Insight into what the cfpb plans to undertake in the work period. Since stepping into her role last december, director kraninger has demonstrated a commitment to making sure americans have access to a wide range of products and services to meet their needs, fostering innovation and vigorously protecting consumers. Reflecting this commitment to the cfpbs mission, director kraninger conducted a crosscountry listening tour with the full spectrum of stake holders in her first mopthopes john. The directors conversations with consumers, industry, and fellow federal and state regulators have improved cfpb engagement, informed their supervision an regulatory processes and improved agency transparency. In a semiannual report, director kraninger also highlighted that the cfpb has taken steps to strengthen the consumer mark place by providing Financial Institutions clear rules of the road that allow them to offer consumers a range of high quality, Innovative Financial ervices and services and products. On september 10, cfpb issued three new policies to promote innovation and reduce regulatory uncertainty. These policies include the Trial Disclosure Program policy, the compliance assistance sandbox policy, and the no action letter policy. Each of these policies are intended to contribute to an environment that allows innovation to flourish safely and ensure that Consumer Needs are met in increasingly efficient and effective ways. Earlier this year, the cfpb announced a proposal to update the mandatory underwriting provisions of its 2017 small dollar lending rule. Updating this rule is an important step toward ensuring the availability of credit that is essential to so many consumers. Who druggle struggle to access or qualify for other options. And basing rules on solid evidence and legal support. As the cfpb continues to move forward on this rule making process, i encourage the cfpb to coordinate with other financial regulators on an approach to small dollar lending to create a consistent framework across all institutions. In order to promote and expand small dollar lending and credit options. In july, the cfpb released an advanced notice of proposed rule making seeking stake holder comment on potential amendments to its ability to repay qualified mortgage rules. Cabria and cfpb director kraninger noted it exacerbates an unlevel Playing Field a that fannie and freddie should play by the same rules as everyone else. The cfpbs actions are cabria a positive step and i can and i continue to encourage the but roes efforts to find a permanent solution to the qualified mortgage standard that provides certainty to consumers, lenders an investors alike. Last week, the cfpb announced the formation of a task force that will be devoted to examining ways to modernize an ar monoize federal Consumer Financial laws. Especially those pertaining to consumer credit. The Banking Committee has spent sig can time this congress evaluating how the fair credit reporting act or fcra, should operate in an increasingly Digital Economy and other firms serve functions similar to the original consumer reporting agencies. Look forward to reviewing the cfpbs task force on Consumer Financial laws reck mndations so it continues to function as originally intended in a digital world. While im greatly encouraged by many changes and initiatives at the cfpb under director kraningers leadership it remains clear the fundamental structure they have cfpb must be reconsidered to make it more transparent and accountable. I continue to support transitioning the cfpb to a Bipartisan Commission from a single director, subjecting the cfpb to appropriations, and providing a safety and soundness check for prudential regulators. On september 17, 2019, the cfpb and department of justice filed a brief in the u. S. Supreme court urging the court in the cfpb to elah law vs. Review the constitutionality of the bureaus leadership structure. Ive long argued that the cfpbs structure lacks sufficient accountability and look forward to the Supreme Court taking up review of this case. During this hearing i look forward to hearing more about key initiatives thealt cfpb in the last year. Director kraningers prioritiers in cfpb in the upcome work period and additional legislative opportunity to provide widespread access to Financial Products an services. Director kraninger, i thank you for joining the committee this morning to discuss the cfpbs activities an plans. Senator brown. Senator brown thank you, mr. Chairman. We created the Consumer FinancialProtection Bureau to stand up for students and Service Members and hardworking americans to protect them from big banks and crooked corporations that rob them of their homes an jobs and savings. After 10 months on the job, its clear why President Trump selected you to head the cfpb. We know he can count on you to protect wall street banks and payday lenders and shady debt collectors and other companies that prey on hardworking americans. Under your leadership under President Trumps leadership this agency has chosen corporations over workers over and over again, has chosen big banks over consumers over and over again. Since you took over, you and your appointees have overruled the recommendations of consumer experts an allowed crooked companies to lie to, to cheat, and to steal from hardworking americans and then you let them get away with it. The consume brother text bureau is supposed to protect consumers, thats your entire job, to protect consumers from predatory loans and from predatory payday loan that lead to endless cycles of debt. You instead chose to protech the interests of President Trump and hi payday lending patrons. Consumers pay the price since august when the payday loan rule was scheduled to go into effect, americans have paid more than 1 billion in fees to payday loan shark. Thats 1 billion out of the pockets of consumers and its consumers without a lot of money that are using payday lending. A billion dollars out of the pockets of consumers because the agency that was supposed to look out for them decided to instead look out for payday lenders yusm also could have protected servicemens and their families. But instead the Trump Administration betrayed them when you stopped making sure companies followed the protections for Service Members and their families. You also could have strengthened the bureaus enforce. Of fair lending laws that returned hundreds of millions of collars to victims of discrimination and agencies in the agencys first seven years. Instead you continued President Trumps attacks on fair lending laws. In fact, instead of proteching consumers, you dismantled the bureaus office of fair lend, you put a trump political appointee with a history of racist and sexist writings, and weve spoken about those in this committee before, in charge of fair lending. Youre trying to repeal a 2015 rule that required lenders to report basic loan information to ensheer they are ensure they are not discriminating. As a result since you took over, the bureau has not brought a single case against a company for discriminatory lending practices. Not one single case against a company for discriminatory lending practices. Last i checked, discrimination hasnt ended in this country in trumps america. You and the Trump Administration, you have turned your backs on student loan borrowers. The bureau could have help prod tect the 44 million americans with Student Loans from the widespread mistakes and errors and mismanagement by the companies that handled their loans and that have cost them thousands of dollars. But again, you betrayed the people the president promised to look out for. Hearing that word betrayed these days used a lot, how the president betrayed workers in the midwest. How the president has betrayed our allies in the middle east. And day after day betrayed workers in this country yusm sided with education secretary devos an refused to examine federal student loan servicers to make sure theyre not cheating people with Student Loans. G. A. O. And department of educations inspector genre ported that the congressmen that manages federal Student Loans wrongly denied tens of thousands of teachers, nurses, firefighters, servicemens and other dedicated Public Servants the loan forive forgiveness they earned. This isnt my opinion, this is g. A. O. And department of educations Inspector General you protected those companies while hard working American Families paid the price. I guess i should expect nothing less from an administration that consistently looks like a retreat for wall street executives. Under your leadership, crooked corporations have no insentives to follow the law. If they get caught they know theyll get hit with nothing more than a slight slap on the wrist for ripping off consumers. How in the world do you explain to hardworking americans why this bureau isnt protecting them . To be sure, youve done the role asked of you by the president of the united states. Youve protected company, not workers, not consumers, thats ndefensible. Its now your opportunity to make your initial statement, the loor is yours. Coip thank you ms. Kraninger thank you for an opportunity to provide an update on the bureaus work. Preventing harm to consumers is the most important job of the cfpb. We prevent harm by educating consumers to protect themselves. We prevent harm by having clear rues of the road for regulated entities. We prevent harm by using supervision and enforcement. And we protect by providing for consumer choice. While prevention isnt always possible its always the goal. Saving consumers from financial headaches, setbacks and devastation. The semiannual report and my written testimony provide a rundown of our activities in the first half of fiscal year 2019 and a preview of more recent initiatives, some of which ill take the opportunity to highlight now. First our efforts to provide clear rules of the roads so companies and consumers know what is lawful and what is not. Last week the bureau finalized a rule that provides need red leaf to smaller lenders for reporting under the Home Mortgage disclosure act or hmga and under the consume brother text act. Additionally last month the bureau announced policies to support inknow varkse deuce uncertainty and enhance consumer choice. The bureau announced its first no action letter under the new policies. It is designed to help keep funding streams open for our Nations Housing counselors who have assisted millions of americans attain the dream of owning a home. Second, where we cannot prevent harm to consumers we use our enforcement tools to hold bad actors accountable. Every case is managed by bureau attorneys seeking justice in the public interest. In fiscal year 2019 we announce 2d2 public enforce. Actions and settled six previously filed lawsuits including in a public fair lending enforce. Action the bureau settled with one of the nations largest hmda reporters for violating hmda and regulation c. We took action against an individual who broke a contract Offering High interest loans to veterans. And we tooks against a Student Loan Company that violate the Consumer Protection act. Further the bureau roes actions in 2019 resulted in orders requiring a total of over 770 million in consumer relief and nearly 186 million in civil money penalties. I note these figures not as a measure of accomplishment but to underscore the fact that the bureau continues to appropriately utilize its enforcement tool. Third we continue to promote a culture of compliance lew our supervisor tool and empower consumers through education. Earlier this year we launch and initiative, start small, save up, to help prepare americans to handle an unexpected financial event. As part of the initiative we released a new savings book het to help individuals create a path toward reaching their savings goal and we are looking at other ways to move the needle on savings in america. For example the bureau partnered with h r block to study savings and tax repounds. The refunds. Studies show encouragement through a simple email increased a consumers likelihood of saving a portion of their tax refund. It also found that one in five consumers who took advantage of the specific savings features continued to save eight months later. We will continue to engage in research about the about what works to promote a habit of savings and overall financial well being. Fourth i have a few recent announcements to demonstrate the bureau is committed to using the tools Congress Gave us as effectively and efficiently as possible. Last week the bureau handled its two millionth Consumer Complaint. To ensure the bureaus work continues to be informed by this input i announce ladst month well continue publication of the Consumer Complaint database andwell be enhancing the day be database by providing new tools an graphics to enhance submissions and putting that data into con tegs. Also last week i announced the establishment of a task force to examine the existing regulatory framework. The task force will make recommendations for improving financial laws and regulations and enhancing consumer understanding of marks an products. We are accepting applications from individuals who are interested in serving on the task force and welcome recommendations from members of congress. Just yesterday im proud to announce, just two days ago, imse im proud to announce the new moan loan ombudsman issued his first annual report. The report covers two years and analyzes complaints submitted by consumers. The bureau also set aside memorandum of understanding to the department of education consistent wits statutory responsibility to share Consumer Complaint information information. Before i close id like to touch on one final issue of clarity around the constitutionality of the bureaus structure. As you are aware, i joined the governments recent brief in the Supreme Court to hear the case cfpb law. This matter is in litigation so consistent with lang stonding bureau practice im not going to discuss it at length. But i do want to highlight a few key points. From the bureaus earliest days the constitutionality of the directors removal provision has been raised to challenge League Action by the bureau in pursuit of our mission. Litigation other this question continues to cause significant delays in some of our enforcement and regulatory action. I believe this dynamic will not change until the constitutional question is revolved. Either by congress or the Supreme Court. My position on this question will not stop the bureau from fulfilling our statutory responsibilities. We will continue to defend the actions that the bureau takes now and has taken in the past. Again, i thank you for this opportunity to discuss the bureaus work and look forward to your questions. Senator crapo thank you, director. My first question is related to access to credit. I ask it in this context. Its already been expressed by senator brown, a concern about the level of enforcement activity. I appreciate your reviewing the agency is enforcing the law. It seems to me that in addition o stopping bad actors from harming consumers, an important thing to do to protect and strengthen consumers is to increase access to safe credit. Could you discuss first of all whether that is one of the important objectives you have and how youd seek to achieve that. Ms. Kraninger thank you, senator. The access to credit is part of the mission of the bureau. Comes into play in dodd frank under innovation in particular, innovation an access. It is an important part of what we do. We do have to be thoughtful and judicious and deliberate in our rule making activities to consider the implications on access to credit. The actions that we take, and there are a number of areas where we are being thoughtful about that. I would highlight the innovation policies pause that clearly is an area where we are seeking more innovation from the industry, from Financial Technology companies from others who have ideas about how we can reach those underbanked and unbanked individuals in our society and bring them into Financial Services that are going to help them bill their financial well being and so that opportunity is something that weve had sim posea on. Symposia on. Were engaged in that and look forward to them coming forward to talk about how we can do. Senator crapo thank you for that weve talked about this, but would you highlight again, one thing we can do for those who are not banked and find it difficult to access credit is to make sure that the Credit System that they can participate in is safe and that it is strong and robust. Available to them. Can you just comment a little further on the importance of that. Ms. Kraninger yes, senator. That is an important part of our job, a competitive, fair, transparent market will promote that an thats a mission we were given. I think one thing i can talk a little bit more about is alternative data and the opportunity to look at that in underwriting. The bureau did issue one no action letter under its prior policy to a company calledup start. We have since had a lot of information on how upstart has used alternative data both employment and education information, to again make those kinds of determinations and provide greater access to credit. We did issue a blog recently, our head of fair lending and head of innovation talked ab