This hearing is just under four hours. I spent. [background noises] the committee will come to order. Without objection the chair is authorized to declare a racist of the committee at any time by this hearing is entitled semi annual report of the bureau of financial protection. Without objection all members will have five legislative days within which to submit extraneous materials to the chair or inclusion in the record. I now recognize myself for four minutes to give an Opening Statement. Thank you director for being here today. As the director you wear a lot of hats. You are a member of the federal Deposit Insurance Corporation and the Financial Stability oversight consult. This committee spent a lot of time understanding how regulators reacted to the failures of Silicon Valley macon signature bank. Given both the fcic have equal rolls in the failures i am looking forward to hear about your involvement in the decisionmaking process. As we said the fdics chair grunberg and pfister bar testified before this committee there was and continues to be a lack of transparency surrounding regulate decisionmaking that first weekend in march. Was there an ideological lens that impacted your response . Did your views regarding consolidation lead to a delayed resolution and greater uncertainty in the Financial Sector . What spent more time on this when we get the questions returning to your job today your agency is responsible for regulating and enforcing Consumer Financial law. Clear rules and expectations of how to comply with those rules benefit all participants in the Consumer Financial marketplace. Under your leadership they are doing the exact opposite. First your agency identifies consumer harm and what instance for specific products. Extrapolate harm occurred everywhere everyone should be under suspicion. In fact every act is presumed abusive until a Court Decides maybe they arent. Use compliance bulletin circulars and advisory opinions do so doubt and confusion in the marketplace. The abilify entire marketplace simply because they are politically unsafe in your opinion. The practice of name and shame first verify later is not Consumer Protection. Is mccarthyism. This harms consumers in the economy at large while propping trial lawyers. Let me be clear that is not the mission of the cfpb. Finally i will turn to what appears to be most recent appointment as an appendix are present by his reelection campaign. The president started talking about junk fees current hyper partisan campaign about their efforts to clamp down on you gas a common junk fees. Look it is an easy target know it likes fees to be clear some patient requesting to ensure people not getting ripped off. The indiscriminate label fees as abuses is a blatant attempt to pander to americans have been hung out to dry in the fighting economy. My democratic colleagues will likely change the favorite top. Explain away the need for fees. Unit wells relies on fees placement the government. You enter most National Park to pay a fee for even cfpb charges fees on rating of information act request. Why did the cfpb believe the same cost these fees cover or the actions that are designed to deter do not exist in the private sector. I will finish with this. The currency operates in an opaque increase in the partisan analytically manner. Spiritless under richard his legacy lives on with you director. Cfpb is directly over stepping his bounds in serving as a judge, jury, and executioner in the consumer marketplace. That is why Committee Republicans advance a package of bills reform structure and funding stream and the cfpb to ensure transparency and accountability to the American People. Let me say one thing on the rulemaking of credit cards really want you to talk about this director. We do not understand how it is protecting say to a credit card borrower who is always on time and never pays light which is 74 raise your own data. 74 of americans of credit cards never pay late. Why is Consumer Protection to pay a higher Interest Rate beitler in the late fees on borrowers who never pay late . Then i yield back. We will not recognize the Ranking Member the full can be the gentleman from california performance rubin statement. Thank you very much. Good morning and welcome director. I am so pleased that you are here this morning to share with us the success and all of the good your group has been doing. As we predicted focus on how to strengthen Consumer Protection and avoid a catastrophic default. Republicans are focus on undermining the only federal agency with a Singular Mission of protecting consumers. As we speak extreme maga republicans are teaming up with predatory payday lenders to challenge the constitutionality of the cfpb funding and a Supreme Court based on a french legal theory. Every single other court that has validity of cfpb funding but just not like maga republicans who continue to deny the Election Results for their continuing to deny these facts also. Let me state the facts simply the constitution is clear. Congress can fund the executive branch and clean the cfpb, banking regulators and other however it likes and has done so for nearly 250 years. This attack is that another destructive effort by republican to undermine all types of Government Programs including and especially social security, medicare, and a lot else. Lets take a look at last month. I was proud to lead a brief one year old 44 and former members of Congress Supporting the cfpb against this reckless challenge. Republicans are also venting legislation to undermine the operations of the cfpb. These efforts are direct attacks on consumers and the safeguards that protect them and our nations ever evolving Financial System. Despite these intact cfpb record under director chopra speaks for itself. Cfpb has successfully embedded junk fees. Believe burning of medical debt on consumers, Credit Reports, but back against housing discrimination and redlining and held large Financial Institutions like wells fargo accountable for repeatedly breaking the law and harming people across america. Cfpb has returned more than 17,200,000,000 harm to customers. That is what 80 of people including 75 of republicans support the cfpb but the agency to continue its job. Republicans should start listening to their constituents who can tell them what a junk fee is and explain why they need to support this critical agencies work. Additionally cfpb new Small Business mending rule implementing section 1071 will go a long way to finally root out discrimination and Small Business lending will open new funding opportunities to Small Businesses start up, grow and thrive. Some partner tracking data minority and women owned businesses as well as lgbtq owned businesses. We especially focus on during pride month we are focus on that now. Democrats will reject republican efforts to use the Congressional Review Act to eliminate this long overdue rule. Republicans refused to stand up for consumers including lgbtq Small Business owners. They continue to protect the interests of large corporations. I yield back. Quick to gently time the chair around recognize his vice chair of the subcommittee on Financial Institutions and Monetary Policy for one minute. Thank you, mr. Chairman thank you director chopra for coming to speak with us morning. Unfortunately since last february here it does not seemed like much is change. Cfpb sought Unaccountable Agency of centralized leadership on a constitutionally questionable funding structure. The Supreme Court is currently looking into the latter im hopeful the decision will show us a path forward for the agency under regular appropriations. Industry feedback has been near unanimous. The bureaus acting little to no regard for the downstream effects of the rulemaking on consumers or Small Business. Its wide reaching Disclosure Rules industry circulars and opinions issued across various media including enforcement cfpb has collected a wealth of consumer data and in march of this year we were informed of a significant breach of the bureau that compensated blood to hundreds of thousands of consumers. This race important questions over whether congress and the American People can trust the bureau to look out for your best interest they are not even willing to protect the information they collect. Consumer Financial Protection Bureau is deeply troubled and desperate perform the best time to hold up your account. Today it was 12 years ago. The second best time is now prepared to sometimes the chair recognizes the Ranking Member sir foster for one minute. Thank you mr. Chair. Thank you for being here today. And everywhere Consumer Financial transactions become increasingly complex and often times daunting cfpb serves as a beacon of protection ensuring individuals are treated fairly in the marketplace. A real example of government doing things to make peoples lives better. Our technology ability to transact more efficient so to the scans in the fraud schemes that we should take advantage of our constituents cfpb protects the most sensitive parts of our population. Focus on the protection of older adults and vulnerable groups from Service Members lgbtq individuals. The partnership of advocacy organizations their actions against Companies Selling laws protecting Service Members and others demonstrate the dedication of safeguarding those who may be more susceptible to financial exploitation. But does all of this will come in under constant attack. The coming onslaught of impersonation the opaque Global Advisors your job will not get easier so thank you neil back. Quick the general times expect a look in the testament honorable rosie chopra director of the Consumer Financial protection beverage director chopra we thank you for your time. Recognition for five minutes to give an oral presentation of your testimony. Your written statement over them a part of the wreckage are not recognize for five minutes because chairman barr, Ranking Member waters and members of the committee thank you for holding the steering today. Please report cfpb continues to deliver tangible results for the public ensuring consumers are protected maturing honest businesses are safeguarded and preparing for the future bigticket Artificial Intelligence reshape industry. I want to share a few observations about the state of household Balance Sheets in the United States as well as some highlights of our work. Americans families continue to benefit from a resilient labor market Consumer Spending is quite robust borrowing has accelerated rate of inflation in key categories such as vehicles and others have contributed to rising levels of household debt. Americans now own 17 trillion in mortgages, auto loans, student loans, credit cards and other consumer loans. Rates are higher than they were a few years ago and some families are paying much more. Overall current indicators of distress on Consumer Credit remain fairly muted. There are modest science of increased delinquency rate will continue to monitor the impact of changes in Interest Rates and home prices closely as well as other changes that might impact large population. We are on high alert shocks to the system of Financial Stability. The failures of Silicon ValleyBank Signature bank and First Republic highlight significant vulnerabilities in the banking system. Regulators took a series of extraordinary actions that limited the follows the broader economy but it is clear policymakers need to take steps to avoid the need for emergency measures in the future. With respect to congressional directive cfpb has made major progress to propose, finalize and implement acquired rules on Credit Reporting for survivors of human trafficking, Small Business lending data transition and more. We are reviewing old rules to find opportunities to simplify your proof them. We built on the work of my predecessor to publish more advisory opinions and guidance that helps small firms looking to develop new products and services. We are focusing more heavily on supervision of nonbank Financial Firms that have not always been subjected similar oversight at local banks and Credit Unions figure activating unused authorities to minimize regulatory arbitrage by nonbank firms seeking to gain a competitive advantage we have shifted the focus of our Enforcement Program away from targeting small actors and putting more attention on large and repeat offenders. Since then we have recovered 4. 6 billion in refunds and penalties we are handling an average of 10,000 Consumer Complaints per week and obtaining successful resolution individuals outside of legal proceedings. But equally important is our work to address how technology is transforming Financial Services. Think the u. S. Has a choice are we going to Harness Technology to maintain and enhance relationship banking, drive more competition and protect privacy or will we continue our lurch toward assistant marked by surveillance that is fully automated and controlled by just a handful of firms . Cfpb is working to ensure broad benefits for consumers and businesses alike when it comes to Technological Progress. One of our most important initiatives is to accelerate the shift in the United States to open banking allowing consumers to more easily switch and gate access to new products while protecting their financial data. We have been leading a number of efforts in Artificial Intelligence and we are working to bring more technical talents inside the agency. We are taking steps to guard against algorithmic bias and we are working to ensure data brokers respect longstanding loss on the books the work of the cfpb in an age of big tech in Artificial Intelligence is never been more important. Thank you chairman for the opportunity to appear before he look forward to your questions. Ask thank you director. I will now yield myself five minutes to ask some questions. As an fbi Board Members are involved in the decisionmaking related to Silicon Valley bank in its resolution. During the weekend of march 9 did you express any views to fdic chairman rutenberg, any member fdic board of directors come in the fdics staff or officials and administration regarding the class of banks that should or should not be considered as a viable buyer Silicon Valley question bank barely particularly the most efficient way to contain any follett is to ensure there is continuity the Bank Merger Act specifically talks about Financial Stability. It was important. Brexit you express an opinion that a larger wall street too big to fail banks should not be in the class of institutions that would be eligible to purchase the bank . Oxen think we would have taken any potential buyer. We did not receive a bid because i appreciate your answer. And i ask because ftc commission you submitted a comment to d. O. J. And bank mergers criticizing those it occurred to the 2008 financial crisis quote policymakers competitive orchestrating several more maga mergers conveyor banks. We also note use procedural gains december 2021 to try to force a Bank Merger Process review during the justice Silicon ValleyBank Failures an opportunity to take your personal views on maga mergers and implement them in a row or crisis . What you are referring to a talk about where there was tremendous government assistance. It was a different situation. Humor faces on the fastest Bank Failures in history project structure one more time did you in any way try to influence the analysi