2019 annual report which outlines the bureaus significant work between october 2018, and march 2019, including rulemakings and supervisor and its regulatory activities. The report also provides insight into what the cfpb plans to undertake in the coming work. Go. Since the into her role last november Kathleen Kraninger demonstrated a commitment to ensuring consumers have access to a wide range of Financial Products and services that meet individual needs, fostering innovation and vigorously protecting consumers. Reflecting this commitment to the cfpbs mission Kathleen Kraninger conducted an extensive Cross Country listening tour with a spectrum of cfpb stakeholders during her first month on the job. Kathleen kraningers conversations with consumers, industry and federal and state regulators have improved cfpb engagements, informed their supervision and regulatory processes and improved agency transparency. In the semiannual report director Kathleen Kraninger highlighted the cfpb has taken steps to strengthen the consumer marketplace by providing Financial Institutions clear rules of the road that allow them to offer consumers a range of highquality innovative and Financial Services and products. On september 10th the cfpb issued three new policies to promote innovation and reduce regulatory uncertainty. These policies include Trial Disclosure Program policy, 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 updated 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 struggle to access or qualify for other options. Basing rules on solid evidence and legal support. As the cfpb continues to move forward on this rulemaking 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 advance notice of proposed rulemaking seeking stakeholder comment on potential amendments to its ability to repay qualified mortgage rules. Cfpb director Kathleen Kraninger noted the impasse exacerbates in a level Playing Field and fannie and freddie should play by the same rules as everyone else. Cfpb actions are a positive step and i encourage the bureaus efforts to find a permanent solution to the qualified mortgage standard that provide certainty to consumers, lenders and investors alike. Last week the cfpb announced the formation of a task force devoted to examining ways to modernize and harmonize Consumer Financial losss especially those pertaining to consumer credit. The Banking Committee has spent significant time this congress evaluating how the fair credit reporting act should operate in an increasingly Digital Economy and other firms serve a function similar to the original consumer reporting agencies. I look forward to reviewing the cfpb task force on federal Consumer Financial laws recommendations on how to update so that it continues to function as originally intended in the digital world. Im encouraged by many of the initiatives remain clear the fundamental structure must be reconsidered to make it more transparent and accountable. I support transitioning the cfpb from a Bipartisan Commission subjecting them to appropriations and providing a safety and soundness check for prudential regulators. On september 17, 2019, the department of justice filed a brief by the Supreme Court urging the court in the case to review the constitutionality of the bureaus leadership structure. I have long argued the current structure lacks sufficient accountability and look forward to the Supreme Court taking up a review of this case. During this hearing i look forward to hearing more about key initiatives in the last year. The priorities for the upcoming work period, an additional legislative or regulatory opportunity to provide widespread access to Financial Products and services. Thank you for joining the committee this morning to discuss the cfpbs activities. Welcome, nice to see you. We created the Consumer FinancialProtection Bureau to stand up for students and servicemembers and hardworking americans to protect them from big banks and crooked corporations that rob them of their homes, jobs and savings. After ten month on the job it is clear why donald trump selected you to head the cfpb. You can protect against shady debt collectors and other companies that prey on hardworking americans. Under your leadership under Donald 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 and allowed crooked companies to lie, cheat and steal from hardworking americans and you let them get away with it. The consumer Protection Bureau is supposed to protect consumers, that is your entire job, to protect consumers from predatory loans and predatory payday loans that lead to endless cycles of death. You instead chose to protect the interests of donald trump and his payday lending patrons. Consumers pay the price, when the payday loan was scheduled to go into effect, americans have paid more than 1 billion in fees to payday loan sharks, 1 billion out of the pockets of consumers and consumers without a lot of money raising payday lending, 1 billion 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. You could have protected Service Members and their families but instead the Trump Administration betrayed them when you stopped making sure companies followed protections for servicemembers and their families. You could have strengthened the bureaus enforcement of fair lending laws that returned hundreds of millions of dollars to victims of discrimination and agencies first 7 years. Instead you continued Donald Trumps attacks on lending laws. Instead of protecting consumers you have dismantled the bureaus office of fair lending, put a trump political appointee with a history of racist and sexist writings, we have explored those in this committee before in charge of fair lending. You are now trying to repeal a 2015 rule that required lenders to report basic loan information to ensure they are not discriminated against. Since you took over the bureau has not brought a single case against a company for discriminatory lending practices, not one single case against the company for discriminatory lending practices. Last i checked discrimination hasnt ended in this country and trumps america. You and the Trump Administration have turned your back some student loan borrowers, the bureau could have helped protect 44 million americans with Student Loans from the widespread mistakes, errors and mismanagement by the companies that handle their loans and cost them thousands of dollars but again you betrayed the people the president promised to look out for. Hearing the word betrayed these days is used a lot, the president has betrayed workers in the midwest, autoworkers in the midwest, how the president has betrayed our allies in the middle east, day after day betrayed workers in this country. He sided with betsy divorce and refused to examine federal student loan servicers to make sure they are not cheating people with Student Loans. The gao and its about education Inspector General reported the company that manages federal Student Loans wrongly denied tens of thousands of teachers, nurses, firefighters, servicemembers and other dedicated Public Servants loan forgiveness they earned, this isnt my opinion, this is gao in the department of education Inspector General. You have protected those companies while hardworking 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 real incentive to follow the law. If they get caught they know they will be hit with nothing but a slight slap on the wrist for ripping off consumers. How in the world do you explain to these hardworking americans why this bureau isnt protecting them . You have done the role asked of you by the presence of the united states, you protected companies, not workers, not consumers and that is an defensible. Thank you. It is now your opportunity to make your initial statement, the floor is yours, please proceed. Members of the committee, thank you for the opportunity to provide an update on the bureaus important work. Preventing harm to consumers is the top priority of the cfpb. We prevent harms by educating consumers to protect themselves, prevent harm by clearing, by having clear rules of the road for regulated entities. We prevent harm by using supervision and enforcement to promote compliance with the law and prevent harm by supporting dynamic and competitive markets that provide consumer choice. While prevention is not always possible that is the right goal. Saving consumers from financial headaches, setbacks and devastation. The semiannual report in my written testimony provide a rundown of activities in the first half of fiscal year 2019 and a preview of more recent initiatives several of which i will take the opportunity to highlight now. First our efforts to provide clear rules of the road to companies and consumers to know what is lawful and what is not. Just last week the bureau finalized a rule that provided needed relief to smaller lenders from collecting and reporting data under the Home Mortgage disclosure act and codified the key provision of the economic growth, regulatory release and Consumer Protection act. Additionally last month the bureau announced policies that facilitate innovation, reduce regulatory uncertainty and enhance consumer choice. The bureau announced its first no action letter and to the new policy. It is designed to keep funding streams open for our Nations Housing counselors who assisted millions of americans to the dream of owning a home. Second, where we cannot prevent harm to consumers we use our enforcement tool to hold bad actors accountable. Every cases managed by Bureau Attorney seeking justice in the public interest. In fiscal year 2019 we announced look Enforcement Actions and settled 6 previously filed lawsuits including public fair lending enforcement action the bureau settled with one of the nations largest reporters for violating regulations. We took action against individuals who brokered contracts offering highinterest credit to veterans and took action against student Loan Servicing company that engaged in unfair practices that violated the Consumer Protection act. Further the bureaus actions in fiscal year 2019 resulted in orders requiring 777 million in consumer relief and nearly 186 million in civil money penalties. I note these figures not as a measure of accomplishment but to wonderscore that the bureau continues to utilize its enforcement tool. Third, we continue to promote a culture of compliance through our supervisory tool and empower consumers through education. Earlier this year we launched an initiative to help prepare americans to handle an unexpected financial event. As part of this initiative we release the new savings booklet to reach their savings goals. We are looking at other innovative ways to move the needle on savings in america. The bureau partnered with h r block, the savings of tax refunds. The study shooting courage went through a simple email or small incentive increase the consumers likelihood with the funds. It also found one in 5 consumers took advantage of the specific savings feature, continue to save eight month later. We will continue to engage in research about what works to promote savings and Financial Wellbeing. 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 2 millionth Consumer Complaint. To ensure the bureaus were continues to be informed by this and put i announced last month we will continue the publication of the Consumer Complaint database. In addition we will be enhancing the database by providing new tools and graphics to analyze consumer submissions and putting the data into context. Also last week i announced the establishment of task force to examine the existing legal and regulatory framework. The task force will make recommendations for improving Consumer Financial laws and regulations as well as enhancing consumer understanding of markets and products. We are accepting applications for individuals who are interested in serving on the task force and recommendations for members of congress. Last yesterday, two days ago i am proud to announce the new private Education Loan met an important congressional mandate given specifically to that position by issuing its first annual report. The report covers two years and analyzes complaints submitted by consumers. The bureau assigned a memorandum of understanding to the department of education consistent with statutory responsibility to share Consumer Complaint education. Before i close i would like to touch on one final issue, clarity around the constitutionality of the bureau structure. I joined the government as recent brief. This matter is in litigation. I would like to highlight a few key points. The constitutionality of the directors removal provision was raised, challenge legal actions by the bureau in pursuit of our mission. Litigation and some of our enforcement and regulatory actions. I believe this dynamic will not change until the constitutional question is resolved either by congress or the Supreme Court. My position on this question will not stop the bureau from fulfilling our statutory responsibilities. We will defend the actions the bureau takes now and in the past. Thank you for the opportunity to discuss the bureaus work and look forward to your questions. My first question is related to credit. I ask in this context. It has been expressed by senator brown, a concern about the level of enforcement activity and i appreciate your reviewing the agency is enforcing the law. It seems to me in addition to stopping bad actors from harming consumers. An important thing to do to protect and strengthen consumers is to increase their access to safe credit. Can you discuss whether that is one of the important objectives you have and how you would seek to achieve it . The access to credit is part of the mission of the bureau comes into play in. Frank under invasion in particular associating invasion and access. We have to be thoughtful and judicious and deliberate in rulemaking activities to consider the implications on access to credit, the actions that we take and there are a number of areas we are being thoughtful about that. I would highlight the innovation policy because that is an area where we are seeking more innovation from the industry and others who have ideas about how we can reach those individuals in our society and bring them into Financial Services that are going to help them build their Financial Wellbeing so that is an opportunity we had a symposium on, we engaged in work on that and we look forward to continuing products and services. We have both discussed this a little bit but i would like you to highlight this. It is difficult to access they can participate in is safe. And there is a strong and robust available to them. Certainly that is an important part of our job, competitive, fair, transparent markets do support that for consumers and that is part of the mission we are given more specifically. Something we can talk about his alternative data and the opportunity to look at that in underwriting. The bureau did issue an action letter under its prior policy to a Company Called upstart. A lot of information on how upstart has used alternative data on employment education information to again make those kinds of determinations and provide greater access to credit and we issue the head of fair lending and head of innovation talked about the opportunity that Companies Like upstarts are providing to individuals and brings them in for products and that is something we will continue to do. This option of Innovative Technologies and processes has the clear potential to improve these efficiencies a