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85–117 PDF 2013

S. HRG. 113–91 

NOMINATIONS OF: WANDA FELTON AND 

KATHERINE M. O’REGAN 

HEARING 

BEFORE THE

COMMITTEE ON 

BANKING, HOUSING, AND URBAN AFFAIRS 

UNITED STATES SENATE 

ONE HUNDRED THIRTEENTH CONGRESS 

FIRST SESSION 

ON 

NOMINATIONS OF: 

WANDA FELTON, OF NEW YORK, TO BE FIRST VICE PRESIDENT, EXPORT-IMPORT

BANK OF THE UNITED STATES

KATHERINE M. O’REGAN, OF NEW YORK, TO BE AN ASSISTANT SECRETARY, 

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

SEPTEMBER 10, 2013 

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

( 

Available at: http://www.fdsys.gov/ 

COMMITTEE ON BANKING, HOUSING, AND URBAN AFFAIRS 

TIM JOHNSON, South Dakota, Chairman 

JACK REED, Rhode Island 

CHARLES E. SCHUMER, New York 

ROBERT MENENDEZ, New Jersey 

SHERROD BROWN, Ohio 

JON TESTER, Montana 

MARK R. WARNER, Virginia 

JEFF MERKLEY, Oregon 

KAY HAGAN, North Carolina 

JOE MANCHIN III, West Virginia 

ELIZABETH WARREN, Massachusetts 

HEIDI HEITKAMP, North Dakota 

MIKE CRAPO, Idaho 

RICHARD C. SHELBY, Alabama 

BOB CORKER, Tennessee 

DAVID VITTER, Louisiana 

MIKE JOHANNS, Nebraska 

PATRICK J. TOOMEY, Pennsylvania 

MARK KIRK, Illinois 

JERRY MORAN, Kansas 

TOM COBURN, Oklahoma 

DEAN HELLER, Nevada 

CHARLES YI, Staff Director 

GREGG RICHARD, Republican Staff Director 

LAURA SWANSON, Deputy Staff Director 

PAT GRANT, Counsel 

BETH COOPER, Professional Staff Member 

BRIAN FILIPOWICH, Professional Staff Member 

COLIN MCGINNIS, Policy Director 

GREG DEAN, Republican Chief Counsel 

JOHN O’HARA, Republican Senior Investigative Counsel 

TRAVIS HILL, Republican Counsel 

DAWN RATLIFF, Chief Clerk 

KELLY WISMER, Hearing Clerk 

SHELVIN SIMMONS, IT Director 

JIM CROWELL, Editor 

(II)

(III) 

C O N T E N T S 

TUESDAY, SEPTEMBER 10, 2013 

Page 

Opening statement of Chairman Johnson ............................................................. 1 

Opening statements, comments, or prepared statements of: 

Senator Crapo ................................................................................................... 2 

NOMINEES 

Wanda Felton, of New York, to be First Vice President, Export-Import Bank 

of the United States ............................................................................................. 3 

Prepared statement .......................................................................................... 16 

Biographical sketch of nominee ....................................................................... 18 

Katherine M. O’Regan, of New York, to be an Assistant Secretary, Department of Housing and Urban Development ......................................................... 5 

Prepared statement .......................................................................................... 26 

Biographical sketch of nominee ....................................................................... 27 

Responses to written questions of: 

Chairman Johnson .................................................................................... 38 

Senator Crapo ............................................................................................ 38 

(1) 

NOMINATIONS OF: 

WANDA FELTON, OF NEW YORK, 

TO BE FIRST VICE PRESIDENT, 

EXPORT-IMPORT BANK OF THE UNITED STATES; 

KATHERINE M. O’REGAN, OF NEW YORK, 

TO BE AN ASSISTANT SECRETARY, 

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT 

TUESDAY, SEPTEMBER 10, 2013 

U.S. SENATE, 

COMMITTEE ON BANKING, HOUSING, AND URBAN AFFAIRS, 

Washington, DC. 

The Committee met at 10:04 a.m., in room SD–538, Dirksen Senate Office Building, Hon. Tim Johnson, Chairman of the Committee, presiding. 

OPENING STATEMENT OF CHAIRMAN TIM JOHNSON 

Chairman JOHNSON. I call this hearing to order. Today we consider two nominations: the Honorable Wanda Felton, to be First 

Vice President of the Export-Import Bank of the U.S.; and Dr. 

Katherine O’Regan, to be Assistant Secretary for Policy Development and Research at the U.S. Department of Housing and Urban 

Development. 

Ms. Felton has been renominated to be the First Vice President 

of the Export-Import Bank. Ms. Felton was previously confirmed by 

the Senate by voice vote for her first term in 2011. During her first 

term, Ms. Felton helped lead the Export-Import Bank’s efforts in 

promoting the President’s National Export Initiative to double exports by 2015. She was critical to the Bank’s efforts in emerging 

markets, particularly Sub-Saharan Africa. Ms. Felton has also participated in multiple global access events to expand U.S. companies’ export opportunities. Prior to joining the Export-Import Bank, 

Ms. Felton spent nearly 25 years working in the financial sector in 

a variety of positions, including operating MAP Capital Advisors, 

a financial advisory firm. Ms. Felton started her career as a loan 

officer at the Export-Import Bank. 

Dr. Katherine O’Regan has been nominated to be Assistant Secretary for Policy Development and Research at HUD. The Office of 

Policy Development and Research performs policy analysis, research, and evaluations to help Congress and HUD make informed 

policy decisions. Dr. O’Regan is currently a professor of public policy and planning and director of the Public and Nonprofit Management and Analysis Program at the Wagner Graduate School of 

2 

Public Service, New York University. She holds a Ph.D. in economics from the University of California at Berkeley and spent 10 

years teaching at the Yale School of Management. Dr. O’Regan’s 

current research includes work on a variety of affordable housing, 

community development, and nonprofit management topics. She 

serves on the board of the Reinvestment Fund, the advisory board 

for NYU’s McSilver Institute for Poverty Policy and Research, and 

the editorial board for the Journal of Policy Analysis and Management. 

Ms. Felton and Dr. O’Regan both have impressive backgrounds 

and are well qualified for the positions to which they are nominated. I hope we can move them through the Committee in a timely manner. 

I now turn to Ranking Member Crapo for his opening statement. 

STATEMENT OF SENATOR MIKE CRAPO 

Senator CRAPO. Thank you, Mr. Chairman. 

Today the Committee is considering two important nominations 

for two different organizations, and you have been very thorough 

in your explanation of our nominees, and so I will be brief. 

Ms. Wanda Felton is being reappointed by the President, as you 

have said, Mr. Chairman, to her position as the First Vice President and Vice Chair of the Export-Import Bank of the United 

States. In that position, Vice Chair Felton stands ready to step into 

the shoes of President and Chairman when required, and she has 

held that position, as you indicated, since May of 2011. 

Ms. Katherine O’Regan was recently nominated by the President 

to be Assistant Secretary for Policy Development and Research at 

the U.S. Department of Housing and Urban Development. Ms. 

O’Regan’s position requires a critical understanding of housing 

markets and issues that homeowners face from both a quantitative 

and policy angle during a period that may prove to be among the 

most pressing and complex of our time. 

While each nomination is unrelated to the other, the two still 

share at least one critical requirement in their respective jobs, and 

that critical point here going forward is that each of the nominees 

must today be committed to greater transparency and accountability in the work they do for their agencies. 

Equally important is that each nominee understands the importance of having a well-run institution and commit themselves to accomplish their goals without burdening the American taxpayer. 

I look forward to hearing for the nominees and working with 

Chairman Johnson to move these nominations through the process 

and to the floor. 

Thank you, Mr. Chairman. 

Chairman JOHNSON. Thank you, Senator Crapo. 

Would any other Senator like to make an opening statement? 

[No response.] 

Chairman JOHNSON. The record will remain open for Senators 

who wish to submit an opening statement. 

We will now swear in the nominees. Will the nominees please 

rise and raise your right hand? Do you swear or affirm that the 

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

and nothing but the truth, so help you God? 

3 

Ms. FELTON. Yes. 

Ms. O’REGAN. Yes. 

Chairman JOHNSON. Do you agree to appear and testify before 

any duly constituted committee of the senate? 

Ms. FELTON. Yes. 

Ms. O’REGAN. Yes. 

Chairman JOHNSON. Please be seated. Please be assured that 

your written statement will be part of the record. I invite you to 

introduce your family and friends in attendance before beginning 

your statement. 

Ms. Felton, please proceed. 

STATEMENT OF WANDA FELTON, OF NEW YORK, TO BE FIRST 

VICE PRESIDENT, EXPORT-IMPORT BANK OF THE UNITED 

STATES 

Ms. FELTON. Thank you, Chairman Johnson. My husband, Michael Owens, is sitting directly behind me, and my cousin, Reginald 

Felton, is here as well. Thank you. 

Thank you Mr. Chairman. Chairman Johnson, Ranking Member 

Crapo, and the Members of the Committee, thank you for inviting 

me to testify today. I am extremely gratified that President Obama 

has nominated me to serve a second term as First Vice President 

and Vice Chair of the Export-Import Bank of the United States. If 

confirmed, I look forward to working with you to continue growing 

exports and supporting U.S. jobs. 

I want to, as I had previously done, acknowledge again my husband, Michael Owens, and my other family member who is here. 

Eximbank is the official export credit agency of the United 

States. The Bank’s mission is straightforward: to promote U.S. job 

growth and job retention through exports. The Bank provides financing to help U.S. companies expand into overseas markets 

when financing is not available in the private sector. Eximbank 

also steps in when there is a need to level the playing field because 

U.S. exporters are facing foreign competitors with financing from 

their Governments. The goal is to take financing off the table as 

a competitive factor so that American companies can compete for 

exports fair and square. Importantly, Eximbank operates at no cost 

to U.S. taxpayers. The Bank generated $1.1 billion for U.S. taxpayers in fiscal year 2012 alone. 

Eximbank is central to the National Export Initiative to double 

exports by 2015. President Obama’s goal in announcing this initiative was to stimulate job growth and position our economy for sustained competitiveness and prosperity. I am passionate about this 

mission, and there is good reason for my enthusiasm. 

‘‘Made in the USA’’ remains the world’s strongest brand. However, the global economy has never been more competitive. I believe 

we have a responsibility to do what we can to help American companies win the battle for international market share. In fiscal year 

2012, Eximbank supported an estimated 255,000 jobs at 3,600 companies. 

During my first term, I traveled to 20 cities and towns across the 

United States to engage small businesses and other business leaders in an effort to promote the President’s National Export Initiative. If confirmed, I will continue this outreach because small busiVerDate Nov 24 2008 11:02 Nov 26, 2013 Jkt 048080 PO 00000 Frm 00007 Fmt 6633 Sfmt 6633 L:\HEARINGS 2013\09-10 NOMINATIONS OF FELTON & O’REGAN\HEARING\91013.TXT
4 

nesses are the bedrock of our economy and their prosperity is essential to job creation. In fiscal year 2012, Eximbank authorized $6.1 billion of direct 

support for small businesses, and this represented 88 percent of 

our transaction volume that year. When indirect exports are taken 

into account, Eximbank provided a total of $7.5 billion to support 

small business. 

It is a fact that large exporters win sales that feed a huge but 

hidden chain of small and middle-market companies. Eximbank 

recognizes the potential of this economic leverage and has sought 

to amplify it. 

In addition to small business outreach, I led the President’s—I 

am sorry. I led the Bank’s effort to increase commercial engagement between the United States and Sub-Saharan Africa. 

Eximbank has a congressional mandate to promote trade with Africa, and the President has made this a centerpiece of his trade policy. 

I have worked to advance our congressional mandate and promote the President’s agenda. I worked closely with the Bank’s SubSaharan Africa Advisory Committee to develop a strategic plan to 

help the Bank achieve more robust results in Africa—without taking undue risk. 

I look at every transaction through the lens of financial merit. Is 

the transaction creditworthy? Is there a reasonable assurance of repayment? That is always my starting point. 

For 15 years I worked in private equity. Many of my clients invested in small and middle-market growth companies, so I have 

had the opportunity prior to joining Eximbank to steer capital to 

small businesses, including companies owned by women and minority entrepreneurs. I also did business in Latin America, India, Africa, and parts of Asia. These are some of Eximbank’s most important markets. 

Let me close by noting that I began my career at Eximbank. I 

learned credit analysis at the Bank, and I have worked in finance 

ever since. I have approximately 25 years of experience in credit 

and financial analysis which brings a perspective that is valued by 

board members and career staff. 

Finally, it is impossible for me to convey how much it has meant 

to me to be able to return to Eximbank. The Bank has changed 

dramatically under Chairman Hochberg’s leadership. In many 

ways, it is unrecognizable from the place I worked in the early 

1980s. The commercial vitality and energy are palpable. Eximbank 

is reaching many more small businesses and supporting more U.S. 

jobs than ever before. 

However, one thing has not changed: The Bank has world-class 

employees. They take their fiduciary duty to protect the public 

trust very seriously, and these public servants care deeply about 

Eximbank’s mission. They could work anywhere making a lot more 

money, and yet they choose Government service. They work long 

hours to provide financing that keeps American workers employed. 

It is personal to them. 

If confirmed, it would be a privilege for me to continue working 

with such a fine group of people. 

Thank you. 

5 

Chairman JOHNSON. Thank you, Ms. Felton. 

Dr. O’Regan, please proceed. 

STATEMENT OF KATHERINE M. O’REGAN, OF NEW YORK, TO 

BE AN ASSISTANT SECRETARY, DEPARTMENT OF HOUSING 

AND URBAN DEVELOPMENT 

Ms. O’REGAN. Chairman Johnson, Senator Crapo, and Members 

of the Committee, I am honored to appear before you today as you 

consider my nomination as the Assistant Secretary for the U.S. Department of Housing and Urban Development’s Office of Policy Development and Research. I would like to start with some acknowledgments of family and friends. In addition to those watching from 

a distance, my brother Bill and his son, Billy, are seated behind me 

today. And watching with several sisters of mine, I want to specifically acknowledge my mother, Mary O’Regan, whose own career so 

greatly shaped my path to this hearing. Through her work in public health and my father’s work in education, I was taught early 

the tremendous value of public service. 

My mother is a nurse who spent most of her professional career 

running a health clinic located in a HUD-funded public housing 

project. I spent formative years witnessing the importance of place, 

how neighborhoods and communities matter in the lives of families, 

and how very important policies and community institutions can be 

when well run. 

My career has focused on such communities, policies, and institutions, so I would like to briefly highlight three aspects of my background most relevant for this position that also shed light on how 

I see this role. 

First, my training and research are well aligned with HUD 

broadly and this office specifically. For more than 20 years, I have 

taught and conducted research on a range of issues related to housing policy, urban areas, and community development. This includes 

work focused on how and why neighborhoods and communities 

change, what policies might drive economic improvements, and research evaluating the various effects of housing policies. As an 

economist who does quantitative work, I am a frequent user of the 

data this office collects. As a researcher whose own work speaks directly to policy, I appreciate the critical contribution of this office 

in driving data-driven policy decisions. Part of the office’s charge 

is to link to the broader research community, of which I am a longstanding member. 

Second, the Office of Policy Development and Research has a 

much broader and more important set of constituents, namely, the 

wide array of Federal, State, and local actors in the housing and 

community development fields. I have been actively engaged with 

members of these groups far beyond my research, from advising 

and collaborating with local agencies to formal and informal work 

with community development organizations. My experience with 

these groups and agencies provides me with a much better understanding of their needs and how HUD may better serve them. 

Finally, I have extensive administrative and managerial experience. Over my career, I have undertaken a range of leadership 

roles, including more than a decade leading the largest Master’s 

program at NYU’s Wagner School for Public Service. My most sigVerDate Nov 24 2008 11:02 Nov 26, 2013 Jkt 048080 PO 00000 Frm 00009 Fmt 6633 Sfmt 6633 L:\HEARINGS 2013\09-10 NOMINATIONS OF FELTON & O’REGAN\HEARING\91013.TXT
6 

nificant managerial role was as associate dean of faculty during a 

time of momentous change at the school. This position required 

working collaboratively within the school, across the university, 

and with external stakeholders. I chose to do this work because 

having well-run institutions matters, and having managed has improved how I think about the design of effective policies. 

Achieving HUD’s mission requires the data and knowledge to 

make sound, evidence-based choices about using our limited resources well, and this is the office’s main role: to create such 

knowledge, and to participate in policy decisions that make good 

use of evidence. Secretary Donovan has emphasized this approach 

throughout his tenure and its importance to the continued transformation of HUD. If confirmed, I look forward to working tirelessly on this goal, with the Secretary, the administration, and 

Members of this Committee, and I would be honored to have the 

opportunity to serve. 

Thank you, and I look forward to your questions. 

Chairman JOHNSON. Thank you, Dr. O’Regan. 

We will now begin asking questions of our witnesses. Will the 

clerk please put 5 minutes on the clock for each Member? 

Ms. Felton, during the most recent economic crisis, the Bank was 

able to help American exporters who were finding it difficult to acquire private financing. As the economy continues to improve, how 

do you see the Bank’s role changing? 

Ms. FELTON. Thank you, Chairman Johnson. The Bank has had 

record growth in the last 4 years, and that is a reflection of the economic conditions that existed. It is true that the Bank tends to be 

countercyclical and become more active during difficult economies. 

I would expect that as the economy improves that the Bank’s activity would level off. I think we have already begun to see that with 

respect to the number of applications that we are receiving to finance aircraft, and that would continue in all likelihood as the 

economy improves. Thank you. 

Chairman JOHNSON. Ms. Felton, can you describe how the Bank 

has worked to meet the goal of the President’s National Export Initiative, which seeks to double U.S. exports by 2015? 

Ms. FELTON. Yes, sir. Eximbank is really, I think, at the center 

of the President’s National Export Initiative. One of the things that 

the Bank has done is tried to focus very actively on bringing more 

small businesses into exporting, help them understand the opportunities that are available to them outside the United States and how 

to use Eximbank’s financing to support their growth. 

There are statistics that abound: 95 percent of the world’s consumers are outside the United States. Some 200 million people 

enter the middle class globally each year. There is an expectation 

that there will be $2 trillion worth of spending every year for the 

next 20 years on infrastructure. These create enormous opportunities for American businesses, both large and small, and one of the 

things the Bank has done is led a very proactive outreach effort 

that included 60 what we call Global Access Forums in the last 

year in order to make sure American companies are aware of these 

opportunities and going out and seeking them. 

Chairman JOHNSON. Dr. O’Regan, as you mentioned, you have 

had considerable experience as a researcher, both producing and 

7 

consuming the kind of information that the Office of Policy Development and Research, PD&R, makes available. How has this experience informed your goals for your time as the head of the office, 

if confirmed? 

Ms. O’REGAN. Thank you, Chairman. I have been very involved 

in research in this area and know PD&R, as it is called, well and 

its work. I think the current circumstances in housing markets 

have only elevated the importance of having a strong, independent 

analytical arm within HUD that can and that does collect current 

information on housing markets and has the capacity to conduct 

timely evaluations on what is going on in housing markets and to 

be active as housing reforms come through and other policies to see 

their impact in the market. So I see that as one of the biggest 

areas that PD&R should be focusing on going forward. If confirmed, that would be my highest priority. 

Chairman JOHNSON. Dr. O’Regan, in addition to your public policy research credentials, you also bring both research and experience in management to your nomination. How would this experience shape your management agenda at PD&R? 

Ms. O’REGAN. Thank you, Chairman. Yes, that is the other side 

of the research agenda that I have. It was driven in part by observations that I made in the field, but also having spent 10 years at 

the Yale School of Management, and it gave me experience that my 

training in economics had not. And it has taught me the role of 

strong governance, transparency and accountability, and paying as 

much attention to the implementation side of developing policies 

that could work along with the policies themselves. If you focus on 

only one, you can fail. 

Chairman JOHNSON. Ms. Felton, during your time on the Board, 

you have focused on increasing American exports to Africa. Can 

you explain why increasing exports to Africa is good for American 

businesses and workers? 

Ms. FELTON. Yes, Mr. Chairman. I think it is vitally important, 

actually. Consistent with my earlier comment about the growth 

that is taking place in emerging markets in particular more broadly, in Africa there is a projection and expectation of enormous 

growth. Seven of the ten fastest-growing economies in the next 5 

years are expected to be in Africa. We have already seen over the 

last decade real growth, not just economic growth but demographic 

changes and political stability that create a business climate in 

many countries that should be very attractive for investment and 

trade. 

My observation is that if American companies participate in this, 

again, not just in Africa but globally, that offers the opportunity to 

stimulate real economic growth at home with the opportunity to 

create jobs and lasting prosperity. 

Finally, with respect to Africa, American companies have not 

been as active as they could be because, I think, of real risk aversion and perceptions about risk. However, there are ways to do 

business in a way that contains risk and is thoughtful about the 

risk that doing business in any foreign country can present. And, 

importantly, if we do not put our stakes down now, we risk being 

marginalized for a very, very long time, if not forever. There is a 

lot of competition from other countries, particularly coming from 

8 

Asia, and China especially; and many of the large infrastructure 

projects that need to get built get built once. And if you miss that 

opportunity, you are locked out, probably for a generation or more. 

And you miss the after sales, the maintenance; you miss the next 

opportunity to build a project. And it also relates to the consumer 

sector. Consumer brands get established early, and consumer loyalties get established early. So there is a huge opportunity across an 

array of sectors for American companies to participate and grow 

jobs. 

Chairman JOHNSON. Senator Crapo. 

Senator CRAPO. Thank you very much, Mr. Chairman. 

Ms. Felton, at the outset I want to thank the Eximbank for their 

outreach to small businesses around the country. As I am sure you 

are aware, Idaho was the beneficiary just recently of one of the efforts that the Eximbank is making to help bring small businesses 

into a greater understanding of the potential that is available for 

us to increase our exporting. And that was something that was 

very well attended, and I think it is going to be very beneficial to 

the small businesses in Idaho. And I appreciate the fact that I see 

that going on around the country. I think that is important. 

Could you repeat again—I think you said something about this 

in your opening statement. But the level of success that we are 

now achieving among small businesses with the Bank’s efforts, 

could you discuss that again briefly? 

Ms. FELTON. Yes, and let me say the Bank was very excited to 

have the opportunity to do a Global Access Forum in your State, 

Senator. 

The Bank, when Chairman Hochberg joined, did about $3.2 bil- lion—I think in his first year, in 2008 did $3.2 billion of support 

for small businesses. And in the last year, we reported $6.1 billion 

of direct support for small business, and that does not include an 

additional amount that was done of indirect support. By that I 

mean support that went to larger exporters who, because they 

want a sale, were able to participate in the growth outside the 

United States and received Export-Import Bank financing indirectly. It is very important. 

That is just our small business number. We have in the last year 

authorized $35.8 billion of total authorizations for U.S. exports. 

Senator CRAPO. All right. Thank you. And I want to highlight another point that you made in your statement because one of the 

issues that we face with regard to virtually every agency today is 

what burden they bring to our budget, particularly to the impact 

on the American taxpayer. And as you have indicated, the 

Eximbank operates as a self-sustaining entity and has for some 

years now. Could you give us those figures again? 

Ms. FELTON. Yes. In the last year, Eximbank generated $1.1 billion for the taxpayer. 

Senator CRAPO. I wish every single one of our Federal programs 

could operate in the same way. We would not have the same problems. But I think that it is notable, and it is important to make 

that note as we go into the budget battles that we will, unfortunately, be getting deeply into—and I guess fortunately. We need to 

get into them, and we need to get them resolved in some good 

ways. 

9 

Another question I have is: You mentioned in your testimony 

that one of the first if not the first questions you asked with regard 

to any proposal is whether there is a reasonable assurance of repayment. In that context, one of the questions I would like to have 

you respond to is what I have noticed over the years in observing 

the Eximbank’s operations, which I think have been handled very 

well, is that often, as you just indicated, there are suppliers as well 

as major manufacturers, and many others in the chain of production of a product or delivery of a service, and they are not always 

all U.S. companies or all non-U.S. companies. And so a loan could 

be proposed for an entity with the basis of the loan being that it 

is a U.S. company or that it is going to have suppliers who are U.S. 

companies. But other competitors, other competitor suppliers or 

other competitor producers, might not be U.S. companies. And I 

think it might get a little bit complicated in trying to make sure 

that we are not using the Eximbank to subsidize companies that 

are not American made, if you will. 

Do you understand the question I am asking? It has got to be an 

issue that comes up as we deal with the different supply lines and 

allocations of production. 

Ms. FELTON. Yes, sir, I think I understand the question. I think 

there may be two questions embedded in there. The Eximbank is 

careful—I think you are alluding to content. 

Senator CRAPO. Yes. 

Ms. FELTON. The Export-Import Bank has a requirement, a policy in place that requires that we finance the lesser of 85 percent 

of the U.S. content or 100 percent of the contract value. We managed that policy—there are some critics that say that we should 

lower our content requirements. However, if we did that, we might 

find ourselves in a position of supporting foreign jobs and production. 

We do think it is important to make sure that American companies are able to compete. And as I noted in my comments, the global economy is very, very competitive, and many foreign Governments are providing export finance for their companies, and we 

have to be mindful of that. But we also see that as an opportunity 

to cofinance with other countries. 

And I can provide one example, I think, that is very illustrative. 

There is a company that makes crop dusters in Texas called Air 

Tractor, and Air Tractor, most of the production, 70 percent of it, 

is done in the United States. However, they build the engines in 

Canada, and so 30 percent of the content is Canadian. We cofinanced exports for Air Tractor with the Canadian export credit 

agency, EDC, and that way Air Tractor was able to receive full financing for its exports, and at the same time Eximbank did not use 

American taxpayers’ dollars to support the Canadian content. 

Senator CRAPO. Thank you. I appreciate that, and I do have some 

questions for Dr. O’Regan, but I will wait for my next chance, Mr. 

Chairman. 

Chairman JOHNSON. Senator Warren. 

Senator WARREN. Thank you, Mr. Chairman. Thank you. Thank 

you both for being here. 

Ms. Felton, I very much appreciate the focus in your original testimony on small businesses and the importance of the Eximbank 

10 

and how it is that it can support small businesses and give them 

access to markets they might not otherwise have. And I, like the 

Ranking Member, am very pleased to see some of the good news 

that you are able to bring us that the number of dollars that have 

gone into small business lending has increased from 2008 to 2012. 

But the bad news seems to show that over the last 5 years, the 

Bank has dedicated a smaller proportion of its lending to small 

businesses, and so while small business lending made up 22 percent of Eximbank’s lending back in 2008, by 2012, according to 

your published reports, it is down to 17 percent. 

So I am a little concerned here about the trend. Can you give us 

some explanation about what is going on? 

Ms. FELTON. Yes, Senator. Thank you for the question. It is a 

very good one. We are mindful that we have a congressional mandate to finance or allocate 20 percent of our financing to small businesses. And what I should have noted is that although, as you correctly pointed out, the dollar amount that has gone to small business relative to our total outstanding financing has declined, the 

number of transactions that are represented in our activity is very, 

very significant. Eighty-eight percent of our transaction volume in 

2012 represented small businesses. And that is kind of the classic 

80–20 rule, that it is labor intensive, it takes a lot to reach small 

businesses, and that it is part of why we are conducting so many 

Global Access Forums around the country in order to reach out and 

find them and make sure that they know about the opportunity to 

work with Eximbank in order to finance their exports. 

But beyond the outreach and the promotion, we have created, I 

think, a number of strategies and adopted some innovations in 

order to leverage our resources better so that we can get more 

done, and I think taken some other very important initiatives. 

So when you look at the relative decline as a percentage of our 

financing of the dollars that have gone to support small business, 

it is really a function of the denominator. What we are finding is 

that, you know, there are a number of very large transactions that 

are coming to the Bank, some of them having to do with large infrastructure projects. I will give you an example. We financed a 

large petrochemical facility in Saudi Arabia. It was $5 billion of financing, and I think it created something like 11,000 jobs or supported 11,000 jobs in the United States. That is very powerful. 

But in order to get the opportunity to support so many jobs with 

one transaction that is $5 billion, we would have to go out and find 

$1 billion of small business opportunities to support, and that can 

be difficult. So that is one of the things that you are seeing when 

you see the relative decline in terms of small business support compared to what we have done overall. 

I would say that—and I will finish this up—in addition to creating new programs to create more efficiency with respect to how 

we process small business activity, we have been very successful in 

negotiating opportunities for U.S. procurement, particularly from 

small businesses, with respect to some of the large projects that we 

finance. So, for example, Pemex is the large—the national oil company for Mexico. We financed them for a long time so that they 

could purchase from the United States. And a couple of years ago, 

our project finance team negotiated a set-aside for small business 

11 

of $200 million, asked Pemex to identify 500 small companies that 

they do business with. We scrubbed that list to make sure that 

they, in fact, were small businesses, that they existed, and that 

they complied with the SBA’s definition of small business. 

So we take the mandate very seriously. We are working closely 

with the SBA as part of the Commerce Department, SBA collaboration on global business solutions, and doing everything we can in 

order to promote more financing for small businesses. 

Senator WARREN. Well, then let me just wrap this up by saying 

I very much appreciate the attention you are giving to this. I very 

much appreciate the outreach and the multiple ways in which you 

may assist small businesses, sometimes through large business 

lending. But I hope that the trend line we are seeing—and that is 

dropping from, just in a very short period of time, 22 percent of the 

dollars that go out the door are going to small businesses down to 

17 percent of the dollars going out the door are going to small businesses. I hope that is a trend line we are going to be able to stop 

and to reverse, that it is still the mandate for Eximbank to be able 

to make sure that we are getting these dollars directly to our small 

businesses. 

Ms. FELTON. Yes, Senator. I can assure you that the Chairman 

is very committed to that, and if confirmed, I would be very committed as well. 

Senator WARREN. Good. Thank you very much. 

I will hold off on Ms. O’Regan. Thank you. Thank you, Mr. 

Chairman. 

Chairman JOHNSON. Ms. Felton, authorizations for women-owned 

and minority-owned small businesses reached a record $838 million 

last year, up almost 17 percent from 2011. What can the Bank do 

moving forward to support even more minority-owned and womenowned businesses? 

Ms. FELTON. Thank you, Mr. Chairman, for that question. We 

have a number of outreach efforts underway in order to reach more 

minority-owned businesses. For example, we signed an MOU with 

the minority development—supplier development agency at the 

Commerce Department so that we can collaborate in working with 

them and identifying opportunities to work with minority-owned 

firms. Some of the data that they have developed shows that very 

often small business exporters export to their country of home origin, and they have familiarity and relationships and understand 

the markets. 

And so one of our directors, Director Pat Loui, who is sitting here 

behind me, has led the outreach to the Asian American Pacific Islanders demographic in order to increase our penetration and make 

them more aware of opportunities to do business with Eximbank. 

I have worked with African American groups; specifically, I see an 

opportunity to work with the African diaspora community, many of 

whom came here to go to school, went to college and obtained graduate degrees, and are a real asset to the United States and Africa. 

They are not as risk averse as other companies in terms of going 

out and seeking the opportunities. And some of them have engineering companies that got started with Government contracts and 

have demonstrated over, you know, one or two decades the ability 

to do whatever it is, in terms of construction and building and engiVerDate Nov 24 2008 11:02 Nov 26, 2013 Jkt 048080 PO 00000 Frm 00015 Fmt 6633 Sfmt 6633 L:\HEARINGS 2013\09-10 NOMINATIONS OF FELTON & O’REGAN\HEARING\91013.TXT
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neering work, and make—I think that there may be an opportunity 

to help companies like that that have demonstrable experience in 

construction develop opportunities to build small power plants, do 

water projects, whatever, in Africa. And we have done some of that 

already. 

Chairman JOHNSON. Ms. Felton, what is your experience dealing 

with the Native American community? 

Ms. FELTON. Sir, I personally do not have a lot of experience 

dealing with the Native American community. However, I did have 

the opportunity to work a little bit with the Commerce Department. A former official there, Reta Jo Lewis, was very involved in 

the Sister Cities and also the Native American outreach effort 

through the Commerce Department. So it is something that we 

can, I think, put higher up on our list of priorities. 

Chairman JOHNSON. Yes. Dr. O’Regan, what would your priorities be as Assistant Secretary for PD&R at HUD? 

Ms. O’REGAN. Thank you, Mr. Chairman. My first priority, if I 

were to be confirmed, is to do an assessment of the current capacities at PD&R. In 2008, as you probably know, the National Academy of Sciences did an assessment of PD&R, and one of their key 

findings was that over the past several decades, its capacity had 

deteriorated. Since then, in the past 5 years, major strides have 

been made in increasing its capacity—the analytical capacity and 

the data needed for the type of independent research that we all 

need for our housing policies. And so I think the time has come to 

do an assessment. That would be the first step, if confirmed, to see 

what is needed now to secure the gains that have been made and 

any additional steps to be sure that we have the data that we need 

for monitoring well-functioning housing markets. 

Chairman JOHNSON. Senator Crapo. 

Senator CRAPO. Thank you, Mr. Chairman. 

Dr. O’Regan, I want to get into some issues that are specifically 

going on at HUD right now. I realize that you are appointed to go 

there, but I am hopeful that you can comment on some of these. 

Currently at HUD there is a proposed rule on the Affirmatively 

Furthering Fair Housing. This rule will provide data to grantees 

participating in certain housing programs and is aimed at fulfilling 

HUD’s responsibility to assure that we combat discrimination in 

these programs. Are you familiar with this proposed rule? 

Ms. O’REGAN. Yes, I am. 

Senator CRAPO. Good. Could you tell me specifically what types 

of data will HUD be providing under the rule? 

Ms. O’REGAN. Thank you, Senator, for that question. The proposed rule has been made, and we are still in the public comment 

period, so I have not read through most of the public comments, 

and then HUD would probably be responding to those comments. 

But I do not know the specifics. On that front, though, PD&R, for 

whatever data will be created and put forward, PD&R would have 

a very big role. That is where it should sit. And the goal, as I 

would see it, if I was confirmed, is to make sure that we have the 

burden of the creation of the data and the transmission of the data 

on HUD, not the participants and the local communities, and this 

actually might help level the playing field on communities of different sizes that do not have the scale to be able to get the data 

13 

needed themselves; and then to make sure that the data are going 

to be able to answer the kind of questions that are embedded in 

the proposed rule. 

Senator CRAPO. Well, thank you. In fact, you answered what was 

going to be one of my follow-up questions about where this burden 

would fall. 

Do you have any privacy concerns? And how will this data collection interplay with HUD’s existing data collection efforts? 

Ms. O’REGAN. Thank you, Senator. That would probably be a little bit speculative from the outside, having read the proposed rule. 

There are many publicly available data that are aggregated at levels that always protect privacy and that are still at a low enough 

level of geography that we can do the kinds of work and assessing 

what is looking at—how neighborhoods look relative to other parts 

of the metropolitan area. So I would see no need for going below 

that level for this type of analysis. 

Senator CRAPO. All right. That would be important, in my opinion, to protect the privacy. Can you discuss this rule, the assessment of the rule the grantees will be required to complete under 

the proposed rule? And how does that compare to the existing analysis of impediments to fair housing choice? 

Ms. O’REGAN. Senator, the final rule has not been written, but 

comparing just the process component of this rule, it moves the 

analysis earlier in the process. And so to the extent that planners 

are going to take important information into account in making 

choices, it moves the data and the information before the choices 

are made. And so to me that seems a great contribution. Adding 

data into the analysis after a decision is made is not very useful. 

Senator CRAPO. We can agree on that. Well, I thank you for your 

efforts here, and I will look forward to having a further discussion 

with you after we get further into this process and you are heavily 

involved in its implementation. 

Thank you. 

Chairman JOHNSON. Senator Warren. 

Senator WARREN. Thank you. 

Dr. O’Regan, as you know, the financial crash of 2008 was quick, 

sudden, and it caught our Nation unawares and seemed to catch 

most of our regulators unawares as well. But the crisis was years 

in the making, and there really were a lot of signposts that we 

were headed for trouble. 

I think specifically about consumer financial products. A generation ago it was clear, you could see the price of a credit card, of 

a mortgage, checking accounts. Both the borrowers and the lenders 

knew the terms of what they were getting into. By the time of the 

crash, lenders had moved to a very different business model where 

they advertised one up-front price, but then back in the fine print 

there were lots of charges and changes in the interest rates and so 

on that ultimately changed how much the consumer was paying 

and obscured how much the consumer was paying. Buyers were 

less and less able to make comparisons among products and less 

and less able to tell what kind of obligation they were taking on. 

Now, the 2008 crash started one lousy mortgage at a time, and 

yet our regulators seemed remarkably caught off guard during this. 

As you know, the Office of Policy Development and Research at 

14 

HUD is responsible for monitoring the housing market conditions 

and analyzing and gathering data. So my question is: What do you 

think needs to change at HUD in the way data are collected and 

analyzed to make sure we are never caught by surprise again? 

Ms. O’REGAN. Senator, thank you for that question. I am going 

to build off my earlier response on thinking about that report from 

the National Academy of Sciences, which is that the internal capacity inside PD&R on data and analytics had declined dramatically, 

and one part of that was in the economics and housing market 

piece. And that has been one of the areas that has been built up 

most since 2008, and I think that is critical. You need ongoing research and data, and you need the staff capacity to be paying attention. And so the number of staff that have been lost during that 

time with expertise was quite large. 

A second piece of this, though, I think, as you know, you are 

going to be watching the indicators. You have the data, and you 

have got the right staff for doing it. You need to be forward-looking, and the ability of PD&R to be looking forward through demonstrations and research had also been limited. 

One of the areas in which I know HUD is doing research now 

has to do on financial literacy and different types of counseling programs to both see which ones work and which ones are more cost 

effective. That is something we should know as we are looking to 

design the solutions to avoiding the next housing crisis. 

So I think you need capacity both for what is going on in the moment and looking forward. 

Senator WARREN. And you feel like you have the commitment 

that you are going to be able to have the resources you need to collect the data you need and have the people you need to analyze 

them? 

Ms. O’REGAN. If I am confirmed, that is my highest priority, and 

it is why I am taking this job. 

Senator WARREN. Good. I am delighted to hear it. 

Now, I have another question for you along another part of this 

line, and that is, as you know, the housing market has not entirely 

recovered from the 2008 crisis. According to a recent study by 

CoreLogic, one in five families with a mortgage is still below water. 

So the question I have for you is: What is it that your division can 

do to help inform HUD and to make certain that HUD is responding to the housing crisis in the fullest and most effective way? 

Ms. O’REGAN. Thank you, Senator. I think this is on the research 

side. One of the most difficult things is to look out at a complicated 

problem like what is going on in housing markets and see possible 

solutions, and the benefit of having ongoing research—and, for example, the decisions that households make when they are underwater, there has been a considerable amount of research during 

this crisis that has surprised some analysts on who walks away or 

who does not walk away and what does it take to be able to—what 

type of modifications does it take in order to have sustainable 

homeownership, and those insights came from research. And so I 

think this is the purview of what PD&R should be strong at, and 

these types of lessons from the last several years should shape the 

agenda of what research we are doing going forward. 

15 

Senator WARREN. So I am hearing you say in part that what you 

want to do is you want to expand the reach of the research and 

take it in some new directions. Is that correct? 

Ms. O’REGAN. One of the things that PD&R did in the last year 

was expand the way it devised its forward-looking research agenda. 

One of the criticisms in the National Academy of Sciences report 

was that it was insular, looked inside PD&R and HUD for making 

these decisions. They took that to heart. They opened up the process last year, had hearings, conferences, and input from others to 

shape the forward-looking agenda in a way that it should meet the 

needs of a much broader set of people who are looking at housing 

markets. 

So I think that process is exactly a much better one than was 

used in the past, and I would be recommending using something 

like that going forward for setting the research agenda. 

Senator WARREN. Good. Well, I just want to say I am very encouraged by the direction that HUD has already started, but by the 

way you talk about the importance of research and as you rightly 

say, Ranking Member, the importance of doing the research that 

helps us inform decisions before we make them, that we have a 

real opportunity here to make better decisions going forward. So 

thank you very much. Thank you both. Thank you for your willingness to serve. 

Thank you. 

Chairman JOHNSON. Thank you, Ms. Felton and Dr. O’Regan, for 

your testimony and for your willingness to serve our Nation. 

I ask all Members to submit questions for the record by COB this 

Friday, September 13. I would also ask the nominees to please submit your answers to the written questions as soon as possible so 

that we can move your nominations in a timely manner. 

This hearing is adjourned. 

[Whereupon, at 10:55 a.m., the hearing was adjourned.] 

[Prepared statements, biographical sketches of nominees, and responses to written questions supplied for the record follow:] 

16 

PREPARED STATEMENT OF WANDA FELTON 

TO BE FIRST VICE PRESIDENT, EXPORT-IMPORT BANK OF THE UNITED STATES

SEPTEMBER 10, 2013 

Thank you Mr. Chairman. Chairman Johnson, Ranking Member Crapo, and the 

Members of this Committee, thank you for inviting me to testify today. I am extremely gratified that President Obama has nominated me to serve a second term 

as First Vice President and Vice Chair of the Export-Import Bank of the United 

States. If confirmed, I look forward to working with you to continue growing exports 

and supporting U.S. jobs. 

I also want to acknowledge the presence and support of my mother Maro Lester, 

my husband Michael Owens, and other family members who are here today. 

Ex-Im Bank is the official export credit agency of the United States. The Bank’s 

mission is straightforward—to promote U.S. job growth and job retention through 

exports. The Bank provides financing to help U.S. companies expand into overseas 

markets when financing is not available in the private sector. Ex-Im Bank also 

steps in when there is a need to level the playing field because U.S. exporters are 

facing foreign competitors with financing from their Governments. The goal is to 

take financing off the table as a competitive factor so that American companies can 

compete for export sales fair and square. Importantly, Ex-Im Bank operates at no 

cost to taxpayers. The Bank generated $1.1 billion for the U.S. taxpayers in FY2012 

alone. 

Ex-Im Bank is central to the National Export Initiative to double exports by 2015. 

President Obama’s goal in announcing this initiative was to stimulate job growth 

and position our economy for sustained competitiveness and prosperity. I am passionate about this mission, and there is good reason for my enthusiasm. 

‘‘Made in the USA’’ remains the world’s strongest brand. However, the global 

economy has never been more competitive. I believe that we have a responsibility 

to do what we can to help American companies win the battle for international market share. In fiscal 2012, Ex-Im Bank supported an estimated 255,000 American 

jobs at 3,600 companies. 

During my first term, I traveled to 20 cities and towns across the United States 

to engage small businesses and other business leaders in an effort to promote the 

President’s National Export Initiative. If confirmed, I will continue this outreach because small businesses are the bedrock of our economy and their prosperity is essential to job creation. 

In fiscal 2012, Ex-Im Bank authorized $6.1 billion of direct support for small business exporters. This represented 88 percent of 2012 transaction volume. When indirect exports are taken into account, Ex-Im Bank provided a total of $7.5 billion of 

support for small businesses. 

It is a fact that large exporters win sales that feed a huge but hidden chain of 

small- and middle-market suppliers. Ex-Im Bank recognizes the potential of this 

economic leverage and has sought to amplify it through new programs. 

In addition to small business outreach, I led Ex-Im Bank’s effort to increase commercial engagement between the United States and sub-Saharan Africa. Ex-Im 

Bank has a congressional mandate to promote trade with Africa, and the President 

has made this a centerpiece of his trade policy. 

I have worked to advance our congressional mandate and promote the President’s 

agenda. I worked closely with Ex-Im Bank’s Sub-Saharan Africa Advisory Committee to develop a strategic plan to help the Bank achieve more robust results in 

Africa—without taking undue risk. 

I look at every transaction through the lens of financial merit. Is the transaction 

creditworthy? Is there a reasonable assurance of repayment? That is always my 

starting point. 

For 15 years I worked in private equity. Many of my clients invested in smalland middle-market growth companies so I helped steer capital to small businesses, 

including companies owned by women and minority entrepreneurs. During those 

years, I also did business in Latin America, India, Africa, and parts of Asia. These 

are some of Ex-Im Bank’s most important markets. 

Let me close by noting that I began my career at Ex-Im Bank. I learned credit 

analysis at the Bank and have worked in finance ever since. I have approximately 

25 years of experience in credit and financial analysis which brings a perspective 

that is valued by board members and career staff. 

Finally, it is impossible for me to convey how much it has meant to me to be able 

to return to Ex-Im Bank. The Bank has changed dramatically under Chairman 

Hochberg’s leadership. In many ways, it is unrecognizable from the place I worked 

in the early 1980s—the commercial vitality and energy are palpable. Ex-Im Bank 

17 

is reaching many more small businesses and supporting far more U.S. jobs than 

ever before. 

However, one thing has not changed—Ex-Im Bank has world-class employees. 

They take their fiduciary duty to protect the public trust very seriously and these 

public servants care deeply about Ex-Im Bank’s mission. They could work anywhere 

making a lot more money, yet they choose Government service. They work long 

hours to provide financing that keeps American workers employed. It is personal to 

them. 

If confirmed, it would be a privilege to continue working with such a fine group 

of people. 

Thank you. 

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PREPARED STATEMENT OF KATHERINE M. O’REGAN 

TO BE AN ASSISTANT SECRETARY, DEPARTMENT OF HOUSING AND URBAN

DEVELOPMENT

SEPTEMBER 10, 2013 

Chairman Johnson, Senator Crapo, and Members of the Committee, I am honored 

to appear before you today as you consider my nomination as the Assistant Secretary for the U.S. Department of Housing and Urban Development’s Office of Policy 

Development and Research. I would like to start by acknowledging and thanking 

family members and friends here today, both physically and virtually. In addition 

to those watching from a distance, my brother Bill O’Regan and his oldest child, 

Bill, are seated behind me. And watching with several sisters from her home in 

Rhode Island, I want to specifically acknowledge my mother, Mary O’Regan, whose 

own career so greatly shaped my path to this hearing. Through her work in public 

health, and my father’s work in education, I was taught the tremendous importance 

of public service. 

My mother is a nurse who spent most of her professional career running a community health clinic located within a HUD-funded public housing project in Providence. I spent formative years witnessing the importance of place—how neighborhoods and communities matter in the lives of families—and how very important 

well-designed public policies and well-run community institutions can be. 

My career has focused on such communities, institutions, and policies. Let me 

briefly highlight three aspects of my background most relevant for this position that 

also shed light on how I see the office’s role. 

First, my training and research are well aligned with HUD broadly and this office 

specifically. For more than 20 years, I have taught and conducted research on a 

range of issues related to housing policy, urban areas, and community development. 

This includes work focused on how and why neighborhoods and communities 

change, what policies might drive economic improvements, and research evaluating 

the various effects of housing policies. As an economist who does quantitative work, 

I understand the role of the economic affairs division, and use the data it collects 

and maintains. As a researcher whose own work speaks directly to policy, I appreciate the critical contribution of this department in driving sound data-based policy 

decisions. Part of the department’s charge is to link to the broader research community, of which I am a long-standing member. 

Second, the office of Policy Development and Research has a much broader and 

more important set of constituents, namely the wide array of Federal, State, and 

local actors in the housing and community development fields. I have been actively 

engaged with members of these groups far beyond my research, from advising and 

collaborating with city and State agencies, to formal and informal work with community development and based organizations. These experiences provide me with a 

much greater understanding of their needs, and how HUD may better serve them. 

Finally, I have extensive administrative and managerial experience. Over my career, I have undertaken a range of leadership roles, including more than a decade 

leading the largest Master’s program at NYU’s Wagner School of Public Service. My 

most significant managerial role was as Associate Dean of Faculty, during a time 

of momentous change at the school and the university. This position required working collaboratively within the school, across the university, and externally with key 

stakeholders. I chose to do this work because having well-run institutions matters, 

and having managed has improved how I think about the design of effective policies. 

I believe in HUD’s mission of creating and supporting cohesive and economically 

healthy communities. Doing so requires the data and knowledge to make sound, evidence-based choices about using our limited resources well, and this is the department’s main role: to create such knowledge, and to participate in policy decisions 

that make good use of evidence. Secretary Donovan has emphasized this approach 

in his tenure, even highlighting its importance to the continued transformation of 

HUD itself. If confirmed, I look forward to working tirelessly on this goal, with the 

Secretary, Administration, and Members of this Committee. 

I would be honored to serve. Thank you and I look forward to your questions. 

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RESPONSES TO WRITTEN QUESTIONS OF SENATOR JOHNSON 

FROM KATHERINE M. O’REGAN 

Q.1. Dr. O’Regan, for the past few years, PD&R has been working 

on a Congressionally mandated Indian Housing Needs Survey. This 

survey is the first comprehensive study of the deep housing needs 

facing Indian Country since 1996. HUD faced some criticism from 

Tribes as it launched the survey, and has since worked to be more 

responsive. Going forward, will you commit to working with Tribes 

and us in Congress to ensure that the study stays on track and to 

maintaining consultation with Tribes? 

A.1. Yes. HUD recognizes and commits to a Government-to-Government relationship with federally recognized tribes. The study in 

question is a report on the incidence of housing needs among Native Americans, Alaska Natives, and Native Hawaiians, and was 

mandated by the Senate report language in an appropriations act. 

For this study, it is necessary to survey in-person residents of reservations governed by the sovereign tribes, and the explicit consent 

of the tribal authorities that were randomly selected for the survey 

is imperative. Further, the Office of Policy Development and Research (PD&R) has consulted extensively with elected tribal leaders 

and tribally designated housing entities at meetings of their national and regional organizations. At all times, PD&R has been 

mindful of the need for consultation with the tribes that will be 

surveyed, and we have to date obtained excellent cooperation with 

most tribal governments. So far, all but one have agreed to participate. This cooperation will continue to be of prime importance in 

the completion of the survey, and we will conscientiously consult 

with the relevant tribal leadership. 

HUD will work with the Members of the Committee to try to resolve any issues that might threaten the timely release of objective 

findings from this very important study. 

RESPONSES TO WRITTEN QUESTIONS OF SENATOR CRAPO 

FROM KATHERINE M. O’REGAN 

Q.1. Economic analyses play a very important role in the drafting 

and implementation of Federal agency rulemakings. The Regulatory Flexibility Act was passed by Congress to ensure that any 

proposed regulations do not have a disproportionate regulatory burden on small businesses and small entities. This rule is very important to ensure that small business viewpoints and perspectives are 

taken into consideration by Federal agencies when drafting and implementing regulations and to calculate any potential burdens. 

What are your thoughts about the Regulatory Flexibility Act and 

what role does the Office of Policy Development and Research play 

in helping the Department to comply with the law? 

A.1. I agree that the Regulatory Flexibility Act plays an important 

role in the Federal rulemaking process to keep agencies focused on 

the potential compliance burdens faced by small businesses and 

similar entities. The Office of Policy Development and Research 

(PD&R) is responsible, in cooperation with the HUD program offices promulgating the rules, for drafting the Initial and Final Regulatory Flexibility Analyses required by the Regulatory Flexibility 

39 

Act when HUD issues a rule having a significant economic impact 

on a substantial number of small entities. 

Q.2. Executive Order 12866 requires Federal agencies to conduct 

cost/benefit analyses for ‘‘significant regulatory actions’’ that may 

have an annual effect on the economy of $100 million or more or 

adversely affect the economy in a material way. 

What are your thoughts about Executive Order 12866 and what 

role does the Office of Policy Development and Research play in 

helping the Department to comply with the Executive order? 

A.2. I believe it is very important for Federal agencies to be cognizant of the full economic effects of regulations, both positive and 

negative, and that Executive Order 12866 and its implementing 

guidance provide agencies with firm and thorough guidance on how 

to do so. The Office of Policy Development and Research (PD&R) 

is responsible, in cooperation with the HUD program offices that 

promulgate rules, for drafting the Regulatory Impact Analyses for 

economically significant regulations as required by the Executive 

order. As part of the rulemaking process, PD&R staff also work 

with the program offices to examine alternative approaches to help 

select the approach that achieves the regulatory objective while imposing the lowest compliance costs. 

Q.3. President Obama issued Executive Order 13563 to improve 

the regulatory process and regulatory review. Specifically, the Executive order ‘‘must identify and use the best, most innovative, and 

least burdensome tools for achieving regulatory ends’’ taking into 

account benefits and costs, both quantitative and qualitative. 

What are your thoughts about Executive Order 13563 and what 

role does the Office of Policy Development and Research play in 

helping the Department to comply with the Executive order? 

A.3. I believe that Federal rulemaking should always be guided by 

clear analysis and consideration of effectiveness and compliance 

costs. The Office of Policy Development and Research (PD&R) is responsible, in cooperation with the HUD program offices that promulgate the rules, for producing the analyses required for rules to 

be cleared by the Office of Information and Regulatory Affairs in 

the Office of Management and Budget. These analyses include evidence that demonstrate how HUD examined the available means 

for achieving the regulatory objective in the most innovative and 

least burdensome way as required by Executive Order 13563.