Testimony who heads the federal Housing Finance agency. This hearing will come to order. Room has been configured to maintain the recommended six that socialco distancing between senators, witnesses and other individuals in the room necessary to operate the hearing which we have kept to a minimum. Some members will be here and arpresent. The witnesses were here in person and others will be coming in by videoconference. I remind everyone once you start speaking there will be a slight delay before youve are displayeyou are displayedon theg in remotely to minimize background noise please click on the mute button until it is your turn mun to speak or ask questi. If theres any Technology Issue as usual, we will move to the next senator until it is resolved. I will remind all the fiveminute clock still applies. You should all have a box on your screen so those of you operating remotely will show the time that his remaining. After 30 seconds im going to try to remember to tap the gavel to remind senators their time is expiring. With that, we welcome our federal housing regulators. The honorable secretary of housing and urban development and the honorable director of the federal Housing Finance agency. Welcome back to all of you. Today we will receive testimony on your agencys recent activities, operations and ongoing efforts too promote access to quality Affordable Housing while also ensuring the safety and soundness of Housing Finance market. Your Agency Missions have never been more critical. The description of covid19 has hit homeowners and the housing tmarket especially hard. Weve already seen a huge number of mortgage borrowers and forbearance while many are struggling to make ends meet and countless renters are unsure if they will be able to make their next payment. In march, fha acted swiftly to prohibit for closures for millions facing Financial Hardship due to the pandemic. Soon after, Congress Passed the coronavirus aids relief and Economic Security act codifying that extending these protections are providing relief to the renters. Title iv of the outcome tends to be housing provisions. 4022 imposes a 60 day eviction and foreclosure moratorium for the singlefamily borrowers with a federally backed Mortgage Loan and also allows struggling homeowners up to one year loan forbearance. Section 4023 extends similar relief to those that are current on their mortgage payments. For those that live in the multifamily units to participate in a federal Assistance Program or have a governmentbacked mortgage. To further soften the economic blow of the pandemic across the many communities served. In addition to implementing the care act, the fhfa have taken actions to further protect borrowers and Mortgage Services during the pandemic. Agencies have extended the foreclosure moratorium for qualifying homeowners through at least the end of june. The agencies have also taken steps to ensure they are not facing large looming death payment. They will no not owe a lump sumt the end of the forbearance. They further announced the new payment deferred option which allows the borrowers that are able to return to making their normal Monthly Payment the ability to repay their missed payments at the time the home is sold or refinanced with maturity. They similarly have component of the National Emergency partial claim, National Emergency partial claim which allows eligible borrowers and forbearance to reinstate their loans by authorizing servicers to the defense fund them on their behalf like the fhfa repayment is the third until the back end of the loan. Uin recognizing the undue burdn that the pandemic is placed on the Mortgage Servicingon indust, sfhfa have acted quickly to address the liquidity gap. It extended the issue or assistance to include the past for Assistance Program which allows the servicers to apply for assistance in meeting principal Interest Payments and theyve announced no Mortgage Service or will be responsible for advancing more than four months of the best principles payments on a loan. While america has taken steps to return to work and relax the stayathome orders, the recovery is only just beginning. For the collaboration at this time i think you. The committee is also focused on working to identify and taylor over burdensome regulations in the effort to create conditions that will lead to a forceful economic recovery. Secretary carson, i apply to you for the efforts to identify and eliminate 33 barriers to theyve taken a step towards safety and soundness and proposing a thorough thoughtful of the three g. Network for fannie mae and freddie mac. As americans face the financial uncertainty is long past time to make the hard position and address this Unfinished Business of the 2008 financial crisis. Thank you for your considerable efforts here and i look forward to the continued Work Together this topic. Thank you both again for joining usr here today. Senator brown. Senator brown, do you have your mute button on . I think we are going to try to contact him to fix the technical problems. Senator brown. The [inaudible] i am told senator brown is speaking and is being broadcast but we cannot get the signal in this room so we are going to have him continue his remarks. I apologize to the witnesses you may not hear his introductory remarks before i go to your testimony. [inaudible] you want to abandon the Legal Standard of the supreme court, the Legal Standards used to bring the housing discrimination lawsuits. That isnt just my opinion, mr. Chairman, let letter after letter of the agency opposing actions and those before us today are pushing plans that will make the Home Ownership more expensive, harder to get particularly for borrowers of color. This is what happens when the ideologues in his administration pushed wall streets agenda instead of regular people actually need. Before this hit from the families were spending more of their income spending a wee houy were likely to experience, this was fueled in part by the federal governments failure to protect black and brown borrowers from predatory subprime lenders before the crisis despite knowing that they were targeting them. Now black families are experiencing this economic crisis withth just one tenth thy are more likely to work at jobs where the corporate employers didnt pay them enough to begin with. We are close to repeating these mistakes. They prefer that they are unlikely to be able to make the next payment. Almost half unlikely to be able make the next payment. They are in the middle of a crisis and you either dont kn know, you dont know where you dont care. You are moving ahead with civil rights protections while inouye went across the country that are opening up 20 million americans are unemployed, some have been able to pay the rent but only because the test emergency Unemployment Insurance earlier this year and its set to expire at the end of july. President trump, leader mcconnell are refusing to extend it. Of course we should be surprised if thiat this part of the leades decades long effort to undermine andan weaken the social insurane Unemployment Benefits all of us pay into. The democrats have plans to get more help directly to the working families and the with the utility bills so they can help the renters avoid any possible choices between rent and prescriptions were training savings were going to a payday lender. Its already passed the house and if its in the majority leaders test. The desk collecting dust for many bills keep coming and the stress keeps mounting. Before the pandemic President Trump and his trophy cabinet members either didnt realize or didnt caret that behind the stock market data the economy was already broken for many and it never worked for many of them to begin with and now the Trump Administration either doesnt realize or doesnt care the bottom is falling out for many of these families. For those in hawaii and montana and minnesota and rhode island and idaho people are tired of the lack of action and accountability before the pandemic the Trump Administrations l were trying o leveld the Playing Field for wl street, but this kind of definition enough is enough. We want to hear that you understand both the magnitude of the Current Crisis and the inequities built into the housing system for generations. Its about time you do something to actually fix it instead of making it worse. Thank you, mr. Chairman. Thank you, senator brown. Im going to wait while they adjust this a little bit. I think we are getting there. We will now move to the witnesses and secretary carson, why dont you begin first . Thank you, mr. Chairman and Ranking Member brown. I didnt hear most of what to say. Members of the committee, thank you for the opportunity to discuss the steps the u. S. Department of housing and urban development is taking to maximize the nations response to the National Emergency. These actions reflect both my work with theh White House Coronavirus task force and the measures developed to protect the health and safety of the american public. I want to begin by recognizing the Unprecedented Health care and economic challenges facing americans today. This disease is affecting those across the nation. As the secretary my highest priority has been to ensure americans dont lose their homes and to safeguard those at the greatestve risk including homels and lowincome communities. I also want to thank the nations medical professionals have firstline responders have sacrificed so much to keep americans safeea and healthy. As a medical doctor, i am inspired daily by their unwavering commitment to their fellow citizens. President trump signed into law the care act and in total it provided more than 12 billion in funding recognizing the unprecedented nature i directed my staff to immediately begin the process of getting the fun fund is impacted by. As of today, theyve announced obligations for over 9 billion in funding. This includes 3 billion in funds, 4 billion in the psg fund is, 685 million for the Public Housing operating fund, 380 million for the rental assistance, 800 million in projectbased rental assistance, 200 million in ie hp g. Phones, 75 million for the section 811 boucher program at 65 million for these funds. The fha acted quickly to help protect singlefamily homeowners who lost their jobs or were experiencing Economic Hardship as a result by implementing a 60 day moratorium, which was subsequently extended through june 30. The act also provided the 120 moratoriumon including properties with singlefamily or multifamily mortgages. They further announced a set of mortgage Payment Relief options for the singlefamily homeowners this includes the cares and forbearance that allows them to request up to six months of forbearance and extend up to six months. Also included was an extension period for calling the loan due for those big home equity conversion mortgage. The fha alsoh. Implemented the National Emergency standalone partial claim the borrowers on forbearance. This will help eligible homeowners resumed their payments and avoid a long sum payment. They expanded the passthrough Assistance Program to help address potential issue or liquidity challenges and other mortgage programs. For th the issuers available fus and scheduled payment of the principal and interest to the mortgagebacked security holders. The timely payment to the mortgagebacked holders consistent with the guarantee is essential to the liquidity. If theth confidence of the investors to finance the housing and the programs. In december, 2018 President Trump signed executive orders 13853 establishing the white house a opportunity and revitalization council. Ive had the honor of chairing the count since its establishment. President trump directed at me and counsel to utilize its talented structure and build on its original intent with a renewed focus to expand efforts to protect the most vulnerable communities. They will be kept safe from this invisible enemy now and into the future. In the coming weeks, they will identify different policy approaches needed to help advance opportunity. Thanks to the leadership of President Trump, i am proud of the work of this administrationd especially the 7500 employees are doing to fight this invisible enemy and to meet the needs of the American People. Im grateful to this committee for its bipartisan commitment to meeting this challenge. Thank you. Can you turn your microphone on. Distinguished members of the committee thank you for the invitation to appear today. The there isnt a single civil rights protection that they have pulled back during my time. Not one any assertions to the contrary is false. We have acted swiftly and weve prioritizedro those in the housg market from day number one. And for the partnership and leadership let me thank the employeess they are the greatest asset and their wellbeing has been the top priority. Flexibilities have enabled them to remain safe and image at home obligation while fulfilling a vital mission. Weve also continued to foster the environment where everyone feels safe, respected and valued for their differences. It reaffirms my fairness, diversity and inclusion are the core values to be personally and in thean agency. They are one of the most Diverse Workforce is among the agencies. During the crisis americans shouldnt have to worry about losing their homes. They worked closely with the regulated entities to support the borrowers and renters while ensuring the proper functioning of the Mortgage Market during the crisis. Our actions have been and continue to be datadriven. It applies to those backed by fannie mae and freddie mac. The policies helped set up standards for thofstandards for. For those facing foreclosure we suspended all through at least june 30. Bacon was repaid with a messed. In the enterprise forbearance about one third continue to make opayments. They directed the enterpris thec trait such as a courageous they want to buy a new home or refinance. At the direction the interface created online lookup tools that allow the renters and borrowers determine if they are eligible for eviction i protection or forbearance. They also have the options to the script servicers use when talking to borrowers about forbearance. Weve emphasized those in the public that no lump sum is required at the end of the forbearance. We partnered with the cpb to launch the Protection Program and they helped to develop a website that consolidates the federal information about the mortgage release options and how to avoid scams. Weve also taken action to support the proper functioning of the Mortgage Market to ensure the safety of the market participants, fhfa authorizes several verifications and a grizzled flexibilities at least through june 30. T instituted the servicers obligations to advance the principle Interest Payments on the loans and forbearance. Prior to this the enterprises had never participated this. The policy provides a new opti option. Im proud of what theyve done to help those in the Housing Market deal with the crisis. At this point is referenced in my written testimony i am encouraged by what the data tells about the state of the market and the capacity and forbearance rates. The this undermines the role and jeopardizes the Important Mission to provide the interface to the Stronger Foundation on which the distress they have everthree proposed capital ruleo help teach enterprise to be safe and sound int sounded to fulfils mission across the Economic Cycle and to support a sustainable and affordable Home Ownership. However i should emphasize only congress can enact the reforms necessary to fix the structural Housing Finance system. To that End Next Week i will submit the annual report to congress that includes several legislative recommendations. Reform is long overdue. Rd strengthening the regulatory and supervisory authorities simply to be on par with what others have will ensure the enterprises will be well regulated in capitalized outside of conservatorship. I look forward to the opportunity to hear your questions. Thank you for the opportunity tr be here this morning. Thank you, director. I look forward to your resolutions on the system. My first question will be to both of you. As we both know, congress acted boldly on the act to make it through the economic crisis including through exton in the forbearance prohibiting those and forbearance across the broader portion of the market. Now ten weeks later from the perspective, could you briefly tell me how what you guys the current state of the market and what are some of the policy tradeoffs that we need to consider now as we move forward towards the next response . This is the reason that