U.S. GOVERNMENT PUBLISHING OFFICE

35–617 PDF WASHINGTON : 2019

S. HRG. 116–1 

NOMINATIONS OF BIMAL PATEL, TODD M. HARPER, RODNEY HOOD, AND MARK ANTHONY 

CALABRIA 

HEARING 

BEFORE THE

COMMITTEE ON 

BANKING, HOUSING, AND URBAN AFFAIRS 

UNITED STATES SENATE 

ONE HUNDRED SIXTEENTH CONGRESS 

FIRST SESSION 

ON 

NOMINATIONS OF: 

BIMAL PATEL, OF GEORGIA, TO BE AN ASSISTANT SECRETARY FOR FINANCIAL

INSTITUTIONS, DEPARTMENT OF TREASURY

TODD M. HARPER, OF VIRGINIA, TO BE A MEMBER OF THE NATIONAL CREDIT

UNION ADMINISTRATION BOARD

RODNEY HOOD, OF NORTH CAROLINA, TO BE A MEMBER OF THE NATIONAL

CREDIT UNION ADMINISTRATION BOARD

MARK ANTHONY CALABRIA, OF VIRGINIA, TO BE DIRECTOR OF THE FEDERAL

HOUSING FINANCE AGENCY

FEBRUARY 14, 2019 

Printed for the use of the Committee on Banking, Housing, and Urban Affairs 

( 

Available at: https://www.govinfo.gov/ 

COMMITTEE ON BANKING, HOUSING, AND URBAN AFFAIRS 

MIKE CRAPO, Idaho, Chairman 

RICHARD C. SHELBY, Alabama 

PATRICK J. TOOMEY, Pennsylvania 

TIM SCOTT, South Carolina 

BEN SASSE, Nebraska 

TOM COTTON, Arkansas 

MIKE ROUNDS, South Dakota 

DAVID PERDUE, Georgia 

THOM TILLIS, North Carolina 

JOHN KENNEDY, Louisiana 

MARTHA MCSALLY, Arizona 

JERRY MORAN, Kansas 

KEVIN CRAMER, North Dakota 

SHERROD BROWN, Ohio 

JACK REED, Rhode Island 

ROBERT MENENDEZ, New Jersey 

JON TESTER, Montana 

MARK R. WARNER, Virginia 

ELIZABETH WARREN, Massachusetts 

BRIAN SCHATZ, Hawaii 

CHRIS VAN HOLLEN, Maryland 

CATHERINE CORTEZ MASTO, Nevada 

DOUG JONES, Alabama 

TINA SMITH, Minnesota 

KYRSTEN SINEMA, Arizona 

GREGG RICHARD, Staff Director 

JOE CARAPIET, Chief Counsel 

MATT JONES, Counsel 

BRANDON BEALL, Professional Staff Member 

LAURA SWANSON, Democratic Deputy Staff Director 

ELISHA TUKU, Democratic Chief Counsel 

BETH COOPER, Professional Staff Member 

COREY FRAYER, Professional Staff Member 

DAWN RATLIFF, Chief Clerk 

CAMERON RICKER, Deputy Clerk 

SHELVIN SIMMONS, IT Director 

CHARLES J. MOFFAT, Hearing Clerk 

JIM CROWELL, Editor 

(II) 

C O N T E N T S 

THURSDAY, FEBRUARY 14, 2019 

Page 

Opening statement of Chairman Crapo ................................................................. 1 

Prepared statement .......................................................................................... 41 

Opening statements, comments, or prepared statements of: 

Senator Brown .................................................................................................. 3 

Prepared statement ................................................................................... 42 

NOMINEES 

Bimal Patel, of Georgia, to be an Assistant Secretary for Financial Institutions, Department of Treasury ............................................................................ 5 

Prepared statement .......................................................................................... 43 

Biographical sketch of nominee ....................................................................... 45 

Responses to written questions of: 

Senator Brown ........................................................................................... 106 

Senator Moran ........................................................................................... 112 

Senator Cortez Masto ................................................................................ 113 

Senator Sinema ......................................................................................... 114 

Todd M. Harper, of Virginia, to be a Member of the National Credit Union 

Administration Board .......................................................................................... 7 

Prepared statement .......................................................................................... 52 

Biographical sketch of nominee ....................................................................... 54 

Responses to written questions of: 

Senator Brown ........................................................................................... 114 

Senator Rounds ......................................................................................... 119 

Senator Moran ........................................................................................... 120 

Senator Cortez Masto ................................................................................ 123 

Senator Jones ............................................................................................ 128 

Senator Smith ............................................................................................ 130 

Senator Sinema ......................................................................................... 131 

Rodney Hood, of North Carolina, to be a Member of the National Credit 

Union Administration Board ............................................................................... 8 

Prepared statement .......................................................................................... 65 

Biographical sketch of nominee ....................................................................... 67 

Responses to written questions of: 

Senator Brown ........................................................................................... 131 

Senator Rounds ......................................................................................... 136 

Senator Moran ........................................................................................... 137 

Senator Cortez Masto ................................................................................ 139 

Senator Jones ............................................................................................ 146 

Senator Smith ............................................................................................ 147 

Senator Sinema ......................................................................................... 148 

Mark Anthony Calabria, of Virginia, to be Director of the Federal Housing 

Finance Agency .................................................................................................... 10 

Prepared statement .......................................................................................... 74 

Biographical sketch of nominee ....................................................................... 76 

Responses to written questions of: 

Senator Brown ........................................................................................... 148 

Senators Brown and Reed ........................................................................ 158 

(III) 

Page 

Responses to written questions of: —Continued 

Senator Scott ............................................................................................. 159 

Senator Rounds ......................................................................................... 159 

Senator Tillis ............................................................................................. 160 

Senator Moran ........................................................................................... 161 

Senator Reed .............................................................................................. 165 

Senator Menendez ..................................................................................... 165 

Senator Warner ......................................................................................... 169 

Senator Schatz ........................................................................................... 171 

Senator Cortez Masto ................................................................................ 174 

Senator Jones ............................................................................................ 182 

Senator Sinema ......................................................................................... 184 

ADDITIONAL MATERIAL SUPPLIED FOR THE RECORD

Letters submitted by Chairman Crapo .................................................................. 186 

Letter submitted by Senator Brown ....................................................................... 201 

Letter submitted by Senator Tillis ......................................................................... 203 

(IV) 

(1) 

NOMINATIONS OF BIMAL PATEL, TODD M. 

HARPER, RODNEY HOOD, AND MARK ANTHONY CALABRIA 

THURSDAY, FEBRUARY 14, 2019 

U.S. SENATE, 

COMMITTEE ON BANKING, HOUSING, AND URBAN AFFAIRS, 

Washington, DC. 

The Committee met at 10:02 a.m., in room SD–538, Dirksen Senate Office Building, Hon. Mike Crapo, Chairman of the Committee, 

presiding. 

OPENING STATEMENT OF CHAIRMAN MIKE CRAPO 

Chairman CRAPO. The hearing will come to order. 

This morning, we will hear testimony on the nominations of 

Bimal Patel, to be Assistant Secretary of the Treasury for Financial 

Institutions; Todd Harper, to be a Member of the National Credit 

Union Administration Board; Rodney Hood, to be another Member 

of the National Credit Union Administration Board; and Mark 

Calabria, to be Director of the Federal Housing Finance Agency. 

Welcome to all of you. I see friends and family behind you, and 

I welcome them here today as well. 

Mr. Patel has been nominated to serve as the Assistant Secretary 

of the Treasury for Financial Institutions. In this role, Mr. Patel 

would be responsible for Treasury’s efforts on legislation and regulation concerning financial institutions and overseeing the Terrorism Risk Insurance Program and the Community Development 

Financial Institutions Fund. 

Mr. Patel brings a wealth of knowledge on financial services policy and regulation, stemming from extensive experience in both the 

private and public sector. 

Since May 2017, he has served as Treasury’s Deputy Assistant 

Secretary for Financial Stability Oversight Council, or FSOC, 

where he is responsible for overseeing FSOC staff and activities. 

Prior to joining Treasury, Mr. Patel provided financial policy and 

regulatory expertise as a partner at O’Melveny and Myers, including as Head of the Financial Advisory and Regulatory Practice, and 

served as senior advisor to Director Jeremiah O. Norton at the Federal Deposit Insurance Corporation. 

Mr. Harper and Mr. Hood have both been nominated to the 

Board of the National Credit Union Administration. The NCUA 

plays a critical role in overseeing and insuring a major segment of 

our Nation’s community financial institutions—federally insured 

credit unions. 

2 

Each of these nominees comes with prior NCUA experience. 

Mr. Harper led the Office of Public and Congressional Affairs 

and served as the Chief Policy Advisor to the NCUA Chairman between 2011 and 2017. Before that, he had a long career focusing 

on the financial services industry on Capitol Hill, including as the 

staff director of the Subcommittee on Capital Markets, Insurance 

and Government-Sponsored Enterprises of the House Financial 

Services Committee, and as legislative director for former Congressman Paul Kanjorski. 

Mr. Hood currently serves as a corporate responsibility manager 

for JPMorgan Chase, where he manages partnerships with organizations that serve community development, civil rights, and the 

disability community. Between 2005 and 2010, Mr. Hood served as 

a member of the NCUA Board, including being elected as its vice 

chairman. Before that, he served in the Senior Executive Service 

as the Associate Administrator of the Rural Housing Service at the 

U.S. Department of Agriculture. 

Dr. Calabria is a leading expert on housing and mortgage finance 

and a respected Ph.D. economist. He has nearly 30 years of experience interacting with the housing market from the perspective of 

academia, Government, industry, trade associations, and think 

tanks. 

Dr. Calabria has dedicated the majority of his career to public 

service, including as Deputy Assistant Secretary of Housing and 

Urban Development, nearly a decade as a Senior Professional Staff 

Member to this Committee, and now as Chief Economist in the Office of the Vice President. 

Dr. Calabria has also worked for the National Association of Realtors, the National Association of Home Builders, the Farm Credit 

Council, the Harvard University Joint Center for Housing Studies, 

and recently at the CATO Institute, as director of Financial Regulation Studies. 

Over the course of his public service career, Dr. Calabria has a 

long history of working across the aisle to deliver meaningful, lasting reforms. He played a key role in a number of bipartisan legislative achievements, including the HEARTH Act, which strengthened 

our Nation’s homelessness assistance programs, and HERA, the 

law which established FHFA and created the position to which he 

has been nominated. 

Throughout his career, Dr. Calabria has worked to champion 

market reforms that benefit consumers and enhance the safety and 

soundness of our housing finance system. 

At FHFA, Dr. Calabria would continue to work toward these objectives as regulator of Fannie Mae, Freddie Mac, and the Federal 

Home Loan Bank system. He would also be charged with protecting taxpayers, ensuring responsible access to mortgage credit, 

and serving out FHFA’s statutory mandate to conserve and preserve the assets of Fannie Mae and Freddie Mac. 

Members of this Committee are incredibly cognizant that a full 

decade now has passed since the Government asserted control of 

the GSEs. After 10 years of market recovery, these mortgage giants 

remain stuck in conservatorship, with the taxpayers still on the 

hook in the event of a housing market downturn. 

3 

It appears that the old, failed status quo is slowly beginning to 

take hold again, with the Government in some ways expanding its 

reach even further, entering new markets where it has never been 

before. The status quo is not a viable option, and finding a comprehensive solution remains a top priority for me. 

It is my view that action on housing finance reform is the prerogative of Congress, and my strong preference is for us to explore a 

legislative pathway forward. However, FHFA can also play an important role in helping us move forward to a more sustainable 

housing finance system facilitated by an engaged and strongly capitalized private sector. 

If confirmed, I look forward to working with each of these nominees on many important issues within each of their respective policy areas, including: housing finance and other issues critical to 

taxpayers and homebuyers; data privacy and security; capital formation and corporate governance; and continuing efforts from last 

Congress to provide meaningful relief to homeowners, consumers, 

and smaller businesses. 

Again, I thank you all for your willingness to serve and for appearing before our Committee today. 

Senator Brown. 

OPENING STATEMENT OF SENATOR SHERROD BROWN 

Senator BROWN. Thank you, Mr. Chairman, for holding this 

hearing today on the nominations of Bimal Patel, Todd Harper, 

Rodney Hood, and Mark Calabria. Welcome, all four of you, to the 

Committee. Congratulations to the nominees. I look forward to 

their testimony and especially the responses from each of you. 

It is important that we consider new nominees in a timely manner. Mr. Chairman, I appreciate your including Mr. Harper in today’s hearing. 

I want to remind my colleagues of both sides, although many 

more seem to be here on my side than yours. I want to remind my 

colleagues that four noncontroversial nominees to the Export–Import Bank never received a vote on the Senate floor last Congress, 

while nominees that were sent up from the White House much 

later were in fact confirmed. We also continue to wait on the White 

House for nominees for the Democratic positions at SEC and FDIC. 

All of today’s nominees have the opportunity to use their positions, if confirmed, to improve the lives of American families. They 

can make it easier for families to buy homes with mortgages they 

can afford. They can encourage credit unions to offer fair products 

to Americans left behind too often by our banking system. They can 

support policies that protect consumers and our financial system 

from risky activities at financial institutions. 

Mr. Patel has been nominated to the Treasury Department Assistant Secretary for Financial Institutions. He would take on a 

new role at Treasury that covers a broad range of policy issues affecting financial institutions. 

Mr. Harper and Mr. Hood have been nominated to the National 

Credit Union Administration Board, an agency they are both familiar with. Mr. Hood previously served as NCUA Board Member from 

2005 to ’10. Mr. Harper worked in the NCUA’s Office of Public and 

Congressional Affairs, served as a chief policy advisor to the chair 

4 

from 2011 to ’17. Both nominees are good for us. Both nominees 

possess a deep understanding of credit unions and the issues that 

affect them. 

Finally, Dr. Calabria has been nominated to lead the Federal 

Housing Finance Agency. Most Americans probably do not know 

that FHFA even exists, but as the regulator of the GSEs, it affects 

whether Americans can get a mortgage, how much they pay for 

their mortgage, what kind of rental options they have. This is particularly true for low- and moderate-income families and for communities that have been abandoned by Wall Street. 

The housing problems facing families are clear. Rent is too expensive and in too many communities, particularly communities of 

color, there is not access to safe, sustainable mortgages. These are 

the problems that the next director should be working to address. 

Dr. Calabria has a long history in housing. He was a staff member on the Committee when Congress passed the Housing and Economic Recovery Act, creating FHFA, so he is well aware of the significant influence that he would have in that job. 

He has written extensively on the housing system, particularly 

on GSEs. These writings raise serious questions about the impact 

that Dr. Calabria’s actions could have on the housing market if his 

views are in fact implemented. 

He has questioned the need for the 30-year fixed-rate mortgage 

around which there has been in our society from industry, homeowners, and Government alike, around which there has been mostly consensus. He has advocated against a Government guarantee 

for qualifying mortgage-backed securities. These positions contradict what we have heard from housing stakeholders time and 

time and time again who have appeared before this Committee. 

Dr. Calabria has called for repeal the GSEs’ affordable housing 

goals, which help ensure that Fannie and Freddie are fulfilling 

their statutory missions to facilitate home ownership and rental 

housing for low-income families. In the last testimony he submitted 

to this Committee 4 years ago, Dr. Calabria said the two primary 

tools facilitating private-market home financing, the GSEs and 

FHA, ‘‘should eventually be eliminated.’’ Through the hearing this 

morning, I hope to understand if Dr. Calabria still believes that. 

When work has dignity, everyone can afford housing in their 

community. We know that is not true today. We are facing a housing affordability crisis. Wages are lagging behind the increase in 

home prices. One in four renters spends more than half their income on rent—one in four. 

Seven of the 10 fastest-growing occupations do not pay enough 

to afford to rent a modest one-bedroom apartment, let alone save 

for a downpayment. The next generation of potential homebuyers 

is saddled with the maximum of student loan debt. 

Borrowers of color were systematically shut out of the housing 

market for generations. They suffered some of the biggest losses 

during the financial crisis. They still face discrimination when trying to get a loan. 

Those are the challenges we must confront. We need a strong, 

mission-driven housing finance system working to make sure all 

Americans can afford safe and quality housing where they live and 

work and send their children to school. 

5 

I will be listening to see how Dr. Calabria’s plans align with 

these goals. 

Thank you. 

Chairman CRAPO. Thank you, Senator Brown. 

Before I administer the oath, I would just respond on the movement of nominees. I appreciate Senator Brown’s acknowledgement 

that this Committee has moved their nominees promptly, and we 

will continue to do so. 

There are many reasons why there has been delays on the floor 

moving nominees, but I hope that we can work together in this 

Congress to get this Committee’s nominees all moved forward 

promptly as we get them to the floor. 

Senator BROWN. Thank you, Mr. Chairman. 

I ask that you use your immense—I know it is immense—influence with the White House to get them to move on some of the 

Democratic nominees that have not been offered up. 

Chairman CRAPO. I will work with you on that. 

Senator BROWN. Thanks. 

Chairman CRAPO. And we will work to get all of them moved. 

At this point, would you all please stand. I will administer the 

oath. 

Please raise your right hand. Do you swear or affirm that the 

testimony you are about to give is the truth, the whole truth, and 

nothing but the truth, so help you God? 

Mr. PATEL. I do. 

Mr. HARPER. I do. 

Mr. HOOD. I do. 

Mr. CALABRIA. I do. 

Chairman CRAPO. There is one more question. Do you agree to 

appear and testify before any duly constituted committee of the 

Senate? 

Mr. PATEL. I do. 

Mr. HARPER. I do. 

Mr. HOOD. I do. 

Mr. CALABRIA. I do. 

Chairman CRAPO. Thank you. You may each be seated. 

Each of your written testimonies will be made a part of the 

record in their entirety. 

Before you begin your statements, I invite you, if you choose, to 

introduce anyone in your family or friends who is in attendance 

with you. 

I remind you, we have a 5-minute clock. I encourage you to pay 

very close attention to it. I say the same thing to my colleagues on 

the Committee when it is time for them to ask their questions. 

With that, Mr. Patel, you may proceed. 

TESTIMONY OF BIMAL PATEL, OF GEORGIA, TO BE AN ASSISTANT SECRETARY FOR FINANCIAL INSTITUTIONS, DEPARTMENT OF TREASURY 

Mr. PATEL. Thank you, Mr. Chairman. 

Chairman Crapo, Ranking Member Brown, and Members of the 

Committee, it is among the greatest privileges of my life to appear 

before you today. 

6 

Thank you to the Senators and staff members with whom I have 

met in advance of this hearing. If I am fortunate enough to be confirmed, I look forward to meeting with and working with all of you 

on the important issues in the portfolio of the Assistant Secretary 

for Financial Institutions. 

My story begins with my parents, who are seated behind me 

today. Truthfully, neither my family nor I would be here today if 

it were not for the United States of America and all it stands for. 

My dad grew up as a peanut farmer in rural India. Raised in abject poverty, he was driven by an unshakeable determination to 

build a better life. Lacking resources, he immigrated to the U.S. 

primarily by boat. Here, he pursued higher education, ultimately 

earning his Ph.D. from NYU. He worked incredibly hard over a 50- 

plus-year career, including operating a number of small businesses 

in my home State of Georgia and teaching at Spelman College, a 

historically black all-women’s college in Atlanta. 

Like my dad, my journey to being before you today was not without adversity. I was born 3 months premature, weighing in at just 

2 pounds and 2 ounces. When I was 2 weeks old, doctors put me 

in a room with a baby that had pneumonia. I contracted the pneumonia, and my brain was damaged. Doctors told my parents that 

I would never grow past 4 feet tall, that I would be incapacitated, 

and that I would die. I am so fortunate that the doctors saved my 

life and that my parents, particularly my mom, always believed in 

me. 

The common thread between my dad’s path and mine is that 

America made our improbable stories possible. Coming to America 

with nothing, my dad found opportunities that only our country 

provides to give my brother and me the chance to realize our own 

dreams. 

Likewise, America is probably the only country where a child 

with brain damage and cerebral palsy would be accepted so completely and encouraged so unfailingly to overcome such obstacles. 

This journey has motivated me to serve to try to repay the enormous debt I owe to our country, and I am proud to have accepted 

the call to public service when I have been asked. 

From 2012 to 2015, I served as a senior advisor at the FDIC, and 

I currently serve as the Deputy Assistant Secretary of the Treasury 

for FSOC. 

In addition to Government service, I have practiced law at 

O’Melveny and Myers, most recently as a partner and the head of 

the Financial Advisory and Regulation Practice. I represented depository institutions of all sizes, including many community banks 

and regional financial institutions. 

I have also advised on credit union structural and regulatory 

issues, and I have previously represented community interest and 

charitable organizations on a pro bono basis on matters relating to 

financial regulation. 

One consistent objective of my work has been assisting depository institutions to better serve their communities and to provide 

a broader array of services to a greater number of customers. 

I also love teaching and mentoring the younger generation, a 

passion that has led me to teach an undergraduate economics 

7 

course on Banking Regulation at my alma mater, Stanford University, since 2014. 

Above all, the thing that has drawn me to financial services is 

the unique connection between our financial system and American 

families and small businesses like those my dad operated. 

At its best, our financial system is the force multiplier of our 

economy, linking savers to those who seek credit to pursue education, build businesses, and help their families to live better lives. 

Financial services also assist Americans in saving for retirement 

and in ensuring loved ones against difficult life events and losses. 

Thank you again for the opportunity and the honor of appearing 

before you today. I would be happy to answer any questions you 

have and would be humbled to earn your support for my nomination. 

Chairman CRAPO. Thank you, Mr. Patel. 

Mr. Harper. 

TESTIMONY OF TODD M. HARPER, OF VIRGINIA, TO BE A MEMBER OF THE NATIONAL CREDIT UNION ADMINISTRATION 

BOARD 

Mr. HARPER. Chairman Crapo, Ranking Member Brown, and 

Members of the Committee, thank you for inviting me to testify as 

a nominee to become a Board Member of the National Credit Union 

Administration. If confirmed, it would be an honor and privilege to 

serve. 

Moreover, I am especially grateful to those who have supported 

me in this process, including Chairman Crapo and his staff who 

moved quickly to consider me. 

In working over two decades for Congress and at the NCUA, I 

have gained broad knowledge of financial services regulatory matters and a deep understanding of many of the issues facing federally insured credit unions. 

But my commitment to public service really started with my parents. As professional educators and community leaders, my parents 

instilled in me a strong desire to give back to others. They also 

taught me the importance of finding common ground when making 

decisions. 

You see, before they fell in love and married, my mother was the 

president of the teachers union and my father was the superintendent of schools. One was a Democrat; the other, a Republican. 

Yet during negotiations, they would work together to find the best 

possible deal for both sides. 

In carrying their leadership lessons with me throughout my career, I have skillfully solved complex problems, reached bipartisan 

consensus where possible, and bridged differences between business and Government to produce results. 

As a senior advisor to former Congressman Kanjorski and staff 

director for the House Financial Services Capital Markets Subcommittee, I worked on every major financial services law from the 

enactment of the Gramm–Leach–Bliley Act in 1999 through the 

passage of the Dodd–Frank Act in 2010. 

Most notable, however, is my long track record on credit union 

issues, which began when Congress considered and passed the 

Credit Union Membership Access Act. This bipartisan law reVerDate Nov 24 2008 13:07 Apr 08, 2019 Jkt 046629 PO 00000 Frm 00011 Fmt 6633 Sfmt 6633 L:\HEARINGS 2019\02-14 NOMINATIONS\HEARING\RESEND FOLDER\35617 NEW.TXT
8 

sponded to a Supreme Court ruling that threatened the long-term 

viability of thousands of credit unions. 

Subsequently, I led staff in drafting the Credit Union Regulatory 

Improvements Act, which Congressmen Kanjorski and Royce first 

introduced in 2003. Their bipartisan bill aimed to strengthen capital standards, advance economic opportunity, and provide targeted 

regulatory relief, three goals that continue to guide me. 

During the financial crisis, I later worked to convene the first 

congressional hearing to explore the creation of the Temporary Corporate Credit Union Stabilization Fund and spearheaded staff efforts in the House to lower the costs of managing both the Corporate Stabilization Fund and the Share Insurance Fund. 

Most recently, I served as NCUA’s senior executive for public and 

congressional affairs, as well as the chief policy advisor to former 

Chairmen Debbie Matz and Rick Metsger. 

My time at NCUA honed my management skills, and my professional experience have informed my regulatory philosophy. In my 

view, financial regulators need to be fair and forward looking; innovative, inclusive, and independent; risk focused and ready to act 

expeditiously when necessary; and appropriately engaged with all 

stakeholders to develop effective but not excessive regulation. 

An NCUA Board Member should also be well informed, ask 

tough questions, and make impartial judgments that balance competing viewpoints in a transparent manner. If confirmed, I am confident that I would do just that. 

My top priority, unquestionably, would be to protect the safety 

and soundness of federally insured credit unions and the Share Insurance Fund. To do so, I would focus on the issues of capital, liquidity, and cybersecurity. I would also prioritize the agency’s consumer protection responsibilities, consistent with the law and work 

to support small credit unions, minority depository institution, and 

low-income credit unions. These institutions face the challenges of 

increased competition, limited resources, and difficulties in achieving economies of scale. 

To expand economic opportunity, I believe that the NCUA must 

also work to increase access to affordable financial services for the 

unbanked and the underbanked. This, too, would be a priority for 

my work. 

Once again, it would be a tremendous honor to serve as an 

NCUA Board Member, if confirmed. I would be pleased to answer 

any questions. 

Chairman CRAPO. Thank you, Mr. Harper. 

Mr. Hood. 

TESTIMONY OF RODNEY HOOD, OF NORTH CAROLINA, TO BE 

A MEMBER OF THE NATIONAL CREDIT UNION ADMINISTRATION BOARD 

Mr. HOOD. Thank you. 

With me today, I have seventh grade students visiting from Durham, North Carolina, from Durham Academy—Kayla, Michael, and 

Emma—along with their chaperone, Stephen Barringer. 

Chairman CRAPO. Thank you. We welcome you. 

Mr. HOOD. Chairman Crapo, Ranking Member Brown, and distinguished Members of the Committee, thank you so much for the 

9 

opportunity to meet with you as a nominee to serve on the Board 

of the National Credit Union Administration. 

It is indeed an honor and a privilege to be nominated to the 

NCUA Board, and if confirmed, I will do my level best to fulfill the 

trust placed in me by the President and the Senate. 

I am especially grateful for strong support I have received from 

the Senators of my home State, Senators Thom Tillis and Richard 

Burr from North Carolina. 

While my parents are not here in person, I feel the warmth of 

their presence as they watch from heaven. I am thankful for them 

for bequeathing me with a value system that reflects humility, integrity, hard work, and compassion. These values have helped me 

make a difference in the lives of many people during my 25 years 

in the private sector and in public service. 

Through my education and work experiences, I have developed a 

broad knowledge of the financial services industry and have a keen 

understanding of the responsibilities of regulators. NCUA plays an 

important role both regulator and insurer to protect the savings of 

more than 115 million hardworking Americans in an industry with 

over $1.4 trillion in assets. 

If confirmed by the Senate, I will work diligently to ensure the 

continued safety and soundness of our Nation’s credit union system 

in today’s dynamic marketplace. 

I look forward to returning to NCUA and fulfilling the duties and 

responsibilities of a Board Member. While my paramount responsibility would be ensuring the safe and sound operations of federally 

insured credit unions, additional responsibilities will include ensuring that NCUA thoroughly applies all relevant consumer protections, creates opportunities to promote financial education and inclusion, and fosters an environment where low-to-moderate income 

and disabled individuals have access to affordable financial services 

and economic mobility. 

During the 4 years of my term at NCUA over a decade ago, I 

worked to fairly and thoughtfully implement the Federal Credit 

Union Act and maintain the safety of the National Credit Union 

Share Insurance Fund. My regulatory philosophy remains the same 

today as it was then that regulation needs to be effective but not 

excessive. 

My interest in serving vulnerable communities grew from my volunteer work as a missionary in Africa and later as a banker who 

became engaged in community and economic development. I still 

today fondly remember the joy and excitement I saw when a young 

woman who attended one of my bank’s homebuyer education classes realized that home ownership could be more than just a dream 

for her and her family. 

After attending a series of homebuyer education classes, building 

a solid credit profile, and obtaining downpayment assistance, she 

was able to purchase her first home. She later showed her gratitude by inviting me to tour her new home and share a meal with 

her family. 

I recognize that credit unions are indeed a critical element in 

helping families achieve their American dream of home ownership, 

assisting entrepreneurs increasing small businesses, and providing 

the trusted mechanisms for families to save for the future. 

10 

My nearly three decades of public- and private-sector experience 

have provided me with profound leadership opportunities. This includes the importance of building solid teams, paying close attention to the basics, and putting a face in the decisions you make. 

These experiences have provided me with a sound foundation for 

evaluating the policy issues facing the NCUA Board and the credit 

union industry. 

If confirmed by the Senate, I will return to NCUA with a riskbased and market-oriented mindset based on the following tenets. 

First, I will work to ensure that credit unions remain safe and 

sound institutions. Second, I will strive to be recognized as a fair 

and thoughtful regulator. Third, I will bring focused leadership and 

management to NCUA while seeking to ensure efficient operations 

and prudent use of resources. Fourth and finally, I understand the 

importance of disclosure and transparency, and I will work closely 

with all the Members of Congress to ensure the financial integrity 

of credit unions in today’s ever-changing environment. 

Chairman Crapo, Ranking Member Brown, and Members of the 

Committee, I am deeply honored to appear before you this morning 

and would like to thank you again for your courtesy and consideration. I welcome any questions you may have. 

Chairman CRAPO. Thank you, Mr. Hood. 

Dr. Calabria. 

TESTIMONY OF MARK ANTHONY CALABRIA, OF VIRGINIA, TO 

BE DIRECTOR OF THE FEDERAL HOUSING FINANCE AGENCY 

Mr. CALABRIA. Chairman Crapo, Ranking Member Brown, and 

distinguished Members of the Committee, I thank you for the opportunity to appear before the Committee today as the nominee for 

Director of the Federal Housing Finance Agency. 

I also want to thank the President for the trust and confidence 

placed in me for this nomination. Additionally, I want to express 

my deep appreciation to Vice President Pence. Serving as Chief 

Economist for the Vice President has truly been one of the greatest 

honors of my life. It perhaps rivals the other great privilege of my 

career, which has been to serve on the staff of this Committee. 

I take tremendous pride in having served on the Committee staff 

under the leadership of Senator Shelby. While GSE reform was 

eventually passed in 2008, the structure of that reform largely mirrors the Shelby bills of 2004 and 2005. If anyone is the legislative 

father of Federal Housing Finance Agency, it is Senator Richard 

Shelby. 

I believe being part of the process that resulted in the Housing 

and Economic Recovery Act of 2008 has also given me unique and 

valuable insights into the mission and history of FHFA. I well remember the shortcomings of its predecessors, the Office of Federal 

Housing Enterprise Oversight and the Federal Housing Finance 

Board. 

I was also extremely fortunate to serve on the Committee staff 

during the leadership of Senator Paul Sarbanes. While I did not always agree with Senator Sarbanes’ policy positions, I have always 

strived to live up to the standards of professionalism and conduct 

he set for this Committee, particularly Senator Sarbanes’ belief 

11 

that it is indeed possible for us to disagree without being disagreeable. 

I take great pride in the fact that I continue to count a number 

of former Sarbanes staff as friends. Speaking of friends, it is also 

a true pleasure to be sitting at the table today with three gentlemen who I all consider friends. 

I also want to recognize my partner who is here with me today, 

Allison Randall. Allison’s life-long work to end domestic violence 

has been a daily inspiration to me. I have to give a nod to the Committee here as well, since Allison and I met while working on the 

2005 reauthorization of the Violence Against Women Act, whose 

Title VI, Housing Opportunities and Safety for Battered Women 

and Children, was the product of this Committee. And I take great 

pride in those efforts. 

I also want to—since I do not get to brag on my sister a lot and 

she is here today, I really do appreciate her 10-plus years of service 

with Loudoun County, Virginia’s Office of Family Services. 

I am also very fortunate to, last, have my mother with me today, 

Janie Jones. Let me stress this is not my day; this is her day. I 

would not be sitting at this table if not for the many sacrifices 

made by the woman behind me. I could have not done anywhere 

near the job she did for many years as a single mother raising four 

children. She is an inspiration to me every day. It is also my mother’s 20-plus years working—— 

[Applause.] 

Mr. CALABRIA. Somehow managing while raising four children, 

my mother also managed to spend 20 years for the County of Fairfax, Virginia, and her work there instilled a deep respect for public 

service in me. However, since she also spent her time at Fairfax 

County working for the Comptroller’s Office, she also instilled in 

me the unavoidable reality that whatever the goals of Government, 

the numbers have to add up. 

And while the primary focus of FHFA has been on our Nation’s 

mortgage markets, the last piece of legislation I was privileged to 

work on for this Committee was the Homeless Emergency Assistance and Rapid Transition to Housing Act of 2009. It was a particular honor working with Senator Jack Reed and his staff, particularly my good friend Kara Stein who clearly has gone on to bigger and better things, to strengthen our Nation’s homelessness assistance programs to better service homeless families, especially 

those living in rural America. 

Homelessness and rural housing are only a few of the areas I 

have worked on. During my service on the Committee staff, I 

worked on over 20 pieces of legislation that became law, mostly in 

the areas of housing and mortgage finance, most of which passed 

this Committee unanimously. And I believe we can get back to 

that. 

In addition to my Committee experience, I briefly oversaw HUD’s 

regulation of the mortgage market, primarily under the Real Estate Settlement Procedures Act. 

I have also spent a number of years performing economic research on the housing and mortgage market for two of the largest 

housing industry trade associations. 

12 

I have spent the last 20-some years researching and writing 

about our Nation’s housing and mortgage markets. I believe I have 

successfully mastered not just the economics of our housing and 

mortgage markets, but also the legal and policy details. I believe 

that particular combination of skills and strengths makes me 

uniquely qualified to serve as the director of FHFA. 

As perhaps Committee Members are aware, I have extensive 

writings in the area of mortgage finance. I have on occasions expressed strong opinions on the history and future of our mortgage 

finance system. I have most definitely expressed, and express here 

today, a frustration with the current state of our mortgage finance 

system and the very strong need for reform. 

Despite that frustration, I want to very clearly state to this Committee that, if confirmed, my role as the Director of FHFA is to 

carry out the clear intent of Congress, not to impose my own vision. 

I have even brought with me here today my, as you can see, dogeared, 10-year-old copy of HERA that I got here as a Committee 

staffer, and I can guarantee you that whatever the policy question, 

the first thing I will do is say to myself, ‘‘What does the statute 

say?’’ That is my guiding principle. 

Let me emphasize and close that we are truly, in my opinion, at 

a critical juncture in housing finance policy. As the Ranking Member alluded to, families across America face heavy burdens making 

their rent or mortgage payment in many cities, towns, and States, 

as well as the unique barriers we see faced in our rural and tribal 

communities. 

I also strongly believe that shelter is one of the most critical of 

basic human needs facing any family. Whether it is rented or 

owned, American families need an affordable place to call home. 

I thank the Committee for your consideration. I look forward to 

your questions. 

Chairman CRAPO. Thank you, Dr. Calabria, and I will start with 

you and work back across the table through my questions. 

As you know, Doctor, housing finance reform is a top priority for 

me. It remains my view that it is the role of Congress to deliver 

the solution, and we are currently exploring a pathway forward. 

My priorities are to establish stronger levels of taxpayer protection, preserve the 30-year fixed-rate mortgage, increase competition 

among mortgage guarantors, ensure a level playing field for lenders of all sizes, and promote access to affordable housing. 

If confirmed, can you commit to working with Congress to enact 

legislation that is consistent with these principles, and would you 

please add what are your priorities? 

Mr. CALABRIA. Mr. Chairman, first, let me commend you on your 

recent introduction of a framework and principles. I share all of 

those principles. I believe that a number of critical elements need 

to take place in reform. For instance, I believe one element that we 

all share is the greater need for competition. This is a perfect example of where the regulator cannot make these changes. For, ultimately, there to be open charters, open competition is something 

Congress has to make. 

So the very broad changes I think that need to happen in mortgage finance system have to be done by Congress, and I would 

13 

pledge to work in consultation and partnership with this Committee moving forward. 

I do believe that it is, indeed, possible for us to have a well-capitalized, strong system that preserves the 30-year mortgage and 

does provide access to affordable housing. I think we can achieve 

those goals, and I believe we can do it in a bipartisan manner. 

I will remind the Committee, the first floor vote, I believe, on 

HERA, we got 84 votes, I believe. So I know that we can get there. 

Chairman CRAPO. Well, thank you, and I agree with your assessment. And I look forward to working with you and your work with 

us to help us get to that point. 

For Mr. Hood and Mr. Harper together, a recent Washington Post 

article raised concerns over NCUA’s expense reimbursement policy. 

It is my understanding that the NCUA’s reimbursement policy may 

not be aligned with that of other Federal financial regulators. 

Mr. Hood and Mr. Harper, can you both commit to reviewing the 

NCUA’s expense reimbursement policy and making updates to better align it with the policy of other Federal financial regulators, as 

appropriate? 

Mr. HOOD. Thank you, Chairman Crapo, for that question, and, 

yes, sir, if confirmed by the Senate, I pledge to you and the Members of this body that on day one, I will work with agency staff and 

leadership to, one, understand the current reimbursement policy 

and take every step with them to ensure that it is in alignment 

with the other financial regulators. 

I recognize that those of us in public service must continually 

garner public trust from the American people. 

Chairman CRAPO. All right. Thank you. 

Mr. Harper. 

Mr. HARPER. Yes, Senator, I would certainly work on that, starting on day one. It is important for me that the rules be clear so 

that people understand them, that they be consistent across regulators, and finally that they be communicated to those who follow 

them so that they can follow them. And those would be my guiding 

principles as I worked on this issue as well, if confirmed. 

Chairman CRAPO. Thank you. 

And, Mr. Patel, the Terrorism Risk Insurance Act of 2015, or 

TRIA as we call it, expires at the end of 2020. Getting terrorism 

risk insurance right is important in order to protect taxpayers and 

limit the economic and physical impact of any future terrorist attack on the United States. 

As the Committee undertakes the program’s reauthorization, we 

will work to identify whether improvements can be made to TRIA, 

such as increasing the recoupment and coinsurance levels. 

The Office of Financial Institutions is responsible for overseeing 

TRIA. Mr. Patel, if confirmed, can you commit to working with 

Congress to enact legislation to achieve this balance, and do you 

have any priorities in that context? 

Mr. PATEL. Mr. Chairman, thank you for the question. Let me 

start out by saying I hope that we never have another terrorist attack on U.S. soil. I understand how important it is to address the 

economic harms that can come from these attacks, and if confirmed, I look forward to working with you, your team, the Committee, and the Congress on these important issues. 

14 

With respect to my specific priorities in this portfolio, these 

issues are not in my current portfolio. I am, however, broadly familiar with some of the important debates surrounding TRIA reauthorization, including program triggers, insurer deductibles, and as 

you say, recoupment amounts. 

So, if confirmed, I will work with you on all of those issues. 

Chairman CRAPO. Thank you very much. 

Senator Brown. 

Senator BROWN. Thank you, Mr. Chairman. 

Dr. Calabria, in 2012, following the financial crisis, in a blog you 

wrote for CATO on a CATO website, you referred to homeowners 

who might benefit from principal reduction as ‘‘deadbeats.’’ That 

year, a quarter of homeowners in my home State of Ohio owed 

more on their mortgages than their homes were worth. Last year, 

two cities in Ohio were on the list of the 12 areas with the largest 

number of underwater homeowners. A number of Senators on this 

Committee—Senators Sinema, McSally, Perdue, Smith, CortezMasto, Toomey, Van Hollen, and Warner—also had cities on that 

list. What makes these borrowers deadbeats? 

Mr. CALABRIA. First of all, Senator, let me emphasize I, in no 

way, meant to have a broad generalization of all borrowers. I think 

we do need to be able to figure out which borrowers can pay and 

which borrowers cannot pay. 

I will say from my own personal upbringing that if you are someone who is raised by a divorced single mother and those promised 

child support payments do not show up and you see questions 

about whether an electricity bill is going to get paid, you can sometimes develop strong feelings about those who do not honor their 

obligations and not keep their promises. 

Senator BROWN. Well, I get that. I mean, you have a lot of skill 

in answering questions like that. But, I mean, if the housing market—— 

[Laughter.] 

Senator BROWN. I mean, you have been to this Committee. 

If the housing market were to face another crisis—and I do not 

want to make it personal in that if someone had referred to your 

family if they could not make their mortgage payment—I live in— 

as you have heard me say in this Committee, I live in ZIP Code 

44105. That ZIP Code in 2007 had more—the first half of that year 

had more foreclosures than any ZIP Code in the United States, and 

there is no way they were all deadbeats. 

Mr. CALABRIA. And I—— 

Senator BROWN. OK. If the housing market were to face another 

crisis, would you support FHFA offering any help to borrowers, 

which you sort of dismiss with that term ‘‘deadbeats’’? 

Mr. CALABRIA. I absolutely believe it is appropriate for FHFA to 

offer assistance. I do believe we should recognize and applaud the 

efforts of Ed DeMarco and the wide-based forbearance that was 

done by FHFA during the crisis. 

I think you need to approach different borrowers differently. 

There are some borrowers who might be facing a shock in income 

because they have lost a job, but I do think for those borrowers 

who can pay, I think it is important that our mortgage market sets 

15 

an expectation of those who can pay should pay, and we should 

focus our efforts on those who cannot pay and who need assistance. 

Senator BROWN. Well, thank you. I am not sure you made that 

distinction in your choice of words then. 

Last month in Politico, Comptroller Otting said there is a clear 

mission that is outlined by the Treasury and the White House 

what they want to accomplish in FHFA that he will try to move 

down the rails before you are confirmed and you will continue that 

mission. 

Just 2 weeks later, Otting reportedly told FHFA staff that you 

and Treasury had signed off on a path for the GSEs. What exactly 

is he referring to, Dr. Calabria? 

Mr. CALABRIA. Senator, if I can make a clarification on the last 

part as well. I think it is important to keep in mind the context 

of blogs and posts. I mean, a typical 2-, 300-word blog does not 

tend to have a lot of nuance. I would be the first to say that, and 

I would really encourage folks to look at a broader range of what 

I have said. 

Senator BROWN. As I would too, Dr. Calabria, but in Trump’s 

America, we see a lot of name calling. And I am hopeful that as 

a Trump nominee, you will sort of back off that part of your life 

to label people—I do not know what that was about, but to label 

people like that. 

But go on to the next question with Mr. Otting. 

Mr. CALABRIA. I appreciate that. 

So let me first be very clear. Despite being a member of the Vice 

President’s office, I am here today only speaking for myself. I have 

not heard Director Otting’s words. 

My read of what I believe he said, which again, I should urge is 

just my read—my read of what he said is to convey a sense of urgency to the FHA staff. What I believe he has referred to in terms 

of me signing off, I believe he was referring to my longstanding, 

loud support for reform, and I believe that what he was trying to 

convey to the staff was essentially a pep talk of we will move forward. 

I think it is important to keep in mind this is an agency for the 

last 10 years where the staff do not even know whether this agency 

is going to be around in a couple years. That really undermined 

staff morale. So, in my opinion, I believe Mr. Otting was trying to 

essentially raise staff morale and say we want to try to get to— 

and Mark is committed, if confirmed—to getting to a spot where 

this agency and the staff have certainty in their lives. 

Senator BROWN. Thank you. 

In my office when we talked, you acknowledged that you had left 

earlier and did not have these conversations, but before you were 

selected, did you recommend specific things to the Administration 

on the best path forward for GSEs? 

Mr. CALABRIA. As you alluded to, Senator, once it became clear 

that I was going to be the nominee or the choice for the Administration, I pulled myself out of it. 

Senator BROWN. Before that. Before that. 

Mr. CALABRIA. There were conversations I was involved in, such 

as, for instance, in December of 2017, you remember the amendVerDate Nov 24 2008 13:07 Apr 08, 2019 Jkt 046629 PO 00000 Frm 00019 Fmt 6633 Sfmt 6633 L:\HEARINGS 2019\02-14 NOMINATIONS\HEARING\RESEND FOLDER\35617 NEW.TXT
16 

ments that allowed a $3 billion cushion to be built up by the GSEs. 

I was part of those conversations. 

Senator BROWN. And you recommended what? If you are going 

to be confirmed, we need to know what you think and what your 

policies will be. 

Mr. CALABRIA. This is an example of where I supported allowing 

a modest capital buffer so that we would not have to force a draw, 

partly because, of course, the impact of tax reform and the deferred 

tax loss as being held by the GSEs. 

Senator BROWN. Could I get one more question, Mr. Chairman? 

I am always doing this. All right. 

Chairman CRAPO. As the Ranking Member, you can, but do not 

start a pattern. 

Senator BROWN. OK. 

Chairman CRAPO. Thanks. 

Senator BROWN. I inevitably will, but I apologize. 

[Laughter.] 

Chairman CRAPO. Well, noted. I give notice to the other Members, I will remind you that you do not have that right. 

[Laughter.] 

Senator BROWN. Thank you, Mr. Chairman. Can I have two 

questions? 

Chairman CRAPO. No. 

[Laughter.] 

Chairman CRAPO. And this will be a short one. 

Senator BROWN. OK. It will be a short one. I do not know. I am 

not sure about the answer. 

You have advocated eliminating the affordable housing goals. Is 

this your view, and do you similarly support elimination of the 

GSEs’ duty to serve? 

Mr. CALABRIA. My concern about the affordable housing goals in 

the past have taken place in the context of two large institutions 

with essentially zero capital. I do believe we can get to a spot 

where we can have risk-taking via affordable housing goals if we 

can have an appropriate regulatory structure that has capital backing those goals. 

I am very concerned about any large financial institution where 

we push it to take additional risk without the appropriate regulatory structure in place. 

My comments in the past about getting rid of the GSEs is getting 

rid of the basic model of privatized gains and socialized losses. I believe all large financial institutions need to be ‘‘well-capitalized, 

well-managed, and well-regulated,’’ a phrase I have heard a number of times from Senator Shelby. 

I believe it is fair to say that GSEs were none of the above before 

the crisis, and so my concern is this fundamental model of heads, 

the executives, of Fannie and Freddie walk out with lots of money, 

and the rest of us get held in the bag. 

I want these entities to be good corporate citizens. I want them 

to be the model of how other corporations should want to behave. 

Chairman CRAPO. Thank you. 

Senator Shelby. 

Senator SHELBY. Mr. Chairman, I guess a former chairman 

would not get that extra time. The current ranking guy would. 

17 

Chairman CRAPO. Sorry. 

Senator SHELBY. I will not ask for it. 

[Laughter.] 

Senator KENNEDY. The Chairman of Appropriations would, 

though. 

[Laughter.] 

Senator SHELBY. Thank you, Senator Kennedy. 

Chairman CRAPO. Yeah. Thanks, Senator Kennedy. 

Senator SHELBY. But we are in the Banking Committee. 

Thank you very much. 

All of you, I believe, are eminently qualified for your positions. 

Mr. Patel, you have a compelling story. I had a good conversation 

with you in my office. I intend to support you. I intend to support 

Mr. Harper. I intend to support Mr. Hood, and I certainly intend 

to support Dr. Calabria, who worked right here with us, hand in 

glove, day after day, and I believe in a bipartisan way. 

He mentioned Senator Sarbanes when he was Chairman and 

when he was ranking when I was Chairman. 

I do not know—and I associate my remarks with the Chairman 

Crapo here about his background and his experience. Dr. Calabria 

is eminently qualified for this position. I do not know of anybody— 

I have been on this Committee—this is my 33rd year—that would 

be more qualified and more concerned and more diligently than 

Mark Calabria. We have been through this. 

I would like to pose one question to you. What do you consider 

to be the risk and cost of failing to reform the GSEs, which we 

have struggled with? And we all know they play a prominent role 

in our housing market. What is the risk of failing to go forward 

after 10 years of conservatorship? 

Mr. CALABRIA. Well, foremost, Senator, while I believe that a 

number of sound economic policies have been put in place that 

have created record job creation, I also believe that we have not 

cured the business cycle. We have not cured the housing cycle, and 

I believe if we do not reform the GSEs that there will be significant 

losses. That we could be looking at tens of billions, if not hundreds 

of billions of taxpayer losses. 

I believe we potentially put a tremendous number of families 

through the same sort of struggles and foreclosures and losses to 

their wealth that we saw last time. 

So, if I am driven by anything, it is fundamentally having served 

on this Committee and lived through the crisis and not ever wanting us to do that again. It does devastating things to families. It 

does devastating things to taxpayers. 

And I think, last, it is important to keep in mind, I believe the 

bailouts of Fannie and Freddie as well as other institutions really 

bred a lot of deep cynicism in the American public about our political and financial system, and I believe for us to heal some of the 

divides in our country, I believe we must address these issues. And 

I believe another set of large financial bailouts would just be devastating to the public psyche. 

Senator SHELBY. Thank you. 

My time is good. Thank you, Mr. Chair. 

Chairman CRAPO. Thank you. 

Senator Menendez. 

18 

Senator MENENDEZ. Thank you, Mr. Chairman. 

Dr. Calabria, I appreciated our visit together in my office. 

I want to follow up, though, on Senator Brown’s questions. My 

home State of New Jersey had the third highest foreclosure rate in 

the country, with nearly 8 percent of homes in foreclosure in 2013. 

New Jersey families are not deadbeats. They worked hard. They 

played by the rules, and tens of thousands of them lost everything 

when the crisis hit. 

So why is it that your writings mysteriously omit any blame for 

the true deadbeats of the crisis, the corporate deadbeats, the banks 

that played fast and loose, steering borrowers into risky products; 

the investors that demanded higher and higher returns, no matter 

the impact on the economy? I see no mention of that. 

Mr. CALABRIA. Senator, I would be happy to submit publications 

I have written on the record that have been very critical of banks. 

Let me say I take tremendous pride in having been part of the 

Shelby team when we stood against the bank bailouts, and I wish 

the rest of the country had listened. There was a better way to do 

this than the bank bailouts. 

I believe entities like Lehman got what they deserved, and I 

have been very vocal in many things I have written. I am deeply 

concerned that ‘‘too big to fail’’ is still a problem that faces our financial system, and that many financial institutions lack accountability. So I share that concern, Senator. 

And I will remind you that FHFA sits on FSOC, and I will take 

financial stability and accountability for our largest financial—— 

Senator MENENDEZ. You may have had the view that bailing 

them out was not the way to save the overall system, but I do not 

see any of your writings calling them ‘‘deadbeats’’ at the end of the 

day for driving people into products and investors who wanted high 

rates of return at the end of the day. 

But let me turn to something else. Let me move to another key 

issue for New Jersey and several other States represented by Members of both sides of this Committee. 

You have proposed immediately reducing loan limits to precrisis 

levels, with further annual reductions of $50,000. You have gone so 

far as to say that loan limits should be reduced to $200,000. 

Fourteen of New Jersey’s 21 counties have median home prices 

above $200,000, meaning tens of thousands of people in New Jersey 

could be locked out of purchasing a home under your approach. 

In 2017, 70 percent of new mortgage loans in New Jersey were 

greater than $200,000. 

So I know you are an economist, and I presume you have done 

quite a bit of research on the numbers here. So let me ask you. If 

you were to reduce conforming loan limits to, say, $200,000, what 

percentage of those mortgages do you think would be pushed out 

of the market altogether? 

Mr. CALABRIA. First, Senator, let me clarify that the setting of 

loan limits is in statute. It is mechanical. It is not within the discretion of FHFA to set the loan limits, so I would have no power, 

if confirmed, to change the loan limits. That is appropriately in the 

purview of Congress. I think that is the appropriate place for it to 

be. 

19 

Senator MENENDEZ. Well, let me say—you said this to me yesterday, so I did a little research. And I am glad to hear that that is 

your reading of the statute. However, I have a different understanding of what your authorities would be. 

So that being said, since you have said this on the record here 

as well as you said it to me privately, if you somehow found out 

in the future that you do have the authority to reduce conforming 

loan limits, would you do so in accordance with what you have espoused in your writings? 

Mr. CALABRIA. Senator—well, not knowing of a possible legal argument for reducing the loan limits—I certainly have heard commentators out there argue that the vast powers of a conservator 

allow you to reduce loan limits. My belief is that is an incorrect 

reading of the powers of a conservator, and that the powers of conservator do not include reducing loan limits. The powers of a conservator have to conserve the assets and preserve the assets of the 

companies. I believe reducing the loan limits would be inconsistent 

with the objectives of a conservator. 

So I think it is important to not prejudge. If someone brings me 

new legal information, I have to be able to evaluate that in a new 

sense. 

I can commit to you today I know of nothing in front of me that 

would suggest that the loan limits would be lowered. 

Senator MENENDEZ. So to satisfy my concerns, would you follow 

up in writing to the Committee your analysis as to whether you 

have authority to reduce conforming loan limits and also follow up 

and provide analysis on the specific impacts to pricing and mortgage rates in a State like New Jersey, for example, if loan limits 

were to be reduced to the precrisis levels or to $200,000? This is 

critical. Fourteen of my 21 counties are over this as median. Then, 

at the end of the day, if the views that have been espoused by you 

in the past, if you have that power, that is going to have a direct 

impact on thousands of potential homeowners in my State and in 

other States across the country. 

Mr. CALABRIA. Understood. 

Senator MENENDEZ. You will do that? 

Mr. CALABRIA. Yes, Senator. 

Senator MENENDEZ. Thank you. 

Chairman CRAPO. Thank you. 

Senator Toomey. 

Senator TOOMEY. Thanks very much, Mr. Chairman. 

I want to thank each of the panelists we have today, the nominees, because I think we have got a slate of just terrifically qualified people with amazing life stories, and I am grateful to each one 

of you for your willingness to serve. And I think you are going to 

add a tremendous amount of personal knowledge and expertise and 

judgment to some really challenging circumstances, so thank you 

for that. 

Dr. Calabria, I want to sort of ask you to share some thoughts 

with us because I think about Fannie and Freddie as a huge embarrassment for Congress. The fact that the two institutions at 

Ground Zero of the financial crisis, which deserve a very significant 

share of the blame for the debacle that occurred, they have been 

allowed to grow. Their market share is enormous. By any measure, 

20 

they are enormous financial institutions. They have no capital to 

speak of. They are in a conservatorship, and we have done nothing 

to fundamentally restructure these giant behemoths other than to 

sweep their profits into the Treasury every quarter, leaving virtually no cushion. I share your view about a $3 billion capital buffer, but let us be 

clear. That is trivial in the scheme of things. 

So this, I think, is a big challenge. It is long, long overdue that 

we address, and so I would just be grateful for your thoughts, your 

advice on what we ought to do about this. You will have certain 

powers and actually significant powers in your role, but you pointed out correctly that, for instance, creating a mortgage finance 

market where there is greater competition and a much more robust 

role for private-sector lenders, that probably requires legislation. 

So help us in how we ought to think about moving forward on 

this challenge, if you would. 

Mr. CALABRIA. Thank you, Senator, and I really would agree and 

emphasize that while I do believe that the regulator can make a 

number of changes that can try to get the GSEs on a stable footing 

for the next inevitable downturn so that we can minimize losses 

and minimize damage done to families, I do believe the fundamental things that need to be changed by the system have to be 

changed by Congress. And I would urge that those be done in a bipartisan manner within Senator Crapo’s framework and many others that talked about this. 

Foremost, I believe we need an open, competitive market. There 

is certainly part of me that I will say that has a suspicion of monopolies and duopolies. I tend to think that if we are going to—I 

do not like to see exclusive privileges handed out. I think anybody 

who meets these charters should be able to get them. So, again, I 

think we should, as an assumption, be suspicious of duopolies. 

I think, ultimately, it is not only important that we should be 

suspicious—because that we know that monopolies and duopolies 

tend not to pass on all their benefits to consumers but tend to capture a large amount of those benefits for themselves—so that consumers benefit from competition. 

But I think just as importantly, as we have seen during the financial crisis, having a competitive market will allow us to better 

address the too-big-to-fail nature of these entities. If we have got 

a dozen of these entities, we are less captive to having to bail any 

one of them out, and I think that is important to bring some market discipline and some accountability. 

So, A, competition is a big part of this. B, I think having an explicit model where we know—where we get away from implied 

guarantee. We know what is guaranteed. It is explicit. It is on 

budget. It is clear. 

I think the best analogy that is a model that we know that 

works, if you think about how the FDIC works, there is an explicit 

set of creditors who are protected. There are obligations. There is 

competition. In theory, any depository should be able to fail and go 

out of business in orderly manner. I really think that that is broadly the kind of model we should be looking at. 

And I will last end with—because I still occasionally have that 

voice of Senator Shelby in my head saying, ‘‘Never see an instituVerDate Nov 24 2008 13:07 Apr 08, 2019 Jkt 046629 PO 00000 Frm 00024 Fmt 6633 Sfmt 6633 L:\HEARINGS 2019\02-14 NOMINATIONS\HEARING\RESEND FOLDER\35617 NEW.TXT
21 

tion fail that was well-capitalized, well-managed, and well-regulated,’’ and I believe that is our objective is to make sure that these 

entities are well-capitalized, well-managed, well-regulated. And it 

is certainly worth remembering the amount of leverage of these 

companies go into the crisis. They were guaranteed to fail. It was 

an inevitability. It was a guarantee. 

And I do—and I was the first to say that a lot of my motivation 

is having to solve this before the crisis, where it was very difficult 

to get anybody to take it seriously. So I wish we had fixed it then, 

and I hope we can fix it now, so that we do not find ourselves back 

in this situation. 

Senator TOOMEY. Thanks very much. 

Thanks, Mr. Chairman. 

Chairman CRAPO. Senator Tester. 

Senator TESTER. Thank you, Mr. Chairman and Ranking Member Brown, for the hearing today. 

I want to thank all the nominees for being up here. I appreciate 

it. 

Dr. Calabria, there are some things you say that I agree totally 

with, and a lot of other stuff, especially in your writings in the 

past, have been disturbing. 

For example, you have essentially blamed the Federal Reserve 

for the financial crisis and said that the housing crisis was not a 

result of predatory lending by lenders. Do you still stand by that? 

Mr. CALABRIA. Well, Senator, from a financial—well, first of all, 

I appreciate you reading my work. 

Senator TESTER. Absolutely. 

[Laughter.] 

Mr. CALABRIA. And I do want to—and I do want to emphasize 

that many things are in the form of blog posts and op-eds, and 

again, 2- or 300 words sometimes lacks nuance. 

Senator TESTER. Yeah, but sometimes it shows truthfulness. 

Mr. CALABRIA. Absolutely. And I stand by all of it, but let me 

clarify. 

So, certainly, in terms of monetary policy, I think from a financial stability perspective, anytime we see a financial system where 

you have got years on end, where the interest—real interest rates 

are negative, I—— 

Senator TESTER. Yeah. But let us go back to the original question. 

Mr. CALABRIA. You asked—— 

Senator TESTER. And that was the blame was put on the Federal 

Reserve, not on the predatory lenders. Do you still stand by that? 

Mr. CALABRIA. I believe there were a large number of parties to 

blame, including predatory lenders. 

Senator TESTER. OK. 

In the past, you have suggested that we raise guarantee fees 

charged by Fannie and Freddie to pay down the debt. Is that still 

your position? 

Mr. CALABRIA. The decision on whether we use guarantee fees for 

anything other than credit ultimately lies with Congress. 

Senator TESTER. I got that, but what is your position? 

Mr. CALABRIA. I do not believe it is within the authority of FHFA 

to do that, so I do not believe it is a decision I have power to—— 

22 

Senator TESTER. But if you had the ability to make that decision 

or the recommendation to other people to do that, would you say 

let us raise the G-fees and you need to pay down the debt? It is 

a simple philosophy. That is all. 

Mr. CALABRIA. Understood. And I will note that that is a proposal that the Congressional Budget Office has made. 

Senator TESTER. And what is your feeling? 

Mr. CALABRIA. My feeling is I take the long-term debt situation 

very serious. 

Senator TESTER. So do I. What is your feeling on using G-fees to 

pay down the debt? 

Mr. CALABRIA. I do not think it would get us there would be 

my—would be my feeling. I do not think we could make a very 

large impact on the debt that way, and I think we have to look at 

a number of other avenues to look at that. 

Senator TESTER. So that is not still your position? 

Mr. CALABRIA. That is correct. 

Senator TESTER. OK. 

Do you believe that a 30-year fixed-rate mortgage can exist without Government backing? 

Mr. CALABRIA. I believe the history of the 30-year fixed-rate 

mortgage has been popularized and created first by guarantees provided by the Federal Housing Administration. 

Senator TESTER. That is OK. I do not need the history. I just 

need to know—I just—— 

Mr. CALABRIA. Well, I think this is important. 

Senator TESTER. I know. I know it is important, but I just need 

to know your philosophy. 

Mr. CALABRIA. Senator, I will absolutely, if confirmed, guarantee 

you today that at the end of my 5-year term, the 30-year fixed-rate 

mortgage will be widely available. Guarantee. 

Senator TESTER. OK. Do you believe in Government guarantee of 

that fixed-rate mortgage? 

Mr. CALABRIA. I believe we will continue and should have the 

Government guarantee behind that mortgage. 

Senator TESTER. OK. But you are not too gung-ho about the Government guarantee portion, at least that is what writings in the 

past have indicated? 

Mr. CALABRIA. I believe that any sort of guarantee provided creates moral hazard, and we have to have an appropriate regulatory 

structure to manage that moral hazard. And my concern, fundamentally in the past, is that we have lacked the appropriate regulatory structures to control the risks that are there. 

Senator TESTER. OK. 

Mr. CALABRIA. I believe we can take all sorts of risks if we have 

a structure that supports it. 

Senator TESTER. OK. 

Dr. Calabria, I—and I apologize for saying ‘‘Mr. Calabria,’’ if I 

have a few times. 

Dr. Calabria, most of the stuff that I have read that you have 

put forth would indicate that you are the last person in the world 

that would want this job, and I think the last sentence of your 

opening—the last page or two of your opening actually referred to 

23 

that. It said, ‘‘Regardless of what I have said in the past, I still 

want the job.’’ 

I farm in my real life, and if I hated farming, I guarantee you 

I would not be in that business. Why do you want this job? 

Mr. CALABRIA. Senator, you know, as you heard from my comments regarding the work of my mother, sister, my family, if qualified people are not willing to stand up and take public service and 

take responsibility, it is not—— 

Senator TESTER. But if in your gut you want this agency to go 

away—— 

Mr. CALABRIA. Senator—— 

Senator TESTER. ——or at least be significantly restructured, we 

got a problem. 

Mr. CALABRIA. Senator, as a staff member of this Committee, I 

helped create FHFA. I am proud of the work of FHFA. FHFA is 

an absolutely necessary agency. In fact, I want to raise the stature 

of FHFA. 

I remember how the employees at its predecessor felt, OFHEO. 

I remember how coward they were in their inability to stand up 

and be able to do effective financial regulators. 

I remember repeatedly Senator Shelby using the term ‘‘worldclass regulator.’’ I am committed to seeing the work of HERA finally completed and to turning FHFA into a world-class regulator. 

Senator TESTER. Thank you, Dr. Calabria. 

Thank you, Mr. Chairman. 

Chairman CRAPO. Thank you. 

Senator Rounds. 

Senator ROUNDS. Thank you, Mr. Chairman. 

Dr. Calabria, I am enjoying the back-and-forth here a little bit, 

but I want to bring it back down a little bit. And let us just have 

a little conversation here. 

Number one, do you think that 30-year mortgage is an important 

item to have? 

Mr. CALABRIA. Absolutely. I have one myself. I would like to keep 

it. 

Senator ROUNDS. OK. Second of all—— 

[Laughter.] 

Senator ROUNDS. Well, getting this job might just make that possible. 

What about—look, when it comes to a 30-year, is there any question in your mind but that a secondary market for those securities—is there any question in your mind that that is not an important item to have? 

Mr. CALABRIA. I believe we do need a vibrant secondary market 

and a 30-year mortgage, and really to clarify some of the questions 

that have been raised, in the past I have expressed a frustration 

that we saw this during the crisis. We saw this when we tried to 

get the HERA. That too often someone would just invoke the 30- 

year mortgage and say, therefore, we cannot touch any element of 

the existing system and no reform is possible. 

I believe what we need to do is we need to roll up our sleeves, 

and we need to get our hands dirty and say what in our system 

is crucial and critical to the 30-year mortgage and what can we 

change. 

24 

So, again, my frustration in the past has been by this sort 

pushback that somehow we are not supposed to talk about fixing 

the system if we could just, you know, invoke 30-year mortgage, 

end of conversation, we have to take the system as it is. 

Senator ROUNDS. Yeah. Just think about what would have happened if we would have taken the same approach with Social Security and we were fixing it on a year-to-year basis so that it would 

actually survive, so that we actually could guarantee the next generation that it would be there. 

The same kind of a thing comes in when we talk about a 30-year 

mortgage or the opportunity for some sort of a guarantee, so that 

that asset or that loan can be sold in a secondary market. 

These GSEs have done that in the past, but there has been a 

real problem when Congress sometimes meddles and suggests that 

things should be done. 

When you talk about underwriting and understanding standards, 

would it be fair to say that you simply believe that underwriting 

standards are a critical part of maintaining long-term successes of 

any mortgage of any size? 

Mr. CALABRIA. Absolutely, Senator. I am a very ardent believer 

in home ownership. I would go as far to say I view home ownership 

as one of the fundamental planks of a free society. I think it is critical to us, but I believe that home ownership has to be sustainable. 

I believe we cannot just funnel families through that are not going 

to survive home ownership and are going to be worse off because 

of it, what it devastates to do to them. So, to me, I want to make 

sure where we are going, sustainable home ownership. 

And I will last note I know Senator Shelby remembers every 

time the Committee tried to do mortgage finance reform before the 

crisis. We had parties out there saying, ‘‘Oh, this is a bill that destroys Fannie and Freddie and shut down Fannie and Freddie.’’ We 

know the truth was that Senator Shelby’s efforts and the efforts of 

this Committee before the crisis, we are trying to avoid Fannie and 

Freddie from getting in trouble and try to make sure that they 

were there. 

And so let me be very clear. I am the last person who is trying 

to disrupt the mortgage market. I am trying to stop the mortgage 

market from disrupting itself. 

Senator ROUNDS. And that requires a series of underwriting 

guidelines that have been vetted. It requires discipline. It requires 

a facility that allows for the open trade and marketability of those 

products. It requires the availability of liquidity. Are all of those 

items that have to go into a good secondary market? 

Mr. CALABRIA. Absolutely, Senator. 

Senator ROUNDS. So what you are suggesting and what I hear 

you saying is let us have some discipline in this. Let us make this 

thing. Let us fix this thing. Let us not just simply promise that everybody gets a 30-year mortgage, kind of like we promise everybody 

that they put money into Social Security and therefore we never 

have to look at it again and we will never manage it. What we are 

really talking about here is taking responsibility so that the next 

generation can have those same guarantees. Fair statement? 

Mr. CALABRIA. Absolutely, Senator. 

Senator ROUNDS. Thank you. 

25 

Mr. CALABRIA. Thank you. 

Senator ROUNDS. Thank you, Mr. Chairman. 

Chairman CRAPO. Thank you, Senator Rounds. 

Senator Warner. 

Senator WARNER. Thank you, Mr. Chairman. 

Dr. Calabria, I enjoyed our meeting. I do not necessarily agree, 

but I appreciated our back-and-forth. 

I want to start with an area. My understanding is you believe 

that the FHFA Director can go ahead and unilaterally require an 

increase in the capital reserves, capital requirements for the GSEs. 

Is that correct? 

Mr. CALABRIA. Not under the terms of the current preferred 

share agreements. The previous director proposed a risk-based capital rule, but that would have not taken place, even if it was finalized within the existing framework. So for any additional capital to 

be raised above the $3 billion that is there requires an agreement 

to be—— 

Senator WARNER. But you supported that, did not you, back in 

an Urban Institute article in 2016? 

Mr. CALABRIA. I believe—— 

Senator WARNER. You supported that concept—— 

Mr. CALABRIA. I believe the—— 

Senator WARNER. ——I guess, closer to bank-like capital. 

Mr. CALABRIA. I support the concept of having significantly more 

capital at the GSEs. 

Senator WARNER. I guess one of the concerns I have, if we go to 

a bank-like capital requirements, that that is going to dramatically 

increase the cost of borrowing, particularly for low-income borrowers, borrowers of color or others. I think if you currently have— 

currently, borrowers are basically requires to pay about 30 basis 

points on the mortgages guaranteed by the GSEs. 

My calculation—and I am trying to do this on a conservative 

basis—would be that if you raised GSEs’ capital to bank-like capital, you would be talking about at least a tripling of the capital 

requirements. You can take this from about 30 basis points to 90 

basis points. That is close to a full 1 percent increase. That on a 

traditional $300,000 loan would be an increase in cost of over 

$60,000, and I think we have got a housing affordability crisis in 

this country, and that is just for a traditional lender. 

If you go to a really at-risk lender, low-income, who already pays 

significantly higher in terms of their costs of loans, I mean, I have 

seen estimates that would have almost a doubling of the cost to 

those low-income borrowers. 

So if we are trying to grapple with affordability—and clearly, we 

have talked about the need to make sure that the GSEs are stronger and have more appropriate protections, but holding bank-like 

capital reserves, how can you square that with the concerns about 

the affordability, the crisis that we have in the housing market? 

Mr. CALABRIA. Well, first, let me emphasize my full agreement 

with the affordability crisis facing this country. 

Let me say on the capital, certainly, in an ideal world, it would 

be nice to have lots of capital, given that I might want to go here 

or here. So any kind of place between here and here, I view as an 

26 

improvement. So I can certainly commit to you I am the last person 

to ever let the perfect be the enemy of the good. 

I think if we can get to a reasonable capital level that avoids the 

losses during the crisis and does so—and I believe we can do so in 

a way that will maintain affordability. It is important to keep in 

mind that we see in the corporate debt markets that the higher leverage a company has, the more it pays on its debt, and primarily, 

the cost of mortgages for Fannie and Freddie are not driven by the 

cost of capital but driven by the cost of debt that, in fact, having 

some less leverage should actually make it cheaper for them to borrow. 

But, last, let me emphasize Fannie and Freddie’s primary role, 

in my opinion, is to be there during the downturn, and we saw in 

2009 and 2010 where they pulled back because they were so highly 

leveraged, and they did not play the role they were supposed to 

play because they did not have enough capital going into the crisis. 

Senator WARNER. Well, again, I think as somebody who has 

spent more time on this subject than I ever wanted to spend. I 

think there are areas here where we can make improvements, but 

I am terribly afraid that bank-like capital requirements of the 

GSEs—one of the reasons why I think it is so essential that we 

have this kind of a backstop would dramatically increase affordability concerns. 

I would also argue that one of the things that we need, and some 

of us have proposed, is on any loan that was guaranteed, a dedicated revenue stream that would go toward housing goals, that 

would go toward low-income, first-time homebuyers, and whatever 

reform takes place, I hope would include that. 

Let me quickly, before the clock ticks down—one of the areas 

that we have not touched on, we know you want to shrink the footprint of the GSEs, but one of the areas that did not create a crisis 

was multifamily. GSEs now have about nearly a 50 percent share 

of the multifamily. Do you think that we ought to—this was an 

area that was not broke, but would you think that we ought to dramatically shrink the GSE’s footprint within the multifamily range? 

Mr. CALABRIA. Let me, first of all, fully agree the multifamily 

portfolio seemed to perform well during the crisis, and of course, 

they were much better underwritten than the single-family portfolio. And I do not believe we needs the same sort of changes in 

the multifamily side of the GSEs that we need on the single family—— 

Senator WARNER. Again, my concern is this is an area that survived through the crisis. If we are going to deal with affordability, 

multifamily is going to be an absolutely critical component, and I 

would be very, very reluctant, even as somebody who has advocated for some fairly major reform, that we take that old admonition of ‘‘first do no harm.’’ 

Thank you, Mr. Chairman. 

Chairman CRAPO. Thank you. 

Senator Kennedy. 

Senator KENNEDY. Thank you, Mr. Chairman. 

Gentlemen, I only have 5 minutes, so I would ask you to please 

answer my questions directly. I know you know a lot, but try to answer my questions. 

27 

Mr. Patel, tell me what the community banks in our country did 

to contribute to the 2008 meltdown. 

Mr. PATEL. Senator Kennedy, thank you for the question. 

Senator KENNEDY. You do not need to thank me. You can just 

answer. 

Mr. PATEL. Sure. So I have deep background in—— 

Senator KENNEDY. What did the community banks do to contribute to the 2008 meltdown? 

Mr. PATEL. To answer your question, this is why the Department 

of the Treasury is called for tailoring and why—— 

Senator KENNEDY. Did the community banks in 2008 contribute 

to the banking meltdown? 

Mr. PATEL. They were not a substantial part of the cause of 

the—— 

Senator KENNEDY. OK. Then why have we tried to regulate them 

half to death? 

Mr. PATEL. Senator Kennedy, again, thank you. 

I commend the work of this Committee on a bipartisan basis 

to—— 

Senator KENNEDY. Do you believe that we should—we should 

lighten the regulation, not remove the regulation, but lighten the 

burdensome regulation on community banks? 

Mr. PATEL. I fully support appropriate tailoring, which is reflected in both the Treasury—— 

Senator KENNEDY. That is a yes? 

Mr. PATEL. Yes. 

Senator KENNEDY. OK. Do you believe we still have banks that 

are too big to fail? 

Mr. PATEL. Senator, I believe comparing to precrisis levels that 

financial institutions on the whole are better—— 

Senator KENNEDY. Do you believe that we still have banks that 

are too big to fail? 

Mr. PATEL. Senator Kennedy, I again believe in the aggregate 

that we have greater visibility and resolvability. The system—— 

Senator KENNEDY. Yeah. But do you believe we still have banks 

that are too big to fail? Am I missing something here? I am not 

connecting with you. 

Mr. PATEL. Yes. Sir—— 

Senator KENNEDY. Do we still have banks that are too big to fail? 

Now, you are going to run financial institutions in this country. 

That is kind of a basic question. 

Mr. PATEL. It is, and I think that the circumstances surrounding 

failure are very fact-dependent. 

Senator KENNEDY. Yeah. Do you think we—well, you are not 

going to answer the question, are you? 

Mr. PATEL. Again—— 

Senator KENNEDY. Let me try another one. 

Mr. PATEL. OK. 

Senator KENNEDY. We did have a financial meltdown in 2008, 

right? 

Mr. PATEL. We did, yes. 

Senator KENNEDY. Oh, thank God. 

28 

Do you find it embarrassing that many financial institutions that 

contributed to that meltdown were not held accountable, and not 

just the institutions but the people responsible? 

Mr. PATEL. Senator, I strongly believe in protecting taxpayers, 

and I hope that we never have to live through another set of events 

like the events from—— 

Senator KENNEDY. Mr. Patel, I am not going to vote for you if 

you do not answer my questions. I do not mean to be rude. 

Mr. PATEL. OK. 

Senator KENNEDY. But I need answers, OK? You know we have 

limited time. I just burned about 20 seconds. We should get you to 

do your job. 

Mr. PATEL. We should hold accountable those responsible. 

Senator KENNEDY. And we did not, did we? 

Mr. PATEL. In some cases, we did not. 

Senator KENNEDY. Right. See? That was easy. 

Mr. PATEL. I apologize. 

Senator KENNEDY. I mean, I am not against big. I am against 

dumb. I am against not properly—I am not a big regulation kind 

of guy, but I am against not properly regulating our financial markets. The emphasis is properly, and you have got to do that. 

Mr. PATEL. I commit to you, sir, that if I am fortunate enough 

to be confirmed, I will work with you and try to address your concerns. 

Senator KENNEDY. And I appreciate that. 

Doctor, let me ask you a question, please. You mentioned—and 

if you could just give me a quick answer. You mentioned there 

were alternatives to the bank bailouts? 

Mr. CALABRIA. Yes. 

Senator KENNEDY. Briefly, what were they? 

Mr. CALABRIA. So I think we could have essentially done debt equity swaps that would have put the debtholders—at risk, what we 

are trying to accomplish with TLAC. 

Senator KENNEDY. OK. What else? 

Mr. CALABRIA. I think some of these companies just should have 

gone to the bankruptcy. I think we could have done prepackage 

bankruptcies, debt equity swaps. I think there are a large number 

of options, and of course, I believe it is important that we treated 

all institutions the same. 

Senator, as you were alluding to, we let small banks fail, and we 

did not let big banks fail. 

Senator KENNEDY. Let me ask you another question. This is kind 

of open-ended, and I have got 40 seconds. So you are going to have 

to give me the CliffsNotes versions. 

You are King for a Day. Forget the politics. Forget the personalities. What would you do, writing on a blank slate, to fix the GSEs? 

Mr. CALABRIA. I would make them subject to the same regulatory 

and legal structures that every other large financial institutions is 

subject to. 

Senator KENNEDY. Thank you. 

Mr. CALABRIA. You are welcome, Senator. 

Senator KENNEDY. Thank you, Mr. Chairman. 

Chairman CRAPO. Thank you, Senator. 

Senator Warren. 

29 

Senator WARREN. Thank you, Mr. Chairman. 

Thank you all for being here today. 

So for generations, buying a home has been the number one way 

that working families build wealth, a home, not only a place to live, 

but also an asset that may appreciate, that may be collateral for 

a new business. If grandma can hang on to the house until she 

dies, it boosts the chances for the next generation. 

So, for decades, America subsidized housing purchases for white 

families, but this country deliberately discriminated against black 

families trying to buy homes. Redlining and other discriminatory 

tactics were outlawed more than 50 years ago, but today, the gap 

in the home ownership rate between black homeowners and white 

homeowners is bigger than it was back when housing discrimination was legal. 

So, Dr. Calabria, you are an economist who studied the housing 

market for years. Are you concerned about the home ownership gap 

between black and white Americans? 

Mr. CALABRIA. Absolutely, Senator. 

Senator WARREN. Good. Me too. 

So Congress requires the Federal Housing Finance Agency, the 

FHFA that we are talking about today, to set affordable housing 

goals. If you are confirmed as Director, that is going to be your job. 

You are right in charge of that, and that is what will determine 

whether or not lenders have the liquidity they need to make mortgages to low and very low-income families in poor neighborhoods, 

many of which are families of color. 

But here is a problem. You have already made clear that you 

want to gut these housing goals. You testified in 2011 that it is ‘‘beyond debate’’ that these affordable housing goals contributed to the 

financial crisis. You think that, but the 10-person Financial Crisis 

Inquiry Commission, which was commissioned by Congress to 

make the definitive findings about the causes of the financial crisis, 

concluded after a year-long investigation that included 19 days of 

public hearing and the review of millions of documents and interviews with more than 700 witnesses that the affordable housing 

goals did not cause the subprime crisis. And in a separate 2014 

study by the St. Louis Fed, they reached the same conclusions. 

So, Dr. Calabria, we have a lot more information about what 

causes the financial crisis than we did back when you testified in 

2011. 

So let me ask. Do you still think that the affordable housing 

goals played a big role in the crisis? 

Mr. CALABRIA. Senator, if I could just quickly read from Chapter 

17 of the Federal Crisis Inquiry Commission: ‘‘Affordable housing 

goals imposed by the Department of Housing and Urban Development did contribute marginally to these practices.’’ 

Senator WARREN. Marginally. 

Mr. CALABRIA. And I would agree with that statement, marginally. That is my position today. 

Senator WARREN. So your shift—you have shifted from 2011. You 

now say it had a marginal effect on it; is that right? 

Mr. CALABRIA. Senator, I believe there is a marginal effect, modest effect. 

30 

Senator WARREN. And the 2014 study by the St. Louis Fed, 

which says, no, it did not have any effect, do you agree with them? 

I take it no. 

Mr. CALABRIA. I have not read the study, Senator. 

Senator WARREN. OK. You have not looked at that study? 

Mr. CALABRIA. I read a lot, but I cannot catch everything. But 

I will—let me—let me absolutely commit to you. 

Senator WARREN. OK. Never mind. We are going to be out of 

time here. 

So by the early 2000s, home ownership rates for families of color 

had finally begun to increase in a meaningful way, and then the 

shady lenders move in. And they target black and brown families 

with the worst scams and the most abusive mortgages. 

According to the FDIC, these loans were rarely used to meet affordable housing goals. When these loans blew up, that is what 

crashed the economy, not affordable housing goals that helped 

more than 25 million families, including many families of color become homeowners. 

So let me ask. If you are confirmed as Director of the FHFA, will 

you commit to preserving strong affordable housing goals? 

Mr. CALABRIA. Within the confines and direction of the statute, 

absolutely yes. 

Senator WARREN. All right. So that is important because—I want 

to hear that. Today, the median black family in America has about 

$2 in wealth for every $100 in wealth that the median white family 

in America has. Fixing the home ownership gap is a key element 

to addressing the racial wealth gap. 

Home ownership is the American dream in no small part because 

it provides financial security for families, and if we have an FHFA 

Director who does not feel the urgency of opening doors to home 

ownership for creditworthy families of color, then we cannot go forward and cannot have my vote. 

Mr. CALABRIA. Senator, I am absolutely committed to making 

sure that those opportunities are there. My concern is simply to 

make sure it is done is as sustainable manner that keeps those 

families in those homes. 

Senator WARREN. So if they are creditworthy, though, you are 

going to keep the door open on affordable housing goals. Are we 

right? 

Mr. CALABRIA. Absolutely yes. 

Senator WARREN. We understand this? 

Mr. CALABRIA. We—meeting of the minds here, as lawyers would 

say. 

Senator WARREN. All right. Thank you. 

Chairman CRAPO. Thank you. 

Senator Tillis. 

Senator TILLIS. Thank you, Mr. Chairman. 

Mr. Calabria, you are in luck. You are not going to get my first 

question. 

[Laughter.] 

Mr. CALABRIA. Thank you, Senator. 

Senator TILLIS. Actually, before I get started, I have a staff down 

at the end of the dais. So I would like for the seventh graders who 

are in the audience to stand up really quickly—I do not even know 

31 

if this is within the rules—so we can take a quick picture of you, 

and we will send it back to you. 

Welcome. 

Yeah, right over there. 

I am using my time here. So I do not know if that was untoward, 

but—— 

Chairman CRAPO. I was going to say you are using your time, 

but you can go right ahead. 

[Laughter.] 

Senator TILLIS. Of course. 

This is the first time I have had to call you ‘‘Mr. Hood.’’ Normally, it is just ‘‘Rodney.’’ But it is good to see you here, and thank 

you so much for your service on the Board of Governors. You made 

me very proud there, and I know you are going to make me proud 

here. 

You have experience in the agency. You know me. Back in the 

time that I was Speaker, I was all about lean regulations, not unregulating, but regulating in as lean a way possible. 

Tell me—and then maybe you and Mr. Harper can determine 

whether or not you agree or disagree on the approach, but tell me 

what we can do to better streamline and reduce the regulatory burden as long as we understand that—to a level that we are managing the risk, what kind of priorities would you try to set or encourage in your capacity back on the NCUA? 

Mr. HOOD. Thank you, Senator Tillis, for your time, your support, and for your question this morning. 

I am a safety and soundness regulator, sir, and if confirmed, I 

would continue to work to make sure that regulation at NCUA remains effective but not excessive. 

In returning to the agency, when I was last there over a decade 

ago, we as a board would review one-third of the credit union regulations every year, such that in every 3-year cycle, all 100 percent 

of those rules and regulations have been evaluated so that we could 

determine which ones were still relevant, which ones were still germane for maintaining safety and soundness. So I will go back with 

that mindset. 

Senator TILLIS. Mr. Harper, would you agree with that approach? 

Mr. HARPER. Yes, more or less. 

The point I would make is that it is very important to tailor the 

rules. Credit unions have a wide range in size. The smallest is perhaps what? $20,000 in size? 

Senator TILLIS. I am glad to hear you say that because I think, 

conceptually, you need to apply the same process that we have suggested within 2155, the Regulatory Reform Act, for baking institutions. You need to understand their activities, their portfolios, their 

size. All of those play into the extent to which they need to be regulated, and I hope you will go on with that in mind because, frankly, 

I worry postcrisis about the financial services ecosystem. I worry 

about de novo banks, small banks, and credit unions play an important role in that. They fared pretty well in the crisis, quite honestly, but they have kind of gotten swept up in the regulatory reactions afterwards. 

So I am looking forward to you all getting in there and getting 

to a lean place. 

32 

Mr. Patel, you have got an extraordinary story, you and your 

parents, and I appreciate you being here. You are going to be in 

the mix for FSOC, and I am a little bit worried about—again, I am 

a lean regulation—everybody thinks lean regulation means no regulation. I mean the least amount of regulation to manage an identifiable risk out there. 

But I am beginning to think there may be some drift in FSOC 

to where nonbanking financial institutions could be swept in and 

actually have additional regulations, even in this Administration. 

What can you do to assure me that that is not the path we are 

going to take, should you be confirmed? 

Mr. PATEL. Senator Tillis, thank you for the question. 

The council is currently considering alternative approaches to the 

previous council’s nonbank’s designations policy. Among that, we 

are looking at things like increased transparency, the inclusion of 

cost-benefit analysis requirements, which I think is an important 

hallmark of all financial regulation. Government policy should not 

be enacted if it does more harm than good, and we should take 

stock of the burdens that regulation imposes while being mindful 

of systemic risk. 

Senator TILLIS. Well, I appreciate you doing that because I can 

tell you if you do not come back with a clear cost-benefit analysis, 

count me in as the person writing the resolution of disapproval to 

try and deprive you of having that authority moving forward. So 

do not put me in a position where I would have to do that. 

Mr. Calabria—by the way, I am supporting all your nominations. 

You have all done great work. Mr. Calabria, you have done great 

work. 

I guess I would give compliments to the other three of you who 

have never posted a blog, apparently. 

[Laughter.] 

Senator TILLIS. And, Mr. Calabria, I would just say I have seen 

some of your writings. You are a brilliant person. We are going to 

need your help in seeing if there is any way that we can actually 

make progress on GSE reform. I am not sure that we can in this 

Congress. 

Thank you all for being here. 

Chairman CRAPO. Thank you. 

Senator SMITH. Thank you very much, Mr. Chair and Ranking 

Member Brown, and thanks to all of you for being here today and 

for your willingness to serve our country. 

Dr. Calabria, you are back in the questioner’s seat, I think. 

You said earlier that home ownership is a fundamental plank in 

our country, and the problem, of course, is that that plank cannot 

be found in a lot of parts of our country. 

I appreciate you coming in and talking with me in my office a 

couple of days ago, and we talked about the availability of quality 

affordable housing in rural areas and what a challenge that that 

presents to these communities’ stability and growth and economic 

development, not to mention the opportunity for rural families. Of 

course, this issue is even greater for Native Americans on tribal 

lands, even greater obstacles in finding affordable housing and access to credit. And this is an issue, a big issue in Minnesota and 

also around the country. 

33 

So when we talked about this in my office earlier, we had a general conversation about how affordable housing is good, but I want 

to dive into that a little bit. 

As you know, Fannie Mae and Freddie Mac have released their 

first-ever Duty to Serve plans, as required under HERA, and these 

3-year plans list specific and measurable commitments to invest in 

and to promote affordable mortgages in unserved markets, like in 

rural markets and Native communities. 

So, Dr. Calabria, how can you square what you have written earlier around the elimination of GSE affordable housing goals, and 

what is in these Duty to Serve plans and your vision for the GSEs? 

How do you square that? 

Mr. CALABRIA. So, Senator, I think one of the things that makes 

me uniquely qualified is having been part of the structure that 

came up with those, both the Duty to Serve, the Trust Fund, as 

well as the Capital Magnet Fund, were largely structured, crafted, 

drawn by myself and Senator Reed’s staff. So I have got the benefit 

of the legislative history that was there, and I can certainly say my 

sense of that legislative history is none of those things were meant 

to come at the sacrifice of safety and soundness. And so my concerns that have been expressed since the crisis is that there is not 

a framework of safety and soundness or capital to protect us 

against taking more risk. 

I think the ultimate goal here is that we can come together and 

build a framework for the GSEs where there is capital, where there 

is sufficient regulation, and if we have got that framework, I believe that we can make advances and take more risks. 

Senator SMITH. So what will you do to ensure that the GSEs continue their support for affordable housing and mortgage lending in 

rural areas and Native communities? 

Mr. CALABRIA. First, let me recognize having grown up in rural 

America, I am very cognizant of the unique economic issues that 

face it. 

I also had the privilege, benefit, as a Committee staffer to visit 

a number of tribal communities across this country, and of course, 

one of the first things I would try to do is have FHFA work with 

the Bureau of Indian Affairs. We know that there are very unique 

titling problems in tribal communities that make it very difficult 

to do standardized mortgage lending. 

Senator SMITH. Yes, we talked about that. 

Mr. CALABRIA. And I think that we really want to focus that. 

Let me also say, because I think it is incredibly important—it is 

outside of the scope of FHFA—one of the biggest constraints in affordable housing in this country is zoning, and I really do think the 

recent changes in Minneapolis are some smart moves that I hope 

a number of other cities around America copy. 

Senator SMITH. Thank you. I think they have done some smart 

things in Minneapolis, and I appreciate you mentioning that. 

Let me ask you. Can you commit to retaining the targeted initiatives for rural areas and tribal lands in the Duty to Serve 

plans—— 

Mr. CALABRIA. Yep. 

Senator SMITH. ——if the GSEs are reformed or restructured in 

any way? 

34 

Mr. CALABRIA. I absolutely, Senator, commit to having those continue to be part of the process. 

As an economist, I want to be able to also commit that we collect 

data on this and we make sure that we are best targeting these 

programs in a way that we are effective and receive results. 

Senator SMITH. But does continuing to have them be part of the 

process mean continuing to keep them in place? 

Mr. CALABRIA. Keep them in place as long as the existing regulatory structure is there. 

Of course, I think if the Committee decides to take a different 

route legislatively, I do believe we can look at a number of options. 

But within—if confirmed, within my authorities of Director, I 

will be fully committed that as long as those are the law and the 

statutes that I will carry them out as intended. 

Senator SMITH. OK. I just have a couple of seconds left, but I appreciate very much, Mr. Hood and Mr. Harper, you being here. 

Credit unions are incredibly important in my State and especially 

in rural areas. So would one of you just in the few seconds that 

I have left—and I would love to submit my question for the record 

to get your fuller response. Can you tell me a little bit about the 

role that you see credit unions playing in and creating better access 

to credit in rural areas? 

Mr. HARPER. I think that is an incredibly important issue and 

that NCUA has adopted rules and regs that allow credit unions 

and help facilitate getting into the rural areas, and if confirmed, 

certainly underserved markets like rural areas would continue to 

be a priority for me. 

Senator SMITH. Mr. Hood. 

Mr. HOOD. If I may, Senator Smith. I too agree that credit unions 

can play a role in bringing affordable home ownership to rural 

America. 

Prior to joining NCUA over a decade ago, I worked at USDA 

Rural Development, where I have managed the Single Family 

Housing Programs. So I would like to find innovative ways to engage credit unions in bringing home ownership opportunities to 

areas such as yours in rural America. 

Senator SMITH. Thank you very much. 

Chairman CRAPO. Senator Van Hollen. 

Senator VAN HOLLEN. Thank you, Mr. Chairman, and congratulations to all of you on your nominations. 

Mr. Calabria, there has been a lot of discussion about the 30-year 

mortgage and your views on the 30-year mortgage. So let me see 

if I can just summarize what I understand is your position. That 

you will not take any action under your authority to reduce the 

current Government support for the 30-year mortgage; is that 

right? 

Mr. CALABRIA. That is correct, Senator. 

And if I could take it a moment aside—— 

Senator VAN HOLLEN. I am sorry. 

Mr. CALABRIA. Quite all right. 

Senator VAN HOLLEN. I am just looking—as Senator Kennedy 

said, time is short. 

As you are well aware, there are articles that have been put out 

that Mr. Otting at the OCC together with the Administration, the 

35 

White House and Treasury, have a plan to reform the GSEs. Are 

you familiar with their plan? 

Mr. CALABRIA. I have not seen anything that looks like a plan. 

Senator VAN HOLLEN. OK. Because it is curious because they say 

it is a White House–Treasury plan. Of course, you work for the 

Vice President, but you are telling us today you have no idea what 

they are talking about here. 

Mr. CALABRIA. Senator, once it became clear in the fall that I 

would be the nominee, I took myself out of any internal—I felt it 

was important for maintaining the independence of FHFA that I 

stopped being part of any internal dialog, once again, that was inside my nomination. 

Senator VAN HOLLEN. I know the Ranking Member asked you 

some questions on this. The fact that Mr. Otting has said that you 

have signed off on this, you have not signed off? If you have not 

seen a plan, you cannot sign off on it, right? 

Mr. CALABRIA. Correct. If I could—my belief of what Mr. Otting 

has said—— 

Senator VAN HOLLEN. That is all right. 

Mr. CALABRIA. That is all right. 

Senator VAN HOLLEN. You have not signed off on it. You do not 

even know of any plan; is that correct? 

Mr. CALABRIA. Correct. 

Senator VAN HOLLEN. You do not know of any plan. OK. 

As you indicated, you were very much a part of writing the 

HERA law, and as you indicated, the Housing Trust and Capital 

Magnet Funds are big parts of that. In fact, just yesterday, the 

CDF fund announced 38 organizations around the country would 

receive funds from the Capital Magnet Fund, including some from 

Baltimore in Maryland. 

So, as I understand your testimony today, you are committed to 

continuing to pursue those programs; is that correct? 

Mr. CALABRIA. Within the confines of the statute, yes. 

Senator VAN HOLLEN. OK. So the statute, as I understand it, 

says that you, if confirmed, would be able to temporarily suspend 

the allocation of the funds if they contribute to financial instability. 

My question to you today is, Do you have any indication today 

or in the foreseeable future that that standard would be triggered? 

Mr. CALABRIA. Senator, the trigger is mechanical. I do not see 

anything today, of course, subject to—I am not inside the agencies. 

I do not have access to confidential supervisory information, but everything that I am aware of publicly would suggest to me that that 

trigger is not in danger of being tripped, if you will. 

Senator VAN HOLLEN. And so long as that trigger is not tripped, 

you will continue to provide robust support; is that right? 

Mr. CALABRIA. That is correct. 

Senator VAN HOLLEN. OK, thanks. 

Now, I do want to get at this issue my colleague has raised—the 

Ranking Member mentioned your quote about deadbeat—because it 

is important going forward to figure out what the cause of 2008, 

and there were lots of causes. But there is no doubt you have 

weighed in disproportionately on this theory that it was caused by 

the GSEs and CRA. 

36 

Let me ask you about CRA. Do you agree it is an important tool 

to prevent redlining and discrimination in lending? 

Mr. CALABRIA. I agree it has been. 

Senator VAN HOLLEN. I am sorry? 

Mr. CALABRIA. Yes. 

Senator VAN HOLLEN. And do you agree that we continue to see 

redlining and discrimination in lending? 

Mr. CALABRIA. I believe that we do. 

I do want to clarify. I have never anywhere put CRA anywhere 

in the top 10 of—I have talked about a number of factors that I 

think have caused the crisis. I believe my writings have all expressed that CRA and the housing goals were modest, at best, and 

that there were much bigger causes. 

Senator VAN HOLLEN. Well, you have written about it. I mean, 

I have an article here—— 

Mr. CALABRIA. That is right. 

Senator VAN HOLLEN. ——I think from 2009, and the headline 

is ‘‘Does CRA Undermine Bank Safety?’’ And you go on. It is to 

suggest that it was a not insignificant component, which is at odds 

with other findings. I do not know if you want to—— 

Mr. CALABRIA. Senator, the blog post in question references a 

study done by the Dallas Federal Reserve Bank that simply found 

a relationship between poor CAMEL ratings and high CRA ratings. 

I certainly think supervisors should take a look at that and make 

sure that CRA ratings are achieved not at the expense of safety 

and soundness, and I believe we can achieve them not at the expense of safety and soundness. 

Senator VAN HOLLEN. I appreciate this because, as you know, 

others have looked at this, including John Dugan, who was, of 

course, OCC head during the crisis who said that the CRA is not 

the culprit behind subprime mortgage lending. 

So I do have concerns about the fact that the overwhelming 

weight of your writing suggests that lending to minority communities or communities that—while they have—can get good credit 

ratings have been overlooked by the market were the primary culprit. It just seems the overwhelming weight of evidence does in the 

other direction. 

I understand you are acknowledging that today when you said, 

in response to Senator Warner’s question, that it was just marginal 

with respect to GSEs; is that right? 

Mr. CALABRIA. That is right, and personally, I believe my writing 

reflects those as being marginal causes. 

Senator VAN HOLLEN. OK. Thank you. 

Thank you, Mr. Chair. 

Chairman CRAPO. Thank you. 

Senator Cortez Masto. 

Senator CORTEZ MASTO. Thank you. 

Welcome, gentlemen. Congratulations on your nominations. Welcome to your families. It has been a long morning. I realize that. 

You only have 10 minutes left, though, so we are almost through 

it. 

So for that reason, I have got 5 minutes. Dr. Calabria, thank you 

for meeting with me. I really appreciate the conversation in my office. 

37 

But let me jump back here because I heard you say that you support affordable housing goals, but also incorporated within that, 

you want sustainable home ownership; is that correct? 

Mr. CALABRIA. That is correct. 

Senator CORTEZ MASTO. OK. So can I ask you do you believe 

that—or let me ask you this. You oppose downpayments of less 

than 5 percent and at times even want to see downpayments at 10 

percent or higher. Is that true? 

Mr. CALABRIA. I think we need to look at downpayments in a holistic sense. I think it depends on other things such as DTI, such 

as FICO scores. So I think we have to take each loan holistically. 

I think there are plenty of circumstances where even zero downpayment lending is sustainable, but I do think we need to avoid the 

risk layering that was such a problem during the crisis. 

Senator CORTEZ MASTO. I am glad you brought up FICO scores 

because you suggested also that only people with FICO credit 

scores of 700 should be able to get a mortgage; is that true? 

Mr. CALABRIA. That is a very broad statement. 

I certainly do not think there should be any legal prohibition in 

the mortgage market against any sort of FICO score. 

Senator CORTEZ MASTO. Good, because that would affect half of 

the people in the State of Nevada who have FICO scores under 

700. 

If you are appointed to head the Federal Housing Finance Agen- cy, will you insist that homeowners have $15,000 or $20,000 in 

cash before they can buy a home? 

Mr. CALABRIA. Senator, the number—I do not believe I have ever 

written that, but the number strikes me as a bit arbitrary. 

I do think it is important for people to have cash reserves. That 

has clearly got to depend on the house in question, the mortgage 

in question, the borrower in question. So I do not think it is—probably more a ratio would be more significant, but I do think we need 

to prepare families for when the boiler goes out or a new roof. I 

mean, we need to make sure that people can be prepared to meet 

the expenses of home ownership when they are there. 

Senator CORTEZ MASTO. Well, can you identify for me what you 

mean by sustainable home ownership and what you would do differently? 

Mr. CALABRIA. So what I would do differently is looking at the 

factors that do not—that do not end up keeping—so that they just 

do not funnel through. That they get a mortgage. They are out of 

there 6 months, a year, 2 years. If we want to put a number on 

it, I think the ability to sustain the mortgage without defaulting— 

obviously, there are going to be life events that may hit you, but 

if we are seeing these mortgages—and we saw a lot of early payment defaults during the crisis. If a mortgage goes bad in 3, 5, 6 

months, there is something wrong with that, whether it is the lender, the borrower, or somebody, and so making sure—— 

Senator CORTEZ MASTO. What if it is not the borrower’s fault? 

Mr. CALABRIA. Then we should go after the lender. I have made 

such proposals in the past. I have suggested, for instance, that 

FHA be aggressive with lenders that default within the first 6 

months. 

Senator CORTEZ MASTO. I have got 2 minutes left. Thank you. 

38 

Let me ask you this. You have written about bringing back recourse in the foreclosure plan, and what it sounds like to me is you 

are willing to expand recourse lending; is that true? 

Mr. CALABRIA. Well, first of all, many products, such as the 

203(b) FHA program are recourse products. I think what we need 

to keep in mind is—— 

Senator CORTEZ MASTO. But they are not—they are actually not 

utilized, though, so that is my concern. 

Mr. CALABRIA. But it is the law. 

Senator CORTEZ MASTO. Yeah. 

Would you actually trigger that, and would you engage in that 

or support recourse lending? 

And let me just say this because I do not understand why a 

mortgage lender, other than the underlying security or the loan 

asset, which is the house, why they should get more than that, why 

they should be able to go after a homeowner’s car, their retirement 

fund, their life savings on a mortgage loan—— 

Mr. CALABRIA. So, first, let me—— 

Senator CORTEZ MASTO. ——instead of just the underlying security, which is the house. 

Mr. CALABRIA. Let me first emphasize that a lender should never 

be able to get more than the size of the loan, but the empirical evidence suggests that the existence of recourse expands mortgage access and lower risk cost. And I think we need to be looking at— 

cognizant of anything that we do that reduces access and increases 

costs. 

Senator CORTEZ MASTO. So would you support that at the Federal level, recourse—expanding recourse lending? 

Mr. CALABRIA. I am comfortable with that remaining at the State 

level. 

Senator CORTEZ MASTO. So you would not employ that at all—— 

Mr. CALABRIA. I do not believe that—— 

Senator CORTEZ MASTO. ——and support it in any way at the 

Federal level? 

Mr. CALABRIA. I do not believe at the Federal level, other than 

the Federal products that might already include that. 

Senator CORTEZ MASTO. Thank you. 

I have got 30 seconds left. Let me ask Mr. Harper and Mr. Hood 

very quickly. The NCUA has a proposed rule exempting commercial loans under $1 million from appraisals. Do you have any concerns that allowing loans of a million dollars without appraisals 

could lead to higher defaults and a hit on the Share Insurance 

Fund? 

And let me start with Mr. Hood. 

Mr. HOOD. I am not totally familiar with what is taking place 

now NCUA, Senator Cortez Masto. If confirmed, I would work with 

agency staff to really understand what they are implying with the 

exemption of the $1 million for commercial loans. 

Senator CORTEZ MASTO. Thank you. 

Mr. Harper. 

Mr. HARPER. I would agree with your concerns about raising the 

appraisal. 

One thing in particular that I would want to look at is where the 

other regulators are, which I believe is at a different level for that 

39 

particular product, and for me, consistency across regulations is an 

important thing. 

Senator Cortez Masto. Thank you. 

Thank you, gentlemen. 

Chairman CRAPO. Thank you. 

Senator Reed. 

Senator REED. Well, thank you, Mr. Chairman. 

I would like to say they have saved the best for last, but all I 

can say with assurance is they saved the last for the shortest Member of the Committee. 

Dr. Calabria, let me begin by thanking you for your help in 2009 

on the HEARTH Act. It is very important for homeless individuals, 

and the problem is still with us, as you well know. 

But let me also try to complement and reaffirm Senator Van 

Hollen’s comments about the Capital Magnet Fund and Housing 

Trust Fund. 

On a bipartisan basis, we found that these are absolutely crucial 

because they are outside the appropriations process. They are dependable sources of funds for affordable rental housing. 

Indeed, Senator Collins and I just wrote to the FHFA’s Acting 

Director to ask him to maintain this critical funding. 

So, in that spirit, will you commit to continue funding the Capital Magnet Fund and the Housing Trust Fund if you are confirmed? 

Mr. CALABRIA. Within the confines of the statute, absolutely yes. 

Senator REED. And from my listening to Senator Van Hollen’s 

questioning back and forth, there is a technical provision you cited 

that may prevent you from doing that? 

Mr. CALABRIA. It is a mechanical trigger, so it is not discretionary. 

I would put it this way. That mechanical trigger is only going to 

be tripped. However, if the GSEs are essentially failing, I certainly 

take very seriously that if confirmed, my primary responsibility as 

a prudential regulator is to make sure that does not happen. 

Senator REED. Thank you. Well, I will take that as an optimistic, 

confident ‘‘yes, I will.’’ Thank you. 

You were with us on March 15th, 2012, for a very good hearing 

on the FHFA, and you said, and I quote, ‘‘I agree that I think that 

their conservatorship powers are quite broad. Where I would draw 

the distinction is I do not believe they allow, in my opinion, FHFA 

to take systemic overall marketwide effects into account in what 

they do,’’ which raises the question: If you are confirmed, do you 

believe that you must ignore the market impacts of the decisions 

you would make at FHFA? For instance, if a particular decision 

would result in a shrinking mortgage market or would squeeze out 

responsible borrowers, would you be unable to take that into your 

considerations? 

Mr. CALABRIA. Senator, it would seem to me that since the primary consideration of conservatorship is to protect the safety and 

soundness of the entities, that anything that I would do that would 

weaken and potentially push down the housing market would obviously impact the safety and soundness of the entities. 

40 

So, certainly, the broader macroeconomic impact that undermines the purpose of the conservatorship would have to be considered, in my opinion. 

Senator REED. It does seem to be somewhat different than the 

comments you made at the hearing. Would you acknowledge that? 

Mr. CALABRIA. Senator, that was a number of years ago. I do not 

have—— 

Senator REED. No, this is not a, you know, ‘‘gotcha.’’ The point 

is that your view is a holistic one, that significant decisions you 

will make that would have an impact on the market or looking at 

the market would inform those decisions, correct? 

Mr. CALABRIA. Correct. And I do believe they would have to have 

market-wide impacts. So there certainly could be modest changes 

that do not impact the market overall that are not relevant to the 

conservatorship that I do not believe I would have the authority to 

address. 

Senator REED. But if it was a significant impact on affordability 

of housing, on access to mortgages, those things, you would have 

to take that into consideration? 

Mr. CALABRIA. Absolutely, because that would directly impact the 

safety and soundness of the enterprises. 

Senator REED. Thank you very much. 

Gentlemen, good luck, and thank you very much. 

Mr. CALABRIA. Thank you, Senator. 

Chairman CRAPO. Thank you, Senator Reed. 

And that concludes the questioning for today’s hearing. 

For the Senators who wish to submit questions for the record, 

those questions are due to the Committee this coming Tuesday, 

February 19th. 

And we ask our nominees to respond to those questions no later 

than the close of Friday, February 22nd. 

I thank you again to each of you for your willingness to serve 

and for being here today, and with that, this hearing is adjourned. 

Mr. HOOD. Thank you. 

[Whereupon, at 11:52 a.m., the hearing was adjourned.] 

[Prepared statements, biographical sketches of nominees, responses to written questions, and additional material supplied for 

the record follow:] 

41 

PREPARED STATEMENT OF CHAIRMAN MIKE CRAPO 

This morning we will hear testimony on the nominations of Bimal Patel, to be Assistant Secretary of the Treasury for Financial Institutions; Todd Harper, to be a 

Member of the National Credit Union Administration Board; Rodney Hood, to be another Member of the National Credit Union Administration Board; and Mark 

Calabria, to be Director of the Federal Housing Finance Agency. 

Welcome, all of you. I see friends and family behind you, and I welcome them here 

today as well. 

Mr. Patel has been nominated to serve as Assistant Secretary of the Treasury for 

Financial Institutions. 

In this role, Mr. Patel would be responsible for Treasury’s efforts on legislation 

and regulation concerning financial institutions, and overseeing the Terrorism Risk 

Insurance Program and Community Development Financial Institutions Fund. 

Mr. Patel brings a wealth of knowledge on financial services policy and regulation, 

stemming from extensive experience in both the private and public sector. 

Since May 2017, he has served as Treasury’s Deputy Assistant Secretary for the 

Financial Stability Oversight Council, or FSOC, where he is responsible for overseeing FSOC staff and activities. 

Prior to joining Treasury, Mr. Patel provided financial policy and regulatory expertise as a partner at O’Melveny and Myers, LLP, including as Head of the Financial Advisory and Regulation Practice, and served as senior advisor to Director Jeremiah O. Norton at the Federal Deposit Insurance Corporation. 

Mr. Harper and Mr. Hood have both been nominated to the board of the National 

Credit Union Administration (NCUA). 

The NCUA plays a critical role in overseeing and insuring a major segment of our 

Nation’s community financial institutions: federally insured credit unions. 

Each of these nominees comes with prior NCUA experience. 

Mr. Harper led the Office of Public and Congressional Affairs and served as the 

chief policy advisor to the NCUA Chairman between 2011 and 2017. 

Before that, he had a long career focusing on the financial services industry on 

Capitol Hill, including as the staff director of the Subcommittee on Capital Markets, 

Insurance and Government Sponsored Enterprises of the House Financial Services 

Committee, and as legislative director for former Congressman Paul Kanjorski. 

Mr. Hood currently serves as a corporate responsibility manager for JPMorgan 

Chase, where he manages partnerships with organizations that serve community 

development, civil rights and disability community. 

Between 2005 and 2010, Mr. Hood served as a member of the NCUA, including 

being elected as its vice chairman. 

Before that, he served in the Senior Executive Service as the Associate Administrator of the Rural Housing Service at the U.S. Department of Agriculture. 

Dr. Calabria is a leading expert on housing and mortgage finance, and a respected 

Ph.D. economist. 

He has nearly 30 years of experience interacting with the housing market from 

the perspective of academia, Government, industry, trade associations, and think 

tanks. 

Dr. Calabria has dedicated the majority of his career to public service, including 

as Deputy Assistant Secretary of Housing and Urban Development, nearly a decade 

as a Senior Professional Staff Member to this Committee, and now as Chief Economist in the Office of the Vice President. 

Dr. Calabria has also worked for the National Association of Realtors, the National Association of Homebuilders, the Farm Credit Council, the Harvard University Joint Center for Housing Studies, and recently at the CATO Institute, as Director of Financial Regulation Studies. 

Over the course of his public service career, Dr. Calabria has a long history of 

working across the aisle to deliver meaningful, lasting reforms. 

He played a key role in a number of bipartisan legislative achievements, including 

the HEARTH Act, which strengthened our Nation’s homelessness assistance programs, and HERA, the law which established FHFA and created the position to 

which he has been nominated. 

Throughout his career, Dr. Calabria has worked to champion market reforms that 

benefit consumers, and enhance the safety and soundness of our housing finance 

system. 

At FHFA, Dr. Calabria would continue to work toward these objectives as regulator of Fannie Mae, Freddie Mac, and the Federal Home Loan Bank system. 

He would also be charged with protecting taxpayers, ensuring responsible access 

to mortgage credit, and serving out FHFA’s statutory mandate to conserve and preserve the assets of Fannie Mae and Freddie Mac. 

42 

Members of this Committee are incredibly cognizant that a full decade has now 

passed since the Government asserted control of the GSEs. 

After 10 years of market recovery, these mortgage giants remain stuck in conservatorship, with taxpayers still on the hook in the event of a housing market 

downturn. 

It appears that the old, failed status quo is slowly beginning to take hold again, 

with the Government in some ways expanding its reach even further, entering new 

markets where it has never been before. 

The status quo is not a viable option, and finding a comprehensive solution remains a top priority for me. 

It is my view that action on housing finance reform is the prerogative of Congress, 

and my strong preference is for us to explore a legislative pathway forward. 

However, FHFA can also play an important role in helping us move toward a 

more sustainable housing finance system facilitated by an engaged and strongly 

capitalized private sector. 

If confirmed, I look forward to working with each of these nominees on many important issues within each of their respective policy areas, including: housing finance and other issues critical to taxpayers and homebuyers; data privacy and security; capital formation and corporate governance; and continuing efforts from last 

Congress to provide meaningful relief to homeowners, consumers, and smaller businesses. 

Thank you all for your willingness to serve and for appearing before our Committee today. 

PREPARED STATEMENT OF SENATOR SHERROD BROWN 

Thank you, Chairman Crapo, for holding this hearing today on the nominations 

of Mr. Bimal Patel, Mr. Todd Harper, Mr. Rodney Hood, and Dr. Mark Calabria— 

congratulations to all of the nominees and welcome to your families and guests. I 

look forward to their testimony and responses to Members’ questions. 

While it is important that we consider new nominees in a timely manner—Mr. 

Chairman, I appreciate you including Mr. Harper in today’s hearing—I want to remind my colleagues, four noncontroversial nominees to the Export Import Bank 

never received a vote on the Senate floor last Congress while nominees that were 

sent up from the White House months later were confirmed. We also continue to 

wait on the White House for nominees for Democratic positions at the SEC and 

FDIC. 

All of today’s nominees, if confirmed, have the opportunity to use their positions 

to improve the lives of American families. They can make it easier for families to 

buy homes with mortgages they can afford, they can encourage credit unions to offer 

fair products to Americans left behind by our banking system, and they can support 

policies that protect consumers and our financial system from risky activities at financial institutions. 

Mr. Patel has been nominated to be Treasury Department Assistant Secretary for 

Financial Institutions. If confirmed, Mr. Patel would take on a new role at Treasury 

that covers a broad range of policy issues affecting financial institutions. 

Mr. Harper and Mr. Hood have been nominated to the Board of the National 

Credit Union Administration, an agency they’re both familiar with. Mr. Hood previously served as an NCUA Board Member from 2005 to 2010. Mr. Harper worked 

in the NCUA’s office of Public and Congressional Affairs and served as the chief policy advisor to the Chair from 2011 to 2017. Both nominees possess a deep understanding of credit unions and the issues that affect them. 

Finally, Dr. Calabria has been nominated to lead the Federal Housing Finance 

Agency. 

Most Americans probably don’t know that F-H-F-A exists. But as the regulator 

of the G-S-Es, it affects whether they can get a mortgage, how much they pay for 

that mortgage, and what kind of rental options they have. This is particularly true 

for low- and moderate-income families, and for communities that have been abandoned by Wall Street banks. 

The housing problems facing families are clear: rent is too expensive and too 

many communities—particularly communities of color—can’t access safe, sustainable mortgages. These are the problems the next Director should be working to address. Dr. Calabria has a long history in housing policy. He was a staff member on 

this Committee when Congress passed the Housing and Economic Recovery Act creating F-H-F-A, so he is well aware of the significant influence he would have. 

He’s written extensively on the housing system, and particularly on the G-S-Es. 

Those writings raise serious questions about the impact that Dr. Calabria’s actions 

43 

could have on the housing market if his views are implemented. He has questioned 

the need for the 30-year fixed-rate mortgage and advocated against a Government 

guarantee for qualifying mortgage-backed securities. These positions contradict 

what we have heard from housing stakeholders who have appeared before this Committee over the past 4 years. 

Dr. Calabria has also called for repeal of the G-S-Es’ affordable housing goals, 

which help ensure that Fannie Mae and Freddie Mac are fulfilling their statutory 

missions to facilitate home ownership and rental housing for low-income families. 

In the last testimony he submitted to this Committee in 2015, Dr. Calabria said 

that the two primary tools facilitating private market home financing, the G-S-Es 

and F-H-A, ‘‘should eventually be eliminated.’’ 

Through the hearing this morning I hope to better understand if Dr. Calabria still 

believes that. When work has dignity, everyone can afford housing in their community. We know that’s not true today. We’re facing a housing affordability crisis. 

Wages are lagging far behind the increase in home prices. One in four renters 

spends more than half their income on rent. 

Seven of the 10 fastest growing occupations don’t pay enough to afford to rent a 

modest one-bedroom apartment, let alone save for a downpayment. The next generation of potential homebuyers is saddled with a mountain of student loan debt. Borrowers of color were systematically shut out of the housing market for generations, 

they suffered some of the biggest losses during the financial crisis, and they still 

face discrimination when trying to get a loan. 

Those are the challenges we have to confront. We need a strong, mission-driven 

housing finance system working to make sure all Americans can afford safe, quality 

housing where they live, work, and send their kids to school. 

I will be listening to see how Dr. Calabria’s plans align with that goal. 

Thank you, Mr. Chairman. 

PREPARED STATEMENT OF BIMAL PATEL 

TO BE AN ASSISTANT SECRETARY FOR FINANCIAL INSTITUTIONS, DEPARTMENT OF

TREASURY

FEBRUARY 14, 2019 

Chairman Crapo, Ranking Member Brown, and Members of the Committee, it is 

among the greatest privileges of my life to appear before you today. Thank you to 

the Senators and the staff members with whom I have met in advance of this hearing. If I am fortunate enough to be confirmed, I look forward to meeting with and 

working with all of you on the important issues in the portfolio of the Assistant Secretary for Financial Institutions. 

My interest in serving our country begins with my parents, who are seated behind 

me today. Truthfully, neither my family nor I would be here today if it were not 

for the United States of America and all it stands for. 

My Dad grew up as a peanut farmer in rural India. Raised in abject poverty, he 

was driven by an unshakeable determination to build a better life. Lacking resources, he immigrated to the U.S. primarily by boat. Here, he pursued higher education, ultimately earning his Ph.D. from NYU. He worked incredibly hard over a 

50-plus-year career, including operating a number of small businesses in my home 

State of Georgia and teaching at Spelman College, a Historically Black all-women’s 

college in Atlanta. 

Like my Dad, my journey to being before you today was not without adversity. 

I was born 3 months premature, weighing in at just two pounds and two ounces. 

When I was 2 weeks old, doctors put me in a room with a baby that had pneumonia. 

I contracted the pneumonia, and my brain was damaged. Doctors told my parents 

that I would never grow past four feet tall, that I would be incapacitated, and that 

I would die. I am so fortunate that the doctors saved my life and that my parents, 

particularly my Mom, always believed in me. 

The common thread between my Dad’s path and mine is that America made our 

improbable stories possible. Coming to America with nothing, my Dad found opportunities that only our country provides to give my brother and me the chance to realize our own dreams. Likewise, America is probably the only country where a child 

with brain damage and Cerebral Palsy would be accepted so completely and encouraged so unfailingly to overcome such obstacles. 

This journey has motivated me to serve and to try to repay the enormous debt 

I owe to our country, and I am proud to have accepted the call to public service 

when I have been asked. From 2012-2015, I served as a Senior Advisor at the FDIC, 

and I currently serve as the Deputy Assistant Secretary of the Treasury for FSOC. 

44 

In addition to Government service, I have practiced law at O’Melveny and Myers, 

most recently as a Partner and the Head of the Financial Advisory and Regulation 

Practice. In that capacity, I represented depository institutions of all sizes including 

many community banks and regional financial institutions. I have also advised on 

credit union structural and regulatory issues. And, I have previously represented 

community interest and charitable organizations on a pro bono basis on matters relating to financial regulation. One consistent objective of my work has been assisting depository institutions to better serve their communities and to provide a broader array of services to a greater number of customers. 

I also love teaching and mentoring the younger generation—a passion that has 

led me to teach an undergraduate economics course on Banking Regulation at my 

alma mater—Stanford University—since 2014. 

Above all, the thing that has drawn me to financial services is the unique connection between our financial system and American families and small businesses like 

those my Dad operated. At its best, our financial system is the force multiplier of 

our economy, linking savers to those who seek credit to pursue education, build 

businesses, and help their families to live better lives. Financial services also assist 

Americans in saving for retirement and in insuring loved ones against difficult life 

events and losses. 

Thank you again for the opportunity and the honor of appearing before you today. 

I would be would be happy to answer any questions you have and would be humbled 

to earn your support for my nomination. 

45 


STATEMENT FOR COMPLETION BY PRESIDENTIAL NOMINEES 

Name: 

(l.a<l)Patel (Fir>t)Bimol (Ocher) Vallabl\ 

Position to which nominated: Assistant Secretary of the Treasury for Financial Institutions 

Date of nomination: January 16,2019 

Date of birth: 30 October 1982 Place of birth: New Haven, Connecticut 

(O.y) (Month) (Ycor) 

Marital Status: Single Full name of spouse: NIA 

Name and ages of children: NIA 

Education: 

Honors 

and awards: 

Institution 

Dates 

attended 

Degrees 

received 

Dates of 

degrees 

Stanford University 09100-04104 A. E<oocaiooolf'di~Xo~S<;..., 04104 

G<orgeto•n Unil'ersity Law Ceotet 08/04.()5/()8 Juris Doc1or 05/US 

Harvard Kennedy School 09105.()6/llS Ma.slers in Public Policy 06/US 

List below all scholarships, fellowships, honorary degrees, military medals, honorary 

society memberships and any other special recognitions for outstanding service or 

achievement. 

National Law Journal - 40 Under 40 Rising Stars in D.C. (201 5) 

American Enterprise Institute Summer Institute Fetlowship(Summer20!0) 
46 


Membershi(ls: 

Employment record: 

name 

List below all memberships and offices held in professional, fraternal, business, 

schDiarly, 

civic, charitable and other organizations. 

Organization 

Di~rict of Columbia a.r NewYori:Sar 

Georgia B•r 

fedmiSar Association 

The f«lmli~ Scci<1y 

The Banking Law Journal 

The FinTeth Law Report 

Office held (if any) 

Banking Law Comminec 

E\Ctdi\<e C-oMitl« b' FNI'lttll Sa\~s 

Board of Editoo 

BoardofEclitoo 

Dates 

031Q9.prcscflt 

03115-prestllt 

11/0S·presenl 

2016-presont 

06115-04117 

12115.Q.I/17(est.) 

Summ<r 2016-04117 (~.) 

List below all positions held since college, including the title or description of job, 

of employmenl, location of work, and inclusive dates of employment. 

U.S. Department oflhe Tuasury, Deputy Ass~tant S«<etary of the Trta>ury for the financi~ Stability Oversight Coun<il, Washington, D.C. 

May 2017-prcsent. Duties include management of financial Stability 01•ersight Cou11<il ~off, coordination ofFSOC activities, and assisting 

on ctrtain iswes rtlat«lto finan<ial ~itutions policy. 

Stanford.University, Consuhing A>Soeiate ProfesSO<, Washington, D.C. April2014-present. Duties include teaching an und<rgraduatecoune 

on Banking Regulation in the D<parlm<nt of Economies as pert of Stanford's Stanford in Wasllington pr0£10m. 

O'Mel1·eny & My<rs LLP, Partntr(2016-20171 H'"d ofthefinan<ial Advisory and Regulation Pr.l(tict(2015·2017), Associat<(2008· 

2012~ Law C1<rk (12107~3108 estimate~ Summer Assoc:iate (05107~8/01) Washington, D.C. Duties includ«l provision of legal services to 

finn clieo~.largely focused on financial ,.gulation. 

Fedml Deposit lnsuranceCOrporalion, Seniof Advisorlo Dirt<tor Jmmiah 0. Norton, Washington, D.C. July 2012-May 2015. Duties 

inelud«l advising Director Norton on lhe matt<rs before the FDIC Board of Directors. 

Harvard Kenn«ly School, Research A:ssistantto Professor Roger Porttr, Cambridge, MA September 2007-February 2008, Duties included 

teaching assi~ant for ProfesSO< Porter's course on th< Business-Government Relationship in the U.S. 

foley & Lardntr LLP, Summer Associate, Wasllington, D.C. August 2007 and June 2006-August 2006. Duties in<lud«l providing ltgal 

SCNices lo firm clients on a \'aricty or subjects. 

BGR Group, Tra1~l Consultant, Wasllington, D.C. January 2006-March 2007. Duties in<luded assisting the finn with managcmont ofi~ 

corporate travol needs and budget 

Georgeto~n University Law Collier, Reswch Assistant to Professor Nich<>las Quinn Rosenkranz, Washington, D.C. July 2005·August2005. 

Duties in<luded ass~ting ProfesSO< Rosenl<ranz with t.gal rtSearth related to con~illlliDOal and international law topi<s. 

Commin<e oo Wa)' and Moans- U.S. HoustofRepresentatives, Special Assistant to StaffDirt<tor, Wasllington, D.C. June 200S·August 

100~. Out irs included assklling StafTDirc~~o ftltt Su!Kommince on Hum<n R~rllt.l with the wotk relating to manm under lilt 

Subcommittcc1sjurisdiction. 

Unit«l Airlines, Inc., Summtr Research Analyst, Elk Grove Village, IL Aprii2004-July 2004. Duties included assi~ing United's 

International and Regulatory Affairs Group 1~1h matters relat«lto rtgulatory ~tegy and international n<N-ork planning. 
47 


Government 

experience: List any experience in or direct association with Federal, State, or local governments, 

including any advisory, consultative, honorary or other part time service or positions. 

U.S. D<partmtnt of the Treasury. ~ty AssiSia!lt Sc<r<tary of the TrtaS<Jry for the Financial Stabi ityOvo~ight Coun<il, Washington, D.C. 

May 2011·presenl. Dulies in<luded managtmenl of Financial Slability Dversig)u Council SlafT, coordinalion ofFSOC aclivil e~ and ass~ling 

on ctrtain issues relaicd lo financial ios1i1u1ions policy. 

F~l D<posilln>tUan<e Corporalion, Senior Advisor 10 Director Jercroiah 0. Norton, IVasllinglon, D.C. July 2012·May 2015. Duties 

included advising Direclor Non on on ell< matters befOr<lhe FDIC Board of Dirt<~~. 

Commiuee on Ways and Means- U.S. Hoosc ofRepresenlali1·es, Special Assislao110 Subcommine< Sl3fTDir<elor(2005~ lniern 2002~ 

Washinglon, D.C. 2005 dulies included ass ~ing SlafTDir«loroflhe Subcommittee on Huma~~ Resourc<s 11i1h the worl: r<l31ing 10 matters 

under the Subcommittet'sjurisdi<tia<>. 2002 dulies included assiSiing lhc SlafT of the Subcommittee on Social Security wilh research 

regarding legislalion and Social Security reform proposak. 

Tht While House - OfT oct ofManaserll0111 and Budge~ Reseateh In! em, Washing10n, D.C., Summer 200). Duties included assi~ing 

members oflhe Offict oflnfonnalion and Regulalory Affairs wilh evalualing documeniS a!ld regulalions undenhe Papern'Orl: Red11<1ion A<l 

and applicable Ex«:Uiii'C Orders 10 perfonn cOSI·benefil ana~,., of f~l regu\alior\S. 

Published 

Writings: 

Publications: 

List the titles, publishers and dates of books, articles, reports or other published materials 

you have written. 

The Symbiosis of Banks and Markerplace Lending, l33 BANKING L. J. 322 (2016) 

Resollllion Policy for Bank-Cenrric Firms, 12 PRA n's JOURNAL OF BANKRUPTCY LAW 3 (2016) 

Resolurion Policy, 11 PRATI'SJOURNALOF BANKRUPTCY LAW 338 (2015) 

Robusr Causaliry and Caurionary Srandards, 132 BANKING L. J. 553 (2015) 

One Hundred Years of (Atrempted) Solitude: Navigating rhe Foreign Trade Anrirrusr Improvements Acr 24 

ANTITRUST 72 (20 I 0) 

A Flight Plan Towards Financial SJabiliry - the Hisrory and Future of Foreign Ownership Restricrions in the 

United Srares 'Aviarion Industry 73 J. AIR L. & CoM. 487 (2008) 

Press Stories with Quotes: 

Why Some Big Banks Could Flunk Their Living Wills, AM. BANK. (2016) 

FDIC Plan Could Force Banks ro Rethink Deposir Straregies, AM. BANK. (2015) 

Lehman Brorhers Debr Service Will Benejir to China's Capital, CHINA Bus. J. (20 12) 

Political 

Affiliations 

and activities: List memberships and offices held in and services rendered to all political parties or 

election commillees during the last I 0 years. 

None. 

3 
48 


Political 

Contributions: Itemize all political eontributions of$500 or more to any individual, campaign 

organization, political party, political action comminee or similar entity during the last 

eight years and identify specific amounts, dates, and names of recipients. 

None. 

Qualifications: 

Future employment 

State fully your qualifications to serve in the position to which you have been named. 

(attach sheet) 

relationships: I. Indicate whether you will sever all connections with your present employer, business 

firm, association or organization if you are confirmed by the Senate. 

I have indicated to the Office of Government Ethics tha~ if! am eonfirmed by the U.S. 

Senate, ! will resign my position as a Consulting Associate Professor at Stanford 

University. 

2. As far as can be foreseen, state whether you have any plans after completing 

government service to resume employment, affiliation or practice with your previous 

employer, business firm, association or organization. 

! do not have any plans to resume employment with Stanford University following my 

goverrunent service. 

3. Has anybody made you a commitment to a job after you leave government? 

No. 

4. Do you expect to serve the full term for which you have beM appointed? 

There is no term for the position to which I have been appointed. 
49 


Potential conflicts 

of interest: I. Describe any financial anangements or deferred compensation agreements or other 

continuing dealings with business associates, clients or customers who will be 

affected by policies which you will influence in the position to which you have been 

nominated. 

In connection 11ith the nomination process, I have consulled with the Office of 

Govei'lililent Ethics and the Department of the Treasury's Designated Agency Ethics 

Official ("DAEO") to identify potential conflicts of interest. Any potential conflicts of 

interest will be resolved in accordance with the terms of the ethics agreement that I have 

entered into with the Treasury's DAEO and that has been provided to this Committee. l 

am not aware of any other potential conflicts of interest. 

2. List any inveslments, obligations, liabilities, or other relationships which might involve 

potential conflicts of interest with the position to which you have been nominated. 

In connection with the nomination process, I have consulted with the Office of 

Government Ethics and the Department of the Treasury's Designated Agency Ethics 

Official ("DAEO") to identify potential conflicts of interest. Any potential conflicts of 

interest will be resolved in accordance with the terms of the ethics agreement that! have 

entered into with Treasury's DAEO and that has been provided to this Committee. lam 

not aware of any other potential conflicts of interest. 

3. Describe any business relationship, dealing or financial transaction (other than tax 

paying) which you have had during the last 10 years with the Federal Govemmen~ 

whether for yourself, on behalf of a clien~ or acting as an agen~ that might in any 

way constitute or result in a possible conflict of interest with the position to which 

you have been nominated. 

In connection with the nomination process, l have consulted with the Office of 

Government Ethics and the Department of the Treasury's Designated Agency Ethics 

Official ("DAEO") to identify potential conflicts of interest. Any potential conflicts of 

interest will be resolved in accordance 11ith the terms of the ethics agreement that I have 

entered into with Treasury's DAEO and that has been provided to this Committee. I am 

not aware of any other potential conflicts of interest. 
50 


Civil, criminal and 

investigatory 

actions: 

4. List any lobbying activity during the past ten years in which you have engaged in for the 

purpose of directly or indirectly influencing the passage, defeat or modification of any 

legislation at the national level of government or affecting the administlation and 

execution of national law or public policy. 

None. 

5. Explain how )'OU will resolve any conflict of interest that may be disclosed by your 

responses to the items above. 

In connection with the nomination process, I have consulted with the Office of 

Government Ethics and the Department of the Treasury's Designated Agency Ethics 

Official ("DAEO") to identify potential conflicts of interest. Any potential conflicts of 

interest will be resolved in accordance with the tenns of the ethics agreement that I have 

entered into with Treasury's DAEO and that has been provided to this Committee. I am 

not aware of any other potential conflicts of interest. 

I. Give the full details of any civil or criminal proceeding in which you were a defendant 

or any inquiry or investigation by a Federal, State, or local agency in which you 

were 

the subject of the inquiry or investigation. 

None. 

2. Give the full details of any proceeding, inquiry or investigation by any professional 

association including any bar association in which you were the subject of the 

proceeding, inquiry or investigation. 

None. 
51 


SCHEDULE A 

(SUMMARY PARAGRAPH OF QUALIFICATIONS) 

I have had extensive experience in topics relating to financial institutions, financial stability, and 

financial regulation in both the private sector and public service on multiple occasions. In the 

private sector,! was a Partner and Head of the Financial Advisory & Regulation Practice at 

O'Melveny & Myers LLP. I have represented, as an attorney, depository institutions of all sizes 

including many community banks and regional financial institutions. My former clients include 

financial institutions with assets ofless than $1 billion. One consistent area in which I have 

represented depository institutions is in assisting them to serve their communities more deeply 

and to provide a broader array of services to a greater number of customers. I have represented 

community banks in connection with the establishment of new branches in communities and in 

connection with the provision of banking services and consumer and small business credit to 

customers around the country. I have also advised on credit union structural and regulatory 

issues. 

Another key focus of my practice was on assisting financial institutions and other financial 

companies better comply with U.S. anti-money laundering laws and regulations to achieve the 

common goal of preventing financial crime and terrorist financing. 

I have also represented financial technology companies on financial regulatory matters to assist 

clients with the provision of new and dynamic financial services in areas such as payments and 

lending. 

Additionally,! have represented community interest and charitable organizations on a pro bono 

basis on matters relating to financial regulation. I have a demonstrated commitment to public 

service and have served for a significant time in the public sector, both at the Federal Deposit 

Insurance Corporation and at the Department of the T reaswy, where I currently serve as the 

Deputy Assistant Secretary for the Financial Stability Oversight Council. 

Finally, I also teach an undergraduate economics course on Banking Regulation at Stanford 

University, which I have done since 2014 and previously served on the Board of Editors of The · 

Banking Law Journal and The Fin Tech Law Report. 
52 

PREPARED STATEMENT OF TODD M. HARPER 

TO BE A MEMBER OF THE NATIONAL CREDIT UNION ADMINISTRATION BOARD

FEBRUARY 14, 2019 

Chairman Crapo, Ranking Member Brown, and Members of the Committee, thank 

you for the invitation to testify before you today as a nominee to become a Board 

Member of the National Credit Union Administration. If confirmed, it would be an 

honor and a privilege to serve. 

Moreover, I am humbled by the trust and faith placed in me by the Administration and the U.S. Senate. I am especially grateful to those who have supported me 

in this process, including Chairman Crapo and his staff who moved quickly to consider me, the President and his aides who vetted and nominated me, and Democratic Leader Schumer and Ranking Member Brown who recommended me. 

With nearly 25 years of Government experience primarily working for Congress 

on financial services matters and at the NCUA, I have gained broad knowledge of 

financial services regulatory matters and a deep understanding of the many policy 

issues facing the $1.4 trillion credit union system and its 115.4 million members. 

But my commitment to public service really started with my parents. As professional educators and community leaders, my parents instilled in me a strong desire 

to give back to others. They also taught me the importance of finding common 

ground when making decisions. 

You see, before they fell in love and married, my mother was the president of the 

teacher’s union and my father was the superintendent of schools. One was a Democrat and the other a Republican, yet during negotiations they would work together 

to reach the best possible deal for both sides. 

I have carried their leadership lessons with me throughout my career. As a result, 

I have skillfully solved complex problems, reached bipartisan consensus where possible, and bridged differences between business and Government to produce results. 

As a long-time congressional aide, I served as a senior advisor to Congressman 

Paul E. Kanjorski of Pennsylvania and staff director of the House Financial Services 

Subcommittee on Capital Markets, Insurance, and Government Sponsored Enterprises. In these roles, I worked on every major financial services law from the enactment of the Gramm–Leach–Bliley Financial Services Modernization Act in 1999 

through the passage of the Dodd–Frank Wall Street Reform and Consumer Protection Act in 2010. 

Most notable, however, is my long track record of working on credit union issues, 

which began when Congress considered and passed the Credit Union Membership 

Access Act. Introduced by Congressman Kanjorski and Congressman Steve LaTourette of Ohio, the bipartisan law responded to a U.S. Supreme Court ruling that 

threatened the long-term viability of thousands of credit unions. 

Subsequently, I led staff in drafting the first version of the Credit Union Regulatory Improvements Act of 2003, bipartisan legislation introduced by Congressman 

Kanjorski and Congressman Ed Royce of California. Their bill aimed to strengthen 

capital standards, advance economic opportunity, and provide targeted regulatory 

relief, three goals that continue to guide me. 

During the financial crisis, I worked to convene the first congressional hearing to 

explore the creation of a Temporary Corporate Credit Union Stabilization Fund. And 

in 2010, I spearheaded staff efforts in the House to secure enactment of a law to 

lower the costs of managing both the Corporate Stabilization Fund and the National 

Credit Union Share Insurance Fund. 

Most recently, I spent 6 years as NCUA’s senior executive for public and congressional affairs, as well as the chief policy advisor to former Chairmen Debbie Matz 

and Rick Metsger. Ultimately, the time I spent at NCUA strengthened my knowledge of the credit union system and honed my management skills. In 2015, the 

agency recognized my leadership abilities by selecting me as a supervisor of the 

year. 

My professional experiences have also informed my regulatory philosophy. In my 

view, financial regulators need to be fair and forward looking; innovative, inclusive, 

and independent; risk focused and ready to act expeditiously when necessary; and 

appropriately engaged with all stakeholders to develop effective, but not excessive, 

regulation. 

Additionally, an NCUA Board Member should be well informed, ask tough questions, and make impartial judgments that balance competing viewpoints in a transparent manner. If confirmed, I am confident I would do just that. 

My priorities, first and foremost, would be to safeguard the safety and soundness 

of federally insured credit unions, preserve the integrity of the credit union industry 

in a continually evolving and increasingly complex marketplace, and protect taxVerDate Nov 24 2008 13:07 Apr 08, 2019 Jkt 046629 PO 00000 Frm 00056 Fmt 6621 Sfmt 6621 L:\HEARINGS 2019\02-14 NOMINATIONS\HEARING\RESEND FOLDER\35617 NEW.TXT
53 

payers and credit union members from losses to the Share Insurance Fund. Accordingly, if confirmed, I would focus on the issues of capital, liquidity, and cybersecurity. I would also prioritize the agency’s consumer protection responsibilities, consistent with the law. 

By law, the credit union system has a mission to promote thrift and serve people 

of modest means. As such, if confirmed, I would work diligently with my NCUA 

Board colleagues to foster an environment that supports small credit unions, minority depository institutions, and low-income credit unions, which face the challenges 

of increased competition, limited resources, and difficulties in achieving economies 

of scale. 

Additionally, I am committed to increasing access to financial services for both the 

unbanked and the underbanked. This, too, would be a priority for my work. 

In closing, it would be a tremendous honor, if confirmed, to serve as an NCUA 

Board Member. I believe that my expertise on financial services policy and credit 

union issues, prior experience as a senior congressional and regulatory staffer, proven ability to fairly consider and balance competing viewpoints, and demonstrated 

strategic leadership and communications skills combine to make me well qualified 

to serve in this position. 

Thank you again for the chance to appear before you today and for considering 

me for this role. 

54 


STATEMENT FOR COMPLETION BY PRESIDENTIAL NOMINEES 

Name: Harper 

Cl ... l 

Todd Mitc.btll 

IMi<ldk) 

Position to wbicb nominatetl: Board Member, National Credit Union Administ!ltiog 

Date of nomination: 21612019 

Date of birtb: 19 May 1967 Place of birth: Cbarleston,IL 

lilay) IMontlll IY<aJ) 

Marital Status: Unmarried FuU 111111e ofspouse: Thomas James Bttn (partnrr) 

Na meand agt$0f tbild rtn: None 

Education: 

lllltilltM ' Dtiflii1~ ~Riail,id' Data of Delna 

Harvanl University September 1994 Master in Public Policy June 6, 1996 

Kennedy School of Government to June 1996 v.1th focuses on business 

and government along 

Y.ith press. politics. and 

I public policy 

Indiana University-Bloomington September 1986 Bachelor of Science in May 5.1990 

Kelley School of Business to May 1990 business analysis with 

minors in political science 

and Gennanic studies 

Honors 

and awards: 

List below all scholarships, fellowships. honorary degrees, military medals, honorary 

society memberships and any other special recognitions for outstanding service or 

achievement. 

To the best of my knowledge. I have received the following honors and awards since my time at Indiana 

University. 

Indiana University-BloomingtOn 

• High Distinction Honors-! graduated with high distinction. the second highest honor for academic 

achievement that indiana University awards to students. 

• Monar Board National C ollegc Senior HonOIS Society - The organiz.ttion recognizes oollege seniors 

for their exempluy sc:holarship.leadersbip. and service. 

• Hany S. Truman Scholarship Foundation National Semi-Finalist-Created by Congress. the 

foundation awards scholarships to individuals demonstrating outstanding potential for and who plan 

to pursue a career in public setvice. I was one of two students selected to represent Indiana 

Universily at regional intmiews. 

• Beta Gamma Sigma-The organization is the premier international honor society recognizing 

excellence in the study of business. 

• Delta Phi Alpha - The National German Honor Society recognim exctlltll(e in the study of 

Gennan and provides an incentive for higher scholarship. 
55 


• Thornton Stone Acth·e of the Yw-The Mu Chapter of Alpha Phi Omega. a national coeduta~ional 

volunteer service organization. awaroed me this honor for the 1988-1989 academic year. 

• Alpha Phi Omega Distinguished Service Key- The Mu Chap!erawarded me this honor in 1989 for 

making an outstanding contribution to the chapter and exemplifying and fwthering the principles of 

leadership. fiiendsbip. and service. 

• Honors Division Scholarship -The division. now the Hutton Honors College, awaroed me an 

academic scholarship for all four years of study at Indiana University. 

• Dean's List -I was ~gnized for academic achie,·ement during all four years while at indiana 

University. 

• Golden Key National Honor Society-The organization ~~ by invitation only the top IS 

perttnt of college and university sophomores, juniors. and seniors. 

• Alpha Lambda Delta-The group recognizes academic exceUeoce in the first year at a college or 

university. 

• Alpha Lambda Delta Merit Scholarship -Indiana Unii'Crsity awarded me this scholarship for my 

sophomore year of study. 

• Phi Eta Sigma - The society honors first-year college and university students in all disciplines for 

academic excellenee. 

• Hoosier Scholar-The Indiana State Student Assistance Commission awarded me this scholarship 

for my freshman year. 

• Tri Kappa Scholarship-( received this funding for my first )'Car of college studies. 

• Sun· Times Carrier Scholarship-The Chicago Sun· Times awarded this scholarship for my first 

semester of college. 

• National Residence Hall Honorary-The society recognizes individuals who have contributed to the 

advancement of college and university housing. 

Harvard Universirv 

• Kennedy School of Government Grant Scholarship -I received pt scholarship funding for both 

years of academic study. 

U.S. Department of Labor - Occuoational Safety and Health Administration 

• Assistant Setre~&y's Impact Award - I received this award in Aprill994 as pan of the OSHA 

Refonn Legislation Group. 

• 

~ 

HilliOO -In 2005, I was featured for myeffons to strengthen the regulation of Fannie Mae and 

Freddie Mac in Naliona/ Journal's "Hill I oo~ issue highlighting congressional staff working on hot· 

button issues. 

National Credit Union Administration 

• Supervisor of the Year- In 2015. NCUA recognized me as a supef\lisor of the year for my 

managerial efforts to improve the operations of the Office of Public and Congressional Affairs and 

advance corporate social responsibility within the agency. 

• Feds Feed Families Top Contributor -In 2014. I was ooeofthrte federal employees nation"ide 

~gnized for outstanding contributions to the federal government's Feds Feed Families food drive. 

• Feds Feed Families Most Improved Award -In 2013.1 chaired the govmunent-wide food drivt at 

NCUA. and the agency received the most improved awaro. 
56 


• Equal Opportunity ProgramsAchit\'elliC!It Award -In 2013,1rtceived an award from NCUA's 

Office of Equal Opportunity Programs for my oommitmentiO supporting the agency's minority 

internship program. 

Citv Blossoms 

• Board Leadership Award -In 2015.1led the team presentation that resulted in City Blossoms 

wiMing the Board Leadership Award for small organizations from the Center for Nonprofit 

Advancement. 

Memberships: List below all memberships and offices held in professional, fiaternal. business, scholarly. 

civic. charitable and other organizations . 

. ' Office IWd Ohirl . '. ~, '•• ~ 

Exchequer Club General Member 2017 to Present 

Indiana University Annual Mcmber-1990to 2015 1990 to Present 

Alumni Association Life Member- 2015to Present 

E~ecutil e Council Member-2017 to Present 

Indiana University Advisory Board Member 2017 to Present 

Libraries Dean· s Advisory Board 

Indiana Uni\'ersity Foundation General Member- 201210 Present 2012 to Present 

Well House Society Advisory Board Member- 2014 to Present 

Grants Committee Member- 2016 to Present 

Grants Committee Chair-2018 to Present 

Indiana Unil-enity Foundation General Member 2014to Present 

1820 Society 

Alpha Phi Omega Member and Chapter Officer- 1986 to 1990 1986 to Present 

Life Member- 1990 to Present 

Torchbeartr Contributor - 2006to Present 

Ha!vard Kennedy School Alumni Member - 1996 to Present 1996 to Present 

Association DC Alumni Council Board Member- 1997 to 2000 (est) 

Class Reunion Host Committee-2006 and 2016 

City Blossoms Board Board Member- 2014 to Present 2014 to Present 

Se.:reuuy - 20 IS and 2016 

Vice Chairperson-2017to Present 

Post~ Suooort V~nia Foundillll Board Member 201110 2012 

AURUSiana lutheran Church Member 2010 to Present 

Feds Feed Families Food Drive Chairman at NCUA 2013 to 2016 

AARP Member 2017 to Present 

Amerian Automobile Member 2005 to Present 

Association I (est) 

Smithsonian Institution Volunteer Member 1990 to 1994 

Volunteer Information Specialist 

l'rogtam 

U.S. Department of labor Member 199010 2001 

Federal Credit Union 
57 


Wright Patman CongrtSSional Member 

Federal Credit Union 

EmplO)'lllfnt mord: List below all positions held since college. including the title or description of job, name 

of employment, location of worlt, and inclusive dates of employment 

Jol) Tlllt I~ .- .. . ' IMatiall Daia . 

ltgislative Intern Office ofCong~tSSman Peter J. Visclosky Washington. DC Fall l989 

U.S. House of Representatives 

Program Analyst Occupational Safety and Health Administration Washington. DC June 1990to 

U.S. [)epartment of labor I Se!lteDJber 1m 

Health Care Polity Progressive Policy Institute Washington. DC Summer 1995 

Associate 

Senior Legislative Office of CongrtSSman Paul E. Kanjorski Washington. DC September 1996 · 

Assistant U.S. House of Represen_tatives to January 1999 

Legislative Director Office of Congressman Paul E. Kanjorski Washington. DC January 1999 to 

U.S. House of Representatives January 2007 

-and· -andProfessional Staff Committee on Financial Services 

U.S. House of Representatives 

Staff Di~tor Subcommittee on Capital Markets. Insurance, Washington. DC January 2007 to 

and Government-Sponsored Enterpri.ses January 2011 

U.S. House ofRepresentatires 

-and- -and· 

Senior Policy Advisor Office ofCongrtSSman Paul E. Kanjorski 

U.S. House ofReoresentatives 

~tor of Public and National Credit Union AdminiMStion Alexandria, VA February 2011 to 

Congressional Affairs February 2017 

-andChief Policy Advisor 

to the Chairman 

Policy Advisor Committee on Foreign Affairs Washington. DC June 2017 to July 

U.S. House of Representatives 2017 

Since July 2017.1 have been a federal government retiree and not othe"vise employed. 

Gonmment 

experien~: 

Job Title 

Legislative Intern 

Prop Analyst 

Senior Legislative 

Assistart 

List any experienet in or direct association with Federal. State. or local governments. 

including any advisory, consultative. honorary or other pan time service or positions. 

iulonr Loca1ioa 1)aJa 

Office of Congressman Peter J. Visclosky Washington. DC Falll989 

U.S. House of Representatives 

Occupational Safety and Health Administration Washington, DC June 1990to 

U.S. Depat1J!Ient of labor I September 1994 

Office of Congressman Paul E. Kanjorski Washington. DC September 1996 

U.S. House of Representatives to January 1999 
58 


Legislati,·e Director OfficeofCongJtSSI113JI Paul E. Kanjcmki Washington. DC January 199910 

U.S. House of Representatives January 2007 

-and- ·and· 

Professional Staff Commiu~ on financia.l Services 

U.S. House ofReortSentatives 

Staff Director Subcomminee on Capi1al Marl<.ets, Insurance, Washington, DC January 2007 to 

and Govenunent-Sponsored Enterprises January 2011 

U.S. HouseofReprestntatives 

-and· -ami· 

Senior Policy Advisor Office of CongJtSSl1WI Paul E. Kanjorski 

U.S. House ofReDmelltativcs 

Director of Public and National Credit Union Administration Alexandria, VA February 2011 to 

Congressional Affai~ February 2017 

-undChief Policy Advisor 

to the Chainnan 

Policy Advisor 

Publisbtd 

Writings: 

Comminee on Foreign Affairs Washington. DC June 201710 July 

U.S. House of Rtt~resentatives 2017 

List the titles. publishm and dates of books. articles, reports or other published materials 

you have wrinen. 

To the best of my knowledge and af\er searching my files, I have \\rinen the following documents that 

were published in my name since college: 

• "No Sample Gates." Todd M. Harper, Lener to the Editor.lndianu Alumni Maga:int. March/April 

2011,p.9 

• "International Aspects of OSHA." Todd M. Harper, Job Safety & Health Quamrly. Fall1993. pp. 

21-23 

• Good Corporate Citiunship: A Polky Anolysi.! Exercise for Ford Motor Company. Virginia Garcia. 

Todd Harper and Farron Levy, April 1996 

While working at the U.S. Department of Labor· s Oeeupational Safety and Health Administration. I also 

helped organize two workshops for the lotemational Labor Organization under the auspices of funding 

provided by the Support for East European Democ11ty Act. a law enacted by Con~ after the Cold 

War ended. The workshops focused on safety in the manufacture and use of chemicals. The first took 

place in Sec. then a city in the Czcx:h and Slovak Federal Republic. from Oclober 23 to 25. 1991. The 

seeond occurred in Wroclaw. Poland. on October 28 to 30. 1991. After the completion of the two 

workshops, I drafted the reports that summarized the activities at both proceedings. 
59 


Political 

Affiliations 

and activitie5: List membe!Ytips and offictS held in and services rendered to all political parties or 

election committees during the last 10 years. 

PennsylvaniallS for Kanjorski 

As a long-time staffer to former Congressman Kanjorski. I regularly volunteered to assist in his 

campai&JjS. including his 1asi campaign in 2010. My ,·olunteer work often involved canvassing. 

literature distribution. event organization, and phone banking. I also assisted in debate preparations. 

Additionally. schedule permitting. I voluntarily attended as a guest at several fundraising events each 

cyele with Congressman Kanjorski. 

Arlington CouoCy Democratit CommiHee 

As a Democrat and a long-time resident of Arlington. I ba1-e since approximately 1998 l'olunteered for 

the Arlington County Democratic Committee. My worl<. has typically involved literature drops. poll 

greeting. communications suppon. pbone banking, and caucus voter check-in. I have never served in an 

elected capecity 11ithin the organization. In 2018.1 co-thaired the group's social media effons to 

provide announcements about events, notices of volunteer opportunities. news and information about 

Democratic candidates and lawmalccrs.links to news stories of interest, volunteer achievements, and 

election results. 

Florida Democratic ParCy Coordinated Campaign 

For the 2016 general election, I I'Oiunteered for the last six days of the cycle in southm! Florida. While 

there. I distributed literalllre on behalf of Democratic candidates in Clewiston and Immokalee. I also 

volunteered for voter protection at a polling pi~~« in Cape Coral on election day. 

Political 

Contributions: Itemize all political contributions of$500 or more to any individual, campaign 

organization, political party, political action committee or similar entity dwing the last 

eight years and identify specific amounts. dates, and names of recipients. 

The follo11ing itemizations reflect my collective contributions ofSSOO or more to individuals, campaign 

organizations, political parties, political action committees. or similar entities during the last eight years. 

Friends of Dao Maffei 

l)ale . Rtclplea( ~~.- -_ ·:- ~ - Alloaat Februasy 26, 2012 Friends ofDan Maffei $1.000.00 

June 27.2012 Friends of Dan Maffei $250.00 

October 27. 2012 Fritnds of Dan Maffei $200.00 

I Sep(ember 22. 2013 Friends of Dan Maffei $500.00 

June 24.2014 Friends ofOan Maffei $500.00 

Total S2.450.00 
60 


Obama for America 

Datt ·IbQieef • '· AlloQt 

Seotember 30.2012 Obama for America $1.000.00 

November 3. 2012 Obama for America sso.oo 

Total SI,050.00 

Van Hollen for Senate 

Date ltudDieat - ,- - ! ·-~ -- } Alloat I June 24. 2015 Van Hollen for Senate I ssoo.oo I 

Total! SSOO.OOj 

Hillary for America 

Date ~Ditllt - Amout 

May 19. 201S Hillasy_ for America SI.OOO.OO 

Marth 17.2016 HillaJY for America $1 ,000.00 

July 10.2016 Hiii8JJI for America $500.00 

Total $2,500.00 

Hillarv v· tctorv r un d 

Date 'I Redllitllt . ;: ~ .. -· .. '·.-,. ..... : .. ·-"! ~t 

June IS. 2016 Hillary Victory Fund S?OO.OO 

September 30. 2016 Hillai}'Victory FWid $200.00 

October 3. 2016 Hiii8JJI Victory Fund Sl 000.00 

October 23, 2016 Hillary Victory Fund $1,000.00 

October24. 2016 Hillary Victory fund S26.n 

Total $2,926.72 

Crd 0 riYJ IS utton C ommtttee 

IDatt I ReciDimt , -- "'~ - .. .. : ;, •.. Amouat 

I Marth 16,2018 I Cordray/Sulton Committee ssoo.oo I I Total ssoo.oo 

ArliD(ton County Dtmocratic Committee Joint Federal Campa\&!~_ 

Date Raipieat Allloat 

Marth 19,2018 Arlington County Democratic Committee Joint Federal Campaign $300.00 

Aoril 21.2018 Arlin2ton County Democratic Committee Joint Feder.tl Campaign $180.00 

AU2US120, 2018 ArlinlliOO County_ Democratic Committee Joint Federal Camll3ign $80.00 

: Seotember 10 2018 Arlinfl,ton County Democratic Committee Joint federal Campaign $25.00 

October 17, 2018 Arlin~o.~on County Democretic Committee Joint Federal Campaign $20.00 

October 20. 2018 Arlington County Democratic Committee Joint Federal Cam_paig~~ sm.oo 

Total $730.00 
61 


Qualificstions: State fully your qualifications to sen·e in the position to \\ilich you have been named. 

Todd M. Harper 

Statement of Qualifications 

With oearly 25 year.; of government experience primarily worl<.ing for CongrtSS on financial services 

matters and at the National Credit Union Administralion,l have gained a strong understanding of the 

many policy issues facing the $1.4 trillion credit union system and its 115 million members. Throughout 

my public service, I also have regularly solved complex problems. reached bipartisan consensus \\flere 

possible, bridged differences between business and government. and produced results. 

As a congressional slaffer for more than 14 years, I served as a senior advisor to former Congressman 

Paul E. Kanjorski ofPeMS) lvania and staff dirtetor of the House Financial Services Subcommittee on 

Capital Marlcets, lnsuranec. and Go\'ernment Sponsored Enterprises. In these roles. I worked on every 

major financial services law from the enacunent of the Gramm-Leach·Bliley Financial Services 

Modemiuuion Act in 1999 through the passage of the Dodd· frank Wall Street Reform and Consumer 

Protection Act in 20 I 0. 

My work on the Dodd·Frank Act addressed investor protec1ion. mortgage servicing. and too-big-to-fail 

issues, among other matters. Many of the provisions that I worked on had bipartisan support, such as 

proposals to create a Federal Insurance Office. require the regisl!ation of private fund advisors. update 

federalappl1isal oversight. and alter the regulation and responsibilities of credit rating agencies. 

Previously,! played a role in the adoption of the Terrorism Risk Insurance Act after the 911 !terrorist 

attacks-as well as the first two extensions of the law-and the Sarbanes-Oxley Act to protect investors 

and restore accouutabilit)' in the auditing indUSI!y after the Enron and WorldCom bankruptcies. I also 

was involved in lhe drafting oflaws to end pltdatO!)' OIOIIgage-lending practices. extend the Fair Credit 

Reporting Act. modemiu the Federal Home Loan Bank System. maintain the firewall between banking 

and commerce. and improve the regulation and oversight of Fannie Mae and Freddie Mac. 

But, what stands out the most in my cmer is my long l!aCk record of working on credit union issues. 

\\ilich began wfleo Congress considered and passed the Credit Union Membership Access Act of 1998. 

Introduced by Congressman Kanjorski and Congressman Steve LaTourene, the law came in response to 

a U.S. Supreme Court ruling that threatened tbe long-term viability of thousands of credit unions. 

Subsequently.! \\as instrumental in the dntfting of the first \"ersion of the Credit Union Regulatory 

Improvements Act in 2003. bipartisan legislation introduced by Congressman Kanjorski and 

Congressman Ed Royce of California. This bill would have strengthened capital standards. advanced 

economic opportunity, and provided targeted regulillory rel~f. I played a similar role in Cl1ftingand 

adv'80Cing suc:cteding Ye~ions of the bill in 2005 and 2007. 

After the 2008 financial crisis. I worked to convene the first congrtSSional hearing in 2009 to explore the 

creation of a Tempo!Br)' Corporate Credit Union Stabilization Fund. And in 2010, lied staff efforts in 

the House to secure enacuneot of a law to lower the costs of managing both the Cotperate Stabilization 

Fund and the National Credit Union Share Insurance Fund. 

Most recently,! served for six years as NCUA 's senior executive for public and congressional affairs. as 

\\'ell as the chief policy advisor to the Chairman on maners related to financial Slability. appraisals. and 
62 


bank examination sta11<lards. among others. In this role. I coordinated external communicatioos with the 

prtSS and Congress oo such issues as the risk-based capital rulemaking and congressional reporl the 

stress-testing rule, and the revised member business-lending regulation. 

Ullimatel)', the time 1 spent at NCUA strengthened my knowledge of the credit union system and boned 

my management skills. In 2015. the agency recognized my leadership skills when selecting me as a 

supervisor of the year. My time at NCUA also informed my regulatory philosophy. In my view. safetyand-soundness regulators need to be fair and forwanllooking, iMOvative and inclusive, risk focused. 

and ready to act expeditiously when necessary. Prudential regulators also should be appropriately 

engaged with all of their stakeholders to develop effective, but not excessive. regulation. 

In sum, it would be a 1/emendous hooor. if confirmed, to serve as an NCUA Board Member. 1 believe 

that my expertise on financial services regulatory and credit union policy issues, past experience as a 

senior congressional and regulatory staffer. and strategic leadership and communicatioos skills combine 

to make me well qual ifled to serve in this position. 

Future employment 

relatioaships: I. Indicate \lt.ether you will sever all eonnec1ions ~~<ith your present employer, business 

firm. association or organization if you are confinned by the Senate. 

Yes. I am already a retired federnl worlter. and I am currently not in the worXforce. Thus. I have severed 

all connections with any employer. business firms. associations. and employing organizatioos. If 

confinned. I also will resign my volunteer position as an officer and board member at City Blossoms. a 

non-profit based in Washington. DC, pursuant to a signed ethics agreement. Additionally.! wiD resign 

my cwm~t positions on three ad.visory boards at Indiana Univmity. my alma moler,related to the 

alumni association. the foundation, and libraries. 

2. As far as can be folt$Cell. Slate wilethcr you have any plans after completing 

go1-emment service to resume employment. affiliation or pn!Clice with your previous 

employer. business firm. association or organization. 

If coofinmed by the U.S. Senate. I do oot have any plaos to resume employment, affiliation, or practice 

v.ith my previous employers. business finms, associatioos. or organizations, except for the fact that I 

would be rejoining the National Credit Union Adrninisuation. a former employer. in a new capacity. I 

may decide to seek future employment, but any such emplo)'mtllt would be consistent with all federnl 

laws. ethics rules. and similar commitments. I also would abide by any prohibitions on future 

employment and activities put in place by the Administration, the National Credit Union Adntinistralion 

Ethics Officer. the Off tee of Government Ethics. or any combination of the three. 

3. Has anybody made you a commitment to a job after you leave government? 

No. No one bas made me a commitment to a job after !leave government. 

4. Do )'()U expect to serve the full term for which you have been appointed? 

Yes. My plan is to serve any years remaining in the term, if confinned. 
63 


Pottotial cooflicts 

of interest: 1. Describe any financial arrangements or deferrtd compensation agreements or other 

continuing dealings with business associates. clients or customers who will be 

affected by policies whicb you \\ill influence in the position to which you have been 

nominated. 

I have no financial arrangements or deferred compensation agreements or other continuing dealings with 

business associates, clients. or customers who would be affected by tbe policies which I would influence. 

if confirmed. Moreover, if confirmed. I would seei to maintain the higjlest le\~1 of ethical SlaOdards. 

Specifically,! would worlt with tbe National Credit Union Administration Ethics Officer and the Office 

of Government Ethics to craft an appropriate plan for avoiding conflicts of interest that may arise while 

serving. 

2. List any invmments. obligations. liabilities. or other relationships \\ilich might in,'OI,·e 

potential conflicts of interest with the position to which you have been nominated. 

I know of no specific investments. obligations. liabilities. or other relationships which might involve 

potential conflicts ofintertSt \\ith the position to "ilich 1 hope to be confumed. Mon:over, if confinned. 

I \\'Ould seek to maintain the highm level of ethical standards. including my long-standing practice of 

refraining from making direct investments in the financial services sector. I also would work \\ith the 

National Credit Union Administration Ethics Officer and the Office of Government Ethics to craft an 

appropriate plan for avoiding conOicts of interest that may arise while serving. 

3. Describe any business relationship, dealing or financial transaction (other than tax 

paying) which you have had during the last 10 years with the Federal Govemmen~ 

whether for yourself. on behalf of a clien~ or acting as an agent, that might in any 

way constitute or result in a possible conflid of interest with the position to which 

)'OU have been nominated. 

As noted earlier, I have been a long-time federal employee in both the executive and legjslath·e 

branches. During the last decade, my service has included worlt on the House committee \\ith 

jurisdiction O\"Cr the National Credit Union Administration. as well as worlc at the National Credit Union 

Administration. If confirmed. this prior professional experience "ill inform my dc.:isions, but I do not 

believe it presents a conflict of interest. Nevertheless. I would consult with the National Credit Union 

Administration Ethics Officer and the Office of Government Ethics to craft an appropriate plan for 

a,·oidiog conflicts of interest based on my past professional experiences that may arise \\nile serving. 

4. List any lobbying activity during the past ten years in which you have engaged in for the 

purpose of directly or indi~ly influencing the passage, defeal or modification of 

any legislation a1 the nationalie-.·el or go\'enunent or affecting the administration and 

execution of national law or public policy. 

I have never registered nor acted as a lobbyist or other legislative agent to influence the passage, def~ 

or modification of any legislation at the nationalle,'CI of go\·emment or affecting the adminisUalion and 

execution of national law or public policy. 

10 
64 


S. Ellplain how you will resolve any conflict of intertSt that may be disclosed by your 

responses to the items above. 

If oonfinned to serve as a Board Member at the National Credit Union Administnltion.l would setk to 

maintain the highest level of ethical standards. Additionally.! would work with the National Credit 

Union Administration Ethics Offieer and the Office of Government Ethics to craft an appropriate plan 

for avoiding conflicts of interest not only in the responses listed above, but also in any oonflict that may 

arise while sening. 

Civil, criminal and 

investigatory 

actions: 1. Give the full details of any civil or criminal proceeding in which you were a defendant 

or any inquiry or investigation by a Federal. State, or local agency in which you were 

the subject of the inquiry or investigation. 

First. on July 29,2013. the IRS sent me an inquiry lei!Cfabout my 2011 Form 1040. The notice 

erroneously indicated that! owed $903 in back taxes because I had falsely claimed a mortgage interest 

deduction ofSJ,I 02 on my 20 II taxes. 

On August14. 2013.1 wrote to the IRS and explained that! co-owned my primary residence with my 

long-time partner. Because he was listed fii'SI on the mortgage. his Social Security number appeared on 

the IRS Form 1098 provided by the lender. Mine did not. I funher explained that we followed the 

advice ofH&R Block. our tax preparer, and split the 2011 total mortgage interest of$6,204.04 equally 

betw-een us. I also provided additional documentation about the mongage account and our Social 

Security numbers. 

My explanation was se.tisfactory. On September 10, 2013, the IRS sent oorrespondence saying that my 

response had resolved the matter. They closed the inquiry and found that I owed no additional taxes. If 

needed, I can provide tlle relevant documentation about these matten. 

Finally. in approximately June 1986. when I was 19 years old. I was charged with public intoxication. 

After oompleting approximately 20 hours of public service. the city court in Hammond.. Indiana, issued 

an order to expunge the charge from my record. As a result, l was not sentenced in this matter. and there 

is no public reoord ofthis offense. Although it is embarrassing to repon a teenage indiscretion, I am 

revealing it here to fully respond to the question. 

2. Give the full details of any proceeding, inquiry or in\'estigation by any professional 

association including any bar association in which )'Ou were the subject of the 

proceeding. inquiry or investigation. 

I have never been subject to such proceedings. inquiries, or investigations. 

It 
65 

PREPARED STATEMENT OF RODNEY HOOD 

TO BE A MEMBER OF THE NATIONAL CREDIT UNION ADMINISTRATION BOARD

FEBRUARY 14, 2019 

Chairman Crapo, Ranking Member Brown, and Distinguished Members of the 

Committee, Thank You for the opportunity to meet with you this morning as a 

nominee to serve on the Board of the National Credit Union Administration. 

It is indeed an honor and a privilege to be nominated to the NCUA Board, and 

if confirmed, I will do my level best to fulfill the trust placed in me by the President 

and the U.S. Senate. I am especially grateful for the unwavering support I have received from the Senators of my home State, Senator Richard Burr and Senator 

Thom Tillis. I am humbled by the gracious words expressed in their letter on my 

behalf for the public record and applaud their remarkable leadership and service to 

the State of North Carolina. 

I also want to than NCUA Board Chairman J. Mark McWatters for his encouragement, my fellow nominee, Todd Harper, for his patience and tenacity, and the professional staff at the NCUA who provided me thorough briefings and insights on the 

myriad issues facing the agency and federally insured credit unions. 

While my parents are not here in person, I feel the warmth of their presence as 

they watch from heaven. I am thankful to them for bequeathing to me a strong 

value system—a value system that encompasses humility, integrity, hard work, and 

compassion. I believe these values have helped me make a difference in the lives 

of many people during my 25 years in the private sector and in public service. 

Through my education and work experiences, I have developed and nurtured a 

broad knowledge of the financial services industry and have a keen understanding 

of the tremendous responsibilities of regulators. The NCUA plays an important role 

as both regulator and insurer to protect the savings of more than 105 million Americans in an industry with more than $1.4 trillion in assets. 

I also recognize credit unions play a critical role in helping families achieve the 

American dream of home ownership; assisting entrepreneurs in creating small businesses; and providing the trusted affordable and essential financial services so families can save for the future. If confirmed by the Senate, I will work diligently to 

ensure the continued safety and soundness of our Nation’s credit union system as 

it competes in a dynamic and ever-changing marketplace. 

I look forward to returning to NCUA and fulfilling the duties and responsibilities 

of a Board Member. My paramount responsibility will be ensuring the safe and 

sound operation of federally insured credit unions. Additional responsibilities will 

include ensuring that NCUA thoroughly applies all relevant consumer protections, 

creates opportunities to promote financial education and financial inclusion, and fosters an environment where low-to-moderate income and disabled individuals have 

access to affordable financial services. 

I am committed to listening carefully, working hard, and doing my level best to 

ensure the safety and soundness of the Nation’s credit union system—both the financial institutions and the National Credit Union Share Insurance Fund. 

During the 4 years of my term at NCUA over a decade ago, I worked diligently 

to fairly and thoughtfully implement the Federal Credit Union Act and ensure the 

safety and soundness of the Nation’s then 8,000 credit unions, which at the time 

more than 80 million member-owners and had assets over $600 billion. My regulatory philosophy was, and still remains, that regulation needs to be effective, but 

not excessive. 

One of my lasting accomplishments from my previous term at NCUA was the 

launch of Enterprise Risk Management Summits that provided training sessions to 

credit unions on how to mitigate and manage risks. Working in collaboration with 

regulators from the Federal Reserve, OCC, FDIC, Federal Home Loan Banks, and 

National Economic Council, I hosted sessions with subject matter experts and credit 

union leaders that addressed risk areas such as liquidity, interest rate, and concentration. It was through my efforts that today Enterprise Risk Management is 

embedded in the Agency’s supervisory and examination process. 

My interest in serving vulnerable communities grew from my volunteer work as 

a missionary in Africa and later as a banker engaged in community development. 

I still fondly remember the joy and excitement I saw when a young woman who attended one of my bank’s homebuyer education classes, learned that home ownership 

was not just a dream for her and her family. She was able to attend a series of 

homebuyer classes, build a credit profile and obtain downpayment assistance to purchase her first home. She showed her appreciation by inviting me to tour her new 

home and share a meal with her family. 

66 

I have heard it said, ‘‘The true measure of compassion is more than good intentions, it is good results.’’ I have been blessed and fortunate to spend over 25-years 

working with some of the country’s most respected financial institutions that sought 

to empower economic stability and shared prosperity in our local communities. 

While at North Carolina Mutual and Wells Fargo, I held management positions that 

allowed me to promote community development and outreach initiatives to underserved communities. I served on the board of the Wells Fargo Housing Foundation, 

and managed public–private partnerships with results-oriented organizations such 

as the Neighborhood Reinvestment Corporation and Habitat for Humanity. 

Having served as a Community Reinvestment Act Officer at Bank of America and 

National Director of Affordable Housing at Wells Fargo, I have been both an advocate for and provider of affordable housing and small business lending. In those positions, I oversaw loan programs, managed teams of regional community development managers, and worked with our credit policy group to evaluate and manage 

risks. I have also provided financial education to underserved communities by conducting seminars on how to buy a home and obtain the financing necessary to start 

a small business. 

My current work in the Corporate Responsibility Group at JPMorgan Chase provides me with opportunities to manage national partnerships with nonprofit organizations such as the NAACP, National Urban League, NeighborWorks America, National Disability Institute and RespectAbility in promoting financial inclusion and 

shared prosperity in underserved communities. I also work with regulators from the 

OCC, FDIC, Federal Reserve, and CFPB in hosting Financial Inclusion Summits for 

the disabled community. These experiences directly exposed me to the importance 

of regulatory review, financial soundness, and risk management. 

My public sector experience includes serving as the Associate Administrator of the 

Rural Housing Service at the U.S. Department of Agriculture, where I helped administer a $43 billion loan portfolio of over 400,000 homeowners. I also served on 

the Board of NeighborWorks America with leaders from the Federal banking regulators and the Federal Housing Commissioner. Additional public sector experience 

includes my term as a member of the University of North Carolina System Board 

of Governors—the policy and oversight body for North Carolina’s public college system—serving 17 universities, more than 220,000 students and the UNC Hospital 

System. In that role, I served as the Vice Chairman of the Board’s Audit, Risk Management, and Compliance Committee. 

My experiences in the private and public sectors have provided me with leadership opportunities and have taught me valuable lessons about responsibility, accountability, and transparency. This includes the importance of building solid 

teams, paying attention to the basics, and putting a face on the decisions you make. 

These experiences have provided me with a sound foundation and robust skill set 

for evaluating the policy issues facing the NCUA Board. 

If confirmed by the Senate, I will return to the NCUA with a risk-based and market-oriented mindset based on the following tenets: 

• First, I will work to ensure that credit unions remain safe and sound institutions. 

• Second, I will strive to be recognized as a fair and thoughtful regulator—one 

who realizes the value and necessity of regulation while also being cognizant 

of the impact of excessive regulation. 

• Third, I will bring focused leadership and management to the NCUA while 

seeking to ensure efficient operations and prudent use of resources. 

• Fourth and finally understand the importance of disclosure and transparency 

and will work closely with the Members of this Committee, and all members 

of Congress, to ensure the financial integrity of credit unions in an ever-changing and dynamic environment. 

Mr. Chairman and Members of the Committee, I am honored to appear before you 

this morning and would like to thank you again for your courtesy and consideration. 

I welcome any questions you may have. 

67 


STATEMENT FOR COMPLETION BY PRESIDENTIAL NOMINEES 

Name: Hood Rodney Eugene 

(Lao) (Middle) 

Position to wbicb nominated: Board Member- National Credit Union Administration 

June 18,2018 Date of nomination: 

Date of birtb: 22 February 1967 Place of birth: Charlotte, Nonh Carolina 

(Day) (Moolll) (Y .. ) 

Marital Status: Single Full name of spouse: N/A 

Name and ages ofcbildren: N/A 

Education: 

Honors 

and awards: 

Dates Deg~tes Oates of 

Institution an ended received degJteS 

Myers Parle High School 19!3·1985 High School Diploma June 19SS 

University ofNorth Carolina t9J5-t919 Bachelor of ArtS May 1989 

At Chapel Hill 

List below all scholarships, fellowsllips, honorary degrees, military medal honoraJy 

sociel)l memberships and any other special recognition for outstanding service or 

achievement. 

Order of the Old Well Honor Society 1988 

GE Capital President's Award 1989 

Bank of America Management Award 1993 

Wells Fargo Home Mongage Leaders Club 1999 

Wells Fargo Housing Foundation Dream Award 2002 

Tri~leBusinessJoumal"40 Under40" Award 2004 

American Council on Germany 

Young Leaders Award 2005 

World Economic Forum Young Global Leader Award 2008 

Women in Default Services Panner Award 2014 
68 


Membenhips: List below all memberships and offiets held in professional, fraternal, business, stholarly, 

civic, charitable mid other organizations. 

Organization Office Held (if any) 

NC Low Income Housing Board Member 

Coalition 

Boys & Girls Club ofNC Board Member 

UNC -Chapel Hill Board ofVisitoo 

National Endowment of~ Ans Opero Panelist 

Affordable Housing Allianct Board Member 

Duke EJtington School of the Ans Council Member 

Folger Shakespeare Library CorporaltCommiaee 

Cbll!diC1uhofNewYork 

Nature Coos<n'IIIC)' MOJOCIV A &In! ofDirecton 

North Carolina School of~ Ans &In! ofTIU!ICCS 

City Ta,·ern C1uh &In! or Governors 

The Carin& House Cancer Cent« &In! ofTIU!ICCS 

Neighbor Works America &In! of Directo<s 

North Carolina Muse~Jm of M &In! ofTIU!ICCS 

UNC College System Board ofGovemoo 

Carolina Club 

University Club ofNew York Comminee Chair 

Hope Valley Country Club 

Charlotte City Club 

Dates 

April 1993 - May 199S 

June 1994 - Junet99S 

May t995 - May t999 

May t995 -Marth 20t5 

June t996- March 2003 

August I 996 - Marth 2003 

May t998-Mllcll2003 

June t998 - June 2008 

August t999-Mllcll2003 

June lOOt - No--ember200S 

J!IIIW)' 2003 - May 2009 

S<p!ember 2004 - NO\ -ember 2005 

November 2005 - Otccmber 2001 

June20t0-May20t3 

June20t3 - April 20t1 

May t993 • Prtstnt 

May 1996-Present 

Deoemher 2003 - Prtstnt 

January 20 t1 • Prtstnt 

Employment record: LiSt below all positions held since college, including the title or description ofjob, name 

of employmen~ loeation of work and inclusil'e dates of employment. 

JPMor&an Cbast & Company: 

National Credit Union Admioistra1ioo: 

United States 

Department of 

Agrkulturt: 

North Caroliaa 

~ht~al Life 

lnsanaee Compaay: 

Wells Fargo Home Mortgage: 

Wells Far&o Home Mortgage: 

Corponte Responsibility Manager 

Augus~2010 I'Tesent (Washington, DC) 

Vke Chairman oftbe Board 

November 2005 - June 2009 (Alexandria, VA) 

Assoc.iate Administrator -Rural Housing Sel'\'ke September 2004 -November 2005 (Washington, DC) 

Marketing Direetor nd Group Sales ~taaager 

lnd vid~l Life Sales, Muki-Product Sales,andGroup8enefiiS, and 

Compliance Mucll 2003 -September 2004 (Durfwn, NC) 

Natioaal Direetor 

Emerting Maztets Housing Group 

June 2000. March 2003 (Washington, DC) 

Di~is on Community Development Manager Relail Sales Group -Affordable Housing 

July 1996--June 2000 (Washinglon DC) 
69 


Baak of America: 

Bank of America: 

Bank of America: 

G.E. Capital Corporation; 

Artbur Ande~a & Co.: 

Natioaal laitiatins Pro je(f 

Muacer 

Community Dmlopment Group 

Junei995·June 1996(Washington,OC) 

Assistant Vi« President I 

Community Rein>·estment Act 

(CRA) Manager 

Community Investment Group 

October 1993-June 1995 (Raleigh, NC) 

September 1992-September I 993 (Charlotte, 

NC) 

Commercial Loan Olr~<er Tmnillg 

Program September 1990-September 1992 

(Ciwfolte, K) 

Finantial Maaagemeot Developmeot Program 

June 1989-September 1990(Atlanta, GA) 

Summer latero tbrougb INROADS Program 1984-1988 (Charlotte, NC) 

3 
70 


Government 

experience: List any -experience or direct association with Federal, State, or local governments, 

including any OOvisocy, consultative, honorary orotherparttimeserviceorpositions. 

Panel Member for !be National Endowment for the Arts 

Washington, DC 

May 1995-May 2015 

Board of Trustees of a Public te- upoorted" College 

North Carolina School oftbe Arts 

Win~on-Salem, N0!1h Carolina 

June 2001- Nov. 2005 

President George W. Bush Appointee to the Department of Agriculture 

Associate Administrator- Rural Housing Service 

Washington, DC 

Sept. 2004-Nov. 2005 

President George W. Bush Appointee to the National Credit Union Administration 

Confirmed by the Senate and Named Vice Chair of the Board 

Alexandria, VA 

Nov. 2005 - June 2009 

North Carolina Legislature Appointee to University of North Carolina Board of 

Governors 

Member of the governing body for the policy oversight of the state of North Carolina's 

public university system, public broadcasting & radio stations, and university hospitals 

Chapel Hill, NC 

June 2013 - April2017 

Published 

Writings: List the titles, publishers and dates of books, articles, reports or other published materials 

you have written. 

I haw! no published materials. 

Political 

Affiliations 

and activities: List memberships and <ffices held in and services rendered to all political parties or election 

committees during the last 10 years. 

• Republican National Committee 

• Durham County Republican Party Member 

• Volunteer & Contributor for Senator Richard Burr Campaign 

• Volunteer & Contributor for Senator Thorn Tillis Campaign 

• Volunteer & Contributor for Speaker of the NC House Tim Moore Campaign 

4 
71 


Political 

Contributions: Itemize all political contributions of$500 or more to any individual, campaign 

organization, political party, political action comminee or similar entity during the last 

eight years and identify specific amounts, dates, and names of recipients. 

Qualifications: 

• S516 for Edwin Peacock Campaign for Congress (April2012) 

• $500 to Dan Forest Campaign for Lieutenant Governor (May 2014) 

• S600 to JPMorgan Chase Federal Political Action Comminee(2015 calendar year) 

• $600 to JPMorgan Chase Federal Political Action Comminee (2016 calendar year) 

• $600 for JPMorgan Chase Federal Political Action Committee (2017 calendar year) 

• $600 for JPMorgan Chase Federal Political Action Committee (2018 calendar year) 

State fully your qualifications to serve in the position to which you have been 

named. (Please see attached shed) 

Future employment 

relationships: !.Indicate whether you will sever all connections with your present employer, business 

Potential conflicts 

of interest: 

firm, association or organization if you are confinmed by the Senate. 

If confirmed hy the Senate, I will mer a// ties with my current employer, JPMorgon 

Chase& Co. 

2. As far as can be foreseen, state whether you have any plans after completing government 

service to resume employment, affiliation or practice with your previous employer, 

business finn, association or organization. 

I have no immediate plans after completing government service to resume 

employment with my current employer- JPMorgan Chase & Co. 

3. Has anybody made you commitment to a job after you leave government? 

No one has made a commitment to me for a job after I leave government service. 

4. Do you expect to serve the full tenn for which you have been appointed? 

I expect to serve thefulltermfor the position to which I ha1•e been appointed. 

I. Describe any financial arrangements or deferred compensation agreements or other 

continuing dealings with business associates; clients or customers who will be 

affected by policies which you will influence in the position to which you have been 

nominated. 

I have no deferred compensation agreements or other financial arrangements with business 

associates, clients, or customers who will be affected by the policies I will influence in the 

position to which I ha1•e been nominated. 
72 


Civil, criminal 

and investigatory 

actions: 

2. List any in1·estmcnts, obligations, liabilities, or odl:r relationships which might involve 

potential conflicts ofinterest with the position to which yoo hm been nominated. 

I ha1·e no in1·estments, obligations, liabilities, or other relationships which might invol1·t 

potential conflicts of interest with the position to which I have been nominated. 

3. Describe any business relationship, dealing or financial transaction (other than tax 

paying) which you have had during the last I 0 yea~ with the Federal Government, 

whether for you~ If, on behalf of a clien~ or acting as an agent, that might in any 

way constitute or result in a possible conflict of interest with the position to which 

yoo have been nominated. 

I have no hsiness relationship or financial transactions (other than tax paying) 

during the last 10 years with the Federal Gomnmtnt. 

4. List any lobbying activity during the past ten years in which you have engaged in for 

the purpose of directly or indirectly influencing the passage, defeat or modification 

of any legislation at the national level of government or affecting tit administration and 

exe~ution of national law or public policy. 

/ JuNe not engaged in lobbying activities during the last I 0 yelllS. 

5. Explain how you will resolve any conflict of interest that may be disclosed by 

your responses to the items above. 

I wiU work diligently with the NCUA Ethics Ofjicio/s and tht Office of 

Go1unmmt Ethics to resoll't any conflict of interest thai may bt disclosed during 

my aforementioned responses. 

I. Give the full details of any civil or criminal proceeding in which you were a 

defendant or any inquiry or investigation by a Federal, State, or local agency in 

which you were the subject of the inquiry or investigation. 

I ha1·e not participated in any civil or criminal proceedings. 

2. Give the full details of any proceeding, inquiry or investigation by any 

professional association including any bar association in which yoo were the 

subject of the proceeding, inquiry or investigation. 

I have not been the subjtct of any proceeding, inquiry, or investigation. 
73 


lorn honor<d 10 sen, dte Prosidmt ofdte Uniled S131CS by retumins to the National Credit Union Administ"tion (NCUA) 

as a Soard M<mbet. Afttr 8J31!1131i.•g &om dte UnivasilyoiNonhCarolina ar Chapel H~l "itll aBadltlorol AnslleSJtt in 

B.siness Adminisuarion, Speecb Communiealion, and Political Science, I embarked upon a ZS.year eantr in lhe fiiWI<ial 

S<1Vi«$ arena. Participating in rnanagementlnining and de\,lopm<nt progJa1111 ar G.E Capital and Bank of America exposed 

me to some oflhe besl and brig)ltest leaders in lhe financial servi<ts indUSII)'. I was blessed 8/ld fortunate to have many menton 

who woriced with me in my fonna i~e yean. 

My work at G.E. Capital provided me with a robustintroductiontoeredit analysis, industry research, and financial forecasting 

andservedasauemendous launching pad for my position in the Bank of America Commercial Loan Officer Program. Asa 

Banking at~t, l was trained in lhe fundamentals ofcrt<lirevaluation, cash now analysis, loan underwriting and risk 

managemem. Upon successfullycompletingrheCommercial ~nding Relationship Management Development Program, I 

became !he Communi!)' Reinvestment Act (CRA) Officer for !he bank's headquaners market in Charlotte, NC. 

My wort as a CRA Oflic:er expos«~ me10 all aspeas ofmon&~&< and small business lending. cornmertiaJ lending. and publiepm'lk par1Dmhips. CRA also JIIO'ided me ,.;m a passion (w wantill& to make a diffem~<t in dte communily. I ha>'t seen 

firsiJwld lhe posiri>'t l'tllllts !hal stem from l'tlllhs-oM!ted communily clt\-.lopm<nt lending acri\iries and Mlie-pri~te 

partnerships. 

Since becoming invol>..d with CRA nearly l\l'tnl)'·fivt )'ti!S ago, I ha>'t continued to woric in lhe communi!)' development 

arena because it helps build, nurturt and SIIStain heahhy communitiel. I h.,, now held management positions at Welb Fqo, 

North Carolina Mutual Life Insurance Company and cWTtntly at JPMorpn Chase & Co. These financial service$ firms have 

funher allowed me to gain additional insig)lt and knowledge about !he financial mari<dS, crt<lit evaluation, and risk analysis. My 

work at North Carolina Mutual was espedally helpful because it exposed me to the inner wori<ings ofa small, minorit}'-owned 

8/ld operated company. This created a great balance to my professional experiences wori<ing with global Fonune 500 financial 

institutions. 

In Septembet 2004, President George W. Bush appointed me Associate AdminiSirator oflhe Rural Housing Ser.ice (RHS) ar the 

U.S. Department of Agrieul1ure. In dw capacity, I managed a housing and communily de\'tlopmentloan ponfolio in excess of 

$50 billion thai ensured the residents of rural America had acms to singlt family, multifamily, and communily de\'elopment 

loans. I ~'oriced inpartnmhip~>ilh banks and crt4it unions along ,.;m USDA und""Titers and compliance offiCttS to easwe 

tharlhedepanment ....,~mdguara~~tttin:lowthal fn USOA'srishodunderwritingcrittria.l recopized dte 

irrlpoRince of lJOWill the USDA loan portfolio ,.11ile simuhlneously rrJanl&ing risks and rnairainin1 SIIOil& asset quality. 

In additioo, ll$$i$ted dte RHS Adminislrator io managing dte 1,000 indi>iduals who -'oriced for dte dq>wnenl 

Following my appointment at USDA, President Bush nominated me to a seat on dte NCUA Board ,.ilert I was later confirmed by 

lhe Senate and subsequently named Vice Chairman. AI NCUA, I leveraged my financial ~«Vices expenise 8/ld woriced diligently 

with the other board members and agency leadership ro promote the safe!}' and soundness oflhe country's crt<! it union system. My 

regulatory philosophy was that "Regulation must be effettive, but not excessive." While wori<ing 10 rt<lucethe regulatory b<Jtden 

of crt<! it unions, I hig)llig)lted lhe imponance of Enterprise Risk Management (ERM) where I woriced in partnership with agency 

staff and other financial regulators (FDIC, OCC, Treasury and Fedenl Reserve) to convene )'early Risk Mwgement Summits for 

lhe industry. I also continued to wort in !he communi!}' development arena when I served as NCUA's liaison to Neighbor Worics 

Amtrica -lhe congessionally chanered nonprofit orpnization !hat suppons community do1~lopmen1 in lhe United States. While 

ll NCUA, I woriced collaborati>'tly with the other board members in providing sound management and oversig)lt of the agency's 

personnel and budget I abo wori<ed to ensurt lhe safety and soundness oflhe National Crodit Union Share Insurance Fund. 

1 belie\'e thai dte bmldth and depch of my nearly dine decode$ of experimoe in lhe fmar>cia1 S<1Vi«$ ,..... ha• .. prq>ared me to 

rt111n to dte Narional Crodit Union Adminisuarion au successful boon! member. Having "'oriced ~idl some of America's I1IOSI 

SU((t$$fuJ and admired companies combined wilh my public senict ll USDA and NCUA, I hal, aurtured and de\ 'eloped dte tort 

competencits thai I will soon use to foster the safety and soundnessoflhenation'scrt<litunion system. 
74 

PREPARED STATEMENT OF MARK ANTHONY CALABRIA 

TO BE DIRECTOR OF THE FEDERAL HOUSING FINANCE AGENCY

FEBRUARY 14, 2019 

Chairman Crapo, Ranking Member Brown, and distinguished Members of the 

Committee, I thank you for the opportunity to appear before the Committee today 

as the nominee for Director of the Federal Housing Finance Agency (FHFA). 

I also want to thank the President for the trust and confidence placed in me for 

this nomination. Additionally I want to express my deep appreciation to Vice President Pence. Serving as Chief Economist for the Vice President has been one of the 

greatest honors of my life. 

It perhaps rivals the other great privilege of my career, which has been to serve 

on the staff of this Committee. I take tremendous pride in having served on the 

Committee staff under Senator Shelby. While GSE reform was eventually passed in 

2008, the structure of that reform largely mirrors the Shelby bills of 2004 and 2005. 

If anyone is the legislative father of FHFA, it is Senator Shelby. 

I believe being part of the process that resulted in the Housing and Economic Recovery Act of 2008 (HERA) has also given me unique and valuable insights into the 

mission and history of FHFA. I well remember the short comings of its predecessors, 

OFHEO and the FHFB. 

I was also extremely fortunate to serve on the Committee staff during the leadership of Senator Paul Sarbanes. While I did not always agree with his policy positions, I have strived to live up to the standards of professionalism and conduct he 

set for this Committee. Particularly Senator Sarbanes’ belief that it is indeed possible to disagree without being disagreeable. 

I take great pride in the fact that I continue to count a number of former Sarbanes staff as friends. 

Speaking of friends, it is also a true pleasure to be sitting at the table today with 

three gentlemen I have the privilege of calling friends. 

I also want to recognize my partner, Allison Randall, who is here with me today. 

Allison’s life-long work to end domestic violence has been a daily inspiration to me. 

I have to thank the Committee here as well, as Allison and I met working on the 

2005 reauthorization of the Violence Against Women Act, whose Title VI: Housing 

Opportunities and Safety for Battered Women and Children, was the product of this 

Committee. 

Lastly, I want to recognize my mother, Janie Jones, who is here with me today. 

I know my sitting at this table is only possible due to the many sacrifices made by 

my mother. I doubt I could have done half the job she did, for many years as a single mother raising four children. 

It was also my mother’s 20-plus years working for the County of Fairfax Virginia 

that instilled in me a deep respect for public service. 

As she spent her service there in the Comptroller’s office, she also instilled in me 

the unavoidable reality that whatever the goals of Government, the numbers have 

to add up. 

While the primary focus of FHFA is on our Nation’s mortgage markets, the last 

piece of legislation I was privileged to work on for this Committee was the Homeless 

Emergency Assistance and Rapid Transition to Housing Act of 2009. It was a particular honor working with Senator Reed and his staff to strengthen our Nation’s 

homelessness assistance programs to better service homeless families, especially 

those living in rural America. 

Homelessness and rural housing are only a few of the areas I have worked on. 

During my service on the Committee staff I worked on over 20 pieces of legislation 

that became law, mostly in the areas of housing and mortgage finance. 

In addition to my Committee experience, I briefly oversaw HUD’s regulation of 

the mortgage market, primarily under RESPA. 

I have also spent a number of years performing economic research on the housing 

and mortgage market for two of the largest housing industry trade associations. 

I have spent the last 20-some years researching and writing about our Nation’s 

housing and mortgage markets. I believe I have successfully mastered not just the 

economics of our housing and mortgage markets, but also the legal and policy details. I believe that particular combination of skills and strengths makes me uniquely qualified to serve as the director of FHFA. 

As the Members of the Committee are perhaps aware, I have an extensive record 

of writings in the area of mortgage finance. I have on a few occasions expressed 

strong opinions on the history and future of our mortgage finance system. I have 

most definitely expressed, and express here today, a frustration with the current 

state of our mortgage system and the need for reform. 

75 

Despite that frustration, I want to very clearly state to this Committee, that if 

confirmed, my role as Director of FHFA is to carry out the clear intent of Congress, 

not to impose my own vision. 

I have even brought with me today my nearly decade old, dog-eared personal copy 

of HERA. Whatever the policy issue, my first question will always be ‘‘what does 

the statute say?’’ 

Let me close by emphasizing that I believe we are truly at a critical juncture in 

housing finance policy. Families across America face heavy burdens making their 

rent or mortgage payments in many cities, towns and States, as well as the unique 

barriers faced in our rural and tribal communities. 

I also strongly believe that shelter is one of the most critical of basic needs facing 

any family. Whether it is rented or owned, American families need an affordable 

place to call home. 

I thank you for your consideration today and look forward to your questions. 

76 


STATEMENT FOR COMPLETION BY PRESIDENTIAL NOMINEES 

Name: 

{F11$1)Marlc (O!h<r) 

Position to which nominated: Director, Federal Housing Finance Agency 

Date of nomination: 

Date of birth: 20 Ju11e 1969 

(Day) (Mooth) (Yetr) 

Marital Status: Single 

Name and ages of children: N/A 

Education: 

Institution 

George Mason Univmity 

George Mason Univmity 

Place of birth: Petenburg, Virginia 

Full name ofspouse: N/A 

Dates 

attended 

Degrees 

received 

1987-1991 BA, Economics 

1991-1995 PhD, EcollOlnics 

Dates of 

degrees 

1991 

1995 

Honors 

and awards: 

List below all scholil!Ships, fellowships, honorary degrees, military medals, honorary 

society memberships and any other speeial reoognitions for outstanding service or achievement · 

WA 
77 


Memberships: List below all memberships and offices held in professional, fraternal, business, scholarly, 

civic, charitable and other organizations. 

Organization Office h<ld (if any) Dates 

N/A 

Employment record: List below all pcsitions held since college, including the title or description of job, name 

of employment, location'of work, and inclusive dates of employment. 

Assi!wliiolhe VX.PiesidcotandCh~f~Ex...,ti-.Officoofti<VicoPrtsidenl, The WhiteHouse, Woshiog!Oil.OC. Feb<ualy 

2011tOp<t$<11l 

Dim:tor,rllWICiaiR~Sllldies,Cato lliSiitutc, Woshiog!Oil. DC. April2009tofeb2017. 

Serliot Professional StaffMembo-, Repobli<M Staff, Coavnittce on Banking, Holl!ing & Urban AffairS, U.S. Seriate, Wasliingtoo. DC. April 

200lto April2009. 

Depu~y Assistant S=tuy, orr .. ofCooswnctand Regulalory AffairS, US llq>al1ment ofHoosingand Urban Oevelopmcn~ Wasliingtoo. 

DC. July 2002 to April2003. 

S<ttiot Professional Staff & E<onomist, RtpJblicM Staff, Committee on Banking. HOIISing & Urban Affairs, U.S. S<nole, Wasliingloo, DC. 

August lOOt 10 July 2002. 

Serliot E<onomist, Policy Analysis and R=rcl> llq>al1men~ National Association of REAL TORS®, Wasliingloo, DC. July 199810 August 

2001. 

R=rcl> Fellow, Joint C..tcr for Housing Studies, HaMid Univusil)', Cambridge, Massaeh...us. August 199710 July 199~ 

£conomist, H~Pol ty llepartm<nl. National Associatioo of Home Buildas, Wasliingloo, DC. Mardll996toAugust 1997. 

R=rcl> Associate, FannCreditCouoeil, Wasliingloo,DC. JW1CI99410Mard> 1996. 

Lccrurtr in Economics, GeorgeMmn Unh...,;ty,Fairfax, VA. Jan.l994toJooel994. 
78 


Government 

experience: List any experience in or direct association with Federal, State, or local governments, 

including any advisory, consultative, honorary or other part time service or positions. 

Assisw\110 lhe Vice l'losidcr\1 tnd .;:t>iefE<oaomiSI, Exea.'li>< Offico oflhe Vice l'losidenl, The While Hcuse,.Washingloo. DC. febnwy 

2011IOP"""l 

Member, Advisory Commine.oo lnlornational Excbaoge !We Policy, Ofl"JCe oflnlematiocW Affails, Uniled Slalcs Deporlmall oflhe 

Treasury. 2016-2011. 

Scruor Profession~ SlaffMember, Rq>oJbticon SWI; Committe< oo Blllking. Howmg & Urba.1 Affails, U.S. Senal~ Washing1on. DC. April 

200llo April2009. 

Depuly Assi!lanl Sect!uJy, OffiCe of Con'"""' and Regula!O!)' Affairs, US Depanmenl ofHOIISing tnd Urban De><iopmen~ WashingiOil, 

DC. July 20021o April2003. 

Senior Professiood swr & EconomiSI, Rq>oJblican swr; Commince oo !lankin& HO\ISing & Urt>an Alfails, u.s. Senole, Washington, DC. 

AugusllOO 110 July 2002. 

Rcsearci!Associale,C..Ier forE<:Mom~ Sludies,C..... B....., U.S. DeportmeolofCommerct, Augusii99710July 1998. 

Publisbed 

Writings: 

Political 

Affiliations 

and activities: 

List the titles, publishers and dates of books, articles, reports or other published materials 

you have written. 

See Attached 

List memberships and offices held in and services rendered to all political parties or 

election committees during the last 10 years. 

NIA 
79 


Political 

Cootributioos: Itemize all political contributions of$500 or more to any individual, campaign 

organization, political party, political action committet or similar entity during the last 

eight years and identify specific amounts, dates, and names of recipients. 

Qualiflcatioos: 

Future employmeot 

N/A 

State fully your qualifications to serve in the position to which you have been named. 

(attacll sheet) 

Attached 

relatioosbips: I. Indicate whether you will sever all connections with your present employer, business 

firm, association or organization if you are confirmed by the Senate. 

Yes, will sever all connections with such. 

2. As far as can be foreseen, state whether you have any plans after completing 

government service to resume employmen~ affiliation or practice with your previous 

employer, business firm, association or organization. 

No such plans. 

3. Has anybody made you a commitment to a job after you leave government? 

No 

4. Do you expect to serve the fullterm for which you have been appointed? 

Yes 
80 


Potealill coallids 

or ioterest: I. Describe any financial anangements or defened compensation agreements or Olher 

continuing dealings with business aoo:iates, clients or customers who will be 

affected by policies which you will influence in the position to which you have been 

nominated. 

NIA 

2. List any investments, obligations, liabilities, or Olher relationships whicll might involve 

potential conflicts of interest with the position to which you have been nominated. 

N/A 

3. Oesmbe any business relationship, dealing or financial transadion {other than tax 

paying) whicll you have had during the last 10 years with the Federal Governmen~ 

wllelher for yourself, on behalf of a clien~ or acting as an agen~ thai might in any 

way constitute or result in a possible conflict of interest with the position to which 

you have been nominated. 

NIA 

5 
81 


Civil, criminal and 

investigatory 

actions: 

4. List <IllY lobbying activity during the past ten years in which you have engaged in for 

the purpose of directly or indirectly influencing the passage, defeat or modification 

of any legislation at the national level of government or affecting the administration 

and execution of national law or public policy. 

N/A, have never been a registered lobbyist. 

5. Explain how you will resolve any conflict of interest that may be disclosed by your 

responses to the items above. 

N/A 

1. Give the full derails of any civil or criminal proceeding in which you were a defendant 

or any inquiry or investigation by a Federal, State, or local agency in which you were 

the subject of the inquiry or investigation. 

Other than background checks, N/A 

2. Give the full details of any proceeding, inquiry or investigation by any professional 

association including any bar association in which you were the subject of the 

proceeding, inquiry or investigation. 

N/A- have never belonged to professional associations that engaged in such 

proceedings, inquiries or investigations. 

6 
82 


Senate Banking Committee Questionnaire 

Dr. Mark A. calabria 

Dlre<tor, Federal Housing Finance A~ency 

Appendix A 

Quallflta!lons 

I believe that my deep backgro~nd in economics, public policy, and the lawmaking process make me uniquely qualified 

to lead the Federal Housing Fin;ance A~ency (FHFA). I turrentl'! have the privilege of serving our nation as the VIce 

Presidenrs Chief Economist Prior to assuming that role in February of 2017, I spent my weer working on financial 

regulatory and economic policy issues as both an academic and as a public servant in the legislative and executive 

branches of government 

Since earning a PhD in economccs from George Mason University, I have grappled with housing and mortgage finance 

issues and worked to champioB market reforms that benefit consumers and enhance the safety and soundness of our 

housing finance system. My work has brooght me to posaions at Harvard University's Joint Cerlterfor Hoosing Studies, 

the cato lnstiMe, the halls of Congress, and the Department of Hoosing and Urban Affairs as a Deputy Assistant 

Seaetary, to name a few. 

Of those experiences, one ofthe most meaningful was my six years of service as a senior professional staff member of 

this Committee. In that capacity, I worked at the direction of members of the Banking Committee, many of whom 

continue to serve our nation with distinction, to aaft policy involving banking. insurance, hou~ng, and mortgage finance 

issues. 

One of the highlights of my time on the Committee and an experience that positions me well to serve as an effective 

FHFA director was my work on the Hoosing and Economic Recovery Act of2008 (HERA). As one of the lead staffers 

involved in drafting of HERA, I was privy to the events that led to its passage, induding previous reform attempts by the 

Committee in 2004 and 200S. I have f!IS!-hand knowledge of the many trade-offs made in balancing the competing 

demands placed upon HERA as th~ Committee engaged in the lawmaking process. If confirmed, I will leverage that 

knowledge to insure that the competing. complementary, and occasionally conflicting pressures d~cussed during the 

legislative process continue to be reflected in the management of FHFA. 

I am proud to have played a key role in the last SIJccessful, bipartisan effort at comprehensive mortgage finance reform, 

and I believe that, because of my previous experiences and commitment to engaging in the deliberative process, I am 

particularly qualified to contribute to the next successful bipartisan effort in this area. 

Finally, my time as a senior Baoking Committee staffer made me deeply respectful ofthe leg~lative process and of the 

a~ical role Congress plays in governing our nation. It has also made me keenly aware of the importance of 

Congressional oversight of our housing finance agencies and regulators. If confirmed, I will work diligentiy to execute 

statues as enacted by Congress, and I will strive to fulfil FHFA's mandate to regulate our nation's housing finance system 

for the benefit of consumers and the broader economy. 

10 
83 


Mark A. C.labria, Ph.D. 

Publications 

Cito lnsthute Pub C<ltions 

hnos:IJw,vw.rato.org/people/martc<alabri• 

tatoStudil!l 

lntetnctiono! Developmtnts In thelnsuronu Sector: Tile Rood to Fino@llnstobaity? 

Working Paptt No. 30. May 27, 2015. 

Tile Col!wvotorshios of Fonnie Moo ond Freddie Moe Actions V'IOiott HfRA ond Esrcbl#htd II!SilloOOPrilldples 

Working Paper No. 26. Februaf'( 9. 2015. 

Tile R"olution o!S}'!Itmoti<.o!/y lm!)OI!ont Finall@lll!ltitutions: !es<QII! from Fonnk ond Freddie 

Working P>ptt No. 25.1anuaf'( 13, 2015. 

Tilt Rolt o{Mortqogt Finance In Finondol (In/Stability 

Working Paper No. 23. Stptember 12, 2014. 

Tile Paths to M9nqage Finance Reform and !1!tir Budgf!ory lmp!kations 

Working Paper No.18. Marcil 18, 2014. 

Mortqoqe Reform under the Oodd-Fronk Acr 

Working Paptt No.l5. lanuaf'( 27. 2014. 

Reoulotio/1 M9rket Stroaure ond Rolt of the Crtdi{ RatiM Agencies 

Policy Analysis No.104 August!. 2012. 

Fix.inqMorrqoqe Ffnortee: Whor lO Do wirh tltt Ftdtrol Housjna Administration? 

Bri<>fing Paptt No.123. Febru3f'(6, 2012. 

Fonme Freddie. and tht Sul!prime Mortqoqe Morktt 

Briefing Paptt No. 120. March 7, 2~11-

S«iety. F;nonct & Freedom 

Banking Perspective. Fall2015. 

A Sleofi<ol Look at Mort me Reform Under the Dodd-Frank Acr 

MOrtgage Compliance Magaline.luly 15, 2015. 

On the Pol~icol P9!Sibility o!Stoorotioo Bonkioo ond the Store 

11 
84 


The Journal of Private Enterprise. Vol. Z9. No. 3. FaU 2014. 

The CO'St oaainst TRIA 

IN Maga~ ne. Summer 2013. 

Would Consolidating Requil!Ofl A Wid lht NIX! Crilis? 

lombard Street. Vol. I. Ho.16. November 15,2009. 

Publk filings 

Etominina :he Consumer Finon@t Prottction SVrrau's Mqu De to Collection Prooram 

Testimony. December 16.2015. 

lhtAdmin§rrotivt Stolt v. Tht COII5titution: Dodd-Frank or Fivt Ytors 

Testimony. July 23,2015. 

ftd Olmiaht tack of Transeowey onrl A<counrability 

Testimony. July 13,2m. 

Tht Dodd-frank Act Fivt Ytot> toter. Art Wt MOlt Stoblt? 

Testimony. July 9, 2015. 

On .. Requ.'otory S.UrdtM to Obtofllioo Mort goat Cttdir"' 

Testimony.Aprill6, 2015. 

ltg~ olioa to Rtf91m the f(derol Rtstrvt On Its JQO. Ytor Anni;ersory 

Testimony.luly 10, 2014. 

Mor,.tory Poli<y olld the Store of tilt Economy 

Testimony. FebnJary 11.2014. 

A Ltqislotiolf Proposql to PtgttctAinericon Toxeoms and Homtowners by Cttotinq a Sustoinob!t Housino Fittanct System 

Testimony.luly 18,2013. 

Tox Reform and Residentiol Real Est ore 

Testimony. Aptil25,20ll. 

Crtdi! Crunch: Is tht CFPB Rtsrricring Consumtr At em ro Credit? 

Testimony. July 24, 2012. 

Finonciol Uttrocv: Empowtrino Amer;cons to Pr~rtt the h'tKt FinoMiol Crisis 

Testimony. Apr~ 30,2012. 

On "Sttrnqthtl'linq the Housino Marker end Minimizing lOSJts ro Toxooyers"' 

Testimony. March IS, 2012. 

Onlht Prir1ott Mongoqe Marker lllvtSfmtnt Act Port 1 

Testimony. Oe<ember 7,2011. 

12 
85 


Tht Oboma Admillistrotion15 Resoonst ro rht Housing Crisis 

Testimony. October 6, 2011. 

Audit !he Fed: Dodd-Fron~ Q£3. ond Ftdero/ Reserve Tron<eart/!ll' 

Tesllmony. October 4, 2011. 

Nm JdfDs for Rffinonc;nq and Rt$rrucrurinq Mortaw loons 

Testimony. September 14, 2011. 

1lle Future Role o[FHA, RIIS ond GNMA in t~ Sinq/e-ond Mufti-(omiltMonooge Morkm 

Testimony. May 25, 2011. 

1lle Stm o[ tile Hming Marker 

Testimony. March9, 2011. 

teqislotive Pt000so4 to End TOXOO'I'ff Fundinq lor Ineffective Foreclosure Mitigation Proaroms 

Testimony. March 2, 2011. 

GSE Reform: lmmediote Sttes to Ptotecr Toxooyers ond End the Boilout 

Testimony. Febroal'f 9, 2011. 

Foreclosure Prevention: Is The Home Affordoble ModifKotlon Proorom PrtseMnq Homeownershio? 

Testimony. M;~ch 25, 2010. 

HousinaFit!OI!CI - WltgtShquldtlttNfWSVSttm8tAblt To De? 

Testimony. March 23, 2010. 

Proorm of the Mil kino Hqme Allord9b{f Proorom: Whot Are the OUtcomes lor Homeowners ond What Are the Obslodes 10 

Su«ess? 

Testimony. September 9, 2009. 

The WMtnino FortcJosurt Crisis: Is It Time to Rtc.crrsK!tr Bonktuprcy RtfCKmJ 

Testimony. July 13,2009. 

H.R. 3068 TARP (Of Moin Srreet Act ol1009 

Testimony. July 9, 2009. 

Homt Fomlosutts: Wi'H vorunrorr Mortqoge ModttCotiofls Htlp Families Savt Their HomtS? 

Tes6mony. July 9, 2009. 

Commental'f/Opinion Pieces 

Time to Reform tht Mortgogt/nte~nr Deduction 

The Hill (O..Iine). Februal'f 6, 2011. 

TttrJSIJr/! Agenda/Of SteuenMnuchin ~AlreodySet 

The Hal (Online). December 1,1016. 

13 
86 


/loll Mtddr'lg wV. M<ltlt!a/'1 Yofq Sllojltdll.t>dtrtt Mof!Q09<S 

Notion~~ Moll&oet News. October 3, 2016. 

~tptol Dlldd·Ftont 

USA Today. Stptomber 26, 2016. 

BNA INSIGHTS: Con tilt Privett Motltt Rtturn to 1/Qmt ltr<iing? 

lloocnbt11 BHA. rul!14, 1o16. 

"""""fuiCitdtOIIMoftgogtFinatlct 

u~ IMiitutt. Apri 21, 2016. 

Tllt Glon·Sreogca ROfUhoch Ttsr 

Momlng Coowll. Febtuary 19, 2016. 

Wt Con Rtduct tilt GSEs' Risk without Cooirtss 

AlnfricMl ~nltor. ~iry 26, 2016. 

Wllttf Vlos 06o..,..s ~cry Lop 011 FinonO/II Rtfotttt? 

Amoric;anlrier l~ 14,2016. 

lltrr>it Sondm' Attock on ROling Agtndts M~Sts tilt Poillf 

lnvestofs 8uslnou Daily (Onr.nel. January 7, 2016. 

Time tor Rtguloton ro Coren Up tt> rbt l)jgiroiA4f 

DC !nmiotr.Dtamber 2l. lOIS. 

FtdttiiiAtstM Dmdtlllls: Wn:w19 Rood foro Hig"-f Fvlllbtlf F'r11 

The Hii(Oninol. October 26, lOIS. 

Oodd-Ftonlls on Obsroclt ro Rtform 

Morning COnsult. August 3, 2015. 

Wlih Big Bon.ts, 'If YouAin'r Clttoting, You Ain't Trying' 

Tht lfi (Onlint~ Silly 10, 2015. 

Too..,roFol 

Morni'1 Con!W..IUtt l , 2015. 

Ooo'r Silence SliM Stlltrs. Tllevi'WJyon lmpc!!ont Role 

rnvtsto(s 8u~ness D.lily (On6nei.June 15, 2015. 

Mokingo Fonnlt orwJ Fttddit WeCoJJld liYt Wlih 

Tht ii (Onlint~ Aptil27, lOIS. 

A C4 for Modd IJot1tsly ia 80nling ond - ... 

c..,_~- Aprilli.201S. 

14 
87 


Promises of P/Jblic Bonks Don't Match Reality 

AmeJkan Sanker. March 5, 2015. 

Colorado Would be Wise to Rtject State-Ow/ltd Bonking 

Denver Post. Mardl4, 2015. 

1/ Arlyone Needs an Audit Irs tht Ftdtral Res.M 

The Hill {Onlioel. February 3, 201s. 

Haw NO/to Address Terrarism 

National Review (Online!. Oe<ember 5, 2014. 

The End of Dodd· Frank? 

Washington Times. November 13, 2014. 

l.ttting Lehmon FaJ Wos a Chail:e, and It Was the Right One 

Oai~ Coller. O<tober3, 2014. 

Reversing the Dedine in Small Business Lending 

DC&aminer.July 25,2014. 

Fed Proposal to End Boilauts Folts Shon 

The Hll {Onlillel. Ju~ 25, 2014. 

Ale Scmt Bonks SUI/ Too-Big·!o-!oil? 

USA Today. May ll, 2014. 

'Skin in the Game' Rule Unnecessory for CLOS 

Anwican Sanker. May 7, 2014. 

Rt/Ofming the Grmmmenr's Housing Finan« Systtm without F;,ing It 

D~~ Coller. April29, 2014. 

MyRA WitiLtO";e Amerka Poartr 

Deuoit News. February 10, 2014. 

Ate Bonks Too~ ra Jail? 

CNN.com. January 6, 2014. 

Bailouts l.tO'~to l.tgocyaf CIOil)'ism 

USA Today. Oe<emb« 23, 2013. 

Pay Should Be TltdtaProductMty 

Ofllnge County Register. Oe<emb« 13, 2013. 

The Federal RestM Should Raist Rates /mmedlotel; 

u.s. Nei'IS& World Report {Online!. December 5, 2013. 

15 
88 


Bonlcing Commfttee Clears the Way for Continuing Flowed Fed policies 

Daily C.Der. Ncwem~r 22, 20ll. 

Terrorism Insurance: The fUilt Has Pomd 011 Th~ Ideo 

Rom Call. Octo~r 21, 2013. 

lawsly Should lemoe Tdbollending Alone 

American Banker. October 17, 2013. 

The Fed Is in llesf)ti'Ott Need of ClJange • Sodl/ lant/ Yelltn Won't Ben 

City A.M. Octo~r 10, 2013. 

Store Bonks Hutt Growth 

The NewYorfc romtS (Onflne). Octo~r l, 2013. 

FinoMiol Ctis~ Reforms M~sed the Mort 

Orange County Register. Seprembtr 21, 2013. 

Fannie & Freddie vs. Wall Streetll'llo(s WIShful Spin 

ReaiOearMa.tet~com. August 27. 2013. 

Get the Mangoge Industry our of 1a'fJDY'rs' Podtts 

U.S. News & World Repoo. August ll. 2013. 

Min~nga$1 TnllionD~troctiOII 

O~ly C.Uer. January 9, 20ll. 

FHA Boilwt Is lnt'lftal>it, But Taxpoy<r Po in I> Nat 

lnYesto(s Buslnes> Cally. January 5. 20ll. 

On Mortgage Crisis, Shelby Is Warthyaf Praise 

The Hm.lamJary 2. 20ll. 

In Ollomo's Second Term, What Will Happtnto the Housing Market? 

AOl News. Ncwembet 7, 2012. 

The CFPB: Problem Or Solution? 

Mortgage Otb. August 17, 2012. 

Dodd-Fronf(s SmoJI.BrJlintllltndill9 rwe ~b 

Washington Time<. August 2, 2012. 

Clleoptr Credit Wo11 Not Fix the Housing Morter 

U.S. News& Wotld Repo~.JulylO, 2012. 

Ohio Merits a Stat., the Fed 

Cleveland Plain Oealer. June 2, 2012. 

JPMorf/On Losse< Do Not Make th• CO>e for Regulation 

16 
89 


Huffi~ton Post. May 15, Wll. 

T01f!Cyt<S Shollldn't Hovt to Pay for Underwottt Man gager 

U.S. News & IYO<Id · Febnlary 6, 2012. 

A Lock of Accotin!Obllity: Tltt RMI<Obstenityot the SEC 

The Ripon Forum. February 6, 2012. 

Obomo's Unwekomt Mot 

New YOlk Daily News.lanuary 26, Wll. 

Fonnit And Freddie Need to C-o 

TownHall.com. January I, 2012. 

Oodd·Fronk tow: Rtgulotions Woo't fjx W11ots Wrong 

philly~om. December 6, Wll. 

More Ratings, Not Ftwtr 

The New YOlk Times (Online). November 3, 2011. 

Fed Creoted o Redpe for Oisoster in Housing Morter 

u.s. News & World Report. Octo~ 21, 2011. 

8od for Toxpaytl! ond W11olts 

The New YOlk limes (Online). September 30, 2011. 

A Sh<lf! H~toryo{thtGreenbodc 

Barron's. September 3, 2011. 

M~sed Opporruni!y 

The Politico./uly 21, 2011. 

Ditch the Do<tble Standard for New Co!lsumtt Agency 

Bloomberg Govt<nment. June 15, 2011. 

WinneN, Losers ond GO'IernmeM 

The New YOlk limts (Online). June 2, 2011. 

Housing Market Witlllt Fine without 3().Yeor Fixed Loons 

lnV!IIO(!Bulil\61 Daily. Mardll6,2011. 

The Debt Trap 

The Eutopean. December 14, 2010. 

There Is Nothing in QE2 WOtlh Conserving 

National R<view (On6ne). December 1, 2010. 

Nobelloureott Dicmond Is Ullll"olifitd for fed 

17 
90 


81oombetg.com. No-ember 21. 2Q10. 

HowtBirthdoy, BonkBoiloutl 

D~~ caller. October 3, 2010. 

RtgulotM Have leomed Nothing from the FinonciQI Cris~ 

CNBC.com. SeptembEr 27, 2010. 

Rtguloting fxt<Utflt Pay 

Economist (Online). August 16, 2010. 

How ll.ongage ll.atktt Should Be f~ed 

lnvesrOI's Buliness Daily.Augustl2, 2010. 

Why Can't We Fire Foiltd Rtgu/otors? 

lnvesrOI's Bu~ness Dai~. July 8, 2010. 

Fi1111nciaJ Rtfotm 8tV Won't Stop Htxt Cr~is 

National R!Yiew (Online). June 2S, 2010. 

Dodd's !»Nothing finoncia/'RtftNm' 

New Yorl< Post. May 21, 2010. 

Chris Dodd's Corvt-outs for Cr~ 

NewYorlc Post.AI)<il27, 2010. 

Oodd'slob-killtr 

NewYorl< Post.AI)<il20, 2010. 

BoiloutBo/llln;o 

New Vorl< Post Mar ell 18, 2010. 

Why More Consumtt Protection When Too Much Ltd ToCr~? 

lnvesto(s 8usil>ess Daily. Marct> 3, 2010. 

Housing Ptoblem Was the Bubble, Not the Bust 

Daily Coller. February 2S, 2010. 

Sting Bock Recou"e ill Foterlosure Pion 

Daily Caller. February 17,2010. 

Geithners Ufelong 1cvt of Boilouts 

New Yori< Post. January 20, 2010. 

llle Ptoblem's Nor the Bonlrs 

New Yorl< Post. December 17, 2009. 

A Few Q<lesrlons Fot Fed Chief Ber1111nke 

lrwesto(s Bu~ness Daily. December 2, 2009. 

18 
91 


FtdTroltJpOttfqSII«At/PrtttdtkmcllktC~ 

Huff~on Post. Otctmbe< 2, 2009. 

Fonnit. Frtddlt Musrn'tBt !t/1 Out Of Rt{orm 

llwesto(l BUiiness ~~. O«ober 27, 2009. 

Dorr't Blomt ComPtlilioo bttwttn RtgulotOtS 

Fo~. Stpttmbtr IS, 2009. 

~ !twll tJoltey Tofcl 

San Dillo Unioo-Trilule.AugUII6, 2009. 

Btrnonkt MilS! Go 

Nation.ll Review (Onl ne).lu~ 23, 2009. 

A Fokt F111011CJ11/ Fill 

Now Yolk Pol~ lt.ne 18, 2009. 

WiiOtd~ C#ri ltgi<latiooCut!JJI ~rCitdlt? 

Tho Wal S!reet Journal (Online). May 19, 2009. 

DtpoS<tlnsuronct IJndtrmintl Bonk Stability 

Ru!CiearMarl<et~com. May 7, 2009. 

Bloc Posts 

CoP!Ytt on<tlgi!O!QfiCt in Fincr.<ial Rtqul1lt@ O<tob<r 4, 2016. 

Choosii!Q FII!Q!!@I Stability September 12, 2016. 

Ya t/t(Ft!lttR!RtsmtHD<•D~fllryProblrm June 23, 2016. 

OitJ l)odd-110nk lnafOst Sonic C.pirall March 18, 2016. 

Wil15fnott U!! Entrqy sm to Vltaktn FilA Mortgagtt? february J, 2016. 

Portuoqi·S!y!r 89/l.im: !7tt Now NOtm undtr Oodd-Fronk? t.nuary 20, 2016. 

19 
92 


Ms !'t!!!!1 Oiscrt!iotr fnsi!l!u lr""' ltflWtdE<9f!9!!19 Aucust 7, lOIS. 

ArrS!C!ItRn<W:MASoutrto{Snrtmicll§tl June 23,2015. 

('ppitq! Unflound: 11>t Cato Summit an Fif!90<!9l Rcaulgfi9n May I L 2015. 

OmftdtmfP!!tqndA«t!MaruritrMogtrl FtbMI'f 2l. 2015. 

t Wtl!c!idc rplmo r.,,;, Mot ArO!IIld_ f.twu.ry 18, lOIS. 

Foe! C1!«fu! r~c fed qn •Aud!l tht ftd" FobMty 17, lOIS. 

l99n lq!s Only Pqtt dFmonciol Crisis StM! Februal'( 13, 2015. 

Rtcq!ltc!!ons !)II Fonnit Mot'j Houlina Goo4 January 14, 2015. 

FHA; On MQ!Iqcotl!!l!!pnccond Advtl!t St!tgiqP J1n1111y 9, lOIS. 

WOrl!!q!tdfqt!JSSIJb:>rimt;rlttCc!tg{Gftmg~t liolual'f6,201S. 

Midterm lmQO(f M F1119t!<iol Rtou!gOOn Novtmbtr S, 2())4. 

Finoncig! Crisis !mons From f>Dtrimentol fconom!ct Sepeember 24, 2014. 

Gtlfi"9 CW.rmmcnt our of rht Monooqt Bu!i?tss. OOJ.Srvfc Stptembtr 19, 2014. 

"'•trn Mrnftd to Rt~~olo!t Bitcoirl Se9tfn'btr 1&. 2014. 

k&!qt and r~c l!tcf''!!t otSmol BtM>m Enra SePiembtr 4, 2014. 

FSIX'! ArbittVfV. E'lt<hongino (}o(rb!t Stand9rd September 3, 2014. 

Ntcd/orShoMcrm t99ns lslloJ~ke Au&U1111, 2014. 

IQ!A!l9t!t(C9nf!lledSu~oooi'llr MMgcqttt!!dtn Juno!!. 2014. 

BoJII Tar{tWw "Fir"fqtTOO:&lz.Tofd FebM!y26, 2014. 

Stnott Prtpo,t! 12 RoUock Flood I!!1!JtP11Cdtfomn lilf1Ual'f 17.2014. 

Oct! loW Yellin Know "'71ot o Bubblt t99k!t~cl Septembtr 18, 2013 . 

.s&P's 0/!rmmq· Ratina 'fO!!r R(!)uloror Septembtr 4, 2013. 

Ftdtfo!Hgmto""''''"'P Pol(!: M!!lltyfor liothilg Au&U!I29, 2013. 

Qbpmp'!Ho!I!H!OSemJr l!>toood. Tl!tBocl & !1Jr!/Qiy Ao&U5l 7, lOU. 

20 
93 


IW!oW1)!!utrht-IV!l¥? ltily3L201l. 

!11tlqM Ru~ Pte~ in Actual H.,-~W!!fryhio Ftb<u•ry 4, lOll. 

Fonnlr Mgc Em¢ovw Kcrp Far P'~yChrrks or Tortl!?ws' EcyMt December 14, l01l. 

Whtr('!Airhc TAGBDnt!tndffll December II, 1012. 

ltl!l!ltlot!!tfct:#r/JorRtptgl(dlrGt!il Td D«tmber 10,2012. 

IW!or fi!OiJ1!!! 'Rtform' II Rto!lyAbO!if -.nlltr 17,2012. 

Gtrring OUfM9!ltv8Dck !mmFonnito!!tiFrtddit Hovtmber lD, 1012. 

RtftNtr!hlqQoesNOTft!!IGSEs November 14, l01l. 

l!!!!iW I! 'Wfl?l!!!' Solyrion(cr Ra!ii!OAotm!f NMmber ll. lOll. 

!l!r lt/lmoo TriPPt( M!!l! ~ Novtmber 2. 2012. 

QvcrHaifq/Fo!rdo!yraNow '~~•""'!!' October n. 1011. 

Qbst!V!?rlon! on rht MO!!qaq< Mqrl<tl: lOU HMQA Oorg September 19, lOll. 

!1lt qPB Gets Ont Riqhf? September 14, 2012. 

!!tmoctoUtpl\ypo!tl@olimUI!tl!tPI?r!!!rn9( Cemrorion7 Aupst lO, 2012. 

G\1tofM9!!VWm!l!tS{CCOil:~lrd!9thtFmi!S!OICI!!~ Aupstl8.201l. 

/lryRNC.!l!ttrA~todyWosoGoldCcmm;slon AU1UIIl4, lOll. 

Gtrlhncr fRI!!f! Fannie Moe Otbrlic!drry OVtt Torpovttl .• Aooin AugUSI!7, lOll. 

Nt!!9fr~tHamc£quityiSNorMnqNcw AIJIUIII4, lOll. 

Il.(ardorlMo!IM«tcwtRc!ioo.?C!l!l .qust ll, 2012. 

Tf!! Ym qiOWrk CMII!Ifctc Govftllll!!!t !uti 30, lOll. 

OidG!flu.srcaqoH l'!tt a Man 011 r~t Mtl!?n? July 19, 1012. 

Will <wrm txtMd rht 7AG' Bonk Boilc<Jrl July 17, 1012. 

lm>t !Jp rldcnh I Be Ccitfu!of'Nh<:r Yo<l A!i!or N!r lo, lOll. 

Y!llttt WptGf,)hntf!)mi!giiSOR Sci2P!t!l!9!tl July 10, 2012. 

21 
94 


A Modt!( PI"OII9f?l tolml!!l/'lt ftdttOI RrnM S.ol Govrmgnct Juno 29, 2012. 

S<nert fo!wt toBt(O!m Flood lnsvtpoy June 27, 2012. 

Some Rl!ldor!qs 21 the Ctonomq dtht Euro June 18, 2012. 

A!tSm9!lcrlcn!I8ttttrfl!!l'c{figl llolt13, 2012. 

Eyblitll9u!inootm!I!'Poil$64414! ~~~t 6, 2012. 

S..rrmtCp!!ftSpon!I/IUD Junt4, 2012. 

011!!9!! on NY F¢8potd o D~troction Solutlgo Is to Rcmm tht F¢1rom Bent RCOJ!Iotjpn May 29, 2012. 

!iTUruu to Dtposi! lns•rOJ!Ct FUIId May 16, 2012. 

1'/gfSttm pcmo.d! I!! f¢ Mlm'JJttS May 10, 2012. 

!!olrSiow/tRtcognim thot r~.r Substoncro(~llfltnty'Mof«!l May I, 2012. 

&<hqrd Woootc on Rtmtmbttino Bin Ni<kgncn AJ)ril 5, 2012. 

Do We Nc(do FQA (II!' Finonciol!<>uri!Dii!l!? Aplil2, 2012. 

~ioyld.A font's ®of!ol!ttl:fC!lcftmgn9lrhrfo9!d1 M¥tb 29, 2012. 

l!lrtm! rpra !mpqa Bo!H!fn o{rltt H9ott/lo!d 89rlm<c.!llm M¥ch 28. 2012. 

7!lc 'Dodd ~ylc' 911 Nom/notions March 27, 2012. 

Wo/1 Str«t'S ScO!O! !Itt F(dml Rt!tM1 March 27, 2012. 

0nNeyF¢NOII'inotions: Art !l!mffll lrCII!t!!O!?!illflrmtCcuntry? March 23, 2012. 

Po!b!!Q!llo8A/!ordc!l>ltl!ov!.i!!l' March 15, 2012. 

EdDtllgrtO DaiNtl 9 Mtd91 Matdlll,lOll. 

ArtMortm P/'9:Gpyl March 12,2012. 

AttCo!/((IDropoi!199Vl!htH<>JOnqCrisi<l March8, 2012. 

Qbomq Filtts !he HMirq Morter Agoitt fond IItie! tht T!p02!1 March 7, 2012. 

r .. Gt>thl!tt't ..,., ..... M¥tl> 2, 2012. 

22 
95 


Som!~nd-.....ntQM!rn.!iooiBor.g MMtll 1, 2012. 

19C91<jorlmmt@Aiso ToBiomt forHoulinaCri!§ Febmry 17,2012. 

Dumb Ggvtromrnr rnrmrntlonln tht Ho!!!inq M9ritt o(tht Dol February 16, 2012. 

Wllm's !ht Com!lt!lSOtion (pr V>Ctims in tht M91!909t Stttltmtnt? FebruatV 10, 2012. 

<Nc!t9llqndl!tM\ttM!htMqttcagrSttt!rmrm ftbrv>ly9,2012. 

U Wqy ll lnf.:tion H!!?dtd? F etwu..y 8, 2012. 

8tmon!t'sAnti·S(imu!ut Feb<v~ 7, 2011. 

Vlos Ol!9mo f!tn !'9yi!!R At«n!ion durino H< [IJ!lC in the S.noftl lanuary 2S, 2012. 

Sqm fPI. I!'! Crr{<t.IIO! Roct. rM! Dri!n Mqttqoqt Pricifg lilllllaty 20, 2012. 

lilA 91!d!ht f««lo!urt! of Tomonpw JinuMy 19. 2012. 

It Wot tl!cRrgubi~on 8onltrM!~tFtd8oqtdRo;pnqC9nwn •bou!HC!!I#no January 18. 2012. 

II tl!c 'Vokktr Rulf' 4 So Grtot Wily Eumpt frtpwjcs p!!d.AO!n<its? January 17, 2012. 

(OI!!I!!(IttCIP!!!tl!!ua In tl!tRrouiPtio!!diiJittfoniflnoncioll Januil!y ll. 2012. 

V!ciO!!o1!19NomWiotions.i>20JJ Wm(ot!fotmfdllrtl!tStno:t ~12. 2012. 

112M GoqdAft (jowrnrr.rnt Oefi<it fO!!Ct)!!!? ~ 12. 2012. 

U!?(911l!iMionoiRms!AppointmrnqHovrn't Htl9t!IO!!omoin the Polls January II, 2012. 

There Wos Nq NpmiftgtiqnofCo/d'roy bt(Oft tht Stnott ... January 9, 2012. 

Obo!!l(s 'C9s!!!fl1cl:ino' Momtnt? Janu•ry6, 2012. 

AR(!!!OM(!p/.'g!lao/MC<IfllnrrRt<m""'""Wmrnt ~S,2012. 

Obc!!l(s C9M!•!IIf!Q1!9JG9mb'tOIIC'gltw!!!f!fiM!?CtNpmi!!g!J\?n bmmy4, 2012. 

Doftu Mory11 Ttr>dToword Cor.ctnttp!i!)t!ll'lltC9sc pfBanWnq JanvatV l, 2012. 

The OoD91!J!nl!y Cons of Boiling Out Fonnit •lld Fttl/d~ January 2, 2012. 

S9mr lll•not I Mi!!tdBtlort tl!t fil>oflcid Cti!i! ~ 29, 2011. 

f9t Yqyr !thif Ff!t!ldl. SUnOl!-A>dc!!!( Mll!c f!!!90<iol Cti!i! December 28, lOll 

23 
96 


Mlorcwrr!!t ~plto/Fa.'lllitar.dFtfddJfillrl!tFittott@ICnl!!. ThtrNttdroGo Oecomhtr 27,2011. 

SECCI<JfmsFponitor.dFqddit WmOmi1!!9 $upP!imt(tr.dit!q December 16, 2011. 

«or Hp/19'{ WiJh rnc Qrc!ini110 label< 5/torc oii!?(OfMC Tq!k to tht ftderg! Rewvr Oecember 15, 2011. 

Thr Goldtafmt·Wor Ytors aiGowrnmcnrooctrnc Eco!!OI!!yl Oecember 14,2011. 

Sl!ouldfoMit&Fm!d'tfw>drl!tl'g!!!!ITorC!cfl Oectmbo< 13,2011. 

!r W!!! l/!91t "'15prollljors '11111r Drtit the Hov!ino l!!bblt .. December 13, 2011. 

ftdAootpgOu GgM Wild ()e(ember 12, 2011. 

h rnc Prob!tm II! !19frpr.d Gqm o lock o/Qrmandl Oecember 9. 2011. 

41! Ill! lmpor!Rnt Who Pm T!!l(l Than Wl>ot Gortmmt9t Dots V/irh l1:tno December 5, 2011. 

Cot>! !!!lit! F""'"'fNW<Itt Cor6-v110 Gtt Root VO!fl Dlumber 5, 2011. 

HO!!!inq w.n It rhc Lo>r ro Rt<O'Jtt O.Cember 2, 2011. 

GSE ll!9fl Umits Ftl! ... alld Home Soli'! Went Up November29, 2011. 

APportn!/y o Wit fCOI!Ohlig Eduroti9n Dots WMk 0!! C01!91t1<... November 28, 2011. 

?.lc!'>!!rwsMo!!!fflobrids' Nooomber22, 2011. 

Firit?RFqiJ<liEmp!Pms Vlou!d11arm' A9tnrt5m.!ECQ!idSd!co!p llomnber 14,2011. 

lUll Hgw Muel! olrhc Mro999t MMictr I! Qttr Sill OOQI NovtmberlO. 2011. 

Rqisiaq tnrcra< Rqta to Help rhe llol!!ii!Q Morlcr November 8, 2011. 

Ocwpyrl!tE/dtrlr Nov!mber7,2011. 

Htlp!'.o tgMq?rt/ltHO!!!ilollor'.ct!A!ooo -..ber 3, 2011. 

Wont to Sr.<U ta lht R!CI! Gtt Ritl o/fong ortd frt!/rk N<wember!, 2011. 

CO!!orm lu!! Cql!'tStop TrtiJlq co Mkromol?!lqt rhc Hpl!!lng Market. Ptln 5 671 October 30, 2011. 

Hos r/!t Con olrhc Faon1 Frtddi~ Boilour Fo!ltnl October 28, 2011. 

Ror.doi!!ThouaMtonObomo'sNtwll.ortqogtt!on Octobcr25,201L 

E!!PPf roRotm9Agcncies: Shu! Vp. or Elw October 24, 2011. 

24 
97 


Foil!!!( /lee !90nl.ir.'!Jc ll!t Eml!iir Stnl#$ Sqc! Octol>tr 20,2011. 

Stlo~y&Fonn!(Met com--. October17, 2011. 

Stloliu'!Swjtcl!jn Timt October 14,2011. 

GSE!00nUn*s9tdinr; To!POytr 1. Sorciollrwrwo Octobor7, 201L 

O.AR<r<!!ISolt!;,.,rotllt~Cri!it Stlllembl< 26, 2011. 

To!ftonq6 (p MqdtffCII<ll~ September 26,2011. 

Sh9q!d !ht ftdt!PI ~cmvr SuDml!• Bonq1 September 15,2011. 

}ObCrtofi9n Obgmq.sry/t September 8, 2011. 

If Y!)t! ~lt Obe .... s f,...,~ Ttom, Yoo/1 (M ~911!11!'(& SfPiembor 6, 201 L 

EdOrll!?!ll!jARg!tP!!blicSmun! Alf&u!l31.2011. 

Wl!9(s o COnst!!l1tMhip Gcod For} AIJ&U!t 30,2011. 

Obgmo Rtlinaoct Pion Sows Sttr!s lorA1191htr BgiiO!J! Aucust 29, 2011. 

For<td Mprrooqt RW1191l<t Dcts /'lot Ctto!t Wtpllh A \.lUSt 25, 2011. 

Store M5c Prm..,l!obifim A!.lust24, 201L 

119 II9Pt or C/!cr.qr WI'.< nit Ccmt$ to Folll!it Mif Alf&u!ll6. 2011. 

Cjmrnmtnt to Plini<h S&Pfor OoW!ll!rot!t August 12, 2011. 

What to Rt9d on tht finor><iol Crisis parr lit: S<l!olor'Y July 28, 2011. 

Vt1lct roRro491!thtFioor!6o/Cri<1, Porrlt:Ppllylor Juiy25, 2011. 

Wllo Vlp!!ll To I< 'Tqo.&iz.T<>fcl'? My 25, 2011. 

us H91 A~aw Itt• t~owrgrodtd ~~ 25,l0tt. 

Tht Boniino O!rtqulofi9n thot Maner¢ fondA<1119Tiv Hooorntdl /uly 22, 2011. 

Rtq>Jkinq Cengnsu< In Cenoms July 21, 2011. 

r .. G<>lhnc(s Alrtfl!!)tt Rtofirr Jo1r 20. 201 L 

v"'"rroRt9doort<FiooriOC!Cti!:is Perri My t9, 2011. 

25 
98 


Oid792'ftT2foii'CD.Mt¥FinOIJCi>ICIM? lilly II, lOlL 

Obomg Or9tl! El•rel>tth Werrtn !0< For-0/JioAG July II, 2011. 

ThtCAP·Afl&nnlt Met Food Fight July 15,2011. 

Did Oodd·Frgnt£1>4 Tco-BitJ.TI>fol? July 13, 2011. 

l'u!Ftd<tolf!qodh>!!iWqOatol/!s Migtr July 12. lOlL 

fxir ln(fflirw wilh S/!tl!o 8air Jut, II, 2011. 

How Cgnctnttglfd Wgs/nvestmtnt 8ankincl July 7, 2011. 

~iKefthr Tren~fccStett June 30, 2011. 

l/l!l!onyfM!r!dl JiothdoyNct.,.IM!nimwn W99f Junt27,201L 

ll'dpgd ro Grmd:JM Tl'<mh l!!?!tl June 23, 2011. 

Art Wtlwld!nq E1!9!!!1h Hwino' June 22, 2011. 

/!itqrd9 Pqq/nc A !on 8findtr June 21. 2011. 

ftrhcpsAoothtr~WJI/l !ht WMt!IMtl!n'tl'll!!!loq E/i/qbt!h Worren_ Junel4, 2011. 

Do FgrudMM909f Wnltdqw!!! Cttptr Wtollhl Junt 13, 2011. 

On G9'1f1!101W Spmfnc end Job (!tot!OI! June 9, lOll 

Mlot DoPmrOramcndend Ptluf Ptltt flmin Cqmmqnl June 7, 2011. 

~ .1Jnc6,2011. 

Hg;ls !I'Ot Hgusi!?q Stimulu! WO!ting 0t! IO! Y911l /lint), 2011. 

~ MlrlL201l. 

Bt~ BtiMnlt: Ct!!!tpl Pronatr May 24,2011. 

luroDtHD1 OPncEnqyqhHetm to tht/MF May 19,2011. 

I! Hgus/nq Hqldinq 89{! /nf!qrit>nl May 13, 2011. 

AttHiolttt!fot¥PI><t! Btlttc (Of thtlltolf!t91tlndit!1JY? MayS, 2011. 

Som# J!tMh!! oo Ftdttul Rtntclllou!itoAI!il!OI!ft May 4, 2011. 

26 
99 


Cct!WtRt/tMI/IIIotiM&p!<totio.1S> Mo,3,201L 

l'lldtt!Bft!!Onkt VotieyHour Aptill6, 2011. 

Po Wt Nwl C/Jiw !II Fund Our Morrqoqt Mqrketl Aptil8, 2llll. 

HI!!!ICQ!II!lWMoondMO/loaqtO./x Apri.,lOII. 

ftdtro!Rt!mrtoHgldl'rruMmt~«~ Mordl2•, 201L 

Fqnnft Fmld"'f" ID!t!ill~.fPMy? Mordll1,2011. 

SECfmpl9ym Hord ot Work during Flw@l Crisis Ma~th 16, 2011. 

l!!tM9rrqogc l!!dustrx§ovtrnmtnr RMfvlnq Oog! Match 15, 2011.. 

,t!tMgi!Doqn O>tvo.rill rht U.S..? MatthIS, 2011. 

!llfC9!!olQ&rnrfortdo!.rcs Matth 10,2011. 

pdlq!i9n Qrcqd Oi!9!dtr M>tch 2, 2011. 

II B!JY]nq g Houst with Cosh 6od? Februal'f ll, 2llll. 

Hpmtpwl!t!lh•p Bt(ore rht Ntw !>to! FtbrulfV 16. 2011. 

Adoo.!Mrmw Piwo B«h Sidts.., Foll!!it .v.oc Ftbrui<V 16, 2011. 

Adnt"'?ttgtJol! l'lmts 011 Rtfotm o(FgM.itf!'dFaddf FtbrulfV I L 201 L 

Fonnft& Ching: lB~ds 1 StqM Janual'{ 20, 2llll. 

Prtpqytntt!l Ptno!tifs Http Rislv 8o119WtfS Janual'{ 18,2011. 

Rort o!!d Hl/!!lt!)..,.,.hip: H~tM!col Tttt!d! la®ll'f ll, 2llll. 

l'l!ljg!~Mmto"n'or.d ,__Ill: f,.,P!m!J 1.....,.11, 2011 

Bill Oqlty qttd 109 Big Tofoil' JaiiUal'{ !1, 20!1. 

Obms!on with St!!Qtt 'Holds'~ M~ uidt? Janull'{ 6,2011. 

Po tn119tioa l.!llf<t•tions DtrJt cwvmP!Ionl Janllll'f s. 2llll. 

Bllntllrttge~!iooo!!dl!!!l)mtlnrqt»Tirt bt!UII'{•.2011. 

CIOgi!FC!Mt Ftrdd,.otod Mor!AAot Fi>oott0!?1!9M Ocwnb« 23, 2010. 

27 
100 


EccmmkS!ock.,.,.ln/!atioo D«emb<f 17,2010. 

BgntsAft !t!!diM bl!t to Mam? Dewnb<f 16,2010. 

I! the ftd!rcl 11tstrvt Heading Towprds lllS9Iytncyl De< ember 15, 2010. 

{t/!onfpu!Goo!lforMDilttaryPclicy? lle<ember 12,2010. 

IS T/ltrc qn lllflgti?tt!JIIcme!oy;nffl T!PdMffl De<ember 9, 2010 . 

.!cM!w!t! C9m2!a!! WJs H9!1't1!!it!z FHA. 9l f!!M~ R!!t Dectmb<f 6, 2010. 

lpt'!l!tf!OProl«< !l!tftd? De<emb<f 3, 2010. 

ftdC.!(r .sm. r.,. Mgsrro fiov.embet 22. 2010. 

Q!qmon4 Nol QuoWitd lor ftd 89crd NOV<IIlber 15, 2010. 

B<rnank(l TwiJ[ on Prirt SWbi/iOC Ncmmb<f 4, 2010. 

Ftd'1 QE/1 Offtq M!?ft Risk llocn geward NOV<fllbtr 3, 2010. 

What H91!!t Right to 0poost Mon>torium O<tober 14, 2010. 

ARM1f1At1PTafCS!~ Sep!emb<f30,2010. 

tNq{!OM!( t/lp V.t.g? Sep!-21, 2010. 

Rtsn!ioi!O;trl Septemb<f 21, 2010. 

l'llr Frcydfrom Basel September 15, 2010. 

Gpo~ II« cn Tcx lnctntm September 10, 2010. 

A fgnoir Moe lor lnrrostrvti!Jrt? Seprembe< 9,2010. 

"Wt'rt fq:t!?g 8ridqtS • Sep:ember 8, 2010. 

T!l9[s lft'!YWn Ccw>fvsiM A~CUS~30. 2010. 

Mot! .... fiog!?qo"'""" r~.t World Aucust 20, 2010. 

Rr/!utii>ns 0!! o MO!!O!JOe Summit Augusr18, 2010. 

Shoyld Gq:Jt Rcovlgtt Ernvri;r PDV1 August 16, 2010. 

SfMit 8111 Sows St<ds of He>tt Finondol Cri!O July 14, 2010. 

28 
101 


C9"9ftl' 19 Expqod Otpos~ lnsurqnct JuneiS, lOIO. 

ConaftU Begins Conftrtnu onFjpqi!Ciol RCDytptiqn June 10, 2010. 

l'!lrQbomolol!o!Morl:rr June7, 2010. 

K<l/2!!!!!9 .. 1 Aprolodlto BcrJ: fo~e -4, 2010. 

Kpgmgn'< fonP< Mot Fonrosy!ond Juno 4, 2010. 

f9nn!l Mqr qndGrmt'SPt9blt!!!J £nobltd bv 8cul Juot 3, 2010. 

Mlk Wonu f¢Au4•! May 28, 2010. 

St""'' Rritq! Cooping FottM/&rddit 1.91!(1 M.., U, 2010. 

St!!9ft19"""'Al7o!Om(l? Ma-(11, 2010. 

llqr Tqqlo(t !9 'Audit tht Fti' M.., 11,2010. 

Unclr Som: P9vd9y Lrndtr May 10, 2010. 

Ftdf!91 Rmrvr 1 Tron<eorrncv 0 May 7, 2010 • 

.!h!!yldWcBrlglUpr/JtBcr!b) MayS, 2010. 

fo¥9 lo!!!s·fon!tvprcr oc RtuiYtts/lip? May 3, 2010. 

Mi<ll!0!!99fdSI!!ltS 8/omr Me<stl19tr AjWi 27,2010. 

SECIM9mDt(tnU Apnl 2i, 2010. 

!thll!On'! f9ilurt T9uq'>t U! Nothillq Ap<i 19, 2010. 

Ngwb r/lt r .... to Ecdt/:f11911900t INtmJ OtdyWc!t Ap<i 15, 2010. 

Qbru!:gPrpposa fyrthrt Ot/pyCII ~Mit& Fttdd!t AjWi 14, l010. 

Og Eqm>Prkt Cr9Nd Out locol Ptivort lnmtmrnrl Apti 13, 2010. 

I! tht ObD'"9 M91!99•• Frxtdosutt Pion ttqq// Aprils, 2010. 

"'rw Obomo 'W!qoot Pion: A BcddDc>t Bcnk 89lo!n Macth 26, 2010. 

Mqqdz'!Qmmt9Pol'rico1Ptessm .. M...q,olfood! M..:h 11, 2010. 

29 
102 


GqYtmmrnr Proqrom ComM~ with Fitn·Timt Homt Bvvrrs Ftbruory 23, 2010. 

09ub!ina09wnoi!FoiltdPo/i<its february 19,2010. 

Pyttinq »• 0!! Holt! february 18.2010. 

FtdGo'TmorS!or!m ro MokrS<nst Ftbrull"t3. 2010. 

OIJc"'oSmc.?f<airm !@r.qf!!Jld!!f.'!Aill!t ftlwwry 3,2010. 

Vg!<!tr Rule Mi!!!HI!t Mprk february 2, 2010. 

Ql)omg Bqn! Tqx /1 Mi!auidtd Jarwary 13, 2010. 

W!ltr(s'MBgilw!Vs!k> Jimoryl1,2010. 

Didrl!t!f!ll!lyi>oN!ISMottoOjfftm~<t1 ~ty• 2010. 

elllc Srill Oonn'r Gttft Jimary 4,2010. 

A !ymp o!Cwl from Trtosurv De< ember 29. 2009. 

!t'trl!tOIIwoErono!nr!/()w December1J..2009. 

Oon CM Vllfltm"< Still Scfm? Dtumber 9, 2009. 

Ont !Mo (ffl!!!pgn Get Riqh: o:?ds.tnonlt Q;dn'r Or< ember 7, 2009. 

Vokl;tron Finoncio/ Rt(o!m and fmnomi<S!im!M Dtctmbt< 1,2009. 

8fmtmb<rinq !/ttRt1191ler W1lo 5<Jtd tht Fd November 30,2009. 

Somt Fqru on fywrivt Com!!tiiSD!;.. HoYtmbtt 24, 2009. 

~M!!I:s Nol'enlbet 20, 2009. 

f!M!!iw Comp !tl!ric!icM CorJJd fnd Up CM!ing f!r Tqrww Octobet 23. 2009. 

lltqylor!on ond Cwortilion omonq Mc!lqqQt 8tcffl! October 1S,2009. 

Ftd«q/ Rmrvr qs Cosh Co>~ October 13, 2009. 

1\91o(s ww vr~h BtinqARtn!t<? October 13,2009. 

l!¥otiq!!! off9rk CoeMRtou!!rion Ocrobet 6, 2009. 

30 
103 


00 Cq&Ag !JA/hq!>q lilt lob Matttt Oo:!Obtr 2, 2009. 

FixinoFenaiff!C!WI!iol October 2. 2009. 

Gtithnrr IQ!!OW89"0lf! History September 24, 2009. 

fO!CPf9o {9 891rowfrom Bonl:s.lu!t Bor!:doo! WwofFyrrinq tht Tor!l!/l'trOII rhl Hoo! Stplembot 22,2009. 

CA!1 P!ppoiDJ 19Add 'l'ld>lic ~lt .. bots' toCM!optr Board$ II Flawrd Seplembot 17, 2009. 

Rtpyb/icol!lba!D!G"'Ttyc{FJawedKcmiqo lltirrli"9 Stplembot 17,2009. 

Why Wq/1 Strttr LW Oboma Stptember 16, 2009. 

Rtfo!ln Nud(d Wr Oboma Pion Would Rpuh In Mort fi!!911Cia/ Crist! "91 !tss Stpttmbot 14, 2009. 

O!lr Rroulqror ra Rult l'l>tmAJ September 4, 2009. 

AF!.QQ Wq.,q roTor Sled Tredt:s..!oStgpSRuv!etJM Seplembol 3, 2009. 

Bot.buq Mot< Mo"'Y ~ Yoolgnorr tos1n Stl)!ember I, 2009. 

HUQffciD! caSt! ChfGrwod far limRO!IOdo/Mollqa!ltfroud August 27, 2009. 

UC{9 Ptot«t !/!from Mu/ti{o/a:rd Bttr 'Pos A'CUII26, 2009. 

fmbtccino Bs!!lip!omiq. 01Jamo RHp!J A•tc Au&Uli2S, 2009. 

DidWqOC@pt!ll9!;,nep!l!f rht F'"'9"@!CIM1 Au&ust18, 2009. 

Flogd/osurqocc· MtodltorEodn. 8ut 09n'!lwr E!!tnd!r Au&ust 7,2009. 

lim my Throws o Ttm!ltf· Toouum AUlust s. 2009. 

A Dtrm~c'"" Thor CM! RrdxrFor«mm Aucvst 4, 2009. 

IN Brntl!!t ofGM! Na~ ..... ood llrrt.vJm Ju1r 30, 2009. 

MOI!qegr M!ldf (oMft!!JMn P~fttJ C4tr<iM Oyt!(99P<f91iM .IU" 19,2009. 

Outolrhr TARp. BU! Sri/loa !l!t 0!1!t My 29,2009. 

WOJ!Id Summrn k Any IVp& than 8trnontr1 My 29, 2009. 

f9! F'!l!9!!(!9/ Slolli!tte fix I~ Tor Coc!t July 28, 2009. 

1\?y M0!!90Ct llod(.('C!ions J.rrr(r W9ttilo July 28, 2009. 

31 
104 


~mM!ffln>llll1ttwM<~Usrht!I!S!gotGooc! Jult27,2009. 

Oot!tht!tltKnow WtHadoll<l"'fngBubbltl July 27,2009. 

Oon't BgQOyt 8trnqnkt July 21, 2009. 

fndthrCmfaRotit>aMonoDOI! July 15,2009. 

B<rnqnkr'sl'l!t!i!! t~ci!.....,S.bblt Mr 13,2009. 

S(Cfvm S«ci9/ln!tm1S in Nr.o Co!mi< Eltq!oM R!lft July 2,2009. 

Wo1hinqJ9!l Plilh on fxtcutilt Pov ll<ls UMnttndcdCM!fOutiiCts July 2. 2009. 

Sup11Q!! lor fcdtrDI Res me A!o!lit /l!((to!inq June 30, 2009. 

Gilt Cord!; W!lotC91!ort!s GM! t/!tS!otf1 TqtrA""Y June 30, 2009. 

("g!!!umtff!ll9'W!PtpcM! Cpmmiss,ig!? 0t!JP!U {rpm !ro!Rtfvtm lime 30, 2009. 

Stt"na!nq 91t~r End lor B(rnonkc June 29, 2009. 

Mmlni!!rpl/qn Reform Pion Mis•a the Mort June 17, 2009. 

Obqmg finq!!d9l Rclorm Pion Mims !l!t Molt June 16, 2009. 

Fed to&!!; Wtl\lj!IIO!I.tavrYO!!i!!!htllal!' lime 12.2009. 

Bod!vtPI91o(jood5tortto-...,rdEnd:ll9S¢!9vq June IL2009. 

Stnoroo Wqnt toDtloy Hou!it!q Rt<OVt!ll June II, 2009. 

lndiqf!9· Dcfcndg of "tht RuJc ot Low" June 8. 2009. 

'ThcvO..)II!!!'(thcM9<'tyroPqy(/S BgtK M'Y 22,2009. 

Ol!f.....,rg0tf«YwCo!.rl!Jt Tqo Ye(orocmt.tecrd M'Y 14.2009. 

Obc!!?9'11rp\rn Twtcr M,., 13, 2009. 

1/ You Ilk• Fonnlt Mot. You'n 1~ Auto Mac M'Y ll, 2009. 

/loW II Not the r!!!lf to Reduct Crr<fit CordAI'!IIIobllo!y M'Y 11, 2009. 

!roiC?stdO!ooooo'! fortclo!.;tt Pbo lsS/!9ww?q ypM&Mi(! Bob!US!wt M'Y8, 2009. 

SlmtS!IntTtst~Mo!Soctlldondfury., ~U.,7,2009. 

32 
105 


Monqoqe 'Sole Hatbot Anvrhinq But Sole Mav6, 2009. 

8Mk 'S!tt:Sl Tem' Nttd Ttatllooltn(V May 4, 2009. 

Wi)h 'CtamdOWf!' Rejection. ~ S{I!Ott Ready«> ResofC! Matkt!llfoct Con!loi!S Again? May 4, 2009. 

In (!!Syr!Jlq Ctedil!Aid Holde!S" RiRhts.' Conqms MoyAavolli Toke A'/!9Y lllti! C1edi! Aptii3G, 2009. 

Public.1tions other than ~to 

Goodman, !<Iurie s., Michael Blight. Matk calabria, Marl< Flemi11g. and Mi~e Fratantoni. "The State of Housing Finance Reform.• 

JoutMiof Structured Finance 22, no. 4(2017): 7. 

calabria, Mark A., Norben J. Michel, and Hester Peitce. "Reforming the Financial Regulators." Walhington, 0C: H'efitage Fouii<Sation. 

wwwJleritage.O!l!/marl:ets·a!ld·finance/reoortlreforming.tflefinMCiakegulators (2017), 

calabria, Matk. "Resolving Systemic.llly lmpoltant Entities: Lessons from the Government Sponsored Enterprises." In The New 

lnteri!Otionol FiMncioJ System: Analyzing the Cumulotille lmpoct of Regulatory Reform, pp. S29·S46. 2016. 

calabria, Matk. "Cooling FuD Circle on Mo<tgage Finance." Housing FiMnct Reform lncuootor{2016): 49, Urban Institute 

cal~bria, MatkA. •u Mo<tgage Reform u!lde< the Ood~rankA«." Perspectives on Oodd·Ftonkond Fino(l(t 12014): 183. 

calabria, Mark A, "Rethinking nue Ill: The Fedel\11 Oeposit lnsura(l(e Cl>rporation and Other Subtitles." The Cost Against OoddF!onJ::87. 

calabria, Mark A. "XII: lmp10Ying Access to Mainstream Financiallnst~utions." l1lt Cost AgQilllt Oodd-Ftonk: 183. 

calabria, Mark. "On the Political Possibil~ of $e9al\lting San king and the State. • Jcuri!Oio/ Privott Enttqxise 29. no. 3 {2014): 11. 

calabria, Mark. David Reiss, bwrence White, Marl< Wilr~. and Mi<haellevine. "The FutUte of Fannie and Freddie." NYU!! & Bus.10 

(20U):339. 

calabria, Mall<. "A W of A<cOIIntability: The Real Obscenity at the SEC." In Ripon F«um, vol. 46, no. I, p. 24, The Ripon SQciery, 

2012, 

Eric :S. Belsky, Matk A. Calabria, Alfred R. Nucci (2001) 'Survivorlhip and Growth in the Residential Remodeling Industry: EvideiiCe 

f1om the Census of Consttuclioo" MaNard Joint Center for Housing Studies Working Paptl W01·5 WWiv,khs.haMid.edu{leswch· 

areaslworkins·papers/survivo~hip and growth ttsidtntia~lemo<Je6n<<ndu!lty-evidence 

Calabria, Marl<. "The Census of CoAStruaion Industries Database." Journolof Real Estate titeratult 8, no, 2 (2000): 161-173. 

Calabria, Mark A. "A Pic!Uieof the Construction lndustty." Housing Eco1191l!i<s(Septl997): 5-7, 

Calabria, Mark A. "MellO aoo Nonmetro Emplo'fment Tlends: Housing Ec01t0mics (July 1997): 14-17. 

Calabria, MarkA. "Money Income of Migranis.• Housing EcollOil!ks (Jan 1997): S·S. 

calabria, Mark A. "Elderly Migration, A Study of the Major C~ies. • Housing fcollOil!ics {Nov 1996): IHS. 

<alab<ia, Mark A. "Undemanding Recent Trends in Home Equity.' Housing Economics (Sept 1996): 5·7. 

Cl>nk~n. Neil, Mark calabria, and TerrySarr. "Graphkally speaking: Farm p<ograms and ruraleconomits." Chokts 11, no. 2 (1996): 

22-23. 

calabria, Mark Anthony. "On the origins of fede1al food and dtug regulation." PhOdjss., George Mason University, 1995. 

33 
106 

RESPONSES TO WRITTEN QUESTIONS OF SENATOR BROWN 

FROM BIMAL PATEL 

Q.1. Capital Magnet Fund—The Community Development Financial Institutions (CDFI) Fund is tasked with disbursing Capital 

Magnet Fund (CMF) contributions from Fannie Mae and Freddie 

Mac (the Enterprises). If confirmed, the CDFI Fund and its CMF 

disbursements will be under your administrative purview. 

In 2018, the Administration proposed to rescind the Enterprises’ 

Capital Magnet Fund contributions, rather than disburse them. 

The Administration made this proposal despite the fact that families across the country are suffering from an affordable rental housing shortage. I am pleased that Congress rejected this proposal. 

I am also pleased that two Ohio organizations, National Church 

Residences and the Ohio Capital Finance Corporation, were recently awarded a combined $13.5 million of CMF funding to help 

create and preserve affordable housing in Ohio and in other States. 

As required, these organizations will leverage at least $10 for every 

$1 awarded by CMF. 

Given that 1 in 4 renter households are spending more than half 

of their incomes on housing costs, do you agree with the Administration’s proposal to block the distribution of Capital Magnet 

Funds? 

A.1. The CDFI Fund is statutorily required to administer the Capital Magnet Fund Program allocation when received. If confirmed, 

I will continue to administer the program consistent with these requirements. 

Q.2. How do you intend to advise the Administration on any future 

budget proposals to rescind CMF funding? 

A.2. If confirmed, I will provide the Administration with information on programmatic and awardee activity as requested. 

Q.3. In any year in which the Enterprises transfer funds to CMF, 

will you commit: 

To promptly issue a CMF Notice of Funding Availability (NOFA) 

without regard to any Administration proposal to rescind such 

funding? 

A.3. Upon receipt of funding, the CDFI Fund administers the program, including release of the NOFA, in accordance with statutory 

and regulatory program guidelines. If confirmed, I will continue to 

administer the program consistent with these requirements. 

Q.4. To promptly award funds in response to that NOFA without 

regard to any Administration proposal to rescind such funding? 

A.4. As required by law, the CDFI Fund administers the Capital 

Magnet Fund program rounds once funding is received. If confirmed, I will continue to administer the program consistent with 

these requirements. 

Q.5. Community Development Financial Institutions (CDFI) 

Fund—The CDFI Fund promotes community and economic development by providing financial and technical assistance to CDFIs so 

that they can expand access to financial services and affordable 

credit to underserved people and communities, including those in 

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ian Native areas. For FY2019, the Administration proposed to 

eliminate new funding for CDFI discretionary programs including 

the Bank Enterprise Award Program, CDFI program, the Native 

American CDFI Assistance Program, and the Healthy Food Financing Initiative. I am pleased that Congress rejected this proposal. 

Do you agree with the Administration’s proposal to eliminate 

new funding for CDFI discretionary programs? 

A.5. If confirmed, I will continue to administer the program at 

funding levels appropriated by the Congress. 

Q.6. How do you intend to advise the Administration on any future 

budget proposals to eliminate CDFI discretionary funding? 

A.6. If confirmed, I will provide the Administration with information on programmatic and awardee activity as requested. 

Q.7. Capital/TBTF/FSOC/Shadow Banking—Your former boss at 

the FDIC, Jeremiah Norton, worked with former FDIC Chair 

Gruenberg and Vice Chair Hoenig to strengthen leverage capital 

requirements. But you know that the financial crisis wasn’t caused 

by only the risky behavior at the banks, there were significant 

risks in the nonbanks and shadow banks as well. That said, at 

FSOC, you supported the Secretary’s efforts to de-designate AIG 

and Prudential. Because of these efforts, there is now not a single 

nonbank ‘‘Systemically Important Financial Institution’’ or ‘‘SIFI’’ 

that has Federal oversight, and we see significant risks growing in 

the shadow banks. 

If confirmed as Assistant Secretary for Financial Institutions, 

you will have financial regulation in your portfolio. In light of experience at the FDIC, do you agree with efforts at the Federal Reserve to weaken leverage capital requirements? 

A.7. I support simple, transparent, and strong capital requirements 

for banks. It is important that the banking system be appropriately 

capitalized to protect taxpayers and to facilitate economic growth. 

The regulatory capital framework in the U.S. possesses several 

components, which should each be meaningful: risk-based, leverage, and supervisory stress-test based capital requirements. 

Achieving the right calibrations for each regime is the responsibility of our independent banking regulators, who are currently undertaking open rulemakings. As such, it would be inappropriate for 

me to comment on an open rulemaking. 

Q.8. In your response to Senator Kennedy’s question, you said that 

you believe ‘‘Too-Big-To-Fail’’ banks still exist. Notwithstanding increases in capital since the crisis, how would you propose to address this issue, including risks from interconnectivity, if you are 

confirmed? 

A.8. Current law requires that bankruptcy be the presumptive path 

for resolving large and complex financial institutions. In order to 

protect taxpayers, we must continue to enhance the resolvability of 

banks. To that end, in its February 2018 report on Orderly Liquidation Authority and Bankruptcy Reform, Treasury recommended a series of proposed reforms aimed at improving the resolvability of financial institutions under bankruptcy. The Treasury 

report states that improving the Bankruptcy Code, ‘‘would build on 

the resolution planning process under Title I of the Dodd–Frank 

108 

Act and other postcrisis developments that have made U.S. financial companies more readily resolvable in bankruptcy—including 

major increases in usable capital and liquidity buffers, elimination 

of significant short-term debt at the bank holding company level, 

and efforts to simplify and rationalize corporate entity structure.’’ 

Treasury also recommended certain measures be taken to enhance 

taxpayer protections under OLA. 

With respect to risks related to interconnectivity, on August 6, 

2018, the Board of Governors of the Federal Reserve System published a final rule requiring single counterparty credit limits under 

Section 165(e) of the Dodd–Frank Act, and the Federal Reserve 

should continue to monitor the implementation of this rule. 

Q.9. Section 165(d) of the Dodd–Frank Act, commonly referred to 

as the ‘‘living wills’’ requirement, was designed to simplify large, 

complex financial institutions so they would no longer be a threat 

to financial stability. Large, complex financial institutions are required to prove they can undergo an orderly bankruptcy under current law. Do you think all financial institutions are currently meeting these requirements? Do you think these large, complex financial institutions should be simplified so they can undergo an orderly bankruptcy, as current law requires? Would changes to the 

bankruptcy code made specifically for large, complex firms weaken 

this requirement and preserve the existence of the kinds of financial institutions whose mismanagement precipitated a worldwide financial crisis? 

A.9. I have not had the opportunity to review resolution plans in 

my current capacity and thus do not have a view on whether banking organizations are satisfying the resolvability requirements 

under Section 165(d). I strongly support ensuring that large, complex financial institutions satisfy applicable legal requirements 

under Section 165(d). In order to protect taxpayers, we must continue to enhance the resolvability of banks. 

Q.10. What was your role in FSOC’s de-designation of AIG and 

Prudential? 

A.10. The reevaluation of nonbank financial companies is required 

not less than annually pursuant to Section 113 of the Dodd–Frank 

Act. With respect to the Council’s determination to rescind the designation of AIG, I coordinated the staff-level analysis that Council 

members considered in their determination. With respect the reevaluation of Prudential, I am recused and did not materially participate in the matter. The Council’s reevaluation process of 

nonbank financial companies under Section 113 of the Dodd–Frank 

Act is a months-long process that is extensive and thorough. The 

Council’s analysis has previously considered financial stability 

risks through several transmission channels, including exposures, 

asset liquidation, and critical function or services. The Council has 

also considered complexity and resolvability and existing regulatory 

scrutiny in its analysis. 

Q.11. Do you believe there are no nonbank ‘‘SIFIs’’ in the U.S.? 

A.11. There are currently no nonbank financial companies that the 

Council has determined under Dodd–Frank Section 113 should be 

subject to Federal Reserve supervision and enhanced prudential 

109 

standards. The Council noted in its 2018 Annual Report, that 

‘‘[s]ince [December 2017], the Council has not advanced any 

nonbank financial companies to Stage 3 or made a proposed or 

final determination [of systemic importance] regarding any 

nonbank financial company.’’ 

Q.12. If confirmed as Assistant Secretary for Financial Institutions, 

what will you propose to address growing risks in the shadow 

banking sector? 

A.12. It is important that banking regulators possess the data and 

information necessary to address risks that might arise from 

nonbank counterparty relationships. If confirmed, I will work with 

banking regulators to monitor and address these risks as appropriate. 

Q.13. Insurance—One of your roles as Assistant Secretary for Financial Institutions will be to oversee the Federal Insurance Office 

(FIO), which has the authority to monitor the insurance industry, 

including identifying issues or gaps in the regulation of insurers 

that could contribute to a systemic crisis in the insurance industry 

of the United States financial system. 

What specific steps will you take to identify issues or gaps in the 

regulation of insurers that could contribute to a systemic crisis in 

the insurance industry of the United States financial system? 

A.13. One of the Federal Insurance Office’s (FIO) statutory authorities is to monitor the insurance industry for issues that could contribute to a systemic crisis in the U.S. insurance industry. Among 

other things, FIO also serves as a source of insurance policy expertise in the Federal Government and coordinates Federal efforts and 

develops policy on prudential aspects of international insurance. 

FIO monitors the insurance industry through its active participation in both its domestic work and its international engagement at 

the International Association of Insurance Supervisors. FIO also 

issues a host of reports assessing many of these risks, including: 

annual reports to the Congress, reports on the Terrorism Risk Insurance Program, a report on efforts to increase transparency at 

international standard-setting bodies, and others, which highlights 

its important work in these areas. If confirmed, I will work closely 

with FIO to continue these efforts, and to continue reporting on 

these important issues to the Congress. 

Q.14. If confirmed, you would oversee the FIO, which serves as a 

nonvoting FSOC member and has authority to recommend to FSOC 

that it designate an insurer as an entity subject to regulation by 

the Board of Governors. Under what circumstances would you recommend that the FSOC designate or redesignate an insurer as a 

SIFI? 

A.14. Under Section 113 of the Dodd–Frank Act, if the Council determines that the material financial distress at a U.S. nonbank financial company, or the nature, scope, size, scale, concentration, 

interconnectedness, or mix of the activities of a U.S. nonbank financial company, could pose a threat to the financial stability of 

the United States, they may subject that firm to Federal Reserve 

supervision and enhanced prudential standards. Treasury recommended in its November 17, 2017, report on FSOC designations 

110 

that the Council should prioritize identifying particular financial 

activities or products that could pose risks to U.S. financial stability and also recommended enhancements to the designation process under Section 113 to include cost-benefit analysis, consideration 

of likelihood of material financial distress and pre- and post-designation off ramps. Council members are considering the recommendations made in the report, which, if adopted, would have 

implications for the designation process and analysis. If confirmed, 

I will work closely with the Federal Insurance Office (FIO) to monitor the risks facing the U.S. insurance industry. 

Q.15. In your view, what are the current risks facing large insurance companies and how are they different from those that existed 

during the financial crisis? How do you propose to address these 

risks if confirmed as Assistant Secretary for Financial institutions? 

A.15. Since the financial crisis, the set of possible risks facing the 

U.S. financial system, including U.S. insurers, continues to evolve. 

As noted in FSOC’s 2018 annual report, as the financial system, including insurers, increase its reliance on information technology, 

there is an increasing risk that a cybersecurity event will have severe negative consequences, potentially entailing systemic implications for the U.S. insurance sector. If confirmed, I will have FIO 

and the Office of Critical Infrastructure Protection and Compliance 

Policy continue to work together on these important cybersecurity 

issues. Additionally, it is important that FIO continue to monitor 

how changes in technology create both potential opportunities and 

risks for the U.S. insurance sector, and if confirmed, I will work to 

ensure it does so. 

Q.16. Treasury Reports—You played a role in several of the reports 

released by the Treasury Department in 2018 pursuant to President Trump’s Executive Order 13772 on Financial Regulation. 

Which reports did you work on and what was your role in the 

writing of each of those reports? 

A.16. I oversaw the staff drafting of the report on Financial Stability Oversight Council Designations. I also participated, to various degrees, in the development of the Treasury’s reports on 

Banks and Credit Unions, Asset Management and Insurance, and 

Nonbank Financials, FinTech, and Innovation and the Orderly Liquidation Authority and Bankruptcy Reform. 

Q.17. Many of the recommendations in the Treasury’s reports look 

like the wish lists of the financial industry. Treasury disclosed the 

meetings it took in preparation for the reports and it met overwhelmingly with industry compared to civil rights and consumer 

advocacy groups. Were you a participant in these meetings? Why 

did you meet with more industry representatives than groups that 

advocate for consumers, workers, and families? 

A.17. I believe that public policy is substantially improved when 

considering a diverse set of viewpoints, and if confirmed, I will continue to seek a diverse set of perspectives in my work. During the 

development of the reports, Treasury consulted extensively with a 

wide range of stakeholders, including trade associations, financial 

services firms, consumer advocacy groups and community interest 

organizations, academics, and other experts. Treasury also reVerDate Nov 24 2008 13:07 Apr 08, 2019 Jkt 046629 PO 00000 Frm 00114 Fmt 6602 Sfmt 6602 L:\HEARINGS 2019\02-14 NOMINATIONS\HEARING\RESEND FOLDER\35617 NEW.TXT
111 

viewed a wide range of data, research, and published material from 

both public and private sector sources. 

Q.18. If confirmed, what will be your role in carrying out all/any 

of the unimplemented recommendations in these reports? What 

recommendations will you prioritize? 

A.18. The vast majority of recommendations made in the Treasury 

reports require action by the financial regulatory agencies or the 

Congress. If confirmed I look forward to engaging with both the 

Congress and the financial regulatory agencies should they choose 

to implement any of the policy recommendations. 

Q.19. Treasury’s Nonbanks, FinTech, and Innovation report advocated that the CFPB rescind its payday lending rule. Do you support CFPB Director Kraninger’s efforts to repeal the ability to 

repay and repeat loan limit provisions of the payday lending rule? 

A.19. I recognize the importance of small-dollar credit to American 

families, particularly middle-class and lower-income families. I also 

support appropriate consumer protections that allow consumers to 

make informed decisions and preserve availability of consumer financial products. The Bureau is currently undertaking an open 

rulemaking on this issue. As such, it would be inappropriate for me 

to comment on an open rulemaking. 

Q.20. What recommendations do you believe would most benefit 

American families? 

A.20. The Treasury reports made a number of recommendations, 

many of which would benefit U.S. consumers, businesses, and the 

overall economy. Two examples include encouraging simplification 

of the de novo bank application process to allow banks to serve a 

greater number of consumers and communities, and minimizing 

burden on rural and agricultural lenders, as appropriate, to help 

families in rural and agricultural communities. 

Q.21. FinTech—You have written and testified on expanding financial technology and worked on the Treasury report on Nonbanks, 

FinTech, and Innovation. I am skeptical of making it easier for 

nonbank financial institutions to avoid State and Federal consumer 

protection laws. Many innovative financial products are already offered under the existing regulatory framework without violating 

the law. 

Q.21. What is your position on nonbanks accessing consumer data 

and providing financial products without the same safety and 

soundness regulations and consumer protections that community 

banks are required to comply with? 

A.22. The current practice of data sharing between banks and 

nonbank firms can deliver real benefits to consumers looking to 

lower the cost of borrowing, better manage their expenses, and 

save for the future. At the same time, I think that the current 

methods for sharing data need to be improved to allow for more responsible and secure sharing of consumer financial data, and to address key issues around security and liability. If confirmed, I would 

be happy to work with the Congress as it considers what potential 

revisions to the legislative and regulatory frameworks around consumer financial data or data aggregation might be needed. 

112 

Q.22. Prior to the 2008 financial crisis, the financial services and 

banking industry claimed that dangerous subprime mortgages were 

‘‘innovative’’ and would ‘‘increase access to credit’’ for millions of 

families that they ended up grievously harming. How are the ‘‘innovations’’ you hope to encourage by weakening laws and regulations 

different from the ‘‘innovations’’ promised by subprime mortgage 

lenders? 

A.23. Innovation must be undertaken in a responsible manner, one 

that protects consumer data privacy and enables consumers to 

make informed choices regarding the use of financial services. 

Fraudulent products designed to interfere with consumers’ ability 

to make such informed choices should be restricted in favor of products that offer clear disclosures. 

RESPONSES TO WRITTEN QUESTIONS OF SENATOR MORAN 

FROM BIMAL PATEL 

Q.1. In the Midwest, where there is substantial need for investment but generally fewer CDFIs to help raise, leverage, and deploy 

capital. Although making grants to start new CDFIs is part of the 

solution over the long-term, this process takes time to accelerate 

and do responsibly. Actively fostering partnerships is key to the 

success of the CDFI fund—between existing CDFIs and community 

banks to jointly lend to community projects; between CDFIs and 

local networks of nonprofits for grants and loans for small businesses in rural communities; and between larger national CDFIs 

and local CDFIs to jointly lend larger, long-term loans. It seems 

there is more Treasury and the CDFI Fund can do to further 

incentivize and promote this type of collaboration that is essential 

to the Midwest. 

In your role leading the Office of Financial Institutions and in 

turn, the Office of Financial Institutions Policy, how can Treasury 

and the CDFI Fund be more committed and creative to meeting 

this need for collaborative efforts? 

A.1. The CDFI Fund currently promotes partnerships with banks 

and other financing partners through a variety of measures. For 

example, through an innovation prize competition, the CDFI Fund 

supported the development of an online platform to match small 

businesses declined for loans by banks or online lenders with a 

CDFI that may be able to meet their needs. If confirmed, I look forward to working with you to promote investment in rural communities. 

Q.2. Can you share your thoughts about what more the CDFI Fund 

can do to promote such investment in rural communities? 

A.2. The CDFI Fund currently has a strong commitment to serving 

rural communities. If confirmed, I intend to keep that commitment, 

and look forward to working with you to promote investment in 

rural communities and increase access to capital in underserved 

rural areas. Although only 15 percent of the U.S. population is located in nonmetropolitan areas, about 21 percent of New Markets 

Tax Credit investments and 18 percent of CDFI awardee investments are located in such areas (using the OMB/U.S. Census Bureau definition for nonmetropolitan counties). Similarly, of the 38 

113 

Capital Magnet Fund awardees, 24 percent will invest at least half 

of their award dollars in rural areas. 

RESPONSES TO WRITTEN QUESTIONS OF 

SENATOR CORTEZ MASTO FROM BIMAL PATEL 

Q.1. Providing banking services for firms that provide cannabis remains a problem. Not just for the cannabis firms but for their vendors. 

What would you do meet the banking needs of cannabis firms? 

A.1. Treasury has stated that financial institutions are expected to 

follow the law and reasonably manage their anti– money-laundering risks. Treasury has noted the importance of working towards a solution on this issue and has noted associated risks in 

areas such as tax collection and illicit finance. I understand clarity 

surrounding this issue is important to constituents in Nevada, and, 

if confirmed, I will work with you to better understand your perspectives on this issue. 

Q.2. When I was Attorney General, there was not adequate research on risks in the financial market that would soon devastate 

Nevada. I am concerned that the enormous reduction of staffing at 

the Office of Financial Research will result in weaker analysis. 

How will you make sure that the OFR’s research is thorough and 

easily comprehensible and accessible to policymakers all across the 

country, academics, researchers and business leaders? 

A.2. Analytical rigor in policymaking is extremely important to me. 

If confirmed, I will continue to work with OFR to support high 

standards of quality in policymaking and research. The OFR’s annual reports, working papers, briefs, monitors, and other products 

are widely available on the OFR’s website for public use. 

Q.3. In your current position, you are part of Treasury’s efforts regarding cryptocurrencies. I am deeply concerned by 

cryptocurrencies’ potential to be used to commit crimes, such as 

human and drug trafficking. 

In your conversations with Treasury’s working group, have you 

discussed cryptocurrencies’ potential to be used to commit crimes? 

A.3. Treasury has discussed these concerns with the members of 

the FSOC Digital Assets and Distributed Ledger Technology (DLT) 

Working Group. Additionally, Treasury’s Office of Terrorism and 

Financial Intelligence has been working closely with financial regulators and partners in law enforcement to proactively address these 

concerns and prosecute crimes. 

Q.4. The Assistant Secretary of Treasury for Financial Institutions 

is also responsible for overseeing legislation that affects agencies 

which regulate or insure financial institutions, such as the Federal 

Home Loan Bank System. Recently, the Federal Home Loan Banks 

issued a proposal to modify their affordable housing goals. 

Do you support the affordable housing and community development mission of the Federal Home Loan Banks? 

A.4. I am in favor of a housing finance policy that promotes consumer access to mortgage credit, while protecting the interests of 

taxpayers. The FHLBanks are overseen by an independent reguVerDate Nov 24 2008 13:07 Apr 08, 2019 Jkt 046629 PO 00000 Frm 00117 Fmt 6602 Sfmt 6602 L:\HEARINGS 2019\02-14 NOMINATIONS\HEARING\RESEND FOLDER\35617 NEW.TXT
114 

lator, FHFA, and I would defer questions on FHLBank affordable 

housing and community development activities to FHFA. 

Q.5. Do you support the Affordable Housing goals as recently proposed? 

A.5. I am in favor of a housing finance policy that promotes consumer access to mortgage credit, while protecting the interests of 

taxpayers. The FHLBanks are overseen by an independent regulator, FHFA, and I would defer questions on FHLBank affordable 

housing and community development activities to FHFA. 

Q.6. How will you urge the Federal Home Loan Banks to expand 

on their community development mission? 

A.6. I am in favor of a housing finance policy that promotes consumer access to mortgage credit, while protecting the interests of 

taxpayers. The FHLBanks are overseen by an independent regulator, FHFA, and I would defer questions on FHLBank affordable 

housing and community development activities to FHFA. 

RESPONSES TO WRITTEN QUESTIONS OF SENATOR SINEMA 

FROM BIMAL PATEL 

Q.1. In Arizona, voters approved cannabis for medical use in 2010. 

Following the rescission of the Cole Memorandum in January 2018, 

financial institutions reacted with concern and uncertainty in how 

to provide banking services to legal cannabis and cannabis-related 

businesses. If confirmed, how will you work to ensure that State 

laws like Arizona’s are respected and that these legal Arizona businesses can access essential banking services? 

A.1. Treasury has stated that financial institutions are expected to 

follow the law and reasonably manage their anti– money-laundering risks. Treasury has noted the importance of working towards a solution on this issue and has noted associated risks in 

areas such as tax collection and illicit finance. I understand clarity 

surrounding this issue is important to constituents in Arizona, and, 

if confirmed, I will work with you to better understand your perspectives on this issue. 

RESPONSES TO WRITTEN QUESTIONS OF SENATOR BROWN 

FROM TODD M. HARPER 

Q.1. Credit Union Fees—Last fall, the New York Times reported on 

high fees and interest rates charged to members of the Marriott 

Employees’ Federal Credit Union—a credit union that was formed 

so that employees would have access to low-cost financial services. 

Marriott Employees’ Federal Credit Union has a low-income designation meaning 50 percent of its members have family incomes 

of less than 80 percent of the median income in the areas it serves. 

As the article indicated, many of these workers are struggling to 

make ends meet, and these fees make their economic situations 

worse. In the same article, it was reported that some of the executives and management of Marriott who also use the credit union 

are receiving million-dollar mortgages and car loans at below-market interest rates. 

115 

If confirmed, will you commit to review credit unions’ fees like 

overdraft and minimum balance charges as described in the article? Will you commit to crack down on fees if they are inconsistent 

with the credit union system’s mission of providing affordable financial services to working families? 

A.1. Yes. If confirmed, I will commit to reviewing such fees and 

taking appropriate action, consistent with Federal consumer protection laws and the NCUA’s regulations. I will also explore how 

the NCUA presently monitors the performance of credit unions receiving the low-income designation to determine whether new or 

modified procedures should be adopted to ensure that these credit 

unions fulfill their statutory mission of promoting thrift, especially 

for people of modest means. In my view, our Nation’s system of cooperative credit ought to serve everyone. 

Q.2. Financial Crisis—You advised former NCUA Chair Debbie 

Matz during and after the 2008 financial crisis. What lessons did 

you learn about credit union regulation from that time? What 

issues will you approach differently now because of that experience? 

A.2. Several lessons stand out. First, consistent with their risk profiles, federally insured credit unions need to build up and maintain 

enough reserves of high-quality capital during good times to survive economic downturns. Second, the agency must maintain appropriate levels of experienced staff and funding in good economic cycles to be prepared to conduct effective, timely, and thorough examinations during challenging economic periods. Third, supervisory 

activities should be focused on those institutions and activities that 

pose the greatest risk to the National Credit Union Share Insurance Fund. To address such risks, the NCUA Board in the years 

immediately following the financial crisis adopted important rules 

on stress testing, emergency liquidity, and risk-based capital, 

among others, to address the problems identified during the crisis. 

The financial crisis also shaped my thinking about regulatory 

readiness. It is imperative for financial regulators to always maintain an open mind about where risks might rise. While my safetyand-soundness focus would be on the issues of capital, liquidity, 

and cybersecurity, I recognize that in our Nation’s complex financial system new, more pressing threats may quickly develop. Regulators, therefore, need to have the agility and ability to quickly respond to such threats in order to protect the safety and soundness 

of the financial institutions they charter, supervise, or insure, and 

to safeguard taxpayers from losses to the share and deposit insurance funds. Finally, the NCUA must work vigilantly to mitigate 

threats within the credit union system. 

Q.3. Underbanked and Unbanked—In your testimony you indicated 

that one of your top priorities is to increase access for the 

unbanked and underbanked to credit union products and services. 

If confirmed, what will you propose to achieve this objective? 

A.3. Just as there are food deserts where residents lack access to 

grocery stores, there are financial deserts where residents lack access to affordable products offered by mainstream financial services 

providers. If confirmed, I would undertake several actions to expand access to mainstream financial services for the unbanked and 

116 

underbanked. For example, I would publicly support legislative efforts in Congress to allow Federal credit unions of all charter types 

to add underserved areas to their fields of membership. This 

change to the law would likely have the greatest impact on expanding access to affordable financial services for the unbanked and 

underbanked. 

Additionally, if confirmed, I would publicly support efforts to 

maintain or increase appropriations for the Community Development Revolving Loan Fund and the Community Development Financial Institutions Fund. Both programs support efforts to expand 

access to financial services in low-income communities. 

If confirmed, I would also work to ensure that the NCUA’s Office 

of Consumer Financial Protection has the resources it needs to conduct effective financial literacy outreach to the unbanked and 

underbanked. Similarly, I would work to ensure that the NCUA’s 

Office of Credit Union Resources and Expansion has the staffing 

and funding needed to conduct outreach to credit unions through 

webinars, in-person conferences, one-on-one assistance, and the distribution of best practices about providing financial services to the 

unbanked and underbanked. Additionally, I would ask the office to 

explore whether there are ways to streamline and simplify the application process for chartering new credit unions aimed at serving 

the unbanked and underbanked. 

Finally, and perhaps most importantly, I would set a tone at the 

top of the organization by speaking often and regularly about the 

need for credit unions to expand their services to the unbanked and 

underbanked. In this regard, I would explore whether to convene 

a series of collaborative workshops across the country to focus more 

on this issue, like the Partnering and Leadership Successes forums 

convened more than 15 years ago. 

Q.4. Mergers, Acquisitions, and Consolidation—There has been a 

trend in consolidation in the financial industry, including among 

credit unions. NCUA approved 53 mergers in the fourth quarter of 

2018 and credit union mergers and acquisitions have increased the 

size of the average credit union. What do you think is the impact 

of consolidation on credit union members? What can be done, if 

anything, to slow down or reverse this trend? 

A.4. The consolidation trend among all types of depository institutions has remained relatively constant and consistent across all 

economic cycles for more than three decades. Two of the leading 

causes of consolidations in the credit union system include a lack 

of succession planning by small credit unions and the need to 

achieve economies of scale to provide the services that members 

want. While consolidations unquestionably limit consumer choice in 

selecting their financial providers, many consumers ultimately receive access to a greater array of services. 

Nevertheless, I recognize the real need to support and assist 

smaller, federally insured credit unions, especially those with $100 

million or less in assets. These small credit unions make up more 

than 70 percent of the units in the system. If confirmed to the 

NCUA Board, I would work to ensure that the NCUA’s Office of 

Credit Union Resources and Expansion has the funding and staffing needed to reach out to these financial institutions to assist 

117 

them in succession planning and identifying opportunities for 

growth, consistent with safety and soundness. 

Finally, I would work to further tailor and target the NCUA’s 

rules to reduce the regulatory and supervisory burdens for small 

credit unions, when possible. Such regulatory relief would help to 

level the playing field for smaller credit unions without substantially increasing risk to the Share Insurance Fund. 

Q.5. If confirmed, when approving credit union mergers or acquisitions, how will you ensure that continued presence and investment 

in the local community are taken into consideration so that working families continue to have access to financial services? 

A.5. If confirmed, I would work with staff and my Board colleagues 

to review the agency’s existing policies and procedures for handling 

credit union mergers, acquisitions, and charter expansions. When 

the NCUA charters a new credit union, approves a field-of-membership expansion for an existing community-based credit union, or 

permits a credit union to convert to a community charter, the credit union must have in place a business and marketing plan, which 

the agency then monitors for compliance over a period of several 

years. A similar process could be used after mergers and acquisitions to ensure the continued access of working families to financial 

services. 

Q.6. Pentagon Federal Credit Union Merger—Earlier this year, 

Pentagon Federal Credit Union (PenFed), a credit union with $23 

billion in assets and over 1.6 million members, acquired Progressive Credit Union, a New York State-chartered credit union with 

$383 million in assets and an open charter. While PenFed has said 

it will not use the open charter, if it were to change its mind in 

the future, would you support that decision? 

A.6. Presently, the Federal Credit Union Act does not allow for the 

chartering of a Federal credit union with an open field of membership. In this instance, however, through an emergency voluntary 

merger Pen Fed acquired a State-chartered credit union which had 

an open field of membership for many decades. If confirmed, I 

would have serious reservations if PenFed used the open charter 

to expand its membership. In my view, our Nation’s system of cooperative credit should serve everyone. Therefore, I would want to 

understand how PenFed planned to promote thrift and ensure access to affordable financial services, especially for people of modest 

means. 

Q.7. If so, should the NCUA change how it regulates a large credit 

union with no restrictions on its field of membership? 

A.7. The use of an open field of membership by a large Federal 

credit union would cause me concerns, especially as to whether the 

institution is serving all communities, including financial deserts 

with many underserved and underbanked consumers. If confirmed 

to the NCUA Board, I would explore how the NCUA’s Office of National Examinations and Supervision, which oversees and examines 

credit unions with $10 billion or more in assets, presently assesses 

the performance of a large Federal credit union in serving its field 

of membership and consider with my Board colleagues how such 

oversight should change. I would act to ensure that such oversight 

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remains consistent with the requirements of the Federal Credit 

Union Act, consumer protection laws, and other legal requirements. 

Q.8. Field of Membership—Over time, State regulators and the 

NCUA have expanded field-of-membership rules, to expand access 

to financial services for a greater number of consumers. Expanding 

access to the financial system is extremely important, but it is just 

as important to ensure those same credit unions are serving all 

members of these increasingly larger communities and fields of 

membership. What does the NCUA currently do to evaluate a credit union’s performance in serving all of its members? 

A.8. It is a priority for me to expand access to financial services 

for the underserved and underbanked. When the NCUA charters a 

new credit union, approves a field-of-membership expansion for an 

existing community-based credit union, or permits a credit union to 

convert to a community charter, the credit union must have in 

place a business and marketing plan, which the agency then monitors for compliance over a period of several years. If confirmed to 

the NCUA Board, I would evaluate the effectiveness of this practice, as well as any other of the agency’s current policies for ensuring that Federal credit unions with an expanded field of membership are appropriately serving all their members. 

Q.9. Are there any improvements for which you would advocate if 

confirmed? 

A.9. As mentioned above, when the NCUA charters a new credit 

union, approves a field-of-membership expansion for an existing 

community-based credit union, or permits a credit union to convert 

to a community charter, the credit union must have in place a business and marketing plan, which the agency then monitors for compliance over a period of several years. A similar process could be 

used to evaluate the performance of credit unions serving larger 

fields of membership to determine whether they are appropriately 

serving all their members. Such a review would be consistent with 

the statutory mission of credit unions to promote thrift, especially 

for people of modest means. 

Q.10. Payday Alternative Loans (PALs)—The CFPB Director recently proposed drastically weakening the agency’s payday rule. 

Will you pledge not to follow in Director Kraninger’s footsteps and 

work to maintain the restrictions, fee limits, and current interest 

rate caps on the NCUA’s Payday Alternative Loan (PAL) product? 

A.10. The NCUA’s PAL product is designed to expand access to affordable financial services in a safe-and-sound manner. It provides 

an affordable alternative to predatory payday and title loans. In my 

view, it is very important to maintain the consumer protections 

built into the current NCUA regulation, including maintaining appropriate limits on fees, interest rates, and rollovers. 

The NCUA Board has also proposed a rule that would expand 

the ability of credit unions to offer more PALs products to their 

members. If confirmed to the NCUA Board, I would work with my 

Board colleagues to ensure appropriate consumer protections remain in place, like those related to limits on fees, interest rates, 

and rollovers. It is also important to ensure that members receiving a payday alternative loan can repay the loan so that they can 

119 

build a positive credit history and gain access to more affordable 

loan products offered by federally insured credit unions and other 

mainstream financial services providers. 

Q.11. NCUA Spending—At your confirmation hearing, Chairman 

Crapo asked about recent press reports about excessive spending 

by the current chair of the NCUA Board. While some of the spending is allowed under NCUA policies, some of it was not, as confirmed by the NCUA Inspector General Report. You committed to 

Chairman Crapo that you would review these policies if confirmed, 

which I support. You have worked at the NCUA before, are there 

certain items you believe should not be reimbursed for Board members or staff by a Federal agency? 

A.11. The NCUA should work with its sister regulators to develop 

a common reimbursement policy for representation and travel expenses modeled on the rules in place at other Federal regulatory 

agencies. In my view, such a policy should not allow for the purchase of alcohol by an individual Board Member or staff, although 

it may be permissible to serve alcohol at widely attended conferences and meetings. If confirmed, I would work with my NCUA 

Board colleagues to ensure that the rules in this area are clear, 

consistent, and communicated. Finally, if confirmed to the NCUA 

Board, I would commit to not seeking reimbursement for alcohol 

purchases regardless of the policy. 

RESPONSES TO WRITTEN QUESTIONS OF SENATOR ROUNDS 

FROM TODD M. HARPER 

Q.1. Last Congress, I was the Senate sponsor of S. 3750, the Common Sense Credit Union Capital Relief Act of 2018. It would call 

for a delay in the implementation of the NCUA’s risk-based capital 

rule. What are your thoughts on the risk-based capital rule? Should 

implementation of the rule be delayed? Should Congress reevaluate 

the need for the rule entirely? 

A.1. In my view, it is important for all financial institutions backed 

by Federal deposit or share insurance to hold capital commensurate with the risks held on their balance sheets. In the case of federally insured credit unions, such capital will protect taxpayers by 

helping to prevent or mitigate losses to the National Credit Union 

Share Insurance Fund when a credit union fails. 

To maintain the safety and soundness of federally insured credit 

unions, the Federal Credit Union Act currently requires the NCUA 

Board to issue regulations to create a system of prompt corrective 

action. This system must be consistent with the requirements of 

the Federal Credit Union Act and comparable to the rules of Federal banking regulators. It must also take into account the cooperative character of credit unions. 

In 2013, the Federal banking agencies adopted new risk-based 

capital rules. To maintain comparability with these rules, the 

NCUA Board moved ahead with efforts to modify its risk-based 

capital rule. Action on this regulation was also recommended by 

the Government Accountability Office and the NCUA’s Inspector 

General. 

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The NCUA Board finalized its risk-based capital rule in late 

2015. As initially approved, this rule applied to complex credit 

unions with $100 million or more in assets and provided for an implementation period of more than 3 years. Last year, while your 

legislation was pending, the NCUA Board increased the threshold 

to $500 million and extended the implementation period for an additional year. The new effective date for compliance is January 1, 

2020. 

As I understand it, nearly all federally insured credit unions covered by the current risk-based capital rule would be subject to the 

lower leverage capital requirement contained in the Federal Credit 

Union Act. In all, less than 20 federally insured credit unions 

would be subject to the higher risk-based capital requirement contained in the agency’s revised rule. These 20 or so credit unions engage in riskier activities or hold higher concentrations of certain 

assets on their books. 

If confirmed, I would keep your concerns in mind and take a 

fresh look at this issue. First, I would want to know the actual capital held at each of these 20 or so credit unions before making any 

decision about whether to further delay the rule. As I understand 

it, many of them have recently increased the capital held on their 

books in response to the NCUA Board’s rulemaking. I would also 

want to know what Federal banking regulators have done with 

their risk-based capital rules given the comparability requirements 

of the Federal Credit Union Act. 

Finally, during the last 2 years, the failure of several federally 

insured credit unions that concentrated in taxi-medallion lending 

have resulted in large losses for the Share Insurance Fund. If the 

NCUA’s risk-based capital rule had been in effect earlier, some of 

these losses might have been mitigated. If confirmed, I would keep 

this recent history at the forefront of my mind when making any 

decision about whether to further delay implementation of the 

NCUA’s risk-based capital regulation. 

RESPONSES TO WRITTEN QUESTIONS OF SENATOR MORAN 

FROM TODD M. HARPER 

Q.1. In addition to voluntarily following the spirit of the President’s 

Executive Order to reduce regulatory burden, the current NCUA 

Board has focused much of its recent rulemaking activity on reducing unnecessary regulatory burden. Do you agree with voluntarily 

following the Executive Order, and will you do so if confirmed? 

A.1. The NCUA has a long history of voluntarily complying with 

Executive Orders so long as the order does not compromise the 

mission of the agency, conflict with statutory law, or undermine the 

safety and soundness of credit unions. In my view, these efforts 

have generally improved the quality of rulemaking over time and 

addressed pressing regulatory concerns at the time. If confirmed, I 

would support the continuation of the agency’s long-standing practice of voluntarily following Executive Orders, as appropriate. 

Q.2. With regard to future NCUA rulemakings, what approach will 

you take in terms of focusing on a reduction of unnecessary regulatory burden? 

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A.2. For several of its rules, the NCUA has tailored regulatory requirements based on the asset size of the credit union. Currently, 

more than 70 percent of federally insured credit unions have $100 

million or less in assets. In my view, it is especially important that 

the NCUA work to minimize the regulatory burdens of these financial institutions so that they can instead focus on serving the needs 

of their members and building net worth, as appropriate. If confirmed, I would examine how the NCUA could further tailor its 

rules to limit regulatory burdens based on the size, scale, and scope 

of a credit union and its activities, consistent with the statutory requirements established by Congress and the need to protect both 

consumers and the safety and soundness of the credit union system. 

Q.3. Credit unions, as not-for-profit, member-owned institutions, 

are inherently different than for-profit banks. It is critical that a 

member of the NCUA Board appreciate this difference and support 

the credit union philosophy of people helping people. While it is inevitable that some credit unions will occasionally choose to switch 

from a credit union to a bank charter, what will you do to uphold 

the core philosophy of credit unions to ensure they remain a viable 

source of financial services for Americans? 

A.3. In my many years working at the NCUA and for Congress, I 

have gained a great appreciation for the credit union philosophy 

and the uniqueness of the credit union charter. Therefore, if confirmed, I would set a tone at the top by regularly reminding credit 

unions of their statutory mission to promote thrift, especially for 

people of modest means. I would also closely monitor the composition of the lending portfolio of both the credit union system and individual credit unions to determine whether consumer financial 

needs are being met. 

Generally, the credit union system remains very focused on serving members’ financial needs. Of the $1 trillion in loans presently 

held on the books of federally insured credit unions, residential 

mortgages account for nearly 45 percent of the total, auto loans for 

35 percent, and credit card debt for approximately 5 percent. Additionally, while federally insured credit unions constitute just 7 percent of the assets of our Nation’s financial institutions, they provide 11.5 percent of consumer loans. Together, these metrics provide a way for quickly assessing whether credit unions are remaining a viable source of financial services for Americans. 

Q.4. The NCUA is unique from other Federal financial regulatory 

agencies in that it is an independent regulator and insurer of credit 

unions. Do you support the agency’s continued independence? 

A.4. Yes. In the aftermath of the savings-and-loan crisis, Congress 

worked to strengthen Federal financial institutions regulators by 

providing independence in setting budgets and collecting fees, submitting testimony to Congress, and allowing for rulemaking outside 

of the OMB-approval process used for other executive branch agencies, among other things. Such independence helps to ensure the effective supervision of the credit union system and protects against 

inappropriate political interference. 

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Q.5. What can the NCUA do to ensure it is able to maintain its 

current status as an independent regulator and insurer? 

A.5. First and foremost, the NCUA must continue to ensure the 

safety and soundness of the credit union system and protect the 

National Credit Union Share Insurance Fund from losses. The 

agency must also maintain an arm’s-length distance from the entities it charters, regulates, or insures. Appropriate engagement with 

all stakeholders is important to develop effective, but not excessive, 

regulation and supervision, but it must be done in a way to prevent 

regulatory capture. 

If confirmed, I would also work with my colleagues on the NCUA 

Board and staff to ensure that the agency is transparent in its regulatory actions and budgeting process, fair and forward-looking, innovative and inclusive, and risk-focused and ready to act expeditiously when necessary. Together, these steps would help to maintain the independence of the agency going forward. 

Q.6. As the prudential regulator and Federal insurer, the NCUA 

retains oversight over the vast majority of a credit union’s operations. However, there are numerous areas where there is overlap 

with other regulatory agencies, such as the Consumer Financial 

Protection Bureau (CFPB) in regard to certain consumer financial 

protection laws and regulations, as well as some areas where other 

agencies maintain exclusive authority over certain issues, such as 

the Federal Communications Commission in regard to certain consumer protections, including the Telephone Consumer Protection 

Act. Do you appreciate the importance of the NCUA’s continued coordination with other Federal regulatory agencies? 

A.6. Absolutely. Early in my career, I spent 4 years at the Occupational Safety and Health Administration. In this role, I worked on 

several matters, including interagency jurisdictional issues. While 

at the NCUA, I also advised agency officials about matters related 

to the Federal Financial Institutions Examination Council, the 

interagency body empowered to prescribe uniform principles, standards, and report forms for the Federal examination of financial institutions, and the Financial Stability Oversight Council. As a result, I recognize that Government agencies need to work together 

to minimize conflicts, inform decision making, collaborate, and coordinate. If confirmed, I would work to do just that. 

Q.7. How will you ensure the NCUA works in close collaboration 

with other agencies on issues and rulemakings that directly impact 

credit unions? 

A.7. In my view, effective regulation and supervision require appropriate engagement with all stakeholders, including Federal financial regulators, State regulators, and other Government agencies. If 

confirmed, I would work to maintain collaborative relationships 

with the NCUA’s sister agencies at the State and Federal levels, 

as well as through the Federal Financial Institutions Examination 

Council. I would also work with my colleagues on the NCUA Board 

to conduct outreach to other agencies on a case-by-case basis. When 

done well, such cooperation should produce better policy outcomes. 

Q.8. One of the important responsibilities of the NCUA Board is 

oversight and management of the National Credit Union AdminisVerDate Nov 24 2008 13:07 Apr 08, 2019 Jkt 046629 PO 00000 Frm 00126 Fmt 6602 Sfmt 6602 L:\HEARINGS 2019\02-14 NOMINATIONS\HEARING\RESEND FOLDER\35617 NEW.TXT
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tration Central Liquidity Facility (CLF), an instrumentality of the 

United States whose purpose is ‘‘to improve general financial stability by meeting the liquidity needs of credit unions and thereby 

encourage savings, support consumer and mortgage lending, and 

provide basic financial resources to all segments of the economy.’’ 

Since this is the 40th anniversary year of the CLF’s establishment and the credit union industry has changed significantly over 

that course of years in many respects, including the number of 

credit unions and the services they provide, if confirmed would you 

make a review of the CLF during this anniversary year a priority, 

with an eye towards making improvements that may be warranted 

based on the changes that have occurred since its founding? 

A.8. In the aftermath of the financial crisis, the NCUA Board approved its emergency liquidity rule. Among other things, this rule 

requires credit unions above $250 million in assets to maintain access to a federally backed liquidity provider like the NCUA’s Central Liquidity Facility or the Federal Reserve’s Discount Window. 

After the rule’s implementation, there was an initial uptick in the 

number of credit unions purchasing stock in the CLF. Since then, 

as I understand it, the number of members of the CLF has remained relatively constant. 

If confirmed, I would work with my colleagues on the NCUA 

Board to determine whether a comprehensive review the operations 

of the CLF and the NCUA’s emergency liquidity requirements is 

needed at this time. I would approach any such review with an 

open mind and an eye on identifying improvements to the CLF’s 

operations as you suggest. In my view, the CLF should examine 

the creditworthiness of the credit unions to which it lends money. 

I would also want to reexamine the agency’s prior legislative proposals to enhance access to emergency liquidity for the credit union 

system by making targeted changes to the CLF and expanding the 

agency’s access to the U.S. Treasury. 

RESPONSES TO WRITTEN QUESTIONS OF 

SENATOR CORTEZ MASTO FROM TODD M. HARPER 

Q.1. The National Credit Union Administration staff has been 

through a major consolidation—a shrinking to three regional offices 

from five. How will you manage this transition so that the staff remain focused on their mission and have the resources they need? 

Does the consolidation present any concerns? 

A.1. As I understand it, the NCUA completed the consolidation of 

its regional offices at the start of 2019. Therefore, if confirmed, my 

concerns going forward would be to identify and ameliorate any unintended consequences from the consolidation. First, it is important 

to learn the views of credit unions about any problems resulting 

from the consolidation, such as additional costs and increased staff 

time for some credit unions to travel to meet with regional office 

leaders. 

Additionally, I have concerns about the ability of regional offices 

to effectively coordinate across a greater number of States. As such, 

I would want to learn more about their experiences by speaking 

with both regional directors and State regulators. In a dual-chartering system, open and frequent dialogue between Federal and 

124 

State regulators is important to maintain safety and soundness 

and achieve the requirements of the Federal Credit Union Act and 

other laws. 

Finally, the NCUA’s staff is the agency’s most important asset. 

I would, therefore, want to speak with the workforce to determine 

their impressions of the reorganization. I particularly would like to 

see how the structural changes have affected the employee engagement and satisfaction metrics in the annual Employee Viewpoint 

Survey compiled by the Partnership for Public Service. If confirmed, I would work with my colleagues on the NCUA Board to 

determine ways we could improve those scores going forward if 

they have declined. 

Q.2. Nationwide, nearly 20 million families live in manufactured 

homes, about 7 percent of the housing stock. The quality of the 

homes is good but at times, the financing can be predatory. The 

duty-to-serve requirements of Fannie Mae and Freddie Mac could 

provide an opportunity for credit unions to increase their lending 

to manufactured home buyers. 

Do you see an opportunity for credit unions to provide more loans 

to people wishing to buy a manufactured home? If so, what will you 

do to help credit unions serve manufactured home buyers? 

A.2. Yes. As I understand it, Fannie Mae and Freddie Mac are currently implementing the duty-to-serve rule adopted by the Federal 

Housing Finance Agency in 2016. Among other requirements, the 

enterprises must support the manufactured housing industry. Eligible activities include manufactured homes titled as real property, 

manufactured homes titled as personal property, and blanket loans 

for certain categories of manufactured housing communities. 

Presently, 47 percent of federally insured credit unions have the 

low-income designation, which generally means that a majority of 

the credit union’s members live in areas where residents earn 80 

percent or less than the median family income for the metropolitan 

area or the national metropolitan area, whichever is greater. Because such households are more likely to purchase manufactured 

housing, these low-income credit unions are uniquely situated to 

make the most of this opportunity and better serve their members. 

If confirmed to the NCUA Board, I would work to raise the 

awareness of all credit unions about the ongoing and evolving efforts of Fannie Mae and Freddie Mac to support manufactured 

housing. I would also work to encourage low-income credit unions 

to collaborate with both enterprises through convening meetings 

with interested parties, writing opinion pieces, and sharing information as appropriate. Further, I would explore how the NCUA’s 

current rules for manufactured housing loans are working. These 

rules were last updated more than a decade ago and may need further refinements. Finally, I would support financial literacy efforts 

by the NCUA’s Office of Consumer Financial Protection to educate 

consumers about manufactured housing loans so they can make 

more informed decisions when purchasing a home. 

Q.3. This Committee has invested a fair bit of time trying to stop 

money laundering and terrorist financing while also keeping access 

to the financial system for cash businesses, humanitarian groups 

and people sending remittances abroad to fragile Nations. 

125 

Do you have any advice for us on how to improve the Bank Secrecy Act and Anti– Money-Laundering statutes that detect such 

dangerous activities while avoiding harmful derisking for legitimate actors? 

A.3. As I understand it, Bank Secrecy Act and Anti– Money-Laundering regulations apply to all credit unions regardless of asset 

size. Accordingly, the NCUA has put in place rules to require all 

federally insured credit unions to develop a written, risk-based 

Bank Secrecy Act compliance program. Smaller credit unions also 

encounter compliance challenges, resulting from a lack of staffing 

and expertise, the migration of high-risk activities into the credit 

union space, and a delay in adapting training and independent 

testing programs. In establishing a new statutory system, Congress 

should remain mindful of these regulatory burdens. 

Q.4. Do you have recommendations to implement? 

A.4. In my view, Congress should keep the experiences of small 

credit unions in mind when updating the Bank Secrecy Act and related laws. In developing a new system, priority should be given to: 

• focusing first on targeting and identifying criminal activity; 

• reducing unnecessary paperwork burdens; 

• using artificial intelligence to determine incidents of money 

laundering just as credit card providers use such technology to 

identify irregularities in consumer purchases; 

• allowing regulators to tailor statutory requirements, where 

possible, to minimize burdens for smaller financial institutions; 

and 

• permitting the sharing of information between financial institutions. 

Equally important is ensuring the ability of immigrants to send 

money back home to support the legitimate needs of their families 

and friends, such as shelter, food, and clothing, to name a few. If 

confirmed, I would further explore how to update the law with the 

NCUA’s experts. 

Q.5. The NCUA is unique from other Federal financial regulatory 

agencies in that it is an independent regulator and insurer of credit 

unions. Do you support the agency’s continued independence? 

A.5. Yes. In the aftermath of the savings-and-loan crisis, Congress 

worked to strengthen Federal financial institutions regulators by 

providing independence in setting budgets and collecting fees, submitting testimony to Congress, and allowing for rulemaking outside 

of the OMB-approval process used for other executive branch agencies, among other things. Such independence helps to ensure the effective supervision of the credit union system and protects against 

inappropriate political interference. 

Q.6. What can the NCUA do to ensure it is able to maintain its 

current status as an independent regulator and insurer? 

A.6. First and foremost, the NCUA must continue to ensure the 

safety and soundness of the credit union system and protect the 

National Credit Union Share Insurance Fund from losses. The 

agency must also maintain an arm’s-length distance from the entiVerDate Nov 24 2008 13:07 Apr 08, 2019 Jkt 046629 PO 00000 Frm 00129 Fmt 6602 Sfmt 6602 L:\HEARINGS 2019\02-14 NOMINATIONS\HEARING\RESEND FOLDER\35617 NEW.TXT
126 

ties it charters, regulates, or insures. Appropriate engagement with 

all stakeholders is important to develop effective, but not excessive, 

regulation and supervision, but it must be done in a way to prevent 

regulatory capture. 

If confirmed, I would also work with my colleagues on the NCUA 

Board and staff to ensure that the agency is transparent in its regulatory actions and budgeting process, fair and forward-looking, innovative and inclusive, and risk-focused and ready to act expeditiously when necessary. Together, these steps would help to maintain the independence of the agency going forward. 

Q.7. As the prudential regulator and Federal insurer, the NCUA 

retains oversight over the vast majority of a credit union’s operations. However, there are numerous areas where there is overlap 

with other regulatory agencies, such as the Consumer Financial 

Protection Bureau in regard to certain consumer financial protection laws and regulations, as well as some areas where other agencies maintain exclusive authority over certain issues, such as the 

Federal Communications Commission in regard to certain consumer protections, including the Telephone Consumer Protection 

Act. 

Do you appreciate the importance of the NCUA’s continued coordination with other Federal regulatory agencies? 

A.7. Absolutely. Early in my career, I spent 4 years at the Occupational Safety and Health Administration. In this role, I worked on 

several matters, including interagency jurisdictional issues. While 

at the NCUA, I also advised agency officials about matters related 

to the Federal Financial Institutions Examination Council, the 

interagency body empowered to prescribe uniform principles, standards, and report forms for the Federal examination of financial institutions, and the Financial Stability Oversight Council. As a result, I recognize that Government agencies need to work together 

to minimize conflicts, inform decision making, collaborate, and coordinate. If confirmed, I would work to do just that. 

Q.8. How will you ensure the NCUA works in close collaboration 

with other agencies on issues and rulemakings that directly impact 

credit unions? 

A.8. In my view, effective regulation and supervision require appropriate engagement with all stakeholders, including Federal financial regulators, State regulators, and other Government agencies. If 

confirmed, I would work to maintain collaborative relationships 

with the NCUA’s sister agencies at the State and Federal levels, 

as well as through the Federal Financial Institutions Examination 

Council. I would also work with my colleagues on the NCUA Board 

to conduct outreach to other agencies on a case-by-case basis. When 

done well, such cooperation should produce better policy outcomes. 

Q.9. Last summer, NCUA proposed significant changes to the program it calls ‘‘Payday Alternative Loans,’’ or ‘‘PAL’’. For nearly a 

decade, this program has permitted Federal credit unions, on loans 

up to $1,000, to charge more than the Federal credit union interest 

rate limit (28 percent instead of 18 percent) as well as an application fee of up to $20 per loan. But it has always included an important limit—it limits the number of these $20 fees to three every 6 

127 

months—a measure that prevents credit unions from abusing the 

program by repeatedly charging $20 on even very small loans, 

keeping customers in a cycle of repeat loans that mirrors the payday loan debt trap itself. 

But in its 2018 proposal, NCUA inexplicably proposed lifting this 

limit—a proposal that was opposed by more than 100 civil rights, 

faith, consumer and community groups, as well as the National 

Federation of Community Development Credit Unions (now 

Inclusiv)—because it would make it easier for credit unions to trap 

customers in unaffordable short-term loans. NCUA has not yet finalized this proposal. 

Would you oppose sanctioning the ability of Federal credit unions 

to put members into an unlimited number of high-cost short-term 

loans? 

A.9. Yes. In my view, allowing for unlimited rollovers has the potential to trap individuals in a cycle of debt. If confirmed to the 

NCUA Board, I would explore how to expand consumer access to 

affordable, short-term credit products while also maintaining the 

safety and soundness of credit unions. Allowing for unlimited rollovers and unlimited fees associated with such rollovers would be 

inconsistent with my views. I believe credit unions should provide 

access to affordable financial products for their members, especially 

those of modest means. 

Q.10. If the CFPB’s commonsense payday loan rule was repealed, 

the new PAL proposal would permit a 1-month, $100 loan with two 

semimonthly payments, at an effective APR of 345 percent, flipped 

11 times in a year (so, 12 loans total). This is an annual cost of 

$240, plus 28 percent interest, for effectively $100 in credit. Does 

this sound like the kind of behavior NCUA should be encouraging, 

especially when it has a near decade-old policy that would limit 

high-cost loans to three loans every 6 months? 

A.10. The NCUA’s current PALs product is designed to expand access to affordable financial services in a safe-and-sound manner. It 

provides an affordable alternative to predatory payday and title 

loans for consumers. In my view, it is very important to maintain 

the consumer protections built into the current regulation, including appropriate limits on fees, interest rates, and rollovers. 

With respect to the proposed rule, if confirmed, I would work 

with my colleagues to ensure appropriate consumer protections remain in place, like those related to limits on fees, interest rates, 

and rollovers. When working on these issues, I also would apply 

the lessons I learned when working for Congress on issues like 

mortgage servicing, escrows, and appraisals to hopefully reach consensus with my colleagues, effectively protect consumers, and expand the ability of credit unions to meet the needs of their members. 

Q.11. The ‘‘ability to repay’’ concept exists in virtually every regulatory or legislative precedent. It includes an assessment not only 

of income—or the lender’s ability to seize that income on payday— 

but also of obligations or expenses. 

Should a Federal credit union make loans based on a determination that the borrower has the ability to repay the loan? 

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A.11. Yes. It is important to ensure that Federal credit union members receiving a payday alternative loan can repay the advance so 

that they can build a positive credit history and gain access to 

more affordable loan products offered by federally insured credit 

unions and other mainstream financial services providers. As I understand it, the guidance covering the current payday alternative 

loan rule contains best practices for responsible underwriting, including obtaining documentation of income, as well as reviewing 

account activity for existing members, for determining the ability 

of an individual to repay the short-term loan. It is important to 

continue this practice. 

Q.12. Currently, NCUA rules severely limit the ability of Federal 

credit unions to hedge the interest rate risk of having long-term 

loans, such as mortgages, and short-term deposits. Other financial 

institutions do not have this restriction. 

Should credit unions be able to hedge this interest rate risk for 

the safety of the credit unions and the insurance fund? Why or why 

not? 

A.12. To manage the risk on their balance sheets, credit unions 

need to have the ability hedge their interest rate risk. In 2014, the 

NCUA Board approved a final rule to provide approved Federal 

credit unions with limited authority to mitigate interest rate risk 

by allowing the purchase of specified, ‘‘plain vanilla’’ derivatives. As 

I understand it, this regulation applies only to Federal credit 

unions, and is not applicable to federally insured, State-chartered 

credit unions, except where States have provided approval for such 

authority. 

As part of its current regulatory reform agenda, the NCUA has 

proposed revisiting this regulation. If confirmed, I would approach 

this issue with an open mind. When done well, the use of hedges 

can reduce risks for the credit union and the Share Insurance 

Fund. When done poorly, however, such hedging could pose substantial risks for the credit union system. 

In looking at this policy issue, if confirmed, I would want to explore the complexity of the hedging product, the sophistication of 

the credit union and its staff, and the risks posed to the Share Insurance Fund, among other things. My findings on each of these 

issues would inform my determination about whether to support or 

oppose changes the agency’s existing regulations in this area. 

RESPONSES TO WRITTEN QUESTIONS OF SENATOR JONES 

FROM TODD M. HARPER 

Q.1. Mr. Harper, credit unions play a critical role in providing financial services to underserved communities. However, given their 

traditional structure, credit unions have not been included in the 

Community Reinvestment Act (CRA). As you know, the Federal financial regulators are currently considering updates to the implementation of CRA. Given the change in business models, practices, 

and technology in both banks and credit unions in the years since 

CRA was last updated, I believe this is an opportunity to take a 

comprehensive look at how institutions of all type serve their communities. 

129 

While Congress would need to act to apply CRA to credit unions, 

do you believe there are steps NCUA can take to ensure that credit 

unions of all sizes are adequately providing services to underserved 

communities? 

A.1. First and foremost, if confirmed as an NCUA Board Member, 

I would set a tone at the top by regularly reminding credit unions 

of their statutory mission to promote thrift, especially for people of 

modest means. Additionally, I would publicly support legislative efforts in Congress to allow all Federal credit unions to add underserved areas to their fields of membership. This change to the law 

would likely have the greatest impact on expanding access to affordable financial services for the unbanked and underbanked. 

Additionally, I would support the ongoing efforts of the agency to 

use data collected under the Home Mortgage Disclosure Act to determine whether credit unions are fulfilling their fair lending responsibilities. Specifically, the agency’s Office of Consumer Financial Protection actively analyzes this data to assist in identifying 

possible discriminatory lending patterns and enforcing antidiscrimination statutes. To effectively enforce such laws, the office 

also relies on observations and recommendations from the NCUA’s 

field examiners, compliance violations reported in the NCUA’s examination tool, and member complaints. If confirmed, I would review these existing efforts to determine whether any further 

changes are merited. 

Finally, when the NCUA charters a new credit union, approves 

a field-of-membership expansion for an existing community-based 

credit union, or permits a credit union to convert to a community 

charter, the credit union must have in place a business and marketing plan, which the agency then monitors for compliance over a 

period of several years. Consistent with the Federal Credit Union 

Act and other Federal laws, the NCUA Board could consider putting in place a similar process to evaluate whether certain credit 

unions are adequately providing financial services to underserved 

communities. 

In applying such a rule, the NCUA could focus on Federal credit 

unions having: a community charter, an underserved area in the 

field of membership, or assets above a predetermined threshold. 

However, in adopting any such rule, the agency would need to ensure that it is properly scoped, minimally burdensome, and effectively tailored to meet the purposes of such a rule. If confirmed, I 

would work with my fellow Board Members and agency staff to further explore this issue. 

Q.2. Mr. Harper, credit unions, along with banks, money service 

businesses and other financial institutions, are tasked with being 

on the ‘‘front lines’’ of our current Anti– Money-Laundering (AML) 

regime. There is currently bipartisan agreement that our current 

AML system is in need of updating and reform. The system is too 

often inefficient and expensive while not adequately providing law 

enforcement with the information they need to pursue criminals. In 

addition, there is broad agreement that there should be broad collection of beneficial ownership information. Specifically, what do 

you believe should be priorities for creating a modern risk-based 

AML system? 

130 

A.2. As I understand it, Bank Secrecy Act and Anti– Money-Laundering regulations apply to all credit unions regardless of asset 

size. Accordingly, the NCUA has put in place rules to require all 

federally insured credit unions to develop a written, risk-based 

Bank Secrecy Act compliance program. Smaller credit unions also 

encounter compliance challenges, resulting from a lack of staffing 

and expertise, the migration of high-risk activities into the credit 

union space, and a delay in adapting training and independent 

testing programs. 

In my view, Congress should keep the experiences of small credit 

unions in mind when updating the Bank Secrecy Act and related 

laws. In developing a new system, priority should be given to: 

• focusing first on targeting and identifying criminal activity; 

• reducing unnecessary paperwork burdens; 

• using artificial intelligence to determine incidents of money 

laundering just as credit card providers use such technology to 

identify irregularities in consumer purchases; 

• allowing regulators to tailor statutory requirements, where 

possible, to minimize burdens for smaller financial institutions; 

and 

• permitting the sharing of information between financial institutions. 

If confirmed, I would further explore how to update the law with 

the NCUA’s experts. 

Q.3. Mr. Harper, credit unions play a critical role in providing financial services to underserved communities. However, given their 

traditional structure, credit unions have not been included in the 

Community Reinvestment Act (CRA). 

As you know, the Federal financial regulators are currently considering updates to the implementation of CRA. Given the change 

in business models, practices, and technology in both banks and 

credit unions in the years since CRA was last updated, I believe 

this is an opportunity to take a comprehensive look at how institutions of all types serve their communities. 

While Congress would need to act to apply CRA to credit unions, 

do you believe there are steps NCUA can take to ensure that credit 

unions of all sizes are adequately providing services to underserved 

communities? 

A.3. See the answer to your first question above. 

RESPONSES TO WRITTEN QUESTIONS OF SENATOR SMITH 

FROM TODD M. HARPER 

Q.1. I often hear stories about a difficult barrier to constructing 

new housing in rural areas and tribal lands—both affordable housing and workforce housing. That barrier is access to lenders and financial institutions. What role should credit unions play in ensuring that new housing construction in rural areas and tribal lands 

is adequately financed? 

A.1. If confirmed to the NCUA Board, providing financial services 

to the unbanked and underbanked would be one of my priorities. 

In my view, given their statutory mission to promote thrift, espeVerDate Nov 24 2008 13:07 Apr 08, 2019 Jkt 046629 PO 00000 Frm 00134 Fmt 6602 Sfmt 6602 L:\HEARINGS 2019\02-14 NOMINATIONS\HEARING\RESEND FOLDER\35617 NEW.TXT
131 

cially for people of modest means, Federal credit unions serving 

rural areas and tribal reservations have a unique opportunity to finance affordable housing and workforce housing. Accordingly, I 

would work to advance that goal. 

As I understand it, Fannie Mae and Freddie Mac are currently 

implementing the duty-to-serve rule adopted by the Federal Housing Finance Agency in 2016. Among other requirements, the enterprises must support housing for high-needs rural populations, including individuals living on tribal reservations and agricultural 

workers. 

Credit unions with a field of membership that includes rural 

communities or tribal areas are especially well situated to address 

this affordable housing need as they know the communities they 

serve. If confirmed to the NCUA Board, I would, therefore, work 

to raise the awareness of credit unions about the ongoing and 

evolving efforts of Fannie Mae and Freddie Mac to support affordable housing in rural communities and tribal areas. I would also 

work to encourage credit unions to collaborate with both enterprises through convening meetings with interested parties, writing 

opinion pieces, and sharing information as appropriate. 

RESPONSES TO WRITTEN QUESTIONS OF SENATOR SINEMA 

FROM TODD M. HARPER 

Q.1. Unlike other Federal financial regulatory agencies, the NCUA 

is an independent regulator and insurer of credit unions. How will 

you ensure the agency continues to be independent and vigilant in 

protecting the safety and soundness of credit unions in Arizona? 

A.1. First and foremost, the NCUA must continue to ensure the 

safety and soundness of the credit union system and protect the 

National Credit Union Share Insurance Fund from losses. Accordingly, my focus would be on capital, liquidity, and cybersecurity. I 

would also work to ensure that the agency has enough staff and 

funding to conduct timely and adequate supervision of federally insured credit unions in Arizona and across the country. 

The agency must also maintain an arm’s-length distance from 

the entities it charters, regulates, or insures. Appropriate engagement with all stakeholders is important to develop effective, but 

not excessive, regulation and supervision, but it must be done in 

a way to prevent regulatory capture. 

Finally, if confirmed, I would work with my colleagues on the 

NCUA Board and staff to ensure that the agency is open about its 

regulatory actions and transparent in its budgeting process, an 

issue that you have personally worked on. The NCUA should also 

be fair and forward-looking, innovative and inclusive, and risk-focused and ready to act expeditiously when necessary. Together, 

these steps would help to maintain the independence of the agency 

going forward. 

RESPONSES TO WRITTEN QUESTIONS OF SENATOR BROWN 

FROM RODNEY HOOD 

Q.1. Fees—Last fall, the New York Times reported on high fees and 

interest rates charged to members of the Marriott Employees’ FedVerDate Nov 24 2008 13:07 Apr 08, 2019 Jkt 046629 PO 00000 Frm 00135 Fmt 6602 Sfmt 6602 L:\HEARINGS 2019\02-14 NOMINATIONS\HEARING\RESEND FOLDER\35617 NEW.TXT
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1 ‘‘Marriott Workers Struggle To Pay Bills, Credit Union Feeds’’, the New York Times, October 

11, 2018, available at https://www.nytimes.com/2018/10/11/business/marriott-credit-unionemployee-strike.html. 

eral Credit Union—a credit union that was formed so that employees would have access to low cost financial services. 1 Marriott Employees’ Federal Credit Union has a low income designation meaning 50 percent of its members have family incomes of less than 80 

percent of the median income in the areas it serves. 

As the article indicated, many of these workers are struggling to 

make ends meet, and these fees make their economic situations 

worse. In the same article, it was reported that some of the executives and management of Marriott who also use the credit union 

are receiving million dollar mortgages and car loans at below-market interest rates. 

If confirmed, will you commit to review credit unions’ fees like 

overdraft and minimum balance charges as described in the article? Will you commit to crack down on fees if they are inconsistent 

with the credit union system’s mission of providing affordable financial services to working families? 

A.1. If confirmed to the NCUA Board, I commit to reviewing credit 

unions’ fees and working to prevent the collection of fees that are 

inconsistent with the credit union system’s mission of providing affordable financial services to working families. While I understand 

and believe that certain fees are a necessary part of credit union 

operations, I pledge to do my level best to ensure that any fees 

which are collected are consistent with the credit union mission of 

‘‘people helping people’’ and do not needlessly penalize the underserved and those of lesser means. 

Q.2. Financial Crisis—You served on the Board of the NCUA from 

2005 to 2010—the years leading up to and during the financial crisis. What lessons did you learn about credit union regulation from 

that time? What issues will you approach differently now because 

of that experience? 

A.2. It was my great honor and privilege to serve as an NCUA 

Board Member for 4 years, from 2005–2009. My time there, as well 

as my education and my experiences both before and after my 

NCUA tenure, shaped my regulatory philosophy that regulation 

needs to be effective, but not excessive. To that end, if I am confirmed to the NCUA Board, I would support a regulatory regime 

that is risk focused and market-oriented. While my paramount responsibility would be ensuring the safe and sound operation of federally insured credit unions, I also would strive to be recognized as 

a fair and thoughtful regulator, one who realizes the value and necessity of regulation while remaining cognizant of the impact of excessive regulation. I, therefore, would support appropriately tailored regulations, scaled to an institution’s size and complexity. I 

believe that such targeted regulations provide an environment that 

better protects the credit union system and the National Credit 

Union Share Insurance Fund and is friendlier to credit unions. 

One of my lasting accomplishments from my previous term focused on risk management, as years of experience in the financial 

services industry has taught me that financial institutions cannot 

avoid all risks and should instead take appropriate steps to mitiVerDate Nov 24 2008 13:07 Apr 08, 2019 Jkt 046629 PO 00000 Frm 00136 Fmt 6602 Sfmt 6602 L:\HEARINGS 2019\02-14 NOMINATIONS\HEARING\RESEND FOLDER\35617 NEW.TXT
133 

gate and manage risks. As an NCUA Board Member, I launched 

a series of Enterprise Risk Management Summits, which provided 

training to credit unions on how to do just that. Working in collaboration with regulators from the Federal Reserve, the OCC, the 

FDIC, the Federal Home Loan Banks, and the National Economic 

Council, I hosted sessions with subject matter experts and credit 

union leaders in risk areas such as liquidity, interest rate, and concentration risk. If confirmed to the NCUA Board, I would continue 

my efforts in this important area, with a particular focus on cybersecurity risk. 

Additionally, the financial crisis and my time at the NCUA emphasized to me the crucial role the NCUA and the credit union industry can—and must—play in improving financial access for vulnerable communities. If confirmed, one of my top priorities would 

be to ensure that the NCUA creates opportunities to promote financial education and financial inclusion and fosters an environment where low-to-moderate income and disabled individuals have 

access to affordable financial services. 

Q.3. Underbanked and Unbanked—In your testimony you indicated 

that one of your top priorities is to increase access for the 

unbanked and underbanked to credit union products and services. 

If confirmed, what will you propose to achieve this objective? 

A.3. As I noted in my testimony, my interest in serving vulnerable 

communities grew from my volunteer work as a missionary in Africa and later as a banker engaged in community development. I 

have been fortunate to spend over 25 years working with some of 

the country’s most respected financial institutions that sought to 

empower economic stability and shared prosperity in our local communities. I have held management positions that allowed me to 

promote community development and outreach initiatives to underserved communities. As a provider of affordable housing and small 

business lending, I oversaw loan programs, managed teams of regional community development managers, and worked with credit 

policy groups to evaluate and manage risks. It literally has been 

my life’s work, and this work dovetails seamlessly with the ethos 

of the credit union industry, which is ‘‘people helping people.’’ It is 

work that I hope to continue at the NCUA, if confirmed again to 

the NCUA Board. If confirmed, I would explore all avenues within 

the NCUA’s authority to increase access for unbanked and underbanked individuals to credit union products and services, including 

building upon the NCUA’s already impressive financial literacy efforts. 

In addition to working to improve unbanked and underbanked 

individuals’ access to credit union services under the NCUA’s current authority, I would also like to work with Congress on legislative changes to allow all Federal credit unions, regardless of charter type, to add underserved areas to their fields of membership. 

Doing so would allow these institutions to offer financial services 

to those with no or limited access to credit union membership. 

Q.4. Mergers, Acquisitions, and Consolidation—There has been a 

trend in consolidation in the financial industry, including among 

credit unions. NCUA approved 53 mergers in the fourth quarter of 

2018 and credit union mergers and acquisitions have increased the 

134 

size of the average credit union. What do you think is the impact 

of consolidation on credit union members? What can be done, if 

anything, to slow down or reverse this trend? 

A.4. While I share your concern about consolidation’s potentially 

negative impact on credit union members, I also believe that consolidation can, and often does, have a positive impact. In many 

cases, credit unions involved in mergers are quite small and have 

limited hours, locations, services, and product availability. In such 

cases, members can access an expanded set of services and products through a merger. The merging credit unions can take advantage of better economies of scale, thus improving their competitiveness against larger financial institutions. 

When mergers between credit unions do occur, a credit union’s 

members—its owners and customers—generally vote on whether to 

permit the merger. This ownership structure provides some degree 

of assurance that the merger will be good for consumers. In such 

merger votes, the potential benefits to members, including lower 

loan rates or higher rates on deposits, often plays a key role in determining whether the merger occurs. 

If confirmed, I commit to working with credit unions, and small 

credit unions in particular, to ensure their continued viability in 

this ever-changing financial services marketplace. At the same 

time, I will continue to support a credit union’s decision to merge 

with another credit union if that is the will of its membership. 

Q.5. If confirmed, when approving credit union mergers or acquisitions, how will you ensure that continued presence and investment 

in the local community are taken into consideration so that working families continue to have access to financial services? 

A.5. Credit unions, like all financial institutions, are undergoing 

consolidation. I believe that many factors are responsible for this 

trend, including economies of scale and the burden of regulatory 

compliance. In some cases, a credit union may seek a merger when 

a sponsor that has been supporting the credit union’s operating expenses or providing office space withdraws that support. If confirmed to the NCUA Board, an important consideration for me in 

the approval of mergers or acquisitions would be continuity of service to the members of the impacted financial institutions. From discussions with agency staff, I understand that, in most mergers of 

credit unions, the continuing credit union retains most or all of the 

merging credit union’s locations and staff. When retaining the location of a merging credit union is impracticable or impossible, such 

as when a merging credit union’s facility is located in a factory or 

building of the sponsor discontinuing support, the merging credit 

union’s board of directors often favors a merger partner with a 

nearby location. I further understand that, in the current approval 

process, the NCUA takes account of such factors as continued presence and service in the local community. If confirmed to the NCUA 

Board, I would support that current practice and would explore 

other avenues within the NCUA’s current authority to ensure that 

working families do not lose access to critical financial services due 

to a merger or acquisition of their credit unions. 

Q.6. Pentagon Federal Credit Union Merger—Earlier this year, 

Pentagon Federal Credit Union (PenFed), a credit union with $23 

135 

billion in assets and over 1.6 million members, acquired Progressive Credit Union, a NY State chartered credit union with $383 

million in assets and an open charter. While PenFed has said it 

will not use the open charter, if it were to change its mind in the 

future, would you support that decision? If so, should the NCUA 

change how it regulates a large credit union with no restrictions 

on its field of membership? 

A.6. As I understand it, the situation with PenFed is a unique one 

resulting from an emergency merger with Progressive Credit 

Union, a State-chartered credit union that held a (grandfathered) 

national field of membership from the State of New York. I further 

understand that very few credit unions maintain such a broad field 

of membership. If confirmed to the NCUA Board, I would not necessarily object to PenFed’s business decision to use the open charter it acquired through a legal merger process. Before making any 

decision, however, I would consult with the agency’s staff to ensure 

that PenFed would be able to continue to operate in a safe and 

sound manner and to fulfill its mission to provide affordable financial services to all of its members, particularly those of modest 

means. 

Q.7. Field of Membership—Over time, State regulators and the 

NCUA have expanded field of membership rules, to expand access 

to financial services for a greater number of consumers. Expanding 

access to the financial system is extremely important, but it is just 

as important to ensure those same credit unions are serving all 

members of these increasingly larger communities and fields of 

membership. What does the NCUA currently do to evaluate a credit union’s performance in serving all of its members? Are there any 

improvements for which you would advocate if confirmed? 

A.7. NCUA’s Office of Credit Union Resources and Expansion 

(CURE) oversees the performance of Federal credit unions in serving all their members and ensuring that all members, including 

those in underserved communities and particularly in urban areas 

and rural districts, have access to credit union services. I understand that the NCUA requires a newly chartered or newly expanded community credit to submit business and marketing plans 

for its new community, including underserved areas. It then reviews the credit union’s compliance with those plans for several 

years after the charter is granted or expanded. If confirmed to the 

NCUA Board, I would work closely with the NCUA’s CURE office 

to explore all avenues within the NCUA’s authority to increase the 

number of new charters and expanded community charters to facilitate access for unbanked and underbanked individuals to credit 

union products and services. As well, if confirmed, I would like to 

work with Congress on legislative changes to allow all Federal 

credit unions, regardless of charter type, to add underserved areas 

to their fields of membership. Doing so would allow these institutions to offer financial services to those with no or limited access 

to credit union membership. 

Q.8. Payday Alternative Loan (PALs)—The CFPB Director recently 

proposed drastically weakening the agency’s payday rule. Will you 

pledge not to follow in Director Kraninger’s footsteps and work to 

136 

maintain the restrictions, fee limits, and current interest rate caps 

on the NCUA’s Payday Alternative Loan (PAL) product? 

A.8. If confirmed to the NCUA Board, I pledge to carefully consider 

a variety of factors to inform my regulatory approach to the 

NCUA’s PALs rule. These factors include, but are not limited to, 

careful consideration of stakeholder input, the supervisory framework of my Federal banking agency counterparts, and thoughtful 

evaluation of any unintended consequences of changes. My goal 

with respect to the NCUA’s PALs rule is that it will continue to 

help consumers find a path to mainstream, lower-cost financial 

products and services, and I will not support changes to the rule 

that contravene this objective. 

Q.9. NCUA Spending—At your confirmation hearing, Chairman 

Crapo asked about recent press reports about excessive spending 

by the current chair of the NCUA Board. While some of the spending is allowed under NCUA policies, some of it was not, as confirmed by the NCUA Inspector General Report. You committed to 

Chairman Crapo that you would review these policies if confirmed, 

which I support. You have served on the NCUA Board before, are 

there certain items you believe should not be reimbursed for Board 

members or staff by a Federal agency? 

A.9. As I committed during my confirmation hearing, if confirmed 

to the NCUA Board, I will work to ensure the NCUA’s spending 

policies are clearly written and consistent with the other Federal 

banking regulators. In direct response to your question, I believe 

only expenses with a business purpose related directly to the mission of the agency should be reimbursed, so that excludes reimbursement for expenses that would be considered entertainment. 

Moreover, while the reimbursement for alcohol-related representational expenses is legal, as noted by the Office of Inspector General, 

I would seek a policy change to exclude it as a future reimbursable 

expense to individual Board members or NCUA staff. 

RESPONSES TO WRITTEN QUESTIONS OF SENATOR ROUNDS 

FROM RODNEY HOOD 

Q.1. Last Congress I was the Senate sponsor of S. 3750, the Common Sense Credit Union Capital Relief Act of 2018. It would call 

for a delay in the implementation of the NCUA’s Risk-Based Capital Rule. What are your thoughts on the RBC Rule? Should implementation of the Rule be delayed? Should Congress reevaluate the 

need for the Rule entirely? 

A.1. If confirmed to the NCUA Board, I would support a further 

delay to the implementation of the RBC Rule, so that I and my fellow Board Members can further study and assess its real effects on 

the credit union system. I note that the NCUA will have two new 

Board Members if my fellow nominee, Todd Harper, and I are both 

confirmed. Therefore, I think this is the appropriate time to stop 

and study the RBC Rule. Only after that careful consideration of 

the costs and benefits should the NCUA Board decide whether to 

proceed with the RBC Rule and, if so, when. I respectfully note 

that the question of whether Congress should reevaluate the need 

for the RBC Rule rests with Congress. 

137 

RESPONSES TO WRITTEN QUESTIONS OF SENATOR MORAN 

FROM RODNEY HOOD 

Q.1. In addition to voluntarily following the spirit of the President’s 

Executive Order to reduce regulatory burden, the current NCUA 

Board has focused much of its recent rulemaking activity on reducing unnecessary regulatory burden. Do you agree with voluntarily 

following the Executive Order, and will you do so if confirmed? 

A.1. Yes, I agree with the current NCUA Board’s decision to voluntarily follow the spirit of the Executive Order by amending or repealing regulatory requirements that are outdated, ineffective, or 

excessively burdensome. If confirmed, I am fully committed to complying with this aim and providing regulatory relief where it makes 

sense to do so. As articulated in my testimony, I believe in developing effective, but not excessive, regulation that safeguards the 

safety and soundness of federally insured credit unions, preserves 

the integrity of the credit union industry, and protects the National 

Credit Union Share Insurance Fund from losses. 

Q.2. With regard to future NCUA rulemakings, what approach will 

you take in terms of focusing on a reduction of unnecessary regulatory burden? 

A.2. As stated above and in my testimony, if confirmed, I would 

fully support amending or repealing regulatory requirements that 

are outdated, ineffective, or excessively burdensome. I believe that 

the regulatory reform agenda that the current NCUA Board has 

adopted is a good start to improving credit unions’ regulatory landscape. More specifically, I would advocate for the continued modernization and tailoring of regulatory requirements to reduce unnecessary burdens and make regulations commensurate with an individual credit union’s size, complexity, and risk profile. If confirmed, I would return to the NCUA Board with a risk-based and 

market-oriented mindset based on several tenets, including being 

recognized as a fair and thoughtful regulator who realizes the 

value and necessity of regulation but remains cognizant of the impact of excessive regulation. 

Q.3. Credit unions, as not-for-profit, member owned institutions, 

are inherently different than for-profit banks. It is critical that a 

member of the NCUA Board appreciate this difference and support 

the credit union philosophy of people helping people. While it is inevitable that some credit unions will occasionally choose to switch 

from a credit union to a bank charter, what will you do to uphold 

the core philosophy of credit unions to ensure they remain a viable 

source of financial services for Americans? 

A.3. My work spanning over 25 years in the financial services industry fits seamlessly with the core philosophy of credit unions, 

which is ‘‘people helping people.’’ Through my education and that 

work, including many years focused on community development 

and my prior service on the NCUA Board, I have developed a keen 

understanding of the tremendous responsibilities of regulators. The 

NCUA plays a vital role as both regulator and insurer to protect 

the savings of more than 100 million American in an industry with 

more than $1.4 trillion in assets. If confirmed for another term as 

138 

an NCUA Board Member, I will return to the NCUA with a riskbased and market-oriented mindset based on the following tenets: 

• working to ensure that federally insured credit unions remain 

safe and sound institutions; 

• striving to be recognized as a fair and thoughtful regulator 

who realizes the value and necessity of regulation but remains 

cognizant of the burdensome impact of excessive regulation; 

• bringing focused leadership and management to the NCUA 

while seeking to ensure efficient operations and prudent use of 

resources; and 

• understanding the important of disclosure and transparency to 

a wide variety of stakeholders. 

A.4. If confirmed, I would explore all avenues within the NCUA’s 

current authority to increase access for unbanked and underbanked 

individuals, especially those in our Nation’s most vulnerable communities, to credit union products and services. Moreover, I would 

also like to work with Congress on legislative changes to allow all 

Federal credit unions, regardless of charter type, to add underserved areas to their fields of membership. Doing so would allow 

these institutions to offer financial services to those with no or limited access to credit union membership. I believe that all of these 

experiences, philosophies, and priorities would benefit the credit 

union system by helping to ensure that credit unions continue to 

be fulfill their statutory mission of helping people, particularly 

those of modest means. 

Q.4. One of the important responsibilities of the NCUA Board is 

oversight and management of the National Credit Union Administration Central Liquidity Facility (CLF), an instrumentality of the 

United States whose purpose is ‘‘to improve general financial stability by meeting the liquidity needs of credit unions and thereby 

encourage savings, support consumer and mortgage lending, and 

provide basic financial resources to all segments of the economy.’’ 

Since this is the 40th anniversary year of the CLF’s establishment 

and the credit union industry has changed significantly over that 

course of years in many respects, including the number of credit 

unions and the services they provide, if confirmed would you make 

a review of the CLF during this anniversary year a priority, with 

an eye towards making improvements that may be warranted 

based on the changes that have occurred since its founding? 

A.5. Yes, I believe it would be a fitting time to reexamine the CLF 

to determine what changes would benefit this very important liquidity tool for credit unions. If confirmed, I would work with my 

fellow Board Members to explore all avenues within the NCUA’s 

current authority to update and modernize the CLF. Further, I 

would welcome the opportunity to work with Congress on legislative changes needed to improve the CLF’s effectiveness and utility 

to the credit union system. Given the important role the CLF plays 

in providing a liquidity source to credit unions, if confirmed, I 

would support efforts to improve the CLF’s operations and 

functionality. 

139 

RESPONSES TO WRITTEN QUESTIONS OF 

SENATOR CORTEZ MASTO FROM RODNEY HOOD 

Q.1. Mr. Hood, you served on the NCUA board prior to the Financial Crisis. We know that a number of credit unions purchased 

mortgage-backed securities that resulted in their institutions failing. What have you learned about avoiding risk that you would do 

differently during your service this time? 

A.1. There were four corporate, or wholesale, credit unions that 

failed because the AAA- and AA-rated private label mortgagebacked securities they purchased experienced large losses when the 

underlying mortgages experienced high levels of default during the 

Great Recession. Consumer, or retail, credit unions largely avoided 

these types of securities, and thus none failed from losses on such 

securities. The biggest lesson learned for me is just how important 

it is that an enterprise have the necessary expertise and strong 

governance when investing in more complex or risky financial products. Good risk management and governance will result in proper 

control over how much exposure an institution takes relative to its 

capacity to handle the risk in relation to capital and liquidity levels. Regulators need to ensure this expertise and strong governance 

is in place and operating effectively for credit unions with complex 

or risky assets, or high concentrations of certain assets. 

Q.2. Mr. Hood, please tell me more about how you think NCUA can 

support financial inclusion for people with disabilities? Both as employees and in ensuring credit unions provide access for people who 

may be blind, hard of hearing or have another disability? 

A.2. If confirmed to the NCUA Board, I would bring with me a 

strong commitment to diversity and inclusion in all things and on 

all levels, including financial inclusion for people with disabilities. 

I believe all persons should enjoy equal and fair access to quality, 

safe, and affordable financial products and services. As an NCUA 

Board Member, I would continue my work to advance inclusion for 

people with disabilities by ensuring everyone has equal and fair access to mainstream financial services. I would work to encourage 

credit unions to provide financial education, savings, and other 

products and services that meet the needs of all members, including those with disabilities. Moreover, I would work to ensure that, 

as the regulator, the NCUA is sensitive to and considers the needs 

of the individuals with disabilities when issuing regulations. 

I believe that the NCUA can support financial inclusion for people with disabilities in many different ways and, if confirmed, I 

would prioritize working with agency staff in the following ways to 

advance inclusion: 

• The NCUA’s Office of Credit Union Resources and Expansion 

provides resources, such as grants and web-based training, to 

credit unions. If confirmed as an NCUA Board Member, I 

would like to see the office expand their offerings to include 

grants, training, and educational resources specifically designed to stimulate financial inclusion for people with disabilities. I would work to ensure this training is relevant and accessible to individuals with disabilities so they, too, can obtain 

the training they need to be successful. 

140 

• One of the charges of the NCUA’s Office of Minority and 

Women Inclusion is to monitor and assess diversity and inclusion in the credit union industry. To that end, the OMWI office, through presentations and written publications, actively 

encourages credit unions to embrace diversity and inclusion in 

the workplace, in the boardroom and in the products and services they offer. If confirmed, I would support this effort and 

work with the office to encourage credit unions to develop 

products such as home and vehicle modification loans to enable 

people with disabilities to meet their unique challenges. 

• The NCUA must be diligent in ensuring that its regulations do 

not place an undue burden on any group, including people with 

disabilities. It is also critical that the NCUA enable and encourage credit unions to establish products and services that 

enhance the financial inclusion of this community. For example, many mainstream matched savings products specify that 

deposits come from earned income, which by default may exclude some individuals with disabilities as many depend on a 

wide variety of public benefits for their income and other 

needs. Being inclusive requires that public benefits and other 

nonearned income sources also be considered for such product 

types. 

• The NCUA can also work to expand savings programs like 

ABLE Accounts. These tax-advantaged matched savings accounts for individuals with disabilities and their families were 

created with the passage of the Achieving a Better Life Experience Act of 2014, better known as the ABLE Act. Such programs can ease the significant financial burden faced by people 

with disabilities that require expensive accommodations and 

services. 

• Research has shown that people with disabilities are more likely than people without a disability to be unbanked or underbanked. The NCUA’s Office of Minority and Women Inclusion 

can encourage credit unions to partner with organizations offering programs designed to serve the unbanked or underbanked such as the Volunteer Income Tax Assistance program. 

The VITA program provides free tax assistance and tax preparation services to the unbanked and underbanked and those 

with disabilities. These services are generally paired with financial education, savings, and other products and services 

specifically designed for this population. Additionally, the 

VITA program helps ensure people with disabilities are aware 

of and benefit from all available tax credits, thus providing 

participants with additional income and greater financial stability. 

I believe ensuring access to financial services for individuals with 

disabilities is an opportunity, not a burden, for credit unions. Reducing barriers and encouraging equal access for all leads to 

stronger communities and a stronger Nation. 

Q.3. Mr. Hood, you have served on the Neighborworks board. In 

FY18, the median credit score for 9,903 Neighborworks clients was 

694. As you know, Neighborworks borrowers succeed at home ownership despite having low credit scores. If policies were changed to 

141 

require a 700 credit score, what would the impact be on home buyers served by credit unions and other entities? 

A.3. Having the good fortune of working for more than 25 years in 

the financial services sector, during which I provided financial education to underserved communities by conducting homebuyer education classes, I keenly appreciate that the availability of mortgages is the cornerstone of American home ownership. For decades, 

America’s credit unions and other financial institutions have enabled home ownership by originating mortgages not just to those 

with pristine credit, but also to those with imperfect credit histories. I believe that establishing an artificial floor on borrower 

credit scores would jeopardize that dream for many would-be borrowers, including a significant number of minority households. 

A score of 700 would reflect an extraordinarily high threshold; indeed, reports indicate that figure is above the U.S. average credit 

score. Moreover, it should be noted that mortgage underwriters 

take into account many factors when evaluating loans. I believe 

that a credit score floor of 700 would inappropriately ignore such 

considerations, like the size of the borrower downpayment and the 

debt service burden. A hard floor would seem misguided, as many 

loans with borrower credit scores of less than 700 are extraordinarily safe from a credit risk perspective. 

A final point is that there is great imprecision associated with 

credit scores. As credit risk modelers readily concede, although 

credit scores are correlated with the likelihood that a borrower will 

make payments, there is significant ‘‘noise’’ in such measurement. 

A given borrower with a credit score of 690 may, in fact, be just 

as likely to make payments as someone with a score of 710. Credit 

scores are merely statistical measures that make use of ‘‘hard’’ information in credit repositories. Such information can be flawed 

and, in fact, does not reflect a complete picture of the borrower’s 

financial condition. Accordingly, I believe that great care must be 

exercised when considering the imposition of a fixed credit score 

floor. 

Q.4. Mr. Hood, you noted your opposition to rulemaking that was 

‘‘excessive.’’ Please identify at least three rules that pertain to credit unions that you believe are ‘‘excessive.’’ What changes would you 

recommend to those rules? 

A.4. The current NCUA Board has adopted and published a regulatory reform agenda that identifies regulations that it has determined are outdated, ineffective, or excessively burdensome. If confirmed to the NCUA Board, I intend to work with my fellow Board 

Members and agency staff swiftly yet judiciously to implement this 

agenda. Among the many regulatory changes identified in the 

agenda, I believe that the following three regulations are excessive 

in their current form and that their amendment would greatly benefit the credit union industry: (1) modernization of the Federal 

credit union bylaws; (2) modernization of the NCUA’s regulations 

governing credit union investments; and (3) modernization of the 

Bank Secrecy Act requirements applicable to credit unions. 

First, I believe that the Federal credit union bylaws need to be 

modernized. An update to the form of bylaws that the NCUA has 

adopted is long overdue. In fact, as I understand it, the form of byVerDate Nov 24 2008 13:07 Apr 08, 2019 Jkt 046629 PO 00000 Frm 00145 Fmt 6602 Sfmt 6602 L:\HEARINGS 2019\02-14 NOMINATIONS\HEARING\RESEND FOLDER\35617 NEW.TXT
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laws was last updated during my prior tenure on the NCUA Board. 

Fortunately, the current NCUA Board has already issued a proposed rule to update, clarify, and simplify the Federal credit union 

bylaws and remove outdated, obsolete, or excessively burdensome 

provisions. If confirmed, I look forward to reviewing the comments 

received on the proposal and assisting in the development of a final 

rule to modernize the bylaws so that they provide flexibility in governance for both credit unions and their members. 

The second regulatory change I would like to see made is the 

modernization of the NCUA’s regulations governing credit union investments to remove unnecessary restrictions that are not statutorily required and not required from a safety and soundness perspective. The NCUA’s regulatory reform agenda suggests a change 

to a more principles-based approach. 

Finally, I would like to work to update credit union Bank Secrecy 

Act requirements. While the NCUA has limited authority in this 

area, I believe that the NCUA needs to continue working on an 

interagency basis and with Congress to modernize Bank Secrecy 

Act requirements so that they are both more effective and less burdensome on financial institutions. 

Q.5. The National Credit Union Administration staff has been 

through a major consolidation—shrinking to three regional offices 

from five. How will you manage this transition so that the staff remain focused on their mission and have the resources they need? 

Does the consolidation present any concerns? 

A.5. From my briefings with agency leadership, the transition was 

completed as of January 1, 2019, with as minimal disruption as 

possible to staff and operations. The NCUA completed its restructuring of the agency’s headquarters at the start of 2018, while the 

regional office restructure was completed at the start of 2019. If 

confirmed, I plan to continue the dialogue I have already started 

with each agency office head to ensure proper balancing of sufficient resources to meet the agency’s mission with the substantial 

savings the restructuring provided to the credit unions that fund 

the agency’s budget. As well, from my first term as an NCUA 

Board Member, I know that the NCUA’s staff are second-to-none 

in their professionalism, enthusiasm, and dedication to the agency’s 

mission. If confirmed for another term as an NCUA Board Member, 

I would work diligently to ensure that nothing from this recent consolidation has changed that. 

Q.6. Nationwide, nearly 20 million families live in manufactured 

homes: about 7 percent of the housing stock. The quality of the 

homes is good but at times, the financing can be predatory. The 

duty-to-serve requirements of Fannie Mae and Freddie Mac could 

provide an opportunity for credit unions to increase their lending 

to manufactured home buyers. Do you see an opportunity for credit 

unions to provide more loans to people wishing to buy a manufactured home? If so, what will you do to help credit unions serve 

manufactured home buyers? 

A.6. Yes, I see a ripe opportunity for credit unions to continue to 

support the manufactured home markets in a safe and sound manner. Loans for manufactured housing and mobile homes is an important service that credit unions provide and, if confirmed, I 

143 

would work to make sure credit unions have the flexibility they 

need to make these loans, consistent with safety and soundness 

principles. In 2005, the NCUA amended its regulations to provide 

that manufactured housing can qualify for mortgages of up to 20 

years. If confirmed to the NCUA Board, I would work with my fellow Board Members and agency staff to explore all available avenues to provide additional flexibilities for manufactured housing 

lending. 

Q.7. This Committee has invested a fair bit of time trying to stop 

money laundering and terrorist financing while also keeping access 

to the financial system for cash businesses, humanitarian groups 

and people sending remittances abroad to fragile Nations. Do you 

have any advice for us on how to improve the Bank Secrecy Act 

and Anti– Money-Laundering statutes that detect such dangerous 

activities while avoiding harmful derisking for legitimate actors? 

Do you have recommendations to implement? 

A.7. The current Bank Secrecy Act and Anti– Money-Laundering 

(AML) statutes place a great deal of responsibility on financial institutions to detect and report illicit financial activity. A risk-based 

system provides greater flexibility, but also creates uncertainty and 

requires greater judgment about when to report something. Hence, 

financial institutions ultimately may choose to avoid providing 

service to higher risk customers, where the cost of servicing certain 

accounts to a satisfactory degree of certainty outweighs the benefits. Modernizing the AML system to target the highest priority 

risks and automate the reporting requirements for lower risks 

would help alleviate this uncertainty. In addition, I believe that 

providing more clarity about reporting requirements for financial 

institutions would reduce burden and unnecessary de-risking by financial institutions. Finally, as noted above, if confirmed, I would 

like to work to update credit union Bank Secrecy Act requirements. 

While the NCUA has limited authority in this area, I believe that 

the NCUA needs to continue working on an interagency basis and 

with Congress to modernize Bank Secrecy Act requirements so that 

they are both more effective and less burdensome on financial institutions. 

Q.8. The NCUA is unique from other Federal financial regulatory 

agencies in that it is an independent regulator and insurer of credit 

unions. Do you support the agency’s continued independence? 

A.8. Yes, I support the continued independence of the NCUA, as 

well as that of the other Federal financial regulatory agencies. 

Such independence, particularly in the areas of budgeting and rulemaking, enables the NCUA and its peer agencies to be effective at 

maintaining confidence in the Nation’s federally insured financial 

system and nimble in responding to changing financial conditions, 

whether in the general economy or at specific institutions. While 

it’s true that the NCUA is unique among Federal financial regulatory agencies by maintaining dual roles as an independent regulator and an insurer, whereas those functions are housed in separate agencies in the Federal banking regulatory system, I note that 

Congress has uniformly entrusted these functions to independent 

agencies. 

144 

Q.9. What can the NCUA do to ensure it is able to maintain its 

current status as an independent regulator and insurer? 

A.9. If confirmed, my paramount responsibility as an NCUA Board 

Member would be to protect the safety and soundness of the credit 

union system and the health of the National Credit Union Share 

Insurance Fund. I would work with my fellow Board Members to 

take actions, including the promulgation of necessary regulations, 

in furtherance of that shared responsibility. I also would work with 

fellow financial regulators at both the Federal and State levels to 

ensure the continued confidence in our Nation’s federally insured 

financial system. Moreover, if confirmed, I would like to continue 

the agency’s current focus on transparency and accountability in all 

aspects of the NCUA’s operations. 

Q.10. As the prudential regulator and Federal insurer, the NCUA 

retains oversight over the vast majority of a credit union’s operations. However, there are numerous areas where there is overlap 

with other regulatory agencies, such as the Consumer Financial 

Protection Bureau in regard to certain consumer financial protection laws and regulations, as well as some areas where other agencies maintain exclusive authority over certain issues, such as the 

Federal Communications Commission in regard to certain consumer protections, including the Telephone Consumer Protection 

Act. Do you appreciate the importance of the NCUA’s continued coordination with other Federal regulatory agencies? 

A.10. Yes, I absolutely appreciate the importance of the NCUA’s 

continued coordination with other Federal regulatory agencies. As 

a Federal financial regulatory agency, the NCUA serves on a number of interagency panels, including the Federal Financial Institutions Examination Council (FFIEC) and the Financial Stability 

Oversight Council (FSOC), that coordinate supervisory policy and 

regulation across all types of financial institutions. This type of 

interagency collaboration is critical to ensure consistency among 

depository financial institutions and continued confidence in the 

Nation’s federally insured financial system. 

During my previous term as an NCUA Board Member, I 

launched a series of Enterprise Risk Management Summits, which 

provided training to credit unions on how to mitigate and manage 

risks. Working in collaboration with regulators from the Federal 

Reserve, the OCC, the FDIC, the Federal Home Loan Banks, and 

the National Economic Council, I hosted sessions with subject matter experts and credit union leaders in various risk areas. The 

interagency collaboration was invaluable to these efforts. If confirmed to the NCUA Board, I welcome the opportunity to continue 

my work in this important area, with a particular focus on cybersecurity and the risk it poses across the entire financial system. 

Q.11. How will you ensure the NCUA works in close collaboration 

with other agencies on issues and rulemakings that directly impact 

credit unions? 

A.11. If confirmed as an NCUA Board Member, I would work with 

agency staff to monitor legislative and regulatory developments 

that could directly impact credit unions. Where appropriate, I 

would reach out to my colleagues at other Federal regulators to 

highlight the unique nature of the credit union industry and to enVerDate Nov 24 2008 13:07 Apr 08, 2019 Jkt 046629 PO 00000 Frm 00148 Fmt 6602 Sfmt 6602 L:\HEARINGS 2019\02-14 NOMINATIONS\HEARING\RESEND FOLDER\35617 NEW.TXT
145 

courage greater collaboration and information sharing on regulatory initiatives. I would also hope to have the honor of working 

with fellow regulators on my Enterprise Risk Management Summits and through organizations like Neighborworks. 

Q.12. Last summer, NCUA proposed significant changes to the program it calls ‘‘Payday Alternative Loans’’, or ‘‘PAL’’. For nearly a 

decade, this program has permitted Federal credit unions, on loans 

up to $1,000, to charge more than the Federal credit union interest 

rate limit (28 percent instead of 18 percent) as well as an application fee of up to $20 per loan. But it has always included an important limit—it limits the number of these $20 fees to three every 6 

months—a measure that prevents credit unions from abusing the 

program by repeatedly charging $20 on even very small loans, 

keeping customers in a cycle of repeat loans that mirrors the payday loan debt trap itself. 

But in its 2018 proposal, NCUA inexplicably proposed lifting this 

limit—a proposal that was opposed by more than 100 civil rights, 

faith, consumer and community groups, as well as the National 

Federation of Community Development Credit Unions (now 

Inclusiv)—because it would make it easier for credit unions to trap 

customers in unaffordable short-term loans. NCUA has not yet finalized this proposal. Would you oppose sanctioning the ability of 

Federal credit unions to put members into an unlimited number of 

high-cost short-term loans? 

A.12. If confirmed to the NCUA Board, I would work with my fellow Board Members to ensure that Federal credit unions continue 

to provide their members a considerably lower cost alternative to 

products offered by traditional predatory payday lenders. Although 

I would approach this, and any, issue with an open mind, I would 

be reluctant to sanction any initiative that would not support a 

consumer’s ability to break the crippling cycle of high-cost payday 

loans. 

Q.13. If the CFPB’s commonsense payday loan rule was to repealed, the new PAL proposal would permit a 1-month, $100 loan 

with two semimonthly payments, at an effective APR of 345 percent, flipped 11 times in a year (so, 12 loans total). This is an annual cost of $240, plus 28 percent interest, for effectively $100 in 

credit. Does this sound like the kind of behavior NCUA should be 

encouraging, especially when it has a near decade-old policy that 

would limit high-cost loans to three loans every 6 months? 

A.13. As noted above, if confirmed, I would hesitate to approve any 

regulatory change that would not support a consumer’s ability to 

break the cycle of predatory payday loans. 

Q.14. The ‘‘ability to repay’’ concept exists is virtually every regulatory or legislative precedent. It includes an assessment not only 

of income—or the lender’s ability to seize that income on payday— 

but also of obligations or expenses. Should a Federal credit union 

make loans based on a determination that the borrower has the 

ability to repay the loan? 

A.14. If confirmed to the NCUA Board, I would work to ensure that 

a credit union makes a PALs loan with its member’s best interests 

in mind, including the amount granted, the loan term, the total 

146 

cost, and the member’s ability to repay the loan. These are all factors that play an important role in a consumer’s ability to break 

the crippling cycle of predatory payday lending. 

Q.15. Currently, NCUA rules severely limit the ability of Federal 

credit unions to hedge the interest rate risk of having long-term 

loans, such as mortgages, and short-term deposits. Other financial 

institutions do not have this restriction. Should credit unions be 

able to hedge this interest rate risk for the safety of the credit 

unions and the insurance fund? Why or why not? 

A.15. I believe that credit unions with the requisite expertise 

should be able to use derivatives to hedge against interest rate 

risk. I understand that, in 2014, the NCUA finalized a rule permitting Federal credit unions to use derivatives to mitigate interest 

rate risk. Applicable State law governs whether federally insured, 

State-chartered credit unions can similarly use derivatives as a 

hedge against interest rate risk. As part of its regulatory reform 

agenda, the current NCUA Board has indicated its willingness to 

explore whether to provide Federal credit unions with additional 

flexibility in using derivatives to manage interest rate risk. If confirmed, I would support that effort, provided that any such derivatives instruments and programs are executed and implemented in 

accordance with strong safety and soundness principles. 

RESPONSES TO WRITTEN QUESTIONS OF SENATOR JONES 

FROM RODNEY HOOD 

Q.1. Mr. Hood, credit unions play a critical role in providing financial services to underserved communities. However, given their traditional structure, credit unions have not been included in the 

Community Reinvestment Act (CRA). As you know, the Federal financial regulators are currently considering updates to the implementation of CRA. Given the change in business models, practices, 

and technology in both banks and credit unions in the years since 

CRA was last updated, I believe this is an opportunity to take a 

comprehensive look at how institutions of all type serve their communities. While Congress would need to act to apply CRA to credit 

unions, do you believe there are steps NCUA can take to ensure 

that credit unions of all sizes are adequately providing services to 

underserved communities? 

A.1. Serving the underserved is a core part of the credit union mission and philosophy, which is to meet the credit and savings needs 

of consumers, especially persons of modest means. Further, as part 

of the NCUA’s mission to protect the safety and soundness of the 

credit union system, the agency has developed initiatives to facilitate credit unions more effectively serving their memberships, especially those in underserved areas. I believe that credit unions are 

fulfilling that mission now and, if confirmed to the NCUA Board, 

would explore all avenues within the NCUA’s authority to increase 

access for unbanked and underbanked individuals to credit union 

products and services, including building upon the NCUA’s financial literacy efforts. 

In addition to working to improve unbanked and underbanked 

individuals’ access to credit union services under the NCUA’s curVerDate Nov 24 2008 13:07 Apr 08, 2019 Jkt 046629 PO 00000 Frm 00150 Fmt 6602 Sfmt 6602 L:\HEARINGS 2019\02-14 NOMINATIONS\HEARING\RESEND FOLDER\35617 NEW.TXT
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rent authority, if confirmed, I would also like to work with Congress on legislative changes to the Federal Credit Union Act, such 

as allowing all Federal credit unions, regardless of charter type, to 

add underserved areas to their fields of membership. Doing so 

would allow these institutions to offer financial services to those 

with no or limited access to credit union membership. 

Q.2. Mr. Hood, credit unions, along with banks, money service 

businesses and other financial institutions, are tasked with being 

on the ‘‘front lines’’ of our current Anti– Money-Laundering (AML) 

regime. There is currently bipartisan agreement that our current 

AML system is need of updating and reform. The system is too 

often inefficient and expensive while not adequately providing law 

enforcement with the information they need to pursue criminals. In 

addition, there is broad agreement that there should be broad collection of beneficial ownership information. Specifically, what do 

you believe should be priorities for creating a modern risk-based 

AML system? 

A.2. I believe that a modern risk-based AML system must move 

away from the current process, which is largely manual and very 

burdensome, and instead leverage technology, such as machine 

learning and artificial intelligence. For example, if confirmed to the 

NCUA Board, I would work with law enforcement, my fellow regulators, and the financial community to develop and implement an 

automated data reporting framework to replace Currency and 

Transaction Reports. I also would work with stakeholders to ensure 

that all financial institutions, including credit unions, could run algorithms designed to address the needs of law enforcement to automate identifying accounts. Overall, I believe that AML requirements need to be flexible to allow resources to be directed toward 

the greatest priorities and to fit a range of new business models, 

specifically those that leverage technology and other forms of value 

exchange such as cryptocurrency. 

RESPONSES TO WRITTEN QUESTIONS OF SENATOR SMITH 

FROM RODNEY HOOD 

Q.1. I often hear stories about a difficult barrier to constructing 

new housing in rural areas and tribal lands—both affordable housing and workforce housing. That barrier is access to lenders and financial institutions. What role should credit unions play in ensuring that new housing construction in rural areas and tribal lands 

is adequately financed? 

A.1. I believe that credit unions play a critical role in helping families achieve the American dream of home ownership. And I believe 

they can do even more to help residents of rural areas and tribal 

lands, many of whom are unbanked or underbanked. As noted in 

my testimony, one of my top priorities as an NCUA Board Member, 

if confirmed, would be to ensure that the NCUA creates opportunities to promote financial education and financial inclusion. I would 

work with my fellow Board Members and agency staff, particularly 

in the NCUA’s Office of Credit Union Resources and Expansion 

(CURE), to explore all avenues within the NCUA’s authority to increase access for unbanked and underbanked individuals to credit 

148 

union products and services, including building upon the NCUA’s 

already impressive financial literacy efforts. Moreover, I would leverage my experience as a former Associate Administrator of the 

Rural Housing Service at the U.S. Department of Agriculture, 

where I helped administer a $43 billion loan portfolio of over 

400,000 homeowners, to seek opportunities to connect credit unions 

and their members in rural areas to existing public sector lending 

programs. 

In addition to working to improve unbanked and underbanked 

individuals’ access to credit union services under the NCUA’s current authority, I would also like to work with Congress on legislative changes to the Federal Credit Union Act, such as allowing all 

Federal credit unions, regardless of charter type, to add underserved areas to their fields of membership. Doing so would allow 

these institutions to offer financial services to those with no or limited access to credit union membership. 

RESPONSES TO WRITTEN QUESTIONS OF SENATOR SINEMA 

FROM RODNEY HOOD 

Q.1. Unlike other Federal financial regulatory agencies, the NCUA 

is an independent regulator and insurer of credit unions. How will 

you ensure the agency continues to be independent and vigilant in 

protecting the safety and soundness of credit unions in Arizona? 

A.1. If confirmed, my paramount responsibility as an NCUA Board 

Member would be to protect the safety and soundness of the credit 

union system, including credit unions in Arizona, and the health of 

the National Credit Union Share Insurance Fund. I would work 

with my fellow Board Members to take actions, including the promulgation of necessary regulations, in furtherance of that shared 

responsibility. I also would work with fellow financial regulators at 

both the Federal and State levels to ensure the continued confidence in our Nation’s federally insured financial system. Moreover, if confirmed, I would like to continue the agency’s current 

focus on transparency and accountability in all aspects of the 

NCUA’s operations. 

RESPONSES TO WRITTEN QUESTIONS OF SENATOR BROWN 

FROM MARK ANTHONY CALABRIA 

Q.1. FHFA Director/Administrative Actions—During your testimony, you stated that the FHFA Director ‘‘can make a number of 

changes that can try to get the GSEs on stable footing’’ without additional legislation. 

Please list all changes that you believe the FHFA Director can 

make, either independently or in cooperation with executive branch 

agencies, to achieve this goal. 

A.1. In the absence of a full legal review, as well as a review of 

current confidential supervisory information regarding the GSEs, 

listing ‘‘all’’ possible changes is not feasible. 

Q.2. If you are confirmed, which of these policies do you intend to 

pursue? 

149 

1See ‘‘The Conservatorships of Fannie Mae and Freddie Mac: Actions Violate HERA and Established Insolvency Principles’’, Michael Krimminger and Mark Calabria, February 9, 2015, 

available at https://www.cato.org/publications/working-paper/conservatorships-fannie-maefreddie-mac-actions-violate-hera-established. 2See ‘‘En Banc Supplemental Brief of Defendants-Appellees’’, Federal Housing Finance Agency and Joseph M. Otting, Patrick J. Collins, et al. v. Steven T. Mnuchin, et al., No. 17-20364. 

A.2. Not being privy to confidential supervisory information regarding entities under the supervision of FHFA, I am not in a position 

to commit to any particular set of policies or actions. 

Q.3. PSPAs and Capital—You coauthored a paper which asserts 

that ‘‘Treasury’s and FHFA’s actions in the conservatorships of the 

Companies after the 2012 Third Amendment and the advent of the 

net worth sweeps violate . . . the express requirements of 

HERA.’’ 1

Just last month, FHFA and Treasury defended the Third Amendment in court. Specifically, FHFA argued that the ‘‘Conservator’s 

execution of the Third Amendment fell squarely within its broad 

statutory powers and functions, including to ‘‘take over the assets 

of and operate the [Enterprises],’’ ‘‘carry on [their] business,’’ ‘‘perform all functions’’ of the Enterprises, ‘‘contract’’ on their behalf, 

and ‘‘conduct all business of the [Enterprises]’’—all in the manner 

the Conservator ‘‘determines is in the best interests of the [Enterprises] or the Agency.’’ 2

Do you still believe that the Third Amendment violates HERA? 

A.3. I believe there continue to be significant legal questions regarding the Third Amendment. My analysis was based solely on 

publicly available information. If confirmed, I will examine FHFA 

internal legal documents on this issue and consult with relevant 

FHFA personnel before reaching any further conclusions. 

Q.4. As FHFA Director, would you continue to defend the actions 

of FHFA, including the Third Amendment, in court? 

A.4. Any further defense of currently on-going legal matters would 

depend upon a review of internal FHFA legal documents, which I 

have not been privy to, as well consultation with FHFA counsel. 

Q.5. If you continue to assert that FHFA’s actions violate the law, 

what actions would you take as FHFA Director to change the Third 

Amendment and comply with HERA as you read it? Would those 

actions result in FHFA acting as conservator or receiver of the Enterprises? 

A.5. After review of internal FHFA legal documents, and appropriate legal consultation, if there is a conclusion that the law has 

been violated, I would make every effort to bring FHFA into compliance within the authorities of FHFA. 

Q.6. Regardless of your answers above, if confirmed do you intend 

to operate the Enterprises in conservatorship or receivership status 

prior to any legislative changes to the Enterprises? 

A.6. As the Enterprises are currently in conservatorship, if confirmed I would expect to continue to operate the Enterprises in conservatorship until the conditions have been established that would 

mandate an exit from conservatorship. 

Q.7. During your testimony you emphasized the importance of capital at the GSEs. But you also noted that, for capital to be inVerDate Nov 24 2008 13:07 Apr 08, 2019 Jkt 046629 PO 00000 Frm 00153 Fmt 6602 Sfmt 6602 L:\HEARINGS 2019\02-14 NOMINATIONS\HEARING\RESEND FOLDER\35617 NEW.TXT
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creased above the current $3 billion retained at each Enterprise, 

there would need to be an agreement between Treasury and FHFA 

to allow them to retain additional earnings. 

As FHFA Director, would you seek to increase the amount of capital supporting each Enterprise outside of the current Treasury 

backstop prior to any legislative reforms? 

A.7. Yes, as Section 1102 of HERA places among the Director’s duties the maintenance of adequate capital. 

Q.8. If so, what steps would be necessary to build that capital? 

Would this require an amendment or other alteration to the Senior 

Preferred Stock Purchase Agreements? Would all capital come from 

retained earnings? 

A.8. An amendment may be required. However, a more precise answer to these questions would require an extensive analysis of the 

Enterprises’ financial condition, as well as future forecasts of such, 

an exercise which I have not yet performed. 

Q.9. If not, why not? 

A.9. See answer immediately above. 

Q.10. During your testimony, you stated that you ‘‘support the concept of having significantly more capital at the GSEs.’’ 

What amount of capital, either in dollar or percentage terms, 

would you seek to attain at the GSEs if the GSEs were to rebuild 

capital in their current state and continue serving the same segments of the market, notwithstanding the existing Third Amendment to the Senior Preferred Stock Purchase Agreements? 

A.10. I believe the Director is obligated to try to achieve the minimum capital levels specified in Section 1362 of the 1992 Act, as 

amended by HERA. 

Q.11. What amount of this capital do you believe should be common equity? What amount, if any, of this capital could be achieved, 

or by what amount could this capital requirement be lowered, in 

the single-family portfolio with risk transfer to approved counterparties including private mortgage insurers, reinsurers, and the 

capital markets? 

A.11. I believe the composition of GSE capital must be consistent 

with Sections 1303(4) and 1362 of the 1992 Act, as amended by 

HERA. Changes to the risk-based capital levels can consider risk 

transfers. 

Q.12. In 2018, FHFA published a Notice of Proposed Rulemaking 

(NPRM) to establish Enterprise risk-based capital requirements. 

While proposed capital requirements would not be applicable while 

the current Senior Preferred Stock Purchase Agreements (PSPAs) 

are in place, the proposal outlines a framework for regulatory capital for financially healthy Enterprises and establishes the capital 

structure used to determine whether pricing is appropriate and Enterprise activities are economical under the PSPAs. The comment 

period for the NPRM closed on November 16, 2018. 

Do you believe FHFA’s 2018 proposal outlines an appropriate 

framework for establishing capital requirements at the Enterprises? If not, why not? 

A.12. I have not yet read the proposed risk-based capital rule. 

151 

3 ‘‘Credit Risk Transfer Progress Report: Second Quarter 2018,’’ FHFA, available at https:// 

www.fhfa.gov/AboutUs/Reports/ReportDocuments/CRT-Progress-Report-2Q18.pdf. 

Q.13. If confirmed, will you review the comments submitted and 

continue the current risk-based capital rulemaking; start a new 

rulemaking; or stop all capital rulemakings for the Enterprises? If 

you intend to propose a new rule or stop capital rulemakings, 

please explain how you will approach the regulation of capital at 

the Enterprises. 

A.13. If confirmed, I intend to review the comments and proposed 

rule and take the appropriate actions as warranted by that review. 

Q.14. Credit Risk Transfer—In its regular credit risk transfer 

(CRT) reports, FHFA states that it assesses CRT programs and 

transfers on a set of principles, including that the Enterprises 

transfer risk when it is ‘‘economically sensible to do so.’’ FHFA defines economical CRT transactions as ‘‘transactions in which the 

cost to the Enterprise for transferring the credit risk does not 

meaningfully exceed the cost to the Enterprise of self-insuring the 

credit risk being transferred.’’ 3

Do you support the principle that all Enterprise credit risk transfer should be economically sensible? If not, why not? 

A.14. I have not had the opportunity to review FHFA guidelines in 

this area. If confirmed, I intend to do so. 

Q.15. During an economic downturn, certain types of credit risk 

transfer could become more expensive and therefore uneconomical. 

If credit risk transfer became uneconomical, would you support 

modifying transfer volume to allow only those transfers that remain economical? If not, why not? 

A.15. During an economic downturn, I would support reviewing existing credit risk transfers in light of the macroeconomic conditions 

and taking any actions that are warranted, consistent with the 

statutory framework. 

Q.16. Structure of FHFA—As you noted during your testimony, you 

worked on the Housing and Economic Recovery Act (HERA), which 

created the FHFA, and the two housing finance bills that preceded 

it, S. 1508, the Federal Enterprise Regulatory Reform Act of 2003 

and S. 190, the Federal Housing Regulatory Reform Act of 2005. 

All three pieces of legislation created a regulator for Fannie Mae 

and Freddie Mac headed by a single director appointed by the 

President with the advice and consent of the Senate. The 2005 legislation and HERA, which ultimately became law, were clear that 

the agency director would only be removable for cause. 

If confirmed as FHFA Director, will you defend the single director structure of FHFA? 

A.16. Yes. 

Q.17. Do you believe an independent agency with FHFA’s breadth 

of authority and a single director removable only for cause is constitutional? If not, why did you help draft and why have you consistently defended two laws that you believe to be unconstitutional? 

A.17. I am not a lawyer or constitutional scholar so this is not my 

area of expertise, but my own view is that FHFA’s structure is lawful. 

152 

4 ‘‘Random Thoughts on Obama’s New Mortgage Plan’’, Mark A. Calabria, October 25, 2011, 

available at https://www.cato.org/blog/random-thoughts-obamas-new-mortgage-plan. 

Q.18. Independence—In our private meeting and during your testimony, you stated that you removed yourself from all internal discussions about the future of the housing finance system within the 

Administration upon notice that you would be nominated because 

it was important ‘‘for maintaining the FHFA is ‘‘an independent 

regulator that the President is supposed to have no control over.’’ 4

As a member of the Committee staff that worked on HERA and 

the creation of FHFA as an independent agency, how does the 

President’s choice of an Acting Director at FHFA who is simultaneously a member of an executive branch agency within a larger 

agency, the Treasury Department, which is part of the President’s 

Cabinet, preserve that independence? How can a single individual 

be both an appointee within a Cabinet-level agency and independent of the President? 

A.18. I have not examined this legal question. 

Q.19. As a member of the Committee staff that created a legislative process for selecting an Acting Director of FHFA from among 

the three Deputy Directors at FHFA in the event of a vacancy, are 

you concerned that the President did not follow the process established by Congress? 

A.19. I have not examined this legal question. 

Q.20. Did you continue meeting with housing finance industry 

stakeholders or regulated entities in your official capacity as Chief 

Economist to the Vice President between September 2018 and your 

nomination hearing? If so, how were you able to convey the stakeholders’ concerns and the Administration’s views if you had removed yourself from internal deliberations? 

A.20. Yes. I did not, in general, convey the substance of those 

meetings to others and instead urged stakeholders to directly engage with the President’s staff or relevant agency personnel. 

Q.21. World Class Regulator—During your testimony, you said that 

you are ‘‘committed to seeing the work of HERA finally completed 

and turning FHFA into a world-class regulator.’’ 

What does it take to be a world-class regulator? If you do not believe that FHFA is currently a world-class regulator, what changes 

do you believe are necessary to make it one? 

A.21. I believe FHFA should be granted the full range of regulatory 

authorities granted to most other financial regulators. For instance 

in the area of capital, bank regulators, especially under Section 38 

of the Federal Deposit Insurance Act, have considerable authority 

which FHFA lacks. It is my intent, if confirmed, to deliver to the 

Committee a list of authorities held by other regulators which 

FHFA currently lacks. 

Q.22. Are there other parts of HERA that you believe are not complete or fully implemented? What steps do you believe are necessary to see the work of HERA completed? 

A.22. See answer above. Additionally a world-class regulator 

should be viewed as a significant source of research and information on the policy issues under its purview. Currently, for instance, 

153 

the Federal Reserve System does far more research and analysis on 

our mortgage markets and mortgage policy than does FHFA. I 

would intend to close that gap. 

Q.23. Multiple Guarantors—In response to questions during your 

nomination hearing, you stated that ‘‘one element [you] believe we 

all share is a greater need for competition.’’ 

Were you referring to competition in the primary market, the 

secondary market, or both? If it is competition in the secondary 

market, what factors do you believe secondary market entities 

should compete on? 

A.23. Both. Other than any sort of explicit Government guarantee, 

which should only be provided by a nonprofit, FDIC style model, 

all other elements of the secondary market should be open to competition. 

Q.24. How would additional competition in the secondary market 

impact liquidity and pricing in the To-Be-Announced (TBA) market? 

A.24. I believe competition would improve liquidity and pricing in 

the TBA market. As is well established in the economics literature 

on market structure, competitive markets result, in general, with 

better pricing for the consumer than monopolistic markets or duopolies. 

Q.25. Multifamily—As you stated during your nomination hearing, 

our country is facing a housing affordability crisis. About a quarter 

of renters currently spend more than half of their income on housing, and there is no market where a person working 40 hours per 

week at minimum wage can afford a modest two-bedroom apartment. 

Do you believe there is a role for the Enterprises to play in addressing the rental affordability crisis? If so, if confirmed, what 

changes in the Enterprises’ policies or products would you support 

to address this affordability crisis? 

A.25. Yes. Before engaging in any changes in this area, I believe 

an appropriate review of the effectiveness of those policies and programs would be warranted and that any changes flow from that review. 

Q.26. If confirmed, would you support a continued Government 

guarantee on multifamily loans through the Enterprises? If so, 

would you support that guarantee being extended to the same or 

a greater population of loans and products? 

A.26. Before lending support to any set of proposals, I would need 

to engage in considerable review and examination of those policies. 

Q.27. The Enterprises’ primary multifamily products—Fannie 

Mae’s Delegated Underwriting System (DUS) and Freddie Mac’s K 

Deal Program—differ in their risk-sharing models. Do you believe 

these products are treated appropriately in FHFA’s Enterprise 

Capital Requirements NPRM? 

A.27. I have not read the referenced NPRM. 

Q.28. Fair Housing/Fair Lending—There remains an enormous racial gap in home ownership and wealth, and in many cities redlining still defines the occupancy of neighborhoods. You have writVerDate Nov 24 2008 13:07 Apr 08, 2019 Jkt 046629 PO 00000 Frm 00157 Fmt 6602 Sfmt 6602 L:\HEARINGS 2019\02-14 NOMINATIONS\HEARING\RESEND FOLDER\35617 NEW.TXT
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5 ‘‘Race and Homeownership: Historical Trends’’, Mark A. Calabria, January 13, 2011, available at https://www.cato.org/blog/race-homeownership-historical-trends. 6See ‘‘If We Decide To Keep Fannie Mae Around . . . ’’, Mark A. Calabria, February 18, 2015, 

available at https://www.cato.org/blog/we-decide-keep-fannie-mae-around; Testimony before the 

U.S. House of Representatives Committee on Financial Services, ‘‘A Legislative Proposal To Protect American Taxpayers and Homeowners by Creating a Sustainable Housing Finance System’’, 

Mark A. Calabria, July 18, 2013, available at https://www.cato.org/publications/testimony/legislative-proposal-protect-american-taxpayers-homeowners-creating. 7See Testimony before the U.S. Senate Committee on Banking, Housing, and Urban Affairs, 

‘‘The State of the Housing Market’’, Mark A. Calabria, March 9, 2011, available at https:// 

www.cato.org/publications/congressional-testimony/state-housing-market. 

ten that ‘‘the vast majority, if not all, of the racial home ownership 

gap is explained by factors such as age, income, family status, 

wealth and local housing costs,’’ so we should stop trying to ‘‘socially engineer a specific home ownership rate.’’ 5

Do you believe systemic discrimination exists in the housing 

market today? If not, when do you believe it ended and how? 

A.28. Yes. 

Q.29. What if any role should FHFA play in addressing the effects 

of past and present systemic discrimination in today’s home ownership and rental housing markets? 

A.29. FHFA has an important role in insuring that all entities 

under its supervision fully comply with our Nation’s Fair Housing 

Laws. FHFA also has a role in making sure that the activities of 

entities under its supervision do not contribute to further segregation. Additionally FHFA has a role in making sure that efforts to 

extent home ownership are done in a sustainable manner that do 

not leave vulnerable families worse off. 

Q.30. 30-Year Fixed-Rate Mortgage—In response to a question from 

Senator Tester, you stated that, if confirmed, at the end of your 5- 

year term, ‘‘the 30-year fixed-rate mortgage will be widely available.’’ 

Do you believe that, if confirmed, at the end of your term secondary market financing for the 30-year fixed-rate mortgage will be 

available in the conventional market to the same or a larger population of borrowers to whom it is available today at the same or 

lower cost (not including market changes in interest rates)? 

A.30. Yes. 

Q.31. If not, what changes would you expect to see and what populations of lenders and borrowers are those changes most likely to 

effect in the primary market? 

A.31. N/A. 

Q.32. G-Fees—You have written that the GSEs should be guaranteeing a smaller subset of loans—those with higher FICO scores, 

higher downpayments, and lower loan amounts. 6 You’ve also said 

that the GSEs should be charging more for their guarantee. 7 During your testimony before the Committee, you clarified that we 

should look at each loan holistically to evaluate whether or not it 

is eligible for guarantee. 

Looking holistically at the loans being guaranteed by the Enterprises today, are there loans being purchased or products being offered at either Enterprise that you would eliminate or increase the 

price for? If so, please name those products and what if any price 

changes are necessary. 

155 

A.32. Without a full review of the GSEs’ current business and loan 

performance, including examination of confidential supervisory information, I do not have the full set of information necessary to answer this question. 

Q.33. If you are confirmed, would you maintain the existing guarantee fee framework, or would you adjust the existing pricing grids, 

including any loan-level price adjustments, either by product or by 

borrower characteristic? If you would adjust the pricing grids, 

please explain any proposed changes. 

A.33. Without a full review of the GSEs’ current business and loan 

performance, including examination of confidential supervisory information, I do not have the full set of information necessary to 

speak to this issue. 

Q.34. Have you studied how many borrowers would no longer have 

access to a loan or would pay more for it if you made the changes 

noted in the prior two answers? 

A.34. No. 

Q.35. Fannie Mae and Freddie Mac have historically offered lenders volume-based discounts for loans that will be guaranteed by the 

Enterprises. These discounts disadvantaged small lenders that 

could be forced to sell loans to a larger competitor or face higher 

transaction costs. Under the regulation of FHFA, volume-based discounts have been eliminated. 

If confirmed, do you commit to maintain equal guarantee fee 

pricing for all lenders, regardless of the number of loans they deliver to an Enterprise or the form in which those loans are delivered? 

A.35. I am generally supportive of the elimination of volume discounts, but without a full examination of the issue, and without access to any internal FHFA analysis, I believe it would be inappropriate to commit to any particular course of action at this point. 

Q.36. If confirmed, do you commit to support equal guarantee fee 

pricing for all lenders, regardless of the number of loans they deliver to an Enterprise or the form in which those loans are delivered in any future secondary market system? 

A.36. Without a full examination of the issue, and without access 

to any internal FHFA analysis, I believe it would be inappropriate 

to commit to any particular course of action at this point. 

Q.37. Underwriting—If you are confirmed, would you make any 

changes to the Enterprises’ underwriting standards as they exist 

today? If so, please detail any proposed changes and provide an 

analysis of the impact that such changes would likely have on prospective mortgagors. 

A.37. Without a full review of the GSEs’ current business and loan 

performance, including examination of confidential supervisory information, I do not have the full set of information necessary to answer this question. 

Q.38. In response to a question from Senator Cortez Masto regarding your previous suggestion that only borrowers with 700 FICO 

scores should get loans, you replied that you ‘‘ . . . certainly don’t 

156 

think there should be any legal prohibition in the mortgage market 

against any sort of FICO score.’’ 

Do you believe that FHFA should prohibit the Enterprises from 

guaranteeing loans or securities containing loans to borrowers with 

FICO scores below 700? 

A.38. No. 

Q.39. If not, do you believe that the Enterprises should charge 

more to guarantee loans with FICO scores below 700 than they 

currently charge? If so, how much more? 

A.39. Without a full review of the GSEs’ current business and loan 

performance, including examination of confidential supervisory information, I do not have the full set of information necessary to answer this question. 

Q.40. Affordable Housing Goals—You told the Committee that ‘‘we 

can get to a spot where we can have risk-taking via affordable 

housing goals if we can have an appropriate regulatory structure 

that has capital backing those goals.’’ You later told the Committee 

that you would preserve the affordable housing goals ‘‘within the 

confines and direction of the statute.’’ 

What is an appropriate regulatory structure for the affordable 

housing goals? How does an appropriate structure differ from the 

regulatory structure that exists today? 

A.40. There is essentially no capital backing the GSEs today. I believe that is not an appropriate capital or regulatory structure. 

Q.41. What is the appropriate capital backing the affordable housing goals? How much of that capital would come from guarantee 

fees or other charges assessed to the homeowners whose loans were 

part of the single-family housing goals, and how would those guarantee fees or other charges differ from the charges assessed to 

homeowners whose loans were not included within the goals? 

A.41. Without a full review of the GSEs’ current business and loan 

performance, including examination of confidential supervisory information, I do not have the full set of information necessary to 

comment. 

Q.42. What parts of the statute would prohibit you from preserving 

and implementing the affordable housing goals in any given year? 

How would you determine whether that statute would apply in any 

quarter or year? 

A.42. Section 1131 of HERA. I have not seen a legal opinion as to 

whether the Section 1131 determination is quarterly or annual or 

of a different frequency altogether. 

Q.43. Duty To Serve Underserved Markets—You testified before the 

Committee that, if you are confirmed, the GSEs’ duty to serve underserved markets would be ‘‘part of the process’’ and that the requirements would remain in place ‘‘as long as the existing regulatory structure is there.’’ 

You were very forthcoming with the Committee about the type 

of secondary market structure you would promote if confirmed. If 

confirmed, would you similarly support maintaining a statutory 

duty to serve underserved markets for all secondary market participants regulated by FHFA or any regulator that replaces it? 

157 

8 ‘‘Can the Private Market Return to Home Lending?’’, Ike Brannon and Mark A. Calabria, 

July 14, 2016, available at https://www.cato.org/publications/commentary/bna-insights-canprivate-market-return-home-lending. 9 12 U.S.C. 4617(b)(2)(B)(i). 

A.43. Support for any legislative proposal would dependent upon 

the full details of that proposal. 

Q.44. If confirmed, will you support all Enterprise activities in fulfillment of their duty to serve plans as published and amended in 

2017 and 2018 while you await legislative changes to the secondary 

market? 

A.44. I have not had the opportunity to review the duty to serve 

plans published and amended in 2017 and 2018. 

Q.45. CSP—The Common Securitization Platform (CSP) has been 

under development for over 5 years and is scheduled to begin 

issuing a single security for both Fannie Mae and Freddie Mac 

mortgage-backed securities in less than 4 months. Market participants and regulators have been working to address outstanding 

regulatory and practical questions posed by the single security. But 

you have written that ‘‘[w]asting money on the CSP is another classic Washington boondoggle, fundamentally misdiagnosing the problem and building a new organization to provide a solution that no 

one in the market asked for.’’ 8

If confirmed, do you intend to finalize the rulemaking for the single security, and begin issuance of a single security in June 2019? 

A.45. Assuming that issuance is feasible and practicable at that 

point, then yes, but that decision would also be subject to a review 

of the progress to date. 

Q.46. What impact, if any, do you believe a single security will 

have on the size and liquidity of the secondary market? 

A.46. I understand the intent is to have a more standardized secondary market that is larger and with more liquidity. 

Q.47. If confirmed, do you intend to continue developing the CSP? 

Do you expect the CSP to have additional functionalities beyond its 

current role in the issuance of a single security in the coming 

years? If so, what functionalities do you expect that the CSP will 

build? 

A.47. I have no expectations as to additional functionalities, but 

am open to the possibility of such. 

Q.48. CEOs—Both Fannie Mae and Freddie Mac are in the process 

of selecting new Chief Executive Officers (CEOs). In its capacity as 

regulator, FHFA is responsible for overseeing Enterprise compliance with 12 U.S.C. 4520, ‘‘Minority and women inclusion; diversity requirements’’ and its implementing regulations. Furthermore, 

as conservator, FHFA succeeds to ‘‘all rights, titles, powers, and 

privileges of the regulated entity, and of any stockholder, officer, or 

director of such regulated entity.’’ 9 Both as regulator and conservator, FHFA has substantial influence over the selection process 

for and hiring of senior Enterprise leadership. 

If confirmed, will you commit to ensure that a diverse set of candidates are considered to fill both CEO vacancies and any other fuVerDate Nov 24 2008 13:07 Apr 08, 2019 Jkt 046629 PO 00000 Frm 00161 Fmt 6602 Sfmt 6602 L:\HEARINGS 2019\02-14 NOMINATIONS\HEARING\RESEND FOLDER\35617 NEW.TXT
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ture leadership vacancies at the Enterprises, the Federal Home 

Loan Banks, and FHFA during your tenure? 

A.48. Yes. 

Q.49. FSOC—If confirmed as FHFA Director, you will also serve 

as a voting member of the Financial Stability Oversight Council 

(FSOC), which is responsible for identifying risks to the financial 

stability of the United States; promoting market discipline; and responding to emerging risks to the stability of the United States’ financial system. 

What do you see as the current threats to U.S. financial stability 

and what are the emerging risks? What steps to do you believe 

FSOC should take to address these risks? 

A.49. Property markets, over any sufficient time horizon, are almost always financial stability concerns and should be monitored 

constantly. The slowing global economy, for instance any adverse 

impact from Brexit, needs to be monitored. Given that our financial 

markets and institutions will always face risks, I believe the best 

approach is to make sure that those institutions are well-capitalized, well-regulated, and well-managed. The continued normalization of interest rates and its impact on financial institutions should 

also be closely monitored. 

Q.50. In your written testimony, you said that your first question 

when deciding what actions to take as FHFA Director would be 

‘‘what does the statute say?’’ Would that approach be the same as 

a member of FSOC? 

A.50. Yes. 

Q.51. Do you believe that FSOC is currently fulfilling all of its statutory requirements? If not, which requirements are not fulfilled 

and what steps would you take to fulfill all requirements? 

A.51. My impression is yes, but I intend to more closely examine 

this issue if confirmed. 

RESPONSES TO WRITTEN QUESTIONS OF SENATORS 

BROWN AND REED FROM MARK ANTHONY CALABRIA 

Q.1. Housing Trust Fund/Capital Magnet Fund—During your 

nomination hearing, you stated that there is a ‘‘mechanical trigger’’ 

that requires or bars the transmission of Enterprise funds to the 

Housing Trust Fund (HTF) and Capital Magnet Fund (CMF). 

What, specifically, is the mechanical trigger that would lead the 

FHFA to bar transmission of funds from the Enterprises to the 

HTF and CMF? 

A.1. The trigger mechanism is detailed in Section 1131 of HERA, 

codified in 12 U.S.C. 4567. 

Q.1. What changes in the Enterprises’ status, including changes to 

the Senior Preferred Stock Purchase Agreements, the Enterprises’ 

capital restoration plan, or the Enterprises’ status in conservatorship or receivership, would bar annual transmission of funds to the 

HTF and CMF? 

A.1. Only those changes having the impacts detailed in Section 

1131 of HERA. 

159 

RESPONSES TO WRITTEN QUESTIONS OF SENATOR SCOTT 

FROM MARK ANTHONY CALABRIA 

Q.1. Last Congress, this Committee moved historic bipartisan legislation. In particular, S. 2155 included my language to make it easier for the banking underserved to gain access to credit. Sec. 310 

is designed to increase competition and innovation for credit scoring, with the goal of allowing lenders the option of choosing from 

among multiple validated and approved scoring models when originating mortgage loans. There is currently only one credit scoring 

model permitted in the housing finance space. 

I am concerned that the proposed rulemaking, released under 

prior Director Watt, hinders the opportunity for robust competition 

that this legislation intends to generate. Sec. 310’s Congressional 

intent is to ensure innovation that expands the options available 

to lenders so that Americans from all backgrounds have more access to credit and are able to reach the ‘‘American dream’’. I am 

concerned the proposed rulemaking does not fulfill that. 

Dr. Calabria, I would like to take this opportunity to follow up 

with you on your appearance before the Senate Banking Committee 

regarding your nomination to be Director of the Federal Housing 

Finance Agency. I appreciated your comments and commitment to 

increase competition in the housing finance sector. 

Please answer the following with specificity: 

If confirmed, will you commit to ensuring and prioritizing that 

the proposed rulemaking of Sec. 310 follows Congressional intent? 

A.1. Yes. 

Q.2. FHFA informed some Members of this Committee in July of 

2018 that it would be difficult to fulfill the statutory timeline for 

full implementation of Sec. 310 as passed by Congress and as 

signed into law by the President. Will you commit to doing all in 

your power to accomplish complete implementation of Sec. 310 as 

required by statute or as soon thereafter as possible? 

A.2. Yes. 

RESPONSES TO WRITTEN QUESTIONS OF SENATOR ROUNDS 

FROM MARK ANTHONY CALABRIA 

Q.1. I understand that one plan under consideration for GSE reform is recap and release. In essence this entails allowing Fannie 

and Freddie to build a capital buffer back up and then releasing 

them from conservatorship. However, I am concerned that recap 

and release—without additional reforms—would take us back to 

right where we started precrisis. What are the most important reforms that you believe need to be made to the GSEs before they’re 

released from conservatorship? 

A.1. I share your concerns and believe a simple ‘‘recap and release’’ 

that goes back to the preconservatorship model would be a mistake. 

Foremost the GSEs require significantly higher capital than their 

preconservatorship levels. It would also be preferable for Congress 

to open up the model to competition, allowing the regulator to charter new entrants. Improving the resolution framework to allow for 

an orderly reorganization or liquidation of a failing GSE is also 

needed. 

160 

Q.2. Following our exchange during the Banking Committee’s hearing, it’s clear we both agree about the importance of private capital 

in the mortgage market. Since FHFA was created it has used a 

number of pilot programs, such as the IMAGIN program, to attract 

private capital to the secondary market and reduce risks borne by 

the American taxpayer. If confirmed as Director, will you continue 

to find ways to adopt policies that reduce risks to the American 

taxpayer and lower costs for borrowers? 

A.2. Yes, as the GSEs are not currently building sufficient capital 

on their own, I believe it is critical that FHFA continue to examine 

and pursue other alternatives for transferring that risk to other 

market participants who do maintain sufficient capital. 

Q.3. From a good governance standpoint, I am concerned that in 

some instances the GSEs have also used pilot programs as a means 

to circumvent the normal Federal notice and comment process. 

This has created inappropriate competition with the private market 

in certain circumstances. Do you intend to use the standard Administrative Procedures Act process to help promote transparency 

at FHFA? 

A.3. I share the concerns regarding previous practices in the areas 

of pilot and new programs at the GSEs. I am committed to increasing the transparency of that process and minimizing any adverse 

impact on competition. 

Q.4. I would like to better understand your views on the Fannie 

and Freddie duopoly, particularly while they’ve been in conservatorship, and the impact on purely private players who don’t 

have the implicit Government guarantee. Has the continued GSE 

conservatorship perpetuated a Fannie and Freddie duopoly in the 

housing market? And should the GSEs remain focused on their primary mission, which is providing liquidity to the secondary market? 

A.4. Ultimately I believe Congress should open the GSEs’ charters 

to competition. I do believe that the current conservatorship has 

further entrenched the GSEs and reduced competition in the secondary mortgage market. Part of this reduced competition has been 

the result of exempting the GSEs from rules that apply to other 

market participants. I believe the GSEs and other financial institutions should, to the greatest degree possible, operate on a level regulatory playing field. I share the concerns that the GSEs could leverage their market power to vertically integrate into other segments of the mortgage market. Accordingly I believe the GSEs 

should remain focused on their primary mission, providing liquidity 

to the secondary mortgage market. 

RESPONSES TO WRITTEN QUESTIONS OF SENATOR TILLIS 

FROM MARK ANTHONY CALABRIA 

Q.1. Former Director Mel Watt issued a proposed rule on enterprise capital as applied to multifamily housing capital standards. 

The proposed rule would require approximately three-and-a-half 

times the credit risk capital that single-family homes required during such times of stress, even though single family losses were demonstrably higher during the last recession. The credit performVerDate Nov 24 2008 13:07 Apr 08, 2019 Jkt 046629 PO 00000 Frm 00164 Fmt 6602 Sfmt 6602 L:\HEARINGS 2019\02-14 NOMINATIONS\HEARING\RESEND FOLDER\35617 NEW.TXT
161 

ance of the GSE book of multifamily loans dramatically outperformed single family. 

Can you commit that any postconservator capital standard or inconservatorship guidelines that you may be in charge of implementing will be reflective of the historical performance of that 

asset class? Will such standards be based on transparent, real 

data, and risk-based pricing and analysis? 

A.1. While I have not had an opportunity to read the proposed rule, 

I do strongly believe that any risk-based capital standard should 

incorporate historical loan performance data and be based on transparent, real data as well as risk-based pricing and analysis. 

RESPONSES TO WRITTEN QUESTIONS OF SENATOR MORAN 

FROM MARK ANTHONY CALABRIA 

Q.1. Communities around the country, including in my State, are 

experiencing a shortage of buildable lots and homes. In NAHB surveys, two-thirds of builders currently report a low or very-low supply of lots. This lack of supply is driving up prices and impacting 

housing affordability, especially for entry level and first-time home 

buyers. One way to help fix this problem is to ensure an adequate 

pipeline of acquisition, development, and construction financing for 

land developers and builders. 

What role do you see Fannie Mae and Freddie Mac having to 

solve barriers for housing supply, such as through construction 

loans and other financing for builders? 

A.1. Lack of supply is, in my opinion, the number one obstacle to 

more affordable housing in our Nation. The decline in the number 

of small banks since the passage of Dodd–Frank has placed a particular drag on the availability of acquisition, development and construction (ADC) lending. I believe the GSEs can and should play 

a constructive role in facilitating ADC lending, especially among 

smaller lenders. If confirmed, I intend to review the GSEs’ activities in this area and make any regulatory changes warranted. 

Q.2. Our Nation’s residential home builders rely on acquisition, development, and construction (AD&C) lending to provide the capital 

necessary to meet the growing needs of the Nation’s housing market. Small builders, who construct approximately 80 percent of all 

new housing in America each year, don’t have access to Wall Street 

financing, and thus must rely on community banks to provide this 

much-needed liquidity as they tend to understand local housing 

markets better than larger lenders. However, community banks 

have not been able to meet current construction financing needs. 

While the stock of outstanding home building construction loans 

has grown by 95 percent, an increase of $38 billion, since the first 

quarter of 2013, lending remains much reduced from years past. In 

fact the current stock of existing residential AD&C loans now 

stands 61 percent lower than the peak level of residential construction lending of $203.8 billion reached during the first quarter of 

2008. Clearly more needs to be done to encourage community bank 

lending and facilitate the flow of AD&C financing. 

Given the damage to both home builders and community banks 

during the economic downturn which has resulted in limited AD&C 

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liquidity, how would a properly structured Government guarantee 

for AD&C loans help make financing for builders more consistently 

available and support our Nation’s builders and community banks 

during future economic downturns? 

A.2. The financial crisis, as well as Dodd–Frank, have been accompanied by a significant reduction in the number of community 

banks, as well as a reduction in their activity. I believe, as expressed in S. 2155 passed last Congress, that community bank relief should remain an important and continued focus for Congress. 

I am committed to examining a number of options for increasing 

community bank participation with the GSEs, and insuring that 

such is done in a safe and sound manner. 

Q.3. It appears to be a direct conflict of interest for the same people who are setting the private mortgage insurers’ capital and operational standards to also be developing a program that will allow 

the GSEs to essentially self-insure—or at a minimum, to set up 

structures that will have less players, transparency, and stability 

through cycles—that amounts to what the GSEs perceive as an additional market advantage. Do you agree? 

A.3. I believe private mortgage insurers have an important role to 

play in our mortgage markets. I have not had the opportunity to 

fully examine FHFA and the GSEs’ activities in this area, but intend to examine and evaluate the impact of the GSEs on competition in the mortgage insurance area. 

Q.4. I am troubled by the possibility of the GSEs using inconsistent 

standards—applying one approach to an industry or company and 

another in the same area of activity—for self-benefit. This behavior 

would unlikely be tolerated by Federal bank regulators. 

How will you enforce fair standards and limit conflicts of interest 

by the GSEs? 

A.4. I feel very strongly that both FHFA and the GSEs have an obligation to treat all market participants fairly and consistently, and 

those activities should parallel those of other Federal financial regulators and entities as closely as practicable. I would also view addressing conflicts of interest and failures of internal controls at the 

GSEs as one of my highest priorities. 

Q.5. As Director, how would you consider the GSEs’ Charters when 

deciding whether to authorize a pilot—i.e., is any activity permitted 

based on a colorable reading of the Charters? Or is there an effort 

to ensure the GSEs are responding appropriately to other market 

stakeholders? 

A.5. Foremost would be a consideration of if the activity is permitted by the Charters. If such activity is permitted, the second 

question is whether such activity is consistent with safety and 

soundness, as well as the overall mission of the GSEs. In any determination, I would consult with other stakeholders and carefully 

weigh the competitive aspects of any new activities or programs. 

Q.6. Would you consult with other Federal or State regulators in 

order to assess regulatory or market effects, including with Treasury on the financial effects of pilot activity? 

A.6. Yes. 

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Q.7. Could a new Director eliminate the pilot approach and terminate all existing pilots? If the effect would be material, would this 

warrant additional disclosure, oversight, and participation by market stakeholders in the piloting process? 

A.7. I am not aware of the correct legal interpretation in terms of 

terminating existing pilots. If confirmed, I would consult with 

FHFA’s General Counsel on this issue. Whatever actions taken in 

this area would be done in a transparent manner, seeking input 

from relevant stakeholders. 

Q.8. In the last year, the issue of pilot programs initiated by 

Fannie Mae or Freddie Mac have raised concerns. A January 2019 

GAO report said these pilot programs widen the scope of activities 

of the companies and, ‘‘allow them to become more dominant by potentially growing their role beyond the secondary market and into 

the primary market.’’ I have concerns about the impact these pilots 

potentially have on fair and free competition. The secretive nature 

of these pilots can have the effect of unfairly disrupting the market, especially when only one or two companies participate and 

therefore functionally get a leg up on the market. 

What steps can FHFA take to ensure pilots don’t unfairly advantage one company in the market? 

A.8. FHFA can first conduct an economic analysis looking at potential competitive market effects of new programs. Second, FHFA, 

can, to the extent practicable and consistent with HERA, encourage 

the GSEs to begin any pilot programs with participation by a reasonable number of companies. 

Q.9. How will you enforce fair standards and limit conflicts of interest by the GSEs? 

A.9. By fully reviewing the current examination procedures and, if 

warranted, increasing the amount of examination time devoted to 

enforcing fair standards and conflicts of interest. If warranted, I 

would consider hiring additional FHFA staff to specifically monitor 

these specific issues. 

Q.10. That same GAO report said, ‘‘According to FHFA, the enterprises’ boards of directors oversee day-to-day operations, but certain matters are subject to FHFA review and approval. For example, FHFA officials told us that FHFA reviews and approves some 

pilot programs.’’ 

What criteria does FHFA use to determine which pilot programs 

it should review and approve and which pilot programs FHFA 

should not review or approve? 

A.10. As I have not been at FHFA, I am not familiar with the internal criteria used. If confirmed, I intend to examine and review 

this criteria. 

Q.11. What oversight does FHFA conduct of the GSEs when it 

comes to pilots? Do FHFA experts and economists help design the 

metrics and criteria for determining success? 

A.11. As I have not been at FHFA, I am not familiar with the internal oversight currently conducted on pilot programs. If confirmed, I intend to examine and review these oversight efforts. 

164 

Q.12. A September 2018 White Paper by FHFA’s Office of the Inspector General said ‘‘FHFA does not consider the IMAGIN pilot 

program to constitute primary market activity because Freddie 

Mac is not originating loans under this pilot program.’’ 

Short of originating loans, what activities are outside the GSEs’ 

charters? 

A.12. I have not conducted a legal review of this question, nor am 

I privy to any internal FHFA review of this question. I do, however, believe that FHFA should, if it has not done so already, examine this question. It is fully my intent, if confirmed, to see that 

the GSEs operate fully within their charters. 

Q.13. Each year the FHFA publishes a conservatorship scorecard. 

This scorecard is supposed to reflect the metrics that FHFA uses 

to review proposals from the GSEs in a year. It makes sense that 

as conservator, FHFA would direct the GSEs to only consider pilots 

that have a strong link to one of those items on the score card, with 

pilots on mortgage insurance, single family rentals, and appraisal 

data. 

Is it safe to assume that we won’t see a pilot on products that 

are outside the score card items, like title insurance or real estate 

brokerages? 

A.13. As a general approach, I believe that new activities, products 

or programs done within a conservatorship must be consistent with 

the objectives of the conservatorship. 

Q.14. I’ve worked my colleagues on both sides of the aisle to reform 

our broken housing finance system. We came close in 2014, when 

we passed a bipartisan product out of this Committee, but Harry 

Reid never moved our bill. While we are not giving up in Congress, 

the FHFA no doubt will play a large role in housing finance reform 

and there are a number of Administrative actions that can be 

taken to help or hurt taxpayers, lenders, consumers, etc. Frankly, 

a lot of time and attention of the GSE reform debate focuses on the 

single family piece of the business, but as someone who cares a 

great deal about renters too, I am concerned about how recent actions taken by the FHFA under the leadership of Mel Watt could 

impact affordable housing and workforce housing. In fact, the 

FHFA has considered a rule that affects multifamily housing finance liquidity. 

I know you can’t comment on the rule, but can you commit to the 

Committee that you will not do anything that will directly increase 

the cost to millions of renters of multifamily housing? 

A.14. It is not my intent to increase the cost of rental housing. If 

confirmed, every reasonable effort will be made to consider any direct impact on rental costs. 

Q.15. Securitization has been crucial in transitioning billions of 

dollars in credit risk away from the American taxpayer through the 

GSEs’ CRT (credit risk transfer) program. Securitization can play 

a critical complimentary role in any reformed housing finance system by expanding private credit’s role via private label MBS while 

the GSE footprint shrinks. With this in mind, how will you encourage the return of a healthy and responsible securitization market 

if confirmed as Director of the FHFA? 

165 

1 12 U.S.C. §4617(b)(2)(A)(i). 

A.15. I believe FHFA’s Director can play an important role in encouraging a healthy, responsible and competitive secondary mortgage market. Foremost, if confirmed, I would work with my fellow 

regulators on FSOC to address broader issues related to 

securitization to help improve the functioning of the securitized 

mortgage market. Creating a level and transparent playing field is 

essential in this area, especially in terms of gaining investor confidence. I would also devote considerable time and attention to first 

listening to the concerns of stakeholders in securitization and 

working to address obstacles to responsible, private label 

securitization. 

RESPONSES TO WRITTEN QUESTIONS OF SENATOR REED 

FROM MARK ANTHONY CALABRIA 

Q.1. If confirmed, you’ll have immense authority over our housing 

policy and effectively, the homes and lives of many Americans. You 

have said that the Housing and Economic Recovery Act is being 

violated, so what would you do about it if you are confirmed? 

Would you continue Mr. DeMarco’s and Mr. Watt’s policy? Would 

you put the Enterprises into conservatorship? Or would you put the 

Enterprises into receivership? Could you please provide your economic analysis to assess the likely impact of any of these choices 

on our housing markets, particularly mortgage rates and housing 

prices? 

A.1. My previous writings in relation to HERA’s Section 1145 are 

based solely upon publicly available data and analysis. As I have 

not been privy to any internal FHFA analysis on these questions, 

my first action, in regard to this area, would be to review any internal work done on this question. I fully recognize that regulatory 

actions can often look different on the ‘‘outside’’ than on the inside 

of a regulator. My writings on this area are also focused upon decisions made primarily in the fall of 2008 and immediately thereafter. As I am not privy to any confidential supervisory information 

regarding entities regulated by FHFA, any actions taken would 

have to be based upon current supervisory information. If confirmed, I would consult such information. 

RESPONSES TO WRITTEN QUESTIONS OF 

SENATOR MENENDEZ FROM MARK ANTHONY CALABRIA 

Q.1. As conservator, in which role FHFA succeeds to ‘‘all rights, titles, powers, and privileges of the regulated entity, and of any 

stockholder, officer, or director of such regulated entity,’’ 1

Do you have the authority to reduce, not increase, or otherwise 

alter the maximum loan amount of the single-family loans that either Enterprise may guarantee, either in regular or high-cost 

areas? 

A.1. No. 

Q.2. If you do have that authority, would you use that authority 

to reduce, not increase, or otherwise alter the maximum loan 

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amount of the single-family loans that either Enterprise may guarantee, either in regular or high-cost areas? 

A.2. N/A. 

Q.3. If you do not have that authority, please provide the legal 

analysis supporting your conclusion that you do not have that authority. Additionally, please state whether you would reduce or not 

increase the maximum loan amount that may be guaranteed by an 

Enterprise if you later found that you had the statutory authority 

to do so. 

A.3. I simply see no statutory basis for exercising said authority. 

If such authority is granted, I would at that time consider how best 

to exercise such authority. 

Q.4. Please provide analysis on the specific impacts to pricing and 

mortgage rates in New Jersey if loan limits were to be reduced to: 

(a) precrisis levels ($417,000); and (b) $200,000. Additionally please 

provide estimates on what this volume reduction would mean for 

pricing and mortgage rates nationally. 

A.4. The following analysis is based upon the United States Census 

Bureau’s American Community Survey, which reports a median 

home value for the State of New Jersey of $334,900. For select 

urban areas in New Jersey, the current loan limit is $726,525, for 

the remainder of the state the loan limit is currently $484,350. 

My estimate is that the current loan limits cover approximately 

90 percent of the owner occupied homes in New Jersey. Returning 

to the precrisis conforming loan limit of $417,000 would cover approximately two-thirds of owner-occupied homes in New Jersey. A 

loan limit of $200,000 would cover approximately a third of owneroccupied homes in New Jersey. 

Since mid-2013, mortgage rates on jumbo loans have been below 

that of GSE conforming loans by an average of 33 basis points. 2

Adjusting for differences in credit quality and other relevant characteristics still leaves mortgage rates on jumbo non-GSE loans 

below that of GSE conforming loans by an average of 5 basis 

points. 3

Q.5. Do you have plans to take other steps to reduce loan volume 

at the Enterprises, whether through pricing, limiting certain loan 

products, and reducing the credit box? 

A.5. Without a full review of the GSEs’ current business and loan 

performance, including examination of confidential supervisory information, I do not have the full set of information necessary to 

make this decision. 

Q.6. In the context of changes to loan limits or other restrictions 

to the Enterprises’ footprint, what do you consider to be small or 

incremental? 

A.6. Changes that do not significantly shift the overall contours of 

the market and that are easily reversed. 

167 

Q.7. What specific economic evidence do have that small or incremental changes will not still cause significant market disruption? 

A.7. While the future is inherently unknowable, I believe there is 

high degree of certainly that if the current status quo persists, 

there will be significant costs to the taxpayer, investors, and borrowers during the next housing downturn. We have seen repeated 

instances of changes to the GSE market shares and have some 

sense of the modest impact these have had on the market place. 

Q.8. What specific data or market impacts would cause you to reevaluate and reverse course of any changes? 

A.8. Disruptions in the agency debt market, significant changes in 

the Treasury-mortgage spread, significant swings in home buying 

and selling activity. There are a large number of macroeconomic indicators for our housing and mortgage markets. 

Q.9. Will you commit that you will not use pricing schemes that 

unfairly penalize larger cost loans that still fall within the conforming loan limits? 

A.9. Yes. 

Q.10. Do you believe that a Government guarantee is critical to the 

liquidity and stability of the TBA market? If so, how would you balance the stability of the TBA market with any planned reductions 

to the role of the Government in the housing market overall? 

A.10. I believe Government guarantees, particularly FHA and VA, 

have historically provided the basis for broad market acceptance of 

the secondary mortgage market. 

Q.11. HUD-approved housing counseling agencies work primarily 

with low- and moderate-income households, preparing homebuyers 

for responsible home ownership and helping financially challenged 

homeowners work with their mortgage servicers to get loan workouts or other solutions. Recent studies show positive outcomes by 

families who receive housing counseling, including significantly 

lower default rates and more successful loan modifications. 

Given the effectiveness of housing counseling in helping low- and 

moderate-income households to help themselves to responsibly 

achieve the dream of home ownership, how would you utilize housing counseling programs to strengthen GSE lending and servicing? 

Additionally, how would you recommend funding the provision of 

housing counseling services? 

A.11. I believe quality housing counseling programs can provide 

significant benefits to borrowers, while if structured appropriately, 

also reducing defaults. I believe lenders should be encouraged to 

fund additional counseling activities. 

Q.12. What is your opinion of FHFA’s notice of proposed rulemaking to implement Section 310 of S. 2155, the Economic Growth, 

Regulatory Relief, and Consumer Protection Act? 

A.12. I have not had an opportunity to read the proposed rulemaking. 

Q.13. Over the last few decades, the Enterprises have been critical 

providers of multifamily housing financing across all income levels. 

168 

What role do you see the agencies playing in the multifamily space 

going forward? 

A.13. The Enterprises’ multifamily business performed significantly 

better than its single family business during the crisis and was not 

the source of the Enterprises’ failures. Accordingly the multifamily 

business can provide some important lessons for the single family 

business. While reform debates have focused largely on the single 

family business, I do believe it is critical for Congress to appropriately examine the future of the GSEs’ role in the multifamily 

mortgage market. 

Q.14. You have advocated for requiring minimum downpayments of 

5 percent or more and minimum FICO scores of 700. Please provide 

detailed analysis of how such restrictions would impact pricing and 

accessibility of single-family mortgage loans both nationally, and in 

New Jersey. 

A.14. As pricing is related to default, any efforts that increase 

FICO and downpayments would reduce the mortgage pricing. The 

existing economic literature suggests that such would not impact 

home ownership rates, but would delay the timing of first home 

purchase. 

Q.15. What evidence do you have that these borrowers will find affordable home ownership options in the private market? 

A.15. I believe we can appropriately manage the risk of the GSEs 

without adversely impacting home ownership options. 

Q.16. If these borrowers cannot access home ownership and join 

the population of renters, where are we going to get the needed 

rental stock when we are already in the midst of an affordable 

housing crisis? 

A.16. We are indeed facing an affordable housing crisis and I believe local and State governments need to reform their land use 

policies so that more affordable housing can be built. 

Q.17. What are the effects on rents if we add a large number of 

new households, in other words demand, to the rental market? 

A.17. One cannot determine the impact of demand shifts on prices 

without an analysis of supply shifts. 

Q.18. Do you have a plan to develop new rental housing? 

A.18. Yes, we must reform the land use policies (often exclusionary 

zoning) that make it so difficult to supply housing in too much of 

our Nation. 

Q.19. Will you commit to preserving lower downpayment programs 

at the Enterprises that make home ownership accessible to underserved communities? 

A.19. Yes, to the extent that such are done in a sustainable, responsible manner. 

Q.20. In our individual meeting, you said it is your view that you 

would not have statutory authority to suspend contributions to the 

housing trust fund and capital magnet fund. 

Does that mean that former FHFA Director DeMarco was in violation of statute while he had temporarily suspended contributions 

to the funds? 

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A.20. No, as there are conditions under Section 1131 where the 

contributions are required to be suspended. I have not seen evidence that those conditions were not met at the time that Director 

DeMarco acted. 

Q.21. You have justified eliminating the 30-year fixed-rate mortgage based on the presence of such a rate in the private market 

for jumbo loans. 

If there was no Government-backed 30-year fixed-rate mortgage, 

how much more would it cost for borrowers to purchase a home 

with a 30-year fixed-rate mortgage? 

A.21. I have not called for eliminating the 30-year fixed-rate mortgage. Jumbo nonagency loan rates are currently below those for 

agency-backed loans. 

Q.22. Who might no longer have access to a 30-year product? 

A.22. I believe we can maintain access to the 30-year fixed-rate 

mortgage and still have a well-capitalized, well-regulated mortgage 

finance system. 

Q.23. In place of the 30-year fixed-rate mortgage, you have suggested that borrowers should instead move to adjustable rate mortgages because they would ‘‘likely see a reduction in their mortgage 

rate’’ during a recession. 4 But of course, the opposite is also true, 

in a time of growth, borrowers could see their rates rise dramatically. And with home prices increasing at twice the rate of income 

growth, borrowers with adjustable rate mortgages could be in serious trouble. 

How does your proposal work in the current economic environment? Please be detailed in your answer. 

A.23. Yes, any truly countercyclical policy is designed to reduce 

both busts and booms. And of course the interest rate risk inherent 

in long term fixed mortgages does not disappear in the 

securitization process. I have simply called for a more transparent 

accounting of the actual risks in our financial system so as to better manage those risks and minimize both the severity and frequency of future crises. 

RESPONSES TO WRITTEN QUESTIONS OF SENATOR WARNER 

FROM MARK ANTHONY CALABRIA 

Q.1. In your testimony, you said that if confirmed you would look 

to do what the law requires you to do. Is it true that in an Urban 

Institute article in 2016, and elsewhere, you advocated for requiring the GSEs to hold the same capital as the largest banks, saying 

that the FHFA Director is REQUIRED to increase GSE capital to 

match that held by the largest banks as a result of the Temporary 

Payroll Tax Cut Continuation Act of 2011? 

A.1. I have not, to the best of my knowledge, claimed that FHFA 

is currently required to increase GSE capital to bank like levels. 

My Urban Institute article can be found here: https:// 

www.urban.org/policy-centers/housing-finance-policy-center/ 

170 

projects/housing-finance-reform-incubator/mark-calabria-comingfull-circle-mortgage-finance. 

Q.2. While the GSEs are not permitted to build significant 

amounts of capital under the PSPAs, would you support requiring 

the GSEs to hold bank-like capital were the PSPAs not an obstacle? 

A.2. Yes, ultimately I would recommend Congress give the regulator authorities over capital that mirror those of Section 38 of the 

Federal Deposit Insurance Act. 

Q.3. The GSEs are currently run as if they were required to hold 

between 2–2.5 percent capital. Even if the PSPAs are not amended, 

would you support requiring the GSEs to price mortgage loans as 

if they were required to hold bank-like capital so as to equalize the 

playing field between GSEs and banks? 

A.3. To the extent that such a pricing change was consistent with 

and required by law, then yes. 

Q.4. Do you believe the FHFA director currently has the ability to 

reduce product availability by removing the GSEs’ ability to guarantee investor loans, loans for second homes, and cash-out refinancing? 

Would you support those product limitations? 

A.4. I have not yet seen a legal analysis of this question. Before 

making any conclusions I would need to consult FHFA’s legal staff 

and any other appropriate parties. 

Q.5. Do you believe risk-based capital should be the binding limitation on the GSEs, or should a leverage ratio be binding? 

A.5. Historically the leverage ratio has been the only binding capital constraint on the GSEs. The extent to which a risk-based or 

leverage standard should bind would depend upon the particular 

parameters of those standards. So short answer is: It depends. 

That said, I believe that, even with a well-constructed risk-based 

capital rule, given the limitations and historical performance of 

risk-based capital standards, there should continue to be a leverage 

ratio for all large federally chartered financial institutions, including the GSEs. 

Q.6. Should each borrower have to pay the full cost of capital required to guarantee their mortgage based on the perceived riskiness of that mortgage? 

A.6. No, not necessarily. 

Q.7. We discussed in our meeting the need for congressional action 

on comprehensive housing finance reform. 

What actions can you take if confirmed as Director to encourage 

congressional action? 

A.7. Foremost, the Director can help to create both a public and 

Congressional ‘‘sense of urgency’’ regarding the need for reform; 

second, the Director can submit proposals and suggestions to Congress for reform; third, the Director can help to assemble the various stakeholders and push for a reform consensus; and lastly, the 

Director can create, within the confines of the statute, regulatory 

171 

changes that lay the ground work for reform, such as the single security platform. 

Q.8. Even if this Congress were to adopt legislation supporting the 

principles you have outlined, the transition to that future state 

could take a number of years. No matter which congressional plan 

is adopted, nearly all market structures rely on a central utility 

that builds on the work done to date to create a common security, 

such as selling the GSEs’ automatic underwriting system and data 

to the utility and giving the utility responsibility for master servicing. These actions would reduce the centrality of the GSEs to the 

housing finance system and begin some of the transition work that 

would take years and is necessary to a legislative solution to the 

GSEs. Furthermore it would be in your power as conservator to 

begin taking these actions to encourage congressional action on reform. 

Will you take these steps if confirmed as director? 

A.8. Yes, I would, if confirmed, continue in the direction of creating 

common infrastructure, within the confines of the existing statutory framework. 

Q.9. In 2017, the GSEs had a nearly 50 percent market share in 

multifamily loans. Do you think the GSEs do too much business in 

the multifamily sector and that the private sector should shoulder 

a greater loan of multifamily loans? 

A.9. At a very general level, yes. 

Q.10. The GSEs have exemptions from their multifamily purchase 

caps if they meet certain affordability requirements in their deals. 

Do you think that exemption is appropriate? Should it be narrowed? 

A.10. I have not closely examined the current exemptions. I would 

plan to review such exemptions and make any changes deemed 

necessary. Such changes could include a narrow or a broadening, 

depending upon the circumstances. 

RESPONSES TO WRITTEN QUESTIONS OF SENATOR SCHATZ 

FROM MARK ANTHONY CALABRIA 

Q.1. You have previously written that Federal policy puts too much 

focus on home ownership—that there is nothing wrong with renting. When we spoke recently about the housing challenges facing 

Hawaii, you mentioned that, in certain markets, reducing barriers 

to construction is not enough to spur affordable and workforce multifamily housing construction and more needs to be done. 

What steps would you take as Director to increase affordable and 

workforce housing supply? 

A.1. I generally see the primary obstacles to increasing the supply 

of affordable and workforce housing being driven by lending, labor, 

and land constraints. For the constraints outside the direct purview 

of FHFA, such as land use, I would intend to be a public voice for 

addressing those constraints and bringing additional public attention to the need for additional affordable housing. Within the direct 

purview of FHFA, I would first improve the evaluation of the existing programs, such as the housing trust fund, the capital magnet 

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fund and the FHLB’s affordable housing fund. I believe it is critical 

that we maximize the impact of these programs. I would also focus 

on evaluating and reducing barriers to small mortgage lending. 

Often the hardest mortgages to make are those under $50,000, yet 

in some areas, these smaller units provide an important source of 

affordable housing. I would also research the unique obstacles 

faced in the mortgage market by micro-units and small homes. I 

have personally seen a large range of home designs on the Hawaiian Islands, especially some of the smaller units build to house lava 

evacuees on the Big Island. Given the unique housing needs on the 

Hawaiian Islands, I would strengthen the relationship between 

FHFA, the entities under its supervision and the Hawaiian Department of Hawaiian Home Lands. 

Q.2. You have written that you do not think HMDA data collection 

should exist. 1

Without HMDA, would anyone have a window into who was 

being served by the housing market—and who was not? 

A.2. I remain concerned that advances in data analysis can enable 

the combining of HMDA data with publicly available data, such as 

court house mortgage and property records, so as to ‘‘de-mask’’ individual loan applicants, threatening the privacy of those loan applicants and leaving them vulnerable to identity theft. There are a 

range of options to minimize these risks. One option would be to 

return to the earlier use of HMDA, where the individual applicant 

data was solely used for internal enforcement purposes and individual applicant data was not publicly released. In this instance 

regulators could still release to the public aggregates, even aggregates for individual financial institutions. I take very seriously 

threats to consumer privacy and would work diligently to best protect consumers from the potential for ‘‘de-masking’’ or other forms 

of hacking. This includes how regulators and supervised entities 

store confidential data. 

Q.3. You have called for mortgage lending to return to the days of 

loans being originated and held on a bank’s balance sheet. You acknowledge that, in the days before securitization, markets were 

fragmented and it was easier to get loans in some communities 

than others, yet you believe that local banks can better serve homebuyers who don’t fit the traditional credit box. During your confirmation hearing, you stated that you would commit to collecting 

data on affordable housing and mortgage lending activities at the 

community level. 

How would you gather the data to evaluate whether your position on underserved borrowers is correct in an ‘‘originate and hold’’ 

model like the one you recommended in 2016? 

If we were to return to this model, would not it be in the Government’s best interest to know how and where loans were being 

made? 

A.3. I do believe it is critical for policymakers to receive timely 

data on the performance of the mortgage market. A number of existing data collections, such as HMDA, are collected whether the 

loan is securitized or held in portfolio. When HMDA was originally 

173 

passed, in 1975, securitization was relatively small percentage of 

the mortgage market. I do believe it is possible for financial regulators to continue to collect mortgage data on loans held in portfolio, and to occasionally publish public aggregates of that data. Researchers at the financial regulators can also conduct statistical 

analysis of loan and applicant level data in a secure environment. 

To clarify my previous writings, I have not called for an end or 

ban to securitization but rather leveling the regulatory playing 

field between the ‘‘originate-and-hold’’ model and the ‘‘originateand-sell’’ model. Whether a mortgage is held as a whole loan or 

within a securitized pool, it ultimately rests of some institution’s 

balance sheet. My objective is that whoever’s balance sheet the 

loan ultimately rests on, that there be sufficient capital and an appropriate regulatory structure to manage that risk. 

Q.4. In December, FHFA released a proposed rule outlining standards and processes for Fannie and Freddie to use in considering alternative credit scoring models. 

The rule would prohibit the GSEs from considering any credit 

score model developed by a company owned or affiliated with a 

‘‘consumer data providers’’ such as the credit bureau. I have previously raised concerns with vertical integration and anticompetitive behavior if the GSEs were allowed to use a credit score from 

a company that is owned or affiliated with consumer data providers. 

What is your view of the proposed rule and your position on the 

importance of independent credit score model providers? 

A.4. I have not had an opportunity to read the proposed rule. That 

said, I am generally familiar with the issue. I do appreciate your 

concerns about vertical integration, and also concerns that others 

have raised about relying too heavily on a single credit bureau. 

Given the central importance of the credit rating process in determining both access to and the pricing of mortgage credit, I plan to 

carefully review this issue more generally, and more specifically, 

the proposed rule before FHFA. 

Q.5. The President’s 2018 and 2019 budgets and rescission request 

eliminated funding for the Housing Trust Fund and Capital Magnet Fund. 

Did you advise the President or any other White House or Office 

of Management and Budget staff on this cut? What advice did you 

provide? Would you end the allocation to the funds as Director? 

A.5. I was not involved in this particular budget issue. I take the 

independence of FHFA very seriously, including budgetary issues. 

Section 1131 of the Housing and Economic Recovery Act of 2008 establishes a mandatory process for determining contributions to 

both the Trust Fund and the Capital Magnet Fund, as well as determining any suspensions. It is my intent to comply fully with the 

mandatory process established in Section 1131, which I do not believe gives the Director the discretion to simply end contributions. 

174 

RESPONSES TO WRITTEN QUESTIONS OF 

SENATOR CORTEZ MASTO FROM MARK ANTHONY CALABRIA 

Q.1. If you are confirmed to this position, you will lead an accomplished staff at the Federal Housing Finance Agency. Their work 

has stabilized the housing market and our economy. Many families 

can still sell their homes to families who can afford to buy them. 

Name three things that the FHFA has done under Director Mel 

Watt that you support, will continue and even build on. 

A.1. (1) I will continue the recruitment and expansion of career 

staff hires with a background in financial regulation; (2) I will continue and expand the research and economics function at FHFA; 

and (3) I will continue and expand the borrower education and financial literacy activities under FHFA. 

Q.2. Name three things that you will change at the FHFA if you 

were to become its new director. 

A.2. As I am not currently at FHFA, I will approach the agency 

with an open mind in terms of changes. With that in mind, my impression is that the agency may not always be perceived as a welcoming and supportive work-place. First, it is my objective for all 

employees at FHFA to feel free of any harassment or intimidation. 

Strengthening the core human resources function is a high priority. 

Second, it is critical for the Director to have a constant sense of the 

housing and mortgage markets, so I intend to create an economics 

and statistics function with a direct report to the Director. Third, 

I believe it is critical, given the affordability crisis facing so much 

of our Nation, that the Director become a vocal spokesperson for 

an affordable and vibrant national housing market. 

Q.3. Why do you think the FHFA is not a ‘‘world class regulator’’ 

now? What changes will you implement to reach your vision of an 

FHFA that is a ‘‘world class regulator’’? 

A.3. Foremost the FHFA lacks statutory authorities, such as that 

over capital, which other financial regulators possess. It is my intent to submit to Congress a proposed list of statutory changes that 

would better align FHFA with the regulatory authorities found at 

other financial regulators. 

Q.4. Will you consider yourself an employee of the FHFA and comply with all employee guidance related to appropriate workplace 

behavior, expense reimbursement, etc. 

A.4. Yes. 

Q.5. What are your goals for the Office of Minority and Women Inclusion? 

A.5. Foremost to make FHFA an inclusive and safe workplace. Second to see that qualified applicants from all backgrounds are considered for any open career positions and that FHFA, in its recruitment efforts, reach out to historically underrepresented communities. 

Q.6. At your nomination hearing, we discussed ‘‘sustainable home 

ownership.’’ You stated that facilitating sustainable home ownership is ‘‘looking at the factors that don’t end up . . . so they don’t 

just funnel through, that they get a mortgage, they’re out of there 

in 6 months, a year, 2 years . . . you know if we want to put a 

175 

1 Calabria, Mark A. ‘‘A Fake Financial Fix’’, Cato Institute. June 18, 2009. Available at: 

https://www.cato.org/publications/commentary/fake-financial-fix. 

number on it, I think the ability to sustain the mortgage without 

defaulting, obviously there are going to be life events that hit you, 

but if we’re seeing these mortgages, and we saw a lot of early payment defaults during the crisis. If a mortgage goes bad in 3, 5, 6 

months, there’s something wrong with that, whether it’s the lender, 

the borrower, or somebody.’’ 

In your opinion, what factors contribute to sustainable home 

ownership? Please note which elements you think must meet minimal guidelines such as a certain FICO score, a percent of downpayment/minimum loan-to-value ratio, a maximum debt-to-income 

ratio, mortgage loan terms, quality housing counseling, etc., for single-family loans to qualify for purchase by Fannie Mae and Freddie 

Mac. If you think flexibility is warranted within some conditions, 

please note those conditions. 

A.6. Recognizing the difficulties that have been experienced with 

implementation of the Qualified Mortgage rule, with its ‘‘hard 

lines’’, I believe flexibility is warranted. That flexibility should 

avoid undue risk-laying, so that compensating differentials can be 

factored into underwriting decisions. Other than those explicitly required in statute, it is not my intent to draw hard lines around any 

one specific underwriting criteria. That said, FHFA has an important role in monitoring loan performance. Practices that result in 

excessive delinquencies would be examined, both from a prudential 

standpoint but also from a sustainable home ownership perspective. 

Q.7. Do you believe the FHFA plays a role in facilitating sustainable home ownership? If so, what recommendations would you implement? 

A.7. Yes, as unsustainable home ownership is a direct threat to the 

prudential operations of the regulated entities, as well as a threat 

to a resilient housing market. My first actions would be to conduct 

a series of stress-tests on the regulated entities. As I do not currently have access to confidential supervisory information regarding the regulated entities, I cannot yet know what specific reforms 

I might seek to implement. 

Q.8. If confirmed, what are your plans to change the Government’s 

role in the housing finance system? 

A.8. The most important elements of our housing finance system 

in need of change, such as greater competition, can only be 

achieved by Congress. My most immediate plan is to work with 

Congress to build the necessary momentum for reform. The FHFA 

Director’s ability to change the Government’s role in housing finance is quite limited within the statutory confines of HERA and 

the GSE Charter Acts. 

Q.9. You have previously argued that the 2008 Financial Crisis 

was exacerbated by homeowners buying homes with low 

downpayments, which you argued were unsuitable for sustainable 

home ownership. 1 You suggest requiring downpayments of 5 perVerDate Nov 24 2008 13:07 Apr 08, 2019 Jkt 046629 PO 00000 Frm 00179 Fmt 6602 Sfmt 6602 L:\HEARINGS 2019\02-14 NOMINATIONS\HEARING\RESEND FOLDER\35617 NEW.TXT
176 

2 Calabria, Mark A. ‘‘FHA Bailout Is Inevitable, But Taxpayer Pain Is Not’’, Cato Institute. 

January 5, 2013. Available at: https://www.cato.org/publications/commentary/fha-bailout-inevitable-taxpayer-pain-not. 3 U.S. Mortgage Insurers. ‘‘Mortgage Insurance: Helping Nevada Families Get Into Homes’’, 

U.S.M.I. Accessed February 13, 2019. 4 Calabria, Mark A. ‘‘Taxpayers Shouldn’t Have To Pay for Underwater Mortgages’’, Cato Institute. February 6, 2012. Available at: https://www.cato.org/publications/commentary/taxpayers-shouldnt-have-pay-underwater-mortgages. 

cent, 10 percent or higher. 2 However, there is data that shows it 

would take nearly two decades for homebuyers to save up for a 20 

percent downpayment. According to the U.S. Mortgage Insurers, it 

would 19 years for the average family to save up for a 20 percent 

downpayment. For the typical African American family, it would 

take 29 years, and for Latino families, it would take 24 years. 3 A 

recent study indicated it would two-thirds of millennials at least 20 

years to save up for a 20 percent downpayment on a median priced 

condo in their housing market. Downpayments well below 20 percent and even below 5 percent may be required for many to access 

home ownership. 

Will you consider making any changes to minimum downpayment requirements for loans purchased by the Enterprises or the 

FHLBanks? 

A.9. I have no immediate plans to change downpayment requirements. Any such future changes would have to take place in the 

context of FHFA’s statutory authorities and be directly driven by 

statutory duties of the Director. 

Q.10. If confirmed, will you use your ‘‘bully pulpit’’ to urge for higher downpayments? If so, what will you recommend? 

A.10. FHFA supports borrower education. It would be my intent to 

make sure that borrowers are properly educated as to both the rewards and risks from home ownership. Borrowers should be free to 

make their own decisions, but FHFA does have a role in helping 

to make sure that those decisions are informed. 

Q.11. In your 2012 op-ed, you asked why retirees should accept less 

of a return from their pension fund investments in mortgagebacked securities in order to help young people buy homes they can 

afford. 4 If you are able to implement your vision for bigger 

downpayments, higher interest rates and higher FICO scores, it 

will take decades for the average Latino, African American, and 

millennial households to buy a home. Especially as more than 1 in 

4 Latinos and 1 in 4 African Americans are credit invisible. This 

decade, 7 of 10 new households are households of color. Next decade, 9 of 10 new households are going to be Hispanic, African 

American, Native American, or Asian Pacific American. 

If you change requirements to make it more expensive to buy a 

home, who do you think will buy the homes of retirees when they 

want to downsize or move? Investors? Will such purchases be at reduced prices because of a lack of competition as young families will 

not be able to afford them? 

A.11. Consistent with the Director’s statutory duties and authorities, I have no interest in making home ownership more expensive, 

quite the opposite, I would work to make home ownership less expensive. 

177 

5 Calabria, Mark A. ‘‘Ed DeMarco Deserves a Medal’’, Cato Institute. March 13, 2012. Available at: https://www.cato.org/blog/ed-demarco-deserves-medal. 6 Ibid. 

Q.12. Will you change policies to allow Fannie Mae and Freddie 

Mac to resume providing financing to investors to purchase homes 

in bulk through the REO program or something similar? 

A.12. I have not examined the current policies in this area in sufficient detail. If such policies were to change, it would only be after 

a deliberative process. 

Q.13. After the Financial Crisis, Nevada had the highest foreclosure rate in the country for nearly 5 years. We had more than 

219,000 foreclosures. In Nevada, home values plummeted from 

$265,000 in January 2008 to $122,000 in December 2011—that’s a 

54 percent drop. In early 2010, 77 percent of homes in Las Vegas 

held negative equity. In your writings, you refer to homeowners in 

harsh terms. 5 In your writings, you were more sympathetic to investors who were going to receive less of a profit than expected 

than to homeowners experiencing job loss, foreclosure, and bankruptcy. 6

Can you point to any of your publications where you criticized organizations or corporations that also defaulted on their mortgages? 

For example, did you publish anything about the Mortgage Bankers of America which borrowed $75 million in 2007 to buy a 10- 

story headquarters building in Washington, DC? When MBA chose 

not to make its payments and sold that building for $41 million, 

they shorted its lenders. Donald Trump made four trips to bankruptcy court for his casinos leaving lenders in a lurch. Did you 

write about the Trump’s corporation numerous bankruptcies? 

A.13. https://www.cato.org/publications/commentary/big-banksyou-aint-cheating-you-aint-trying; 

https://www.cato.org/publications/commentary/too-big-fail; 

https://www.cato.org/publications/commentary/letting-lehmanfail-was-choice-it-was-right-one; 

https://www.cato.org/publications/commentary/fed-proposalend-bailouts-falls-short; 

https://www.cato.org/publications/commentary/are-some-banksstill-too-big-jail; 

https://www.cato.org/publications/commentary/are-banks-toobig-jail; 

https://www.cato.org/publications/commentary/get-mortgage-industry-out-taxpayers-pockets; 

Q.14. Numerous economic analysts have found that adjusting the 

loan terms for borrowers facing a hardship, such as extending the 

terms, lowering the interest rate, shared appreciation, principal reduction, etc., can be less costly to the investor than foreclosure especially when the forces driving defaults are macroeconomic as 

they were in Nevada and much of the Nation. Forcing a borrower 

from a home and then selling that home for one-third or half of the 

previous value, could be more costly than foreclosure mitigation for 

some families. Please explain how you differentiate a ‘‘deserving 

borrower’’ who should be offered a modification rather than one 

who should not? What economic evidence do you rely on to promote 

more foreclosures instead of mitigation? 

178 

7 Calabria, Mark A. ‘‘Are Courts Dragging Out the Housing Crisis?’’ Cato Institute. March 8, 

2012. Available at: https://www.cato.org/blog/are-courts-dragging-out-housing-crisis. 

A.14. I have supported a number of mitigation tools, for instance 

praising FHFA’s forbearance efforts. In any particular case, the appropriate response will depend on the specific circumstances of the 

borrower. Accordingly, borrowers in default will need to be evaluated on their current circumstances. I would point to the following 

as a sample of research that has informed by views: 

‘‘Mortgage-Default Research and the Recent Foreclosure Crisis’’, 

Paul Willen and Christopher L. Foote. 2018. Annual Review of Financial Economics 10: 59–100. 

‘‘Identifying the Effect of Securitization on Foreclosure and Modification Rates Using Early-Payment Defaults’’, Paul Willen with 

Manuel Adelino and Kris Gerardi. 2014. Journal of Real Estate Finance and Economics 49(3): 352–378. 

‘‘Why Don’t Lenders Renegotiate More Home Mortgages? Redefaults, Self-Cures and Securitizations’’, Paul Willen, Manuel 

Adelino, and Kris Gerardi. 2013. Journal of Monetary Economics 

60(7): 835–853. 

‘‘Do Borrower Rights Improve Borrower Outcomes? Evidence 

From the Foreclosure Process’’, Paul Willen, Kris Gerardi, and 

Lauren Lambie-Hanson. 2013. Journal of Urban Economics 73(1): 

1–17. 

‘‘Reducing Foreclosures: No Easy Answers’’, Paul Willen, Christopher Foote, Kristopher S. Gerardi, and Lorenz Goette. 2009. 

NBER Macroeconomics Annual 2009 24: 89–138. 

‘‘Subprime Mortgages, Foreclosures, and Urban Neighborhoods’’, 

Paul Willen, Kristopher S. Gerardi. 2009. Berkeley Electronic Journal of Economic Analysis and Policy 9(3): 1–37. 

‘‘Making Sense of the Subprime Crisis’’, Paul Willen, Kristopher 

S. Gerardi, Andreas Lehnert, and Shane Sherlund. 2008. Brookings 

Papers on Economic Activity 39(2): 69–145. 

‘‘Just the Facts: An Initial Analysis of the Subprime Crisis’’, Paul 

Willen, Christopher Foote, Kristopher S. Gerardi, and Lorenz 

Goette. 2008. Journal of Housing Economics 17(4): 291–305. 

‘‘Negative Equity and Foreclosure: Theory and Evidence’’, Paul 

Willen, Christopher Foote, and Kristopher S. Gerardi. 2008. Journal of Urban Economics 64(2): 234–245. 

Q.15. You have urged an end to judicial foreclosures despite numerous evidence of illegal foreclosure activities such as robo-signing, inadequate review of documents, lenders taking homes from 

which they lacked title, etc. 7 How do you protect the rights of 

homeowners without a judicial foreclosure process? 

A.15. I have raised questions as to the costs and benefits of judicial 

versus administrative foreclosures. No foreclose system is without 

trade-offs. My writings have attempted to raise these issues so that 

policy makers can make more informed judgements regarding these 

unavoidable trade-offs. 

As I state in your citation: ‘‘Now, I am a big believer in respecting contracts, and the existing legal environment is part of the contract, so I’m not advocating that States change their foreclosure 

179 

8 Calabria, Mark A. ‘‘Winners, Losers and Government’’, Cato Institute. June 2, 2011. Available at: https://www.cato.org/publications/commentary/winners-losers-government. 

process for existing loans. For loans not yet made, however, there 

appears to me to be the case for at least examining the merits of 

judicial foreclosure (or even better let borrowers and lenders freely 

contract to choose their own rules).’’ This is not a call for ending 

judicial foreclosure but rather a call for examining its merits. I believe all public policies should be subject to regular examination. 

Q.16. In 2011, you wrote, ‘‘the most important driver of housing demand is income, which is driven by jobs.’’ 8 Yet, the gap between 

wages and housing costs remain too high. The cost to build a 

home—even in communities with few zoning restrictions—can be 

higher than a family can afford. The enactment of the affordable 

housing goals corresponded with a substantial increase in funding 

to low- and moderate-income homeowners and multifamily properties. 

If you are confirmed to lead the Federal Housing Finance Agency, what will you do to help the more than 12 million very low-income families struggling to find a safe home they can afford? 

A.16. Please see my response to Senator Brian Schatz. 

Q.17. Did you advise the President on his budget proposals to 

eliminate allocations to the Capital Magnet Fund and Housing 

Trust Fund in FY2018 and FY2019? Do you agree with the elimination of those funds that were included in the President’s budget? 

A.17. Please see my response to Senator Brian Schatz. 

Q.18. If you are confirmed to lead FHFA, under what circumstances could you defund the Housing Trust Fund (HTF) and 

the Capital Magnet Fund (CMF)? 

A.18. Please see my response to Senator Brian Schatz. 

Q.19. Will you support and enforce the duty-to-serve requirements 

for affordable housing preservation, manufactured housing and 

rural housing as they are currently? Will you seek any changes to 

the DTS or HTF or CMF in the existing Fannie and Freddie system? If so, what changes will you pursue? Would you advice 

changes to the DTS and the Funds in a new approach? 

A.19. I will carry out the statue as written. Any potential changes 

would only be undertaken following careful review and in accordance with all appropriate administrative processes. 

Q.20. The GSEs’ affordable housing goals changed institutional behavior; the GSEs offer more flexible lending programs; developed 

partnerships with other agencies and mortgage insurers; funded 

employer-assisted housing; engaged in special efforts in rural 

areas, on tribal lands, and for elderly borrowers; made investments 

in low-income rental housing and State housing finance agency 

bonds; and have made millions in loan purchases that qualify for 

the affordable housing goals. 

Today, the Enterprises have significant staff dedicated to affordable housing, they have affordable mortgage products and pilot programs (e.g., Home Ready and Home Possible loan products), they 

conduct significant market research and do outreach to key industry and other stakeholders in LMI and minority neighborhoods in 

180 

order to facilitate home ownership and mortgage purchases in 

those communities. This work is driven by the affordable housing 

goals. 

Do you agree that it is important for FHFA to continue to provide assistance to and encourage the GSEs to facilitate financing 

for affordable housing? 

A.20. Yes. 

Q.21. Do you seek any changes to the number of staff focused on 

affordable housing at the Enterprises; do you believe today’s level 

is too low, too high or just about right? Do you seek any changes 

in the areas of focus? 

A.21. I do not currently have an opinion on the appropriate staffing 

levels. I do, however, see as the Director’s responsibility to ensure 

that staffing levels in all of FHFA’s functions are appropriate. 

Q.22. Multifamily purchases by the GSEs are currently capped at $35 billion each, $70 billion in total. The GSEs combined can buy 

no more than $70 in debt backed by multifamily (>5 units) properties. Units that meet certain ‘‘affordable’’ requirements are exempt from these caps. This ‘‘excluded category’’ section of the market has been where most of the multifamily growth has been recently, with 2017 seeing about $70 billion in lending in that space 

alone, in addition to the $70 billion that was covered by the caps 

for a total of $140 billion in lending. 

Will you consider raising the multifamily mortgage cap that has been set at $35 billion per enterprise? Would you consider encouraging more rental housing within or outside of that cap for families 

and singles earning low to moderate wages? 

A.22. Consistent with the statute, I would consider revisiting the 

current multifamily portfolio caps and making any appropriate 

changes. Within any appropriate changes would be an examination 

of current income targeting, as I do believe it is necessary that we 

incentivize recourses to be directed at those most in need. 

Q.23. Nationwide, nearly 20 million families live in manufactured 

homes; about 7 percent of the housing stock. The quality of the 

homes is good but at times, the financing can be predatory. Just 

recently, Fannie Mae and Freddie Mac were assigned a duty-toserve manufactured homeowners. They are in the early stages of 

meeting the financing needs of manufactured homeowners. In Nevada, Fannie Mae estimates it owns approximately 3,500 loans 

with a little under 1,000 purchased last year. 

What changes would you make to the GSEs’ requirements to 

serve people who buy manufactured homes either with mortgages 

or with chattel loans? 

A.23. During my tenure at HUD, I oversaw HUD’s regulation of 

manufactured housing. I recognize there are a number of challenges facing this segment of the market, and commit to examining 

those challenges. Any changes would have to follow from that careful examination. 

Q.24. Fannie Mae and Freddie Mac finance manufactured housing 

communities. In Nevada, in 2018, they purchased 62 loans of manufactured housing investors. What changes will you implement to 

ensure that those loans facilitate community ownership for owners 

181 

who provide robust tenant protections? Are there things Fannie 

and Freddie can do to ensure that the manufactured home communities they finance do not have abusive practices such as high lot 

rents and fines, unfair evictions, limitations on tenant associations, 

etc.? 

A.24. I strongly share the concern that the GSEs not facilitate abusive practices. It would be my intention to review the GSEs’ activities in this area, and if warranted, pursue appropriate changes to 

their policies that would better protect borrowers and tenants. 

Q.25. Most of the banks and credit unions in Nevada are small. 

They do not necessarily have the deposits that enable them to hold 

mortgage loans on their balance sheets. Nor do they necessarily 

want to bear the credit and interest rate risk for each loan they 

make. Securitization—selling loans on the secondary market in a 

responsible way—can lower their risk and free up cash for more 

loans. 

Recently, the FHFA issued a proposal to modify the Federal 

Home Loan Banks’ affordable housing goals. 

Do you support the affordable housing and community development mission of the Federal Home Loan Banks (FHLBs)? 

A.25. Yes. 

Q.26. Do you support the FHLB affordable housing goals as recently proposed? If not, what changes would you make? 

A.26. I have not had an opportunity to read the recent proposal. 

Q.27. Do you support the recently modified FHLB Affordable Housing Program rule? If not, what changes would you make? 

A.27. I have not had an opportunity to read the recently modified 

rule. 

Q.28. What will you focus on to ensure the FHLBs meet their economic development mission? 

A.28. Increased data collection and evaluation of those activities to 

ensure they produce the intended results. 

Q.29. In 2017, Latinos received 19 percent of home loans, compared 

with 76 percent of home loans made to Whites. Latino home ownership in Nevada, at a rate of 42.8 percent, lags-behind the State’s 

overall home ownership rate of 54.9 percent. 

In your role as Director of the FHFA, what is your plan to oversee the Enterprises’ programs and initiatives to facilitate home 

lending to Latinos and communities of color? 

A.29. First to ensure that the enterprises are fully compliant with 

our Nation’s fair housing laws; second to ensure that existing programs and initiatives are focused on sustainable home ownership; 

and third to engage in extensive program evaluation to ensure that 

those programs and initiatives are actually achieving the goal of 

sustainable home ownership. Given the dramatic harm done to 

Latinos and communities of color during the housing bust, it is my 

intention to avoid a repeat of that crisis. 

Q.30. Do you believe that the Government should play a role in ensuring that communities of color and low- and moderate-income 

buyers have access to an affordable home loan? What actions do 

182 

you think the FHLBanks, Fannie, and Freddie should do differently? 

A.30. Yes, foremost I would research, examine, and evaluate current activities to make sure that the regulated entities’ are currently acting in a manner consistent with that objective. To the degree that the regulated entities are not, I would seek changes, consistent with the statutory framework, to address those shortcomings. To the extent that such an examination suggests new actions, those would be evaluated and implemented, to the extent 

they are consistent with the statutory framework. 

RESPONSES TO WRITTEN QUESTIONS OF SENATOR JONES 

FROM MARK ANTHONY CALABRIA 

Q.1. Dr. Calabria, over 40 percent of Alabama’s residents are rural, 

which include a large portion of our low and moderate income 

homebuyers and our homebuyers of color. These rural communities 

overwhelmingly have a financing model that involves their community bank or credit union, and Fannie Mae and Freddie Mac are 

critical to providing a secondary market for these mortgages. 

Should you consider actions to ‘‘shrink the footprint’’ of the 

Fannie Mae and Freddie Mac (the Enterprises), will you commit to 

maintain a pathway that preserves and expands access to traditional mortgage financing in rural areas? 

A.1. Yes. 

Q.2. Dr. Calabria, in a 2011 blog post about the racial home ownership gap, you wrote that we should ‘‘abandon efforts to socially engineer specific home ownership rates.’’ 

Specifically what policies were you referring to in this reference? 

Do you maintain those views today? 

A.2. The long term reduction in underwriting standards, as well as 

attempts to target a specific home ownership number. I believe our 

objective should be sustainable home ownership and we should not 

target a specific home ownership number. 

Q.3. Do you believe the Federal Government’s discriminatory policies led to the creation of a racial home ownership gap?’ 

A.3. Yes. 

Q.4. Do you believe the Federal Government has a role in addressing that gap today? 

A.4. Yes. 

Q.5. Specifically, what can you do as FHFA Director to address this 

gap? 

A.5. Ensure that the GSEs’ offer products that create sustainable 

home ownership. 

Q.6. If confirmed, will you commit to maintain policies that facilitate traditional mortgage credit to the underserved market of minority borrowers, across income ranges? 

A.6. Yes. 

Q.7. Do you believe FHFA, as a regulator of the Enterprises, has 

a role in the implementation and enforcement Federal fair housing 

183 

laws, including the Fair Housing Act, the Equal Credit Opportunity Act, and the Truth-In-Lending Act? 

A.7. Yes, working in concert with the primary regulators of these 

statues. 

Q.8. Dr. Calabria, previously you have written that you believe 

Congress should ‘‘repeal outright’’ the Community Reinvestment 

Act (CRA). 

Do you continue to believe that Congress should repeal the CRA? 

A.8. I believe appropriate safeguards should be put in place to 

maintain an adequate regulatory framework around CRA lending. 

Q.9. If not, can you describe what evidence changed your view? 

A.9. There is currently an on-going regulatory effort to strengthen 

some of the problems in CRA. Before any consideration of statutory 

changes, I believe we should wait for outcomes of that regulatory 

process. 

Q.10. Do you believe the Federal Government has any role to compel financial institutions to serve the communities in which they 

are located, including low and moderate income communities? 

A.10. Yes. 

Q.11. As a member of the Financial Stability Oversight Counsel, 

the FHFA Director plays a critical role in the overall stability of 

our financial system. Given your comments in hearing about the 

role the CRA played in the financial crisis, do you currently believe 

that the CRA in any way poses a systemic risk to financial stability? 

A.11. I believe all lending poses some degree of risk and should be 

regulated and monitored appropriately. 

Q.12. Dr. Calabria, previously you have written that you believe 

that the downpayment and credit score requirements for the Enterprises should be raised dramatically. In Alabama, the median income is $46,000, and the median income for African American families is roughly $30,000. The current median listing price for a 

home in Alabama is just over $200,000. For that median African 

American family, if they were saving 10 percent of their monthly 

income, every month, it would take them nearly 7 years to save for 

a 10 percent downpayment. 

What impact do you believe raising downpayment requirements 

for the GSEs would have on first time homebuyers? What do you 

believe the impact would be on overall home ownership rates, including specifically on home ownership rates among minority communities? 

A.12. I believe we can appropriately manage underwriting standards in such a manner that would improve safety and soundness 

without any loss in home ownership rates. 

Q.13. Statewide in Alabama, average credit scores are 680. In Birmingham and in Montgomery the averages are below 630. In a 

2015 blog post, you proposed minimum FICO scores of 700. 

Mortgages to many of these borrowers are currently eligible for 

purchase by the Enterprises—but presumably would not be under 

your proposals. 

184 

A.13. I believe the Enterprises should be focused on sustainable 

home ownership. 

Q.14. What impact do you believe higher credit score requirements 

would have on home ownership rates in communities with large 

number of residents with below average or nonprime credit scores? 

A.14. I believe we can appropriately manage underwriting standards in such a manner that would improve safety and soundness 

without any loss in home ownership rates. 

Q.15. As you may know, in the years following the financial crisis, 

there have been no people of color or women serving as CEOs of 

Fannie Mae or Freddie Mac. In addition, currently, there are no 

people of color serving as President of a Federal Home Loan Bank. 

Dr. Calabria, do you believe it is important for there to be diversity among Federal financial regulators, their senior staff, and in 

the case of FHFA, among senior leadership at Fannie Mae, Freddie 

Mac, and the Federal Home Loan Banks? If so, why? 

A.15. Yes, I have written, for instance, about a lack of diversity at 

the Federal Reserve. 

Q.16. If confirmed as FHFA Director, will you commit to working 

with Congress to find ways to increase diversity among FHFA leadership and senior staff, as well as leadership at the Enterprises (including the Federal Home Loan Banks)? 

A.16. Yes. 

RESPONSES TO WRITTEN QUESTIONS OF SENATOR SINEMA 

FROM MARK ANTHONY CALABRIA 

Q.1. The 2008 housing crisis hit Arizona particularly hard, but the 

impact was not uniformly felt because Fannie Mae and Freddie 

Mac’s multifamily housing programs included taxpayer protection 

tenets that appropriately distributed risk. Following their move to 

conservatorship, these GSEs serve an essential role in the multifamily housing market and have delivered $34 billion in net profits. 

As Congress considers housing finance reform, what lessons can be 

applied from the success of multifamily housing programs? 

A.1. The primary reason the GSE multifamily portfolios performed 

so much better than the single family, despite similar declines in 

the value of multifamily properties, was the much more conservative nature of the mortgage underwriting applied in the multifamily space. The primary lesson here is that strong, sensible underwriting is critical. 

Q.2. In 2013, in testimony before the House Financial Services 

Committee, you stated that a 2-year path to receivership for 

Fannie Mae and Freddie Mac would be ‘‘more than sufficient time 

to prepare.’’ Does the Housing and Economic Recovery Act of 2008, 

which created the position you now seek, give the FHFA Director 

authority to move GSEs into receivership—in 2 years or otherwise—without Congressional approval? 

A.2. The receivership provisions, contained in Section 1145 of 

HERA, do not require Congressional approval for either a mandatory or discretionary invoking of receivership. These provisions are 

structured to mirror the receivership provisions of the Federal DeVerDate Nov 24 2008 13:07 Apr 08, 2019 Jkt 046629 PO 00000 Frm 00188 Fmt 6602 Sfmt 6602 L:\HEARINGS 2019\02-14 NOMINATIONS\HEARING\RESEND FOLDER\35617 NEW.TXT
185 

posit Insurance Act (Sections 11 and 13), which also does not contain a requirement for Congressional approval. Relatedly, Title II 

of Dodd–Frank establishes a similar resolution mechanism that 

also does not require Congressional approval. That being said, I intend to consult closely with Congress on any reforms of the GSEs. 

Q.3. Action in the face of the 2008 housing crisis was necessary to 

prevent further loss, foreclosure, and hardship for Arizona families 

and small businesses. If confirmed, and should a housing crisis 

occur under your tenure, what if any actions as FHFA Director 

would you consider taking to stabilize the market? Are there any 

actions you would definitively rule out, irrespective of economic circumstance, despite having the authority to do so? If so, why? 

A.3. I believe FHFA has a responsibility to work to stabilize the 

housing market. I would consider any options that are within the 

authorities of FHFA and would not rule out any specific actions 

that are within the authorities of FHFA. For instance, I believe the 

broad based forbearance given to GSEs’ borrowers during the last 

crisis was appropriate given the particular facts and circumstances. 

186 

ADDITIONAL MATERIAL SUPPLIED FOR THE RECORD

LETTERS SUBMITTED BY CHAIRMAN CRAPO 

187 


Dr. Calabria will not only be an asse110 !he FHFA bm also 10 Congress and the ,\dministr.uion as 1hey work 

10ge1hcr 10 suengthcn our nation's housing industry. 

NAR also urges conf11111ation of Mr. Todd Harper and the Honomble Rodney Hood 10 the l':CUA Board. ~lr. 

Ha~per brings orcr two dwdcs of experience \lith the NCU:\ and Congress, working primarily on financial 

scn"ccs policy issues that have pro,·ided him \11th dtc tools necessary to seEYC as an NCUA Board Member. 

During his prc,·ious tem> at the NCUA, ~[r. Hood fullilled his duties by ensuring !he responsible opcmtion of 

fcdemUy-insurcd credit unions.lf conftrmed, NAR bclie,·es Mr. Hood "ill continue to ensure credit unions 

help families achic,·c the American Dream of homcownc~hip. 

~!r. Bunal Patel is cquaUy qualified to scn·e as Assistaot Sccrctarr for 1hc Depanmenr ofTrcasun•.11uough his 

experience at !he Federal Deposit Insurance Corporation and as the Depufl· Assistant Sccrctan· of the 

Department ofT rcasury for the Financial Stabilit~· 01·ersight Council, Mr. Patel has pro1·en his keen 

undc~mnding of the numerous policy issues "ithin the portfolio of the Assistant Sccrcmry for 1-inancial 

lnstirurions. 

~loreo1 er, NAR suppons Mr. Seth Daniel Applc10n as HUD Assistanr Secretary for Policy Dcrelopmcnt and 

Research. NAR worked closely \lith r. Appleton when he sen·cd as Chief ofSmff for Represcnmrire BL1i11e 

Luetkemeyer, Chairman of d1e House Financial Sen ices FiMnciallnsrimrions and Conswner Credit 

Subcommiucc. Gil'en his extellsire experience on C1piwl HiU, Mr. Appleron \\ill be a suong leader and asser 

to the HUD Office of Policy De,·elopment and Research. 

We urge the Conmunec to swiflly confmn Ehese nominees and stand ready to panner with these capable 

individuals, rheir respecri1·c organizatiolls, and Congress, to facilitate a robust real estate sector and overall 

national economy. 

Sincerely, 

Jol 2019 President, ~ 1\acional.\ssoci.acion of REALTORS" 

cc: ~!embers of the U.S. Senate Committee on Banking, Housing and Urban Mfai~ 

Page2 
188 


MORTGAGE BANKERS ASSOCIATION 

February 13, 2019 

The Honorable Mike Crapo 

Chairman 

U.S. Senate Committee on Banking, 

Housing, and Urban Affairs 

534 Diil<sen Senate Off10e Building 

Washington, DC 20510 

Dear Chairman Crapo and Ranking Member Brown: 

The Honorable Sherrod Brown 

Ranking Member 

U.S. Senate Committee on Banking, 

Housing, and Urban Affairs 

534 Diil<sen Senate Office Building 

Washington, DC 20510 

On beha~ of the Mortgage Bankers Association (MBA), I am writing you in support of the nomination of 

Dr. Mark Calabria to serve as Director of the Federal Housing Finance Agency (FHFA). We 

respectfully urge the Banking Committee and, ultimately, the full Senate, to approve his nomination. 

As a former economist for this Committee, and now as Chief Economist for Vice President Pence, Dr. 

Calabria commands a depth of experience with respect to issues that impact the housing sector. As 

you are aware, Dr. Calabria has woil<ed on some of the thorniest issues involving the mortgage mail<et, 

affordable housing policy, and community development. And, as one of the Banking Committee 

staffers who negotiated the Housing and Economic Recovery Act of 2008, he is deeply aware of the 

congressional intent behind the law and FHFA's responsibilities as regulator and conservator of the 

housing Government Sponsored Enterprises. 

The FHFA needs well-qualified leadership, and we are confident that, should he be confirmed by the 

Senate, Dr. Calabria will u!ilize his significant experience in government and knowledge of both the 

single· and mutti·family business lines within the secondary mortgage market to: protect taxpayers 

through an appropriate mix of risk-sharing and private capital; woil< to maintain deep, stable, and liquid 

mortgage markets; and, enable sustainable acoess to affordable housing for all Americans. 

Again, we urge members of the Committee to approve Dr. Calabria's nomination. Thank you in advance 

for your consideration of these views. 

Sincerely, 

Bill Killmer 

Senior Vice President 

Legislative and Political Affairs 

cc: All Members, U.S. Senate Committee on Banking, Housing, and Urban Affairs 

1919 M STREET NW, 51h FLOOR • WASHINGTON, DC 20036 • MSA.ORG • (202) 557·2700 
189 


I 

Tite Honorable ~fitch ~lcGonnell 

Republican Leader 

United Sratcs Setlate 

31i Ru.<~tll $¢nate Office Building 

\X'.,hington, DC 20510 

Manufac/urtd 

MHI J/oll$ing lnllilu/e 

·me Honornble Chari<'S F- Schumer 

Democratic Leader 

United Sratcs Sellllte 

322 llan S¢111ltc Office lluilding 

\V3>hington, DC 20510 

Dear Republican lr.td<r McConnell and Democratic Lead<r Schmner. 

On behalf of the manuf.1ctured housing indt~tn', the ~lanuf3Crured Housing Institute ()!HI) 

enthusiaStically suppons the nonrinarion of Dr. Mark c.Jabm as Director of clte Federal Housing Finance Agency 

Q'HFtl). MHI believes thao Dr. Calabria has the abili~· to lead and manoge the criticallr imponant work of HIFtl, 

•·hich is tasked •ith the regulation of Fannie ~lac and Freddie ~"e (go,·emmem sponsored emerpriscs. or GSF.s), 

and the Federal Home l.oan Banks, to ensure a safe. sound, " 'd liquid housing futancc S)~tcm. 

~IHI is the onil' ootional trnde association that repr.,.ms C\'Cl)' scgmcno of the factory-built housing 

industry. Our member$ include builder$, suppliers, retail seller>, IC!tders, insraller>. communi!)· owner>, communi!)· 

manager>. and others who,..,,.. our indt~tT)', as well as SO affiliated stat.e org:mizorions. Today, approximate!)' 22 

million people lire in ma~ufacrured homes. In 2018, our industry· produced close ro 100,000 homes, which 

accounted for approxim:nel]' 10 pttccm of""'" single-family home'"'"'· Today, ~I HI "'Presents o,·er 85 per<:cm 

of all manufacmred homes produced. 

Or. Calabria has exten}in~ experiena- in hQusing and fmancial services issues, as weU as a thorough 

understanding of the impomtllce of m•nufactUred housutg as an affordable source of quali~· homoo""ership. H~ 

position as Chief Economist to \'icc President Mike Pence and pre<ious worl< on housing finance issu<'S in po<itions 

both in and outside of the federal go,·ernmem has prepored him well to !cod the fHF A. :\otably, os the top housing 

staff member on the Senate Banking Comnrinec for many yrm, he took the ll'lld in drnfring the Housing and 

Economic RccorCI)' Act of 2008, which created HIFtl as a strengthened tcgttlatorof the GSEs and <'Stabl.ished the 

u~· to $¢t\·e requirements for Fannie ~lac and Freddie Mac, requiring both cmiries to suppon manufaaured 

housing in the sceondal)· market. \Xit.hout Duty to Sen 'C. there •·ould be linrited steondary market suppon for 

filtlncing for m:mu~cmrcd housing. 

Without qucsrion, Dr. Calabria is ""JI.qualified to lead the cffon to stTCngthen the nation's housing finance 

S)>tem "'d ensure access to safe, affordable homeowners hip alterru~cii'CS. We appreciate the Com~ nee's ongoing 

suppon ol manulacrured housing and tecommend Dr. C:t!obria's immediate confim12tion. 

Sincerely, 

l.esh Gooch, Ph.D. 

Execuri,·c Vice Pre.ident & Chief lobbyist, Goremmem Affairs 

1055 Fort Myer Dr., Suite 200, Arlington, VA 22209 T et 703·558-0400 Fax: 703-558-0401 

vNm.ManufactutedKousing.org info@mfghome.Oig 
190 


NATIO:lAL 

HULTIFAHILV 

HOUSING 

CotJNCIL 

February 14, 2019 

NAA 

--- The Honorable Michael Crapo 

Chairman 

U.S. Senate Committee on 

Banking, Housing, and Urban Affairs 

239 Dirksen Senate Office Building 

Washington, DC 20510 

The Honorable Sherrod Brown 

Ranking Member 

U.S. Senate Committee on 

Banking, Housing, and Urban Affairs 

239 Dirksen Senate Office Building 

Washington, DC 20510 

Dear Chairman Crape and Ranking Member Brown, 

The National Multifamily Housing Council (NMHC) and the National Apartment 

Association (NM) a1·e writing to express our support for the approval of Mark Calabria 

as the next Director of the Federal Housing Finance Agency. 

Mark Calabria has a long and extensive history in the housing finance in dust!)' that 

makes him uniquely qualified for this position. There are few that bring the same depth 

of expertise and insight to the role. We thank Mr. Calabria for recognizing the strong 

performance of the multifamily businesses of the Enterprises, their strong underwriting 

business models and that any changes in housing reform should be more focused on the 

single-family market. 

NMHCand NM support the swift confirmation of Mr. Calabria before the Senate 

Committee on Banking, Housing and Urban Affairs. We look forward to working with 

Mr. Calabria and his team on balanced housing policies that recognize the importance of 

rental housing. 

Sincerely, 

Douglas 

~ M. Bibby 

President 

National Multifamily Housing Council 

Robert Pinnegar 

President & CEO 

National Apartment Association 
191 


_._ 

NAFCU 

3l3810th Street Not1h 

Ali\91011. VA 22201·2149 

703.522.4710 1800.338.4644 1: 703.524.1082 

na~cu.c<g 1 nalcu&g 

National Association of Federally-Insured Credit Unions 

February 13, 2019 

The Honorable Michael Ctapo 

Chairman 

Commiuee on Banking, Housing 

& Urban Affairs 

United States Senate 

Washington, DC 20510 

Re: Tomorrow's Nomination Hearing 

Dear Chairman Crapo and Ranking Member Brown: 

The Honorable Sherrod Brown 

Ranking Member 

Committee on Banking, Housing 

& Urban Affairs 

United States Senate 

Washington, DC 20510 

I write to you today on behalf of the National Association of Federally-Insured Credit Unions (NAFCU) in 

conjunction with tomorrow's hearing to consider nominees for tbe National Credit Union Administration 

(NCUA) Board. NAFCU advocates for all fedmlly-insuted not-for-profit credit unions that, in turn, serve 

over 115 million consumers with perwnal and small business financial service products. NAFCU and our 

members welcome tbe Commillee taking this important step in the process to address openings on the 

NCUABoard. 

The NCUA has been without a fully-seated Board of three members for nearly three years. This has been 

far too long. NAFCU is pleased that the President bas nominated two individuals with an understanding of 

credit union issues to fill the Board seats. 

While the credit union industry remains vibrant and healthy, there are many issues that we hope the NCUA 

Board will address in the future to ensure that credit unions have as many tools as possible at their disposal 

to oontinue to provide provident credit to our nation's consumers. With this in mind, we arc pleased to see 

the swill consideration of both former NCUA Board Vice Chairman Rodney Hood and Todd M. Harper by 

the Commillee. 

Finally, we are also pleased to see a qualified nominee to fill the Director position at the Federal Housing 

Finance Agency (FHFA) in Dr. Mark Anthony Calabria. Dr. Calabria has been open to hearing credit union 

concerns in his current role, and we believe that it is important that anyone confirmed to lead the FHF A 

understand the role credit unions play in the mortgage market 

Thank you for the opportunity to share our thoughts. We look fmward to continuing to work with the 

Committee on this and other issues of importance to cred.it unions. Should you have any questions or require 

any additional information, pleasecootael me or Alex Gleason, NAFCU's Associate Director of Legislative 

Affairs, at 703-1!42-2237 or agleason@nafcu.org. 

Si ~ 

Brad Thaler 

Vice President of Legislative Affairs 

cc: Members of the Senate Banking Committee 

NAFCU I Your Dmct Ccnnection to Federal fv.t.lo<:acy, Education & Coo1piMoe 
192 


............... 

NAHB. 

National Association of Home Bllllders 

1201 15th Stteel NW 

Was!Vlgtoo, OC 20005 

T 000 368 5242 

F 202 266 8400 

www.nallb.org 

February 7. 2019 

The Honorable Mike Crapo 

Chairman 

United States Senate Committee on 

Banking, Housing, and Urban Affairs 

239 Dirksen Senate Office Building 

Washington, DC 20510 

Dear Chairman Crapo: 

Government Affairs 

James W. Tobin Ill 

Executive VK:e President & Chief lobbyist 

Government Affairs and Communications Group 

On behaH of the 140,000 members of the National Association of Home Builders (NAHB), I am 

pleased to offer NAHB's support for the nomination of Mark Calabria as the Director of the Federal 

Housing Finance Agency (FHFA). 

Today's mortgage finance system is in a state of uncertainty. The ongoing conservatorship, now 10· 

years long and counti'ng, of the government sponsored enterprises (the Enterprises), Fannie Mae 

and Freddie Mac, is one of the most challenging issues facing the housing industry today. As the 

path for comprehensive housing finance system refom1 begins to move forward in the 16~ 

Congress, leadership at the FHFA will be critical to ensure the safety and soundness of the 

Enterprises and promote a stable and liquid residential mortgage financing system for our nation's 

housing market. 

NAHB has worked closely with Marl<. for much of his professional career, starting with his work as an 

economist in our economics department. NAHB continued to work with Mark as Deputy Assistant 

Secretary for Regulatory Affairs at the U.S. Department of Housing and Urban Development and 

throughout his tenure as a housing policy staffer for the U.S. Senate Committee on Banking, 

Housing and Urban Affairs. Most recently, we have stayed in contact as he was the Director of 

Financial Regulation at the Cato Institute and in his current posmon as Vice President Mike Pence's 

Chief Economist. 

Throughout his long career, Mark has proven himseH to be a keen expert in housing finance policy, 

adding significant value to key policy discussions both on and off Capitol Hill. NAHB has full 

confidence that Mark is an excellent choice to be Director of FHFA. We believe he will bring his 

usual high-level policy experience, outstanding communication skills and consummate 

professionalism to this important regulatory agency at a critical time for the housing finance industry. 

In the weeks and months ahead, NAHB looks forward to working with Mark Calabria and FHFA to 

address the many complex challenges facing the housing finance system. We hope the Senate 

Banking Committee will move quickly to approve his nomination. 

James W. Tobin Ill 
193 


....---....... 

NAHB. T 800 368 5242 

F 202 266 8400 

1\1\\V.na/"ll.org 

February 25, 2019 

The Honorable Mike Crapo 

Chairman 

United States Senate Committee on 

Banking, Housing, and Urban Affairs 

239 Dirksen Senate Office Building 

Washington, DC 20510 

Dear Chairman Crapo: 

Government Affairs 

JamesW. Tobin Ill 

Exeartive V<:e President & Chief lobbyist 

Govemmenl Affairs and Communicalions Group 

On behaff of the 140,000 members of the National Association of Home Builders (NAHB}, I urge 

your full support for the nomination of Mark Calabria as the Director of the Federal Housing Finanoe 

Agency (FHFA) during tomorrow's vote in committee. 

Today's mortgage finanoe system is in a state of unoertainty. The ongoing conservatorship, now 10-

years long and counting, of the government sponsored enterprises (the Enterprises}, Fannie Mae 

and Freddie Mac, is one of the most challenging issues facing the housing industry today. As the 

path for comprehensive housing finanoe system reform begins to move forward in the 116~ 

Congress, leadership at the FHFA will be critical to ensure the safety and soundness of the 

Enterprises and promote a stable and liquid residential mortgage financing system for our nation's 

housing market 

NAHB has worked closely with Mark for much of his professional career, starting with his work as an 

economist in our economics department. NAHB continued to work with Mark as Deputy Assistant 

Secretary for Regulatory Affairs at the U.S. Department of Housing and Urban Development and 

throughout his tenure as a housing policy staffer for the U.S. Senate Committee on Banking, 

Housing and Urban Affairs. Most reoently, we have stayed in contact as he was the Director of 

Financial Regulation at the Cato Institute and in his current position as Vioe President Mike Pence's 

Chief Economist. 

Throughout his long career, Mark has proven himself to be a keen expert in housing finanoe policy, 

adding signifiCant value to key policy disoussions both on and off Capitol Hill. NAHB has full 

confidenoe that Mark is an excellent choice to be Director of FHFA. We believe he will bring his 

usual high-level policy experienoe, outstanding communication skills and consummate 

professionalism to this important regulatory agency at a critical time for the housing finanoe industry. 

In the weeks and months ahead, NAHB looks forward to working with Mark Calabria and FHFA to 

address the many complex challenges facing the housing finanoe system. Again, we urge you to 

support the nomination of Mark Calabria in committee tomorrow. 

James W. Tobin Ill 
194 


\. uu 

COMMUNITY 

Home Lenders Association, Inc. 

2101 Wilson Boulware! Suite 610 

Arlingoon, VA 22201 

The Honorable Michael Crapo 

Chainnan 

U.S. Senate Committee on Banking, 

Housing, and Urban A flairs 

239 Dirksen Senate Office Building 

Washington, DC 2051 () 

Februny 13, 20t9 

The Honorable Sherrod Brown 

Ranking Member 

U.S. Senate Committee on Banking, 

Housing, and Urban Aft'airs 

713 Hart Senate Office Building 

Washington, DC 20510 

De~ Chainnan Crapo and Ranking Member Brown: 

The Community Home Lenders Association (CHLA) IITites to express our strong support for the 

confinnation ofDr. Mark Calabria as Di~tor of the Federal Housing Financial Agency (FHFA). 

As the only national association exclusively representing independent mortgage bankers (IMBs), 

CHLA and its community·based loan originator/servicers can attest to the critical role that 

Fannie Mae and Freddie Mac play in facilitating mortgage access to credit for low and moderate 

income, minority, and underserved homebuyers. by creating a secondary market for lenders like 

our members to originate qualified loans. In the I 0+ years since Fannie and Freddie went into 

conservatorship, they have played an important role in helping to stabilize our housing markets, 

while over the same period generating almost $100 billion in net profits for federal taxpayers. 

In tum, FHFA, as the regulator and conservator of Fannie and Freddie, is charged with balancing 

these dual objectives of access to mortgage credit and taxpayer protection. FHFA is also 

charged with the responsibility of regulating the Federal Home Loan Banks. Therefore, the job 

ofDirector ofthe FHFA is a critically important one. 

CHLA believes Dr. Calabria has both the experience and knowledge to oversee the FHFA. His 

background includes 6 years as a top staffer on the Senate Banking Committee, during which the 

landmark HERA legislation, creating FHFA as a strong regulator, was developed and enacted. 

Dr. Calabria also has a doctorate in Economics, and more recently has served as the Chief 

Economist for Vice President Pence. His long career in housing and financial services also 

includes serving as Deputy Assistant Secretary at the Department of Housing and Urban 

Development (HUD) and other work both inside and outside the federal government. 

CHLA believes that as a result of this broad experience, Dr. Calabria has a keen appreciation of 

both the issues that FHFA deals with and the need to balance the objectives of mortgage access 

to credit and taxpayer protection. 

CHLA urges the Committee and the full Senate to move promptly to conf~rm Dr. Calabria. 

Sincerely, 

COMMUNITY HOME LENDERS ASSOCIATION 
195 


(t\ Credit Union ll National 

cuNA Association 

February 13, 2019 

The Honorable Mike Crapo 

Chairman 

Committee on Banking, 

Housing, and Urban Affairs 

United States Senate 

Washington, DC 20510 

JimNussle 

President & CEO 

Dear Chairman Crapo and Ranking Member Brown: 

99MSiee1Sf 

S...:.lOO 

WOlhf'(fM.0C200Jl.J199 

The Honorable Sherrod Brown 

Ranking Member 

Committee on Banking, 

Housing, and Urban Affairs 

United States Senate 

Washington, DC 20510 

On behalf of America's credit unions, I am writing today regarding the Administration's 

nomination of Dr. Mark Calabria to serve as the next Director of the Federal Housing Finance 

Agency (FHFA). The Credit Union National Association (CUNA) represents America's state and 

federal credit unions and the us million members that they serve. 

CUNA has not historically taken positions on presidential nominations and, therefore, we are not 

expressing a 1~ew on the merits of Dr. Calabria's nomination. Nevertheless, we acknowledge that 

credit unions play an increasingly impmtant role in the housing finance market and, as a result, 

have a vested interest in the ongoing stability of the secondary mortgage market that the next 

Director of the FHFA will help oversee. 

Accordingly, as Congress and the Administration work together to reform the current housing 

finance system, it will be essential for the new Director of the FHFA to prioritize the following 

principles: 

o Equal Access: The secondary market must be accessible to lenders of all sizes on an 

equitable basis; 

o Affordability: The housing finance system must continue to provide qualified consumers 

with access to predictable, affordable mortgage payments; 

o A Reasonable and Orderly Transition: Any transition to a new housing finance system 

must be reasonable and orderly; 

o Strong Oversight and Supervision: Secondary market entities must be subject to 

appropriate regulatory and super~~sory oversight to ensure their safety and soundness; 

o Durability: The housing finance system should include an explicit federally insured or 

guaranteed component to ensure that, even in troubled economic times, the secondary 

mortgage market continues to exist; and 

o Preserving What Works: The housing finance system should preserve the processes that 

work, such as cost-effective and member-oriented credit union mOltgage ser~~cing options, 

cuna.org 
196 


emphasizing consumer education and home-purchase counseling, and applying reasonable 

conforming loan limits that adequately consider local real estate expenses in higher cost 

areas. 

The next FHFA Director can build upon and strengthen the existing partnerships between credit 

unions, Government-sponsored Enterprises, and Federal Home Loan Ba.nks by ensuring access to 

responsible and affordable mortgage credit for millions of credit union members. Going forward, 

CUNA will continue to work with the Agency and its new leadership to accomplish that objective. 

Conclusion 

On behalf of America's credit unions and their 115 million members, thank you for your 

consideration of our views. 

Sincerely, 

cuna.org 
197 


(t\ Credit Union ll National cuNA Association 

February 13,2019 

Tlte Honorable Mike Crapo 

Chainnan 

Commiltee on Banking, 

Housing, and Urban Affairs 

United States Senate 

Washington, DC 20510 

JimNussle 

President & CEO 

Pl>ono:ll!l-508·67<1$ 

~tiO.NC(I(l9 

Dear Chaimtan Crapo and Ranking Member Brown: 

99M.SI.rft'tst:~t 300 

W""inj"". O.C.I00ll·lm 

The Honorable Sherrod Brown 

Ranking Member 

Commiuee on Banking, 

Housing, and Urban AITairs 

United States Senate 

Washington, DC 20510 

On behalf of America's credit unions, I am writing today regarding the nominations of Messrs. Todd 

Harper and Rodney Hood to the Board of the National Credit Union Administration (NCUA). The 

Credit Union National Association (CUNA) represents America'scredit unions and their liS million 

members. 

CUNA has not historically taken positions on presidential nominations, and we are not expressing a 

view on the merits of these nominations. Ne1•enheless, given that the NCUA Board has been 

operating at panial capacity since May 2016, we believe it is critical for the effective operation of the 

agency that the Board be filled by three members, as required by the Federal Credit Union Act 

(FCUA). As such, we believe a full Board will be most able to address the varied issues facing the 

credit union industry. Be low are issues we feel are imponant for the Commiuee to be aware of as it 

proceeds with this hearing. 

Importance of the NCUA as an Independent Regulator and Insurer 

CUNA continues to strongly suppon the NCUA's current status as an independent regulator and 

insurer. Maintaining a separate, independent federal credit union regulator and insurer is critically 

imponant to the credit UJtion system. The structural and mission-driven differences between credit 

unions and banks necessitate such a regulatory scheme: credit unions' not-for-profit structure and 

their mission to promote thrift and provide access to credit for pro1•ident purposes are fundamentally 

difierentthan other financial services providers. 

The NCUA is funded by credit unions and their members, not by taxpayers. Credit unions and their 

members remain "~lling to pay for their own regulator provided there is sufilcient transparency, 

including with regard to the agency's budget. We appreciate the steps Congress took last year to 

enhance oversight ofthe agency's budget by requiring the NCUA to hold a hearing on its budget each 

year. For the last three years, even before it was statutorily required to do so, the NCUA has held 

such a hearing, and as a n.'Sult, the agency's budget has improved. CUNA is generally supportive of 

NCUA's broad budget priorities. We hope the nominees will commit to pmdent stewardship of the 

credit union member resources put in their trust. 
198 


Tite NCUA-administered National Credit Union Share Insurance Fund (NCUSIF) is also independent 

of the federal appropriations process, which insulates it from unexpected lapses in funding, including 

the recent partial government shutdown. Credit union share deposits remain insured and secure. Last 

year, the NCUA closed the Temporary Corporate Credit Union Stabilization Fund and merged it with 

the NCUSIF. The result of this action increased the NCUSIF's equity ratio well past the 1.30% of 

insured deposits that Congress has set has a benchmark. The NCUA set the nonnal operating level at 

1.39% and distributed excess funds to credit unions. We hope the nominees will commit to returning 

the nomtal operating level to 1.30% over a reasonable period of time. 

Recent NCUA Actions that Hal'e Been Positive for Credit Unions 

We are optimistic that a full Board will ensure the NCUA will continue to take action that results in 

increased flexibility and decreased regulatory compliauce requirements for credit unions. We 

appreciate recent actions taken by the NCUA that have been positive for credit unions. These include: 

• Extended examination cycles: The NCUA 's recent eflorts to extend the examination cycle 

for certain credit unions has benefited numerous credit unions, particularly those for which 

a 12-month cycle was clearly unnecessary. However, we cominue to believe the NCUA 

should extend the examination cycle for credit unions under S3 billion in assets, as is 

provided for banks under the Federal Deposit Insurance Act, as recently amended by the 

Economic Gro111h, Regulatory Relief, and Consumer Protection Act. 

• Streamlined examinations: We appreciate the NCUA'seflorts to streamline examinations 

and make operntions more efficient, and we urge the agency to continue these efforts. 

• Virtual examinations: We support the NCUA's move toward virtual examinations, 

provided credit unions have the ability for in-person interaction to allow them to engage 

with examiners. 

• Modemi7.1tion of the call report: We support the NCUA's work to modemize the call 

report. On a going-forward basis, we request the agency continually monitor the call report 

to detennine how it can be fun her improved. 

• FOM liti2ation: We support the NCUA's litigation e!Torts regarding its field of 

membership (FOM) rulemaking, including the NCUA 's recent appeal to the U.S. Court 

of Appeals for the D.C. Circuit, which CUNA filed an amicus brief in support of. 

• Executive order: We appreciate that even though it is an independent agency, the cunrent 

NCUA and Chainnan McWatters have stated it will continue to respect the spirit and 

intent of the Presidential Executi,,e Order to reduce regulatory burden. 

• Supplemental capital: While the NCUA has yet to issue a mlemaking on supplemental 

capital, it has stated it will do so in the near future. CUNA supports an NCUA rulemaking 

that would provide all credit unions the ability to issue a fonn of supplemental capital. 

We hope the nominees will work to build on the positive momentum that has been created in recent 

years. 
199 


Issues the NCUA Can Improve 

While we appreciate the NCUA's recent actions, there are nevertheless issues and rulemakings that 

cause concern for the credit union industry. We urge the agency and the nominees to maintain an 

open dialogue with CUNA, the state credit union leagues and associations, and credit unions to ensure 

it is aware of areas where improvements can be achieved. 

llle NCUA's recent rulemaking on risk-based capital is a prime example of where we believe the 

NCUA can make improvements. During the mlemaking process, credit unions across the country 

expressed significant co11cems with the new standards, particularly regarding whether the NCUA has 

legal authority to impose the requirements. Credit unions have a concern with the new risk-based 

capital standards for determining whether a credit union is well-1:apitalized, as the FCUA pennirs the 

NCUA to impose a risk-based standard for the purpose of detennining capital adequacy only. 

In addition, credit unions question whether the cost of the additional regulatory burdens imposed by 

these standards is justified. CUNA 's analysis shows that it would have done very little to reduce costs 

to the NCUSIF had it been in effect during the most recent financial crisis. Upon reflection, the 

current Prompt Corrective Action (PCA) system seT\·ed very well during the crisis, with relatively 

few credit union failures. If the goal of a PCA scheme is for co1·ered institutions to hold suflicient 

capital to withstand a severe financial crisis without imperiling the deposit insurance fund, credit 

unions' perfomtance during the recent financial crisis stands as compelling evidence that a major 

overhaul of current credit union capital requirements toward a Basel-style system is simply not 

required. Simply put, we believe the NCUA's rule is a solution in search of a problem. We hope that 

with a fully constituted Board, the NCUA will revisit this mle. 

Furthemtore, while outside the NCUA's mlemaking authority, the Financial Accounting Standards 

Board's (FASB) recent standard on credit losses [referred to as CECL (current expected credit 

losses)] will have a significant financial and compliance impact on credit unions. We believe a more 

proactive and collaborati,•e strategy by the NCUA with industry stakeholders will better ensure credit 

unions are prepared for 1his major change as the effective date approaches. Preparation for credit 

unions to comply with the CECL standard should be a top priority for the NCUA this year, and we 

hope the nominees will commit to ensuring the NCUA is doing ever)1hing it can in this regard. 

Importance of NCUA Coordinating with Other Regulators 

We stress the importance of the NCUA 's continued coordination with other federal regulatory 

agencies. As the prudential regulator and federal insurer, the NCUA retains Ol'ersight over the vast 

majority of a credit uni<m's operations. However, there are other agencies that examine and/or 

regulate credit union operations, such as the Consumer Financial Protection Bureau (CFPB) in regard 

to certain consumer financial protection laws and regulations, and the Federal Communications 

Commission in regard to certain consumer protections including the Telephone Consumer Protection 

Act. It is critical that the NCUA work closely with these and all agencies aO~ting credit union 

operations. 
200 


Conclusion 

The Na1ional Credil Union Adminis1ra1ion plays a cri1ical role in ensuring 1he safely and soundness 

of 1he credi1 union sys1em. We are gra1eful1ha1 1he presidem has nomina1ed Messrs. Harper and 

Hood and 1ha1 you have scheduled 1his hearing loday. On behalf of America's credi1 unions and 1heir 

115 million members, !hank you for your considera1ion of our 1•iews. 

Sincerely, 
201 

LETTER SUBMITTED BY SENATOR BROWN 


National 

Urban League 

February 26, 2019 

Empowering Communities. 

ChangingUves. 

Honorable Member of the Senate Banking Comminee: 

80 Pine Street 

New York, NY 10005 

P: 212.558.5300 

F: 212.344.5188 

www.nul.org 

As President and CEO of the National Urban Le3gne, and on behalf of its 90 afliliates in 36 states and the 

District of Columbia, I 11Tite to express my concerns about Or. Mark Calabria's recent statements about 

the aflbrdable housing goals (the goals). Dr. Calabria belie,·es that the goals played an outsized role in the 

financial crisis, and that the goals are inherently risky.' Acoordingly, if confimted as the Director of the 

Federal Housing Finance Agency (FHFA). I fear Or. Calabria would unnecessarily lowerthc benchmarks 

for the goals, based on unfounded assumplions. His and 01her's assertalions scapegoating the goals are 

·'we3pons of mass deception", as I described in my testimony before the Senate Banking Comminee in 

2008.

2 

Fannie Mae and Freddie Mac (the GSEs) were established "to provide liquidi1y, stability and aftbrdability 

to the mortgage market" for everyday Americans.' The goals were designed to help the GSEs satisfy this 

missiOll, by meeting the "nation's housing needs .. and "lead[ing] the market in making mortgage credit 

al"ailable''.' The GSEs ha1'C an '·afiimmil"e obligation" to purchase mortgages from low-to moderate· 

income (LMI) borrowers and in LMI neighborboods that are often overlooked in the markeiplace.' 

Contrary to popular belief, the goals did not cause the financial crisis.' The goals helped, and continue to 

help, responsible borrowers become responsible home01111ers.7 Subprime loans and other toxic produc1s 

caused the crisis.' Acoording to the Federal Reserve lloard's Oftice of Financial Stabilily Policy 

Research. ''single-family mortgage purc.hases made by the GSEs in response to the goals were not 

responsible for dri,;ng the increase in the number oflligh-risk borrowers in the mortgage market prior to 

the cr s.'~ Moreover, the goals did not help borrowers buy homes they could not afford. 

10 The 

1 Calabria nomination hearing, Senate Banking Committee, February 14,2019 

'https:I/MYW.banking.seoate.Bovlimo/media/doc/MORtALTestimony101608fiNALpdf 1https:(/www.fhfa.gov/SupervisionReyulation/FannieMaeandFreddieMac/Pnes/A.bout-Fannie-Mae--FreddieMac.aspx 

' https:l/www.fhfa.gov/SupervisionRegulationiRulffiRuleDocumentsfl018· 

2020!f20Ente0rise%20Housin!%200oals%20Finai%20Rule.odf 

'https://MYW.fhfa.Bov/SupervisionRegutation/Rule<IRuleDOaJments/2018· 

2020!f20EntepriSe%20Housin!%2QGoals%20Finai%20Rule.pdf 

'httos:l/ncrc,org/dont-blame·affordable-hous.ing·goals-fiooncial<risis/ 

'https:I/MYW.banking.senate.gov/imolmedialdoc/C.IIIoun%20Testimonv"206·29·17b.pdf 

'https:I/MYW.banking.senate.govAmolme<!ia/doc/C.Ihoun%20Testimonyl\20§·29·17b.pdf 

'https://IWIW.fe<!eralresetye.!ovlpubs/feds/2012/201225/ind".html 1

0 htto:Uartides.latimes.coml2008fiui!OS!busintij/fi.refi5 
202 


overwhelming majority of the subprime loans originated between 1998 and 2006, were refinance loans to 

borrowers who already owned their homes." 

While subprime loans are inherently risky, the goals are not. If the goals were risky, it would be reflected 

in the default rate for GSE loans. However, the currem default rate for GSE loans is approximately. only, 

two-percent, which is similar to the default rates before the subprime boom, according to the Urban 

lnstitute12 The default rare for subprime loans was nearly 10 times that of prime loans, in the years 

leading up to the crisis, according to the Chicago Federal Reserre.'l 

Pursuant to Dodd-Frank, the Qualified Mortgage (QM) rule l((!uires traditional underwriting, precluding 

the GSEs from purchasing subprime loans.

1

' As a result, no matter if the loan is made to an aflluent or an 

LMI household, all GSE loans are fimdamentally safe and sound'' The goals do not pose a threat to the 

S)~tem. 16 The GSE's current regulatory st.ructure and capital butler can sust.ain t.he loans made pursuant to 

thegoalsY Additional capital is not needed.'' The low default rates resulting from QM are a clear 

indication that the goals are sustainable, and that the goals can be increased in the future.19 

On behalf of the National Urban League, I look forward to working with you to ensure the fidelity of the 

GSE aflordable housing goals and to discourage Dr. Calabria from instituting any etl'orts that would erode 

their benchmarks. Please comact Kyle Williams to schedule a meeting \lith me, or for more infonnation 

at 202.Q29-5765 or kwilliams@nul.org. 

Sincerely, 

Marc H.Morial 

President and CEO 

National Urban League 

11 hnp:Ua~kles.latimes.oom/100Mut/OS/busines~/fi.refiS 

"https:ljWIWI.urban.org/sites/default/files/publicati011/99043/september chartbook !.pdf 

"https://WIWI.chicagofed.9rg/publications/profitwise-news-and·views/1010/pnv·seotembe,ZOIO 

" http>:ljW\WI.resoonsiblelending.orgfsites/default/files/nodes/fites/research· 

publi<ation/crl fhfa capitalrequirements-nov1018.pdf 

"hnps:ljWIWI.resoonsiblelending.orgfsites/default!files/nodesffiles/research· 

oubli<ation/crl fhfa capjtalreguiremtnts-nov1018.pdf 16 hnps:ljWIWI.resoonsiblelending.org/sitesldefault/files/nodesffilesfreseord>· 

publkation/crl fhfa capitalreguirements-nov10!8.pdf 11 https:/Jwww.resoonsiblelending.org/sitesldefauit/files/nodes/filesfreseord>· 

publi<ation/ccl fhfa capitalrequiremtnts-nov1018.pdf 

"hnps:ljWIWI.resoonsiblelending.orgfsites/defautUfiles/nodes/filesfresearch· 

oublication/crl fhfa capitatreguirements-nov1018.pdf 

"hnps;J/www.resoonsible1ending.org/sites/defaualfiles!Mdes/filesfresearch· 

oubllgtionkrt fhfa gpitaftequ1rements-nov2018.odf 
203 

LETTERS SUBMITTED BY SENATOR TILLIS 


Burr· Tillis Statement for the Record -1\lr. Rodney Hood 

February 14,2019 

We are pleased to express our support for Mr. Rodney Hood, of Durham, North Carolina, who 

has been nominated 10 be a Member of the National Credit Union Administration Board. Mr. 

Hood brings a lifetime of service and extensive experience to this position, including previous 

service as Vice Chainnan of the NCUA Board from 2005 until2010. During that time, Mr. Hood 

worked to resolve the problems caused by the 2008 economic crisis and established enterprise 

risk management, regulatory, lending, and investment policies forthe credit union industry. 

ln 2013, Mr. Hood was appointed by the North Carolina Legislature to serve as a Member of the 

University of North Carolina Board of Governors where he oversaw of the state of North 

Carolina's public university system, public broadcasting & radio stations, and university 

hospitals unti12017. 

In 2004, Mr. Hood was appointed by President Bush 10 serve as Associate Administrator of the 

Rural Housing Service (RHS), an agency within Rural Development at the U.S. Department of 

Agriculture that is one of the Federal Government's largest direct lenders. During his time at the 

RHS, Mr. Hood has managed a housing portfolio of more than $43 billion and administered the 

Agency's Housing and Community Development programs. 

Prior to his appointment to the RHS, Mr. Hood was an executive with North Carolina Mutual 

Life Insurance Company in Durham, where he directed the company's group insurance 

marketing and sales efl"orts. He also held management positions with Bank of America, where he 

served as a Community Reinvestment Act Officer, and with Wells Fargo, 1\1\ere he served as 

Division Manager for Community Development Lending and, later, as the National Director of 

the Affordable Housing Lending Group. Mr. Hood also served on the Wells Fargo Housing 

Foundation Board, where he managed the Foundation's relationship with nonprofit housing 

providers, including Neighborhood Housing Services, Habitat for Humanity, and the National 

Council of La Raza. 

Among Mr. Hood's best attributes are his good, strong North Carolina roots and his ongoing 

commitment to public service. A native of Charlotte, Mr. Hood graduated from the Uni1•ersit)' of 

North Carolina at Chapel Hill, where he served on the Board of Visitors. He served on the Board 

ofTrustees of the North Carolina School of the Arts and on the Board ofDirectorsoftheCaring 

House, a living facility for cancer patients receiving treatment at Duke University. 

Speaking for North Carolina, we can state that North Carolina's loss is the Nation's gain with this 

nomination. The same drive to serve and succeed he has shoMt throughout his career will again 

be a tremendous benefit to the National Credit Union Administration Board and the credit unions 

it oversees. Mr. Hood's career to date, as mentioned, has focused on finance and housing with a 

focus on affordable housing and community development, panicularly in underserved areas. By 

extension, he has invested a great deal of time in the financial literacy and education programs, 

including programs on ownership. We are confident Mr. Hood's background will serve credit 

unions and their members well. 

Mr. Chainnan, Rodney Hood is successful because he sees the human face behind the issues. If 

con finned, we believe he will not forget that human face that he represents. We believe the 

Commiuee will be pleased by his qualifications for the post and we urge the Commiuee to 

approve Mr. Hood's nomination.