comment on this proposal, and once we have carefully considered all the input we receive, we will move expeditiously to a final rule. as i noted at the outset, effective consumer protection can help to restore confidence in the mortgage markets and help to preserve the flow of capital to consumers who wish to purchase a home. it is not too early to emphasize that the effectiveness of the final rule will depend critically on effective enforcement. the federal reserve will do its part to ensure compliance among the institutions it supervises. we also have been instrumental in launching a pilot project with other federal and state agencies to conduct consumer compliance reviews of non - depository lenders and other industry participants. i am sure we will be aided in these efforts by a new system for registering and tracking mortgage brokers recently launched by the conference of state bank supervisors. while we work to build effective consumer protections and enforcement regimes for future consumers, we will also continue our efforts, and encourage the initiatives many others are undertaking, to limit unnecessary foreclosures for consumers who are hurting now.

for release on delivery 10 : 00 a. m. edt may 19, 2021 statement by randal k. quarles vice chair for supervision board of governors of the federal reserve system before the committee on financial services u. s. house of representatives may 19, 2021 chairwoman waters, ranking member mchenry, members of the committee, thank you for the invitation to testify today. last may, my colleagues and i came before you — in a virtual format for the first time — discussing our actions to maintain a strong banking sector as a source of support for consumers, households, and businesses. i ’ d like to thank the committee for its flexibility and its commitment to ongoing, open dialogue, especially in the course of such a challenging year. my remarks one year ago came after the onset of sudden and pervasive financial stress. 1 early turmoil in overseas financial markets quickly crossed borders and, within days, had reached almost every asset class and corner of the financial system. from the beginning, the causes of this strain were clear, rooted in the policy measures taken to address the outbreak of covid - 19. but at that time, the full implications of the covid event remained unclear, and the costs would continue to mount. the american economy and banking sector then remained at the edge of the storm, with one wave of stress behind us and others yet to come. today, the storm waters are receding. the economy is beginning a strong recovery, which owes much to an extraordinary, coordinated, and sustained campaign of support, by both congress and the federal reserve, that helped clear a path to the other side of the covid event. as the federal reserve ’ s recent reports detail, banking organizations have remained an important source of strength in this recovery. 2 entering the covid event, the banking system randal k. quarles, “ supervision and regulation report ” ( testimony before the committee on banking, housing, and urban affairs, u. s. senate, washington, d. c., may 12, 2020 ), https : / / www. federalreserve. gov / newsevents / testimony / quarles20200512a. htm. board of governors of the federal reserve system, supervision and regulation report, april 2021 ( washington : board of governors, april 2021 ), https : / / www. federalreserve. gov / publications / files / 202104 - supervision - andregulation - report. pdf