mr. chairman, i will wait until after senator shelby has completed his opening statement. >> i recognize senator shelby from alabama. >> thank you chairman dodd. the legislation before us will have a profound impact for -pgenerations to come. therefo

i think there was strong bipartisan support for the fha bill. we're preparing for next week. small business credit -- a small business credit lending built on the floor. that is a very important commitment of this congress. we need capital available to3 we recognize that they are the job creators. we are hard at work on wall street reform legislation t. that is what our wheat is like here. any questions? -- our week is like here. any questions? >> first, there is an don't ask, don't tell. i was disappointed when the full measure came to the floor. only nine republicans voted to pass the defense bill. this is historic. the republicans are not voting against the defense authorization bill. only nine dead because of don't ask, don't tell. we will now go after the bill passes to conference. our work is not fairness in that regard. one thing of the time. -- is not finished in that rrgard. we want to finish don't ask, don't tell. we do not take it for granted. nine republicans voted for the defense authorization bill. five republicans voted for the repeal of don't ask, don't tell.