October 2018 and march 2019. Including rulemaking and supervisory and regulatory activities. The report provides insight into what the cfpb plants undertake in the coming work period, since stepping into a roll last december director can injure understands consumers have access to a wide range of Financial Products and services that meet their individual needs, fostering innovation and vigorously protecting consumers. Reflecting this commitment to the cfpbs mission, director crandall conducted an extensive Cross Country listening tour with the full spectrum of cfpb stakeholders during her first month on the job area director creditors conversations with consumers, industry and fellow federal and state regulators have improved engagement, informed their supervision and regulatory processes and improve Agency Transparency area in the semiannual report, director preminger also 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 10, the cfpb issued three new policies to promote innovation and reduce regulatory uncertainty. Ucthese 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 towards ensuring the availability of credit that is essential to so many consumers who 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 rulemaking process, i encourage cfpb to coordinate with the other financial regulators on an approach ppsmall dollar lending to create a consistent framework across all institutions in order to promote and expand small dollar lending and the credit options area in july the cfpb released an advanced notice of proposed rulemaking taking stakeholder comments on amendments to its ability to repay all five mortgage rule. Fha director columbia and director preminger noted this acute impasse exacerbates an unlevel Playing Field and that fannie and freddie should play by the same rules as everyone else. The cfpbs action are a positive step and i continue to encourage s them bureaus efforts to finda solution to the mortgage standard that provides certainty to consumers, lenders and investors alike. Last week the cfpb announced the formation of a task force that will be devoted to examining ways to modernize and harmonize federalConsumer Financial laws. Especially those pertainingto consumer credit. The Banking Committee has been significant time does 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 consumerreporting agencies. En i look forward to reviewing the cfpbs task force on federal consumer law recommendations on how to update the fcr eight so it continues to function as originally intended in a digital world. But i am greatly encouraged by many of the changes and initiatives at the cfpb under director creditors leadership , it remains clear fundamental structure must be reconsidered to make it more transparent and accountable. I continue to support transitioning the cfpb to a Bipartisan Commission from a singledirector , subjecting the cfpb to operations and providing a safety check regulators. On september 17 2019 the cfpb filed a brief in the Supreme Court, urging the court in the case of salo law versus cfpb to review the constitutionality of the bureaus leadership structure. Ive long argued that cfpbs current structure lacks sufficient accountability and look forward to the rtSupreme Court taking upreview of this case. During this hearing i look forward to hearing more about key initiatives at the cfpb, priorities in the upcoming work period and regulatory opportunities to provide widespread access to Financial Products and Services Area director preminger, i thank you for joining the committee to discuss the cfpbs activities area. Thank you misterchairman and welcome director. We created the Consumer FinancialProtection Bureau to stand up to servicemembers and hardworking americans to protect them from big banks and crooked corporations. To rob them of their homes and 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 operations 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 live , cheat and steal from hardworking americans and then youve let them get away with it. The consumer Protection Bureau is supposed to protect consumers, thats your entire job, to protect consumers from predatory loans and from predatory payday loans that lead to endless cycles of debt. You instead chose to protect the interests of President Trump and his payday lending patrons. Consumers pay the price. Since august when the payday rule was scheduled to go into effect americans have paid more than 1 billion in fees to payday loan sharks. Thats 1 billion out of the pockets of consumers and its consumers without a lot of money. Theyre using payday lending obviously, 1 billion out of the pockets of consumers because agency that was supposed to look out for them decided to instead got four paydaylenders. You are protected servicemembers and their families but instead the Trump Administration that betrayed them when you stopped making sure Companies Follow the protections for servicemembers and their families area that you also could have strengthened the bureaus enforcement of fair lending laws that return hundreds of millions of dollars to victims of discrimination and of agencies versus seven years. Instead you continued President Trumps attacks on fair lending laws. Instead of protecting the bureaus office of fair lending and put a trump political appointee with a history of racist and sexist writings and we explore those in this committee before in charge of fair lending. Are now trying to repeal a 2015 rule that required lenders to report basic loan information ensure that are not discriminating. What are the results . 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 time i checked, dissemination hasnt ended in this country in trumps america. You and the Trump Administration have turned your back on student loan borrowers. The bureau could have protected the 44 million americans from the widespread mistakes and errors in mismanagement by the companies that handle their loans and have cost them thousands of dollars but again, you betrayed the people the president promised to look out for. Hearing that word tray these days used a lot, how the president s betrayed workers in the midwest. How the president s betrayed our allies in the mideast and day after day trade workers in this country. You cited with education secretary devos and refused to examineLoan Services to make sure theyre not cheating peoples loans. I guess i should expect that consistently looks white retreat for wall street executives. Cricket corporations have no real incentive to follow the law and if they get caught they know the bureau will hit them with nothing more than a slight slap on the rest forward enough consumers. How in the world do you claim to these hardworking americans why this bureau is it protecting them connect to be sure youve done the role as bayou by the United States depicted companies, not workers. That indefensible. Thank you, director not your opportunity to make your initial statement. The floor is yours. Please proceed. Chairman, drinking member, members of the committee thank you for their y paternity to provide an update on the bureaus important work. Preventing harm to consumers is the top priority of the cfpb. We prevent harm by educating consumers to protect themselves. We prevent harm by clearing or having clear rules of the road for related entities and prevent harm by using supervision and enforcement to promote compliance with the law and prevent harm by supporting dynamic and competitive markets that provide for consumer choice. While prevention is not always possible it is the right c goal. Saving consumers from financial headaches, setback and devastation. The semi annual report in my 20itten test money provides a rundown of our activities in the first half of fiscal year 2019. A preview of more recent initiatives some of which i will take the opportunity to highlight now. First, our efforts provide clear rules of the road so the companies and consumers know what is lawful and what is not. Just last week the bureau of finalized the rule to provide needed relief to smaller lenders from collecting and reporting data under the Home Mortgage act and codified to Keep Division of economic growth, revelatory relief Consumer Protection act. Additionally last month the bureau announced policies to facilitate innovation, reduce regulatory acidity and enhance consumer choice. The bureau announced its first new action letter under the new policy. It is time to help keep funding streams open for our Nations Housing counselors who are assisted millions of americans, attain the dream of owning a home. Second, where we cannot prevent harm to consumers we use our involvement tool to hold bad actors accountable. Every case is managed by bureau attorneys seeking justice in the public interests. It is clear to the 19th we announced 22 Public Public improvement actions and settled gix previously filed lawsuits including in a Public Building Department action the bureau settled with one of the nations largest reporters forla violatig regulation see. We take action against the individual who brokered contract Offering High interest credit to veterans and took action against the student Loan Servicing company engaged in unfair practices that violated the protection act. I further, the bureaus bureaus actions in fiscal year 2019 2resulted in an order for requiring a total boater of over 770 million in consumer relief. Nearly relief. Nearly 186 million in civil money penalties. I note the figures not as a measure of the commitment but to underscore the fact that the bureau continues to appropriately utilize its an pertinent tool. Third, we continue to a culture of compliance through our supervisory tool and empower consumers through education. Earlier this year we launched an Initiative Start small, save up to help bear americans to handle an unexpected potential event. As part of this initiative we released the new savings booklet to help individuals create the path to reach their savings goals. We are looking at other innovative ways to move the on savings in america. For example the bureau partnered with h r block to study savings and tax refunds. Ck the study show that encouragement for a simple email or small incentive increase the consumers likelihood of saving a portion of their tax refunds. It also found that one in five consumers to manage of the specific savings peter continued to save eight months later. S we will continue to engage in research about what works to promote have it of savings and overall financial wellbeing. Fourth, a a few recent announcements to devastate the bureaus committed to using the tools Congress Gave us as effectively and efficiently as possible. Just last week the bureau handled its 2 million Consumer Complaint to ensure that the bureaus work continues to be informed by this input 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 consumers submission and put that data into context. Also last week i know the assessment of the task force to examine the existing legal and regulatory work with the task force making recognitions for improving Consumer Financial laws and regulations as well as enhancing consumer understanding of markets and products. We are currently expecting petitions from individuals interested in serving on the task force and welcome recognitions from numbers of progress. Just yesterday about to announce that the new private Education Loan that an important congressional mandate given specifically to that position by issuing his first in all report. The report covers two years and analyze complaints stated by consumers. The bureauu sent a signed memorandum of understanding to the department of education consistent with the statutory response ability to share consumer complete intermission. Before i close, id like to touch on one issue, clarity around the constitutionality of the bureau structure. As you are aware i joined the government in the sipping court to hear the case. This matter is in litigation so consistent with longstanding bureaucratic i will not discuss it at length. 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 legal actions in pursuit of our mission in litigation over this question continues to cost significantly in some of our investment in military actions. I believe the dynamic will not change until constitutional caution is resolved. Either by congress or the sipping court. Questionon on this will not stop the bureau from the filling our statutory responsibilities. We will defend the actions be taken out and in the past. I thank you for this opportunity to discuss the bureaus work in the forward to your questions. Thank you, director kraninger. My first question is related to access to credit. I ask it in this credit question. It has been expressed by senator brown a concern about the level of inperson activity and i appreciate you reviewing theieie agency is enforcing the law. It seems to me that 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. Could you discuss whether that is one of the important objectives that you have and how you would seek to achieve that . Thank you, sen. Access to Credit Credit is part of the mission of the bureau and it comes into play in. Dot frank under innovation and soliciting innovation and access. Its an important part of what e do and we do have to be supple and judicious and deliberate in our will making activities to consider the indications on access to credit. The actions we take and there are a number of areas where we are beatable about that. The highlight innovation policies because that clearly is an area where we are taking more innovation from the industry from Financial Technology companies and from others who have ideas about how we can reach those under bank and in our society and bring them into Financial Services that are going to help them build their financial wellbeing. That virginity is something weve had symposium on and engaged in work on that induced the court to continued products and services coming forward to talk about how they can do that. Thank you. I guess weve already discussed this but id like to highlight again one of the most important things we can do for those who are not the date and find it difficult to access credit is to make sure the Credit System that they can participate in is safe and that it is strong and robust available to them. Could you comment further on the importance of that . Yes, certainly. Thats an important part of th that. That competitive, fair, transparent market to promote that for consumers and that is part of the mission we are iln getting. I think one thing i can talk about is alternative data and the opportunity to look at that in underwriting at the bureau did issue one action under prior policy to accommodate called upstart and since had how upstart has used alternative data both employment education information to again make those determinations and provide greater access to credit and we did issue a blog recently or head of fair lending and head of innovation talked about their virginity that Companies Like upstart are providing to individuals who are on bank and under banked to bring them in at tuesday for products and that is something we will continue to do. Thank you. The adoption of Innov