quorum call:

mr. reid: i ask consent the call of the quorum be terminated. the presiding officer: without objection. mr. reid: i ask unanimous consent the senate proceed to executive session to consider calendar nominations 272 and377. the presiding officer: without objection. mr. reid: i ask the nominations be confirmed en bloc, the motion to reconsider be considered made and laid on the table with no intervening action or debate and no further actions be in order to any nominations that any statements be printed in the record and president obama be immediately notified of the senate's action and the senate then resume legislative session. the presiding officer: without objection. mr. reid: i now ask madam president, unanimous consent that the judiciary committee be discharged from further proceedings regarding s. res. 254 and we now proceed to that matter.

the presiding officer: the clerk will report. the clerk: s. res. 254 designating november 2 2013, as national bison day. the presiding officer: without objection, the committee is discharged and the senate will proceed. mr. reid: i ask unanimous consent that the resolution be agreed to, the preamble be agreed to and the motion to reconsider be laid on the table. the presiding officer: without objection. mr. reid: i ask unanimous consent the senate proceed to s. res. 276. the presiding officer: the clerk will report. the clerk: s. res. 276 designating october 2013 as national work and family month. the presiding officer: without objection, the senate will proceed. mr. reid: i ask unanimous consent the resolution be agreed to the preamble be agreed to, the motion to reconsider be laid on the table with no intervening action or debate. the presiding officer: without objection. mr. reid: madam president, i ask unanimous consent that when the senate completes its business today, it adjourn until 9:30 a.m. on wednesday october 30, 2013. that following the prayer and the pledge, the morning hour be deemed expired the journal of proceedings be approved to date and the time for the two leaders be reserved for their use later in the day. that following any leader remarks, the senate proceed to

executive session to consider the estevez nomination with the time until 10:30 equally divided and controlled in the usual form. the presiding officer: without objection. mr. reid: so, madam president the first roll call vote will be at 10:30 tomorrow morning on the motion to invoke cloture on the nonomination of alan estevez to be principal deputy under secretary of defense. so if there's no further business to come before the senate, i ask that it adjourn under the previous order. the presiding officer: the senate stands adjourned until 9:30 tomorrow morning.der.

mr. mcconnell: i think at this point senators from both parties >> at this point, satterstrom both parties can agree, health care.gov is a roving disaster. every day seems to bring more near, calamity. we hear visitors being told things like their wife or their daughter or they have multiple spouses or that they are unable to apply due to current incarceration. unsurprisingly, just 12% of americans think the rollout has gone well. that is less than 14% of

americans who believe in bigfoot. those who succeeded in actually enrolling in a thin are vastly outnumbered by those who've actually lost their plans. the real tragedy here is that many who succeeded are finding out the product is actually worse than the website. i mean the only thing the website is to be good at right now is creating punchlines for late-night comedians. it's almost like americans are being forced to live through a real live "saturday night live" sketch. and if you're caught last week's opener it's getting harder to tell the obamacare headlines from the obamacare punchlines these days. paper applications 800 members applying via fax obamacare it appears to be leading us boldly boldly into the 1980s. remember before this thing launched, the administration swore up and down that obamacare

was ready to go. democratic leaders in congress told americans that the law's implementation was fabulous that obamacare was wonderful or the president reassured everyone that it was working the way it was supposed to. and of course, washington democrat bragged about their fancy new website the website that cost taxpayers 100 million, 200 million 300 million? well no one is quite sure. that is just one of the unanswered questions they hope will clarify stand. now to be fair the president likes to say obamacare is about more than just a website. he's absolutely right and that's why fixing a website won't solve the larger problem here. the larger problem is obamacare it so. the larger problem is that the few people who actually have signed up for coverage have discovered about this law.

the larger problem is how obamacare is hurting people there. it's about college graduates and middle-class families getting hit with massive premium increases. country and they can't afford. it's about workers seeing their hours cut in paychecks shrink because of this law. it's about millions of americans who will lose their current health coverage because of obamacare despite the president's premises. according to news reports, the obama administration knew for at least three years that millions millions of americans would not be able to keep their health coverage. the president's press secretary basically admitted yesterday that americans would lose coverage too. this is the same president who said, and i'm quoting if you like her health care plan, you will be able to keep your health care plan. no one will take it away. no matter what. that's what the president said.

that's one of the reasons americans feel betrayed. one woman thwarted and in los angeles times, this is what she said. all we been hearing for the last three years is if you like your policy, you can keep it. i'm infuriated because i was like two. one north caroline and put it to nbc news. everybody's worried about whether the website works or not, but that's fixable. that's just the tip of the iceberg. this stuff isn't fixable. i was after he lost his $220 a month plan and was faced with the choice of taking a comparable plan for $1208 incentive $228 a month. the best option he could find on the exchange is one for $948 a month. i am sitting here looking at this think we have to just pay

the fine and just get insurance when we are sick he said after working out all that. americans have been on the country are beginning to ask. the cost of obamacare firsthand. and realizing they are the ones stuck with the bill. it's not fair. it not right. and republicans will keep fighting to get it each of its release on this. of course the most logical course it be to simply stop this train back and start over. the washington democrats still appear more interested in protecting the president's namesake, his legacy and in protecting the constituents from this law. i hope that will change because we can't move forward without democrats. we've seen some sign that at least some democrats are coming around. slowly, slowly, much more slowly than we would like. and i'm happy to engage in discussions to see where we might find common ground.

hopefully we will eventually get to the increasingly obvious endgame here, repeal followed by nature bipartisan health care reform. so that, it may be universally accepted that health care.gov is a disaster but as the president reminds us a disaster does not exist in a vacuum. the failure of the obamacare website is emblematic of the larger failure of obamacare itself. and of the kind of problems we can expect that washington democrats continue their stubborn defense of this partisan lot. now mr. president, on another matter politicians regularly

come to washington promising fiscal responsibility. but too often they can agree to cut spending when it counts. as for the budget control act in such a big deal. since congress passed the bca with overwhelming bipartisan majorities in 2011, washington is actually -- actually reduce the level of government running for two years running. that's the first time this has happened in the korean war. the bca savings are such a big deal in fact the president campaigned on it endlessly in 2012. he bragged about the bipartisan cuts in colorado and in iowa. he trumpeted the reductions from coast-to-coast, telling audiences from california to baltimore city quote, sign

$2 trillion in spending cuts into law. as our democratic friends like to see these days elections matter. and the president explicitly, explicitly states his reelection on the back of these bipartisan spending cut. i mean just look at the exit polls from november. a majority of americans that the government was doing to match. about two thirds as raising taxes to cut the deficit was a nonstarter. compared to obamacare which more voters said they wanted to repeal these bubbles that supporters straight game. so if our friends on the other side want to keep trying to climb an electoral mandate for obamacare contradicted by the facts as that may be while using their own logic, we then have to call the mandate reducing the size of government a super mandate a super mandate. that is either new plan to undo the cuts the president campaigned on and increase the debt is so outrageous.

we hear the senior senator from new york was to announce a proposal to give the president permanent power to borrow more. another was he wants to extend the debt ceiling permanently but going around congress. let me repeat that. the so-called schumer obama plan is a plan to permanently hand the president a credit card without spending limits and without lifting a finger to address national debt. truly outrageous. especially when you consider that our debt is now $79 which makes us look a lot like a european country. we have to get our debt under control before you move further down the road to greece or spain. time is not on our side. now i hear the senator from new york is going to try and sell his proposal as a quote unquote mcconnell plan. i appreciate the attempt at a pr gimmick here that there are two

huge differences between the schumer obama plan and what i proposed in the past. first schumer obama would raise the debt ceiling permanently. i reject that idea entirely. second, unlike schumer obama either the increases the debt ceiling should be accompanied at reforms. that's just what we did in 2011 when congress raised the debt ceiling and returned before enacting $2 trillion in bipartisan spending control. the spending control the president campaigned on last year it endlessly. that's the real mcconnell plan. at the senator from new york is interested in working with me to enact another $2 trillion in bipartisan cuts, then let's get down to that brass tacks. the american people would love to see us working on a bipartisan way to actually help them. but if he insists on pushing the schumer obama plan come he's not going to find any dance partners on the side of the aisle because handing the president a permanent blank check

increasing the size of government and try to overturn the most significant accomplishment of the obama years am and that's just a nonstarter. our debt is a serious problem. i know kentuckians think so. but americans across the country, they understand it's unsustainable over the long run. that's jobs and economic growth. what shall the gimmicks and blank checks and get to work on bipartisan plan to get spending under control. that's what i constituents asked that.

>> i am a firm believer in what they called the unauthorized biography. now, unauthorized does not mean untrue. it means that you are doing it without the cooperation and blessing of your subject. and i do believe it is a legitimate wonderful way to cover history especially public figures that have spent many, many years and millions of dollars creating their own and manage. and so i think is valuable sometimes to go behind that. so usually, i am the one who is trying to get the hind back and

tell you what's going on. >> next, look at the future of the housing finance market and the government's role in the housing industry. in a few minutes earlier remarks from richard cordray director of the consumer financial protection bureau at this annual convention held by the mortgage bankers association. it is 40 minutes. ♪

[applause] ♪ >> whose a springsteen fan? i know i am. anyway thank you gabe. good morning, everyone. welcome to the second session. it's an honor privilege to be here this morning to begin my mba executive service during the year of the -- now, all of us in the room know too well 2013 has been a year of regulatory implementation. many of the numerals we incorporate in our business operations were a direct result of the 2010.frank act. since we're celebrating our 100th anniversary right here in washington d.c. the first place at the historic real estate finance in america we thought it would be appropriate to hear directly from policymakers at the forefront of

that change. their jobs and responsibilities are challenging. protecting consumers in the real estate finance market for the mistakes of the past but simultaneously creating an environment of economic growth and stability within the marketplace. we applaud them for their inclusiveness they've shown our industry during the regulatory rulemaking process. our speakers this morning understand the importance of coordination and input from policy leaders, consumer advocates and industry professionals. so that gives me great pleasure to introduce our first honored guest. on the 25th 2009 president obama appointed ed demarco regular firm fannie mae freddie mac and the federal home of banks. previously, mr. demarco served sf hfa chief operating officer and senior deputy director for

housing national goals since the perception in 2008. a career civil servant mr. demarco joined the federal housing oversight as an agency to act hfa -- fhfa as its chief operating and director. during the past years of acting director demarco mba members have enjoyed an open and collaborative relationship with fhfa. for this we are truly appreciative and hoped this president continues into the future. ladies and gentlemen, please welcome fhfa acting director, ed dimarco. [applause] ♪ >> good morning, everyone.

thank you for inviting me to speak this morning yet as they could start by congratulating the mortgage bankers association on this hundredth annual convention. that is quite a history. when the tree system a much different and more limited housing finance system to mama creates our greater access to credit that is recovering from a nationwide trauma and housing. the good news is that the recovery is taking hold here the opportunity for rebuilding the housing finance system to a stronger, more competitive in the resilient market. yet challenges are all around us in implementing innovative new mortgage rules, many developed in response to the recent market and regulatory failures creates uncertainty is the cost and impact. we have an opportunity to rebuild the secondary mortgage market of the political and policy challenges of that legislation are numerous.

over the past five years in which fannie mae and freddie mac are the enterprises as i will refer them have conservatorship, much has been accomplished. the nation secondary mortgage market is continuing to function. the enterprises financial positions have stabilized. we've made significant progress resolving pre-conservatorship business. the enterprises have played an important role in providing foreclosure prevention and refinancing options to borrowers. and through fhfa's strategic plan for the enterprise conservatorship, we've begun the process of the housing system. even with those accomplishments much remains to be done. the single-family mortgage market remains heavily supported by taxpayers. while there is progress on the legislative front and the timing of broader housing finance reform remains uncertain.

in 2008 went when conservatorship sewer established, immediate object to for initial phase was to stabilize the enterprise operations and ensure the secondary mortgage market continued to function. as markets stabilize the second phase of the conservatorship focused on developing tools for assisting troubled homeowners while reducing credit losses. the next phases determining responsibility to direct the conservatorship store-and-forward. the law establishes the employment of a conservator or receiver for the enterprises for the purpose of reorganizing rehabilitating her winding up in the affairs of the regulated entity. in fact we're doing all three of these things. reorganizing can rehabilitating and winding up the affairs of fannie mae and freddie mac. this is exactly the path we set forth last year when we issued the strategic aim for a conservatorship. more specifically we sat for three strategic goals in that plan.

the first is the bill. aldinger infrastructure from the secondary mortgage market. the second his contract. gradually contract fenian freddie's dominant presence in the marketplace while simplifying and shrinking their operations. the third goal is to maintain. maintain foreclosure prevention activity and credit availability for new and refinanced mortgages. we identify specific activities to achieve these goals in a conservator scorecard in 2012 and again in 2013 as much progress on the pulse has been achieved. as time moves on skill of the operations and conservatorship cannot remain static. after the end of last year the amount of taxpayer capital support the outstanding debt and mortgage backed securities became thick scum of the bidding risk exposures failed to maintain the adequacy of the remaining capital support for

the treasury support agreements. what seems clear is that fannie mae and freddie mac cease to operate in the current corporate foreign at some future date, a date to be set by congress. shf a conservatorship strategic plan designed to prepare the company and the markets for that date while maintaining america's stability and liquidity from now till then. the strategic aims to move forward with the transition to a post-conservatorship market thereby making the final transition from the conservatorship so simple and quick as possible. it's more clearly define the process, fhfa will establish targets for fannie and freddie to further achieve these three strategic goals, building for the future, contracting the footprint and maintaining market stability and liquidity. in the next phase of the conservatorship, we intend to build upon and the accomplishments of the past two

years while accelerating progress towards achieving each of these strategic goals. i provided some thoughts on each line of the enterprise business last week. today in my limited time i would like to focus on the single-family guaranteed business. with an uncertain future in a general desire for private capital to reenter the market the overarching goal is that the enterprises market presence should be reduced gradually over time. we have three main tools to accomplish this objective. first, sharing transactions are important for reducing the taxpayers long-term risk exposure. in 2013, we set a target for each enterprise to achieve $30 billion in risk sharing transactions coming using multiple types of structures. both companies are on track to meet this target and the transactions completed to date have been well received in the market. we are planning for the scope

and depth of risk sharing transactions to continue to expand. while these transactions and structures are very positive they do rely the underlying infrastructure for fannie and freddie. going forward, expect to see work-freddie. going forward, expect to see work done on other types of transactions such as senior subordinated structures for certain portions of the enterprise mortgage guarantees. these alternative approaches will contribute to our efforts to build for the future by helping to develop the securitization infrastructure that is less reliant on enterprises traditional gse securitization model. second, guaranteed fees are about double what they were prior to the governorship. the key reason to increase was to bring the pricing for credit risk closer to what would be required by private sector participants. the level is difficult to evaluate with precision, i believe we are closer to a level that would encourage more private participation can be

played to continue pursuing gradual increases in the near future. one of the most direct ways to increase private sector participation and reduce taxpayer exposure history reduction in the maximum size of or price guarantee. this summer, the president specifically endorsed a gradual reduction in maximum size. and then there's been much discussion about a near-term reduction in low limit. as you probably know, last week i made clear that i understood the potential timing issues associated with such a change, given the other regulatory changes scheduled to take place in the mortgage market. as a result, i said that fhfa will follow its practice of announcing the 2013 conforming limits in late november at which time further information will be provided nine reduction in the size of the ones the enterprises

guarantee going forward. to provide for their clarity, fhfa would've market participants of the six months notice and i'm any reduction across the board, not in some parts of the country. inconsistent with her practice of increasing guaranteed fees come any change would be measured and gradual so as not to disrupt markets. while the steps are important and necessary to carry at a conservatorship responsibility efforts are also focused on building towards a future infrastructure to support the single-family mortgage market. fhfa is looking to reposition the enterprise activities in ways that would support the various housing finance reform options pending in congress. one of these efforts is a common securitization with a focus on function that are routinely repeated across the secondary mortgage market such as issuing

security, providing disclosures pain investors and disseminating data. these are all standardization could have clear benefits to market participants. we recently announced the formation of common securitization solutions has an equally owned subsidiary, fannie mae and freddie mac are the new entity will have its independent location and leadership will manage development of platforms and the associated data infrastructure for future securitization. next year, a key objective for us will be to formalize the means for mba members and other market participants to participate in the development process of the common security nation. i am committed to ensuring that industry input into this effort. i'm also committed to an outcome that strengthens, not weakens the ability of holland is icelanders to access the secondary mortgage market.

fhfa wants to see a competitive marketplace. competition and thus consumer opportunities is enhanced when large lenders and mall effectively compete in offering mortgages to families and complete servicing mortgages. they must be one to envision the mortgage market working differently than has in the past. when selling mortgages the processes of the past must be improved in this area. purchasers and guarantors of mortgages long served as a key risk control mechanism that fannie mae and freddie mac to ensure they meet the requirements set forth in their cellar type. it attracted less attention when times are good. the tremendous breakdown in loan origination quality during the boom. of the last decade led to

unprecedented delinquencies, which has led to unprecedented honor this and put the xps conservator, fhfa police and enforcement of long-standing contractual requirements was unnecessary albeit painful process to protect taxpayers and assign losses for a contractual obligation exists. this experience demonstrated need for improved quality control including better use of technology to enhance the quality control at commode originations and we've been working toward that trend. ..

taking place near the time of purchase rather than waiting until much later such as when a mortgage becomes delink went. the period for which it remains active except of limited issues such as fraud is limited to three years for performing loans. so the future we will continue to refine and improve upon this new framework. important strides have been implemented this year. there's still a learning process going on and further development and improve should emerge over time. in particular i anticipate

technological development to contribute to faster and more reliable loan review that can thread relief in the future. still, it will take time. i hope the constructive dialogue between you as mortgage originators, in fannie mae freddie mac and fhfa will lead to further enhancement in improved mortgage origination system and greater confidence that loans sold to the secondary market will not come back some day. another area of progress and wrapping up the past is resolving securities law claim on private label mortgage backed security. they are able gus to the issue and they need to be resolved. four of the 18 outstanding lawsuit in the area. we hope to build upon these cases to resolve the pending one.

an expedition of the remaining claim will allow the conservatorship and companies involved to put past problems behind them and devote their energy and resource to improving the house finance system to the future. as policy makers think about the future, i would note that our current housing finance system has the roots in the great depression. as a nation we should look at it as a opportunity to build new not for the next few years but restructuring that could last for decades. the effort should not be considering just about what fannie and freddie do in-housing finance but consider the entire market including fha and other government programs that support housing finance. long-term continued operation in a government nonconservatorship is nonsustainable. each company lacks capital cannot rebuild the capital base and operating on a remaining finite line of capital from taxpayers.

further more a tax-payer backed conservatorship -- that crowds out private capital and underprices risk in the market. and also places long-term decisions making in the hands of a government agency. decisions that should be made by private sector businesses based on reasonable returns on private capital. at some point lawmakers need to decide on the appropriateness and level of a government credit subsidize for housing such a decision should include whether a government-owned corporation should undertake some or all of the activity of fannie and freddie or some or all of those functions should be repositioned in the private sector. in the meantime, fhfa will continue to carr out the mandate as conservator accelerating the earth to ease the transition to opposed con associate or itship market ultimately defined by lawmakers. in the employees at fannie and freddie will continue to ensure their companies bring stability

in liquidity to the market while they contribute directly to the building of that post scholarship market. [applause] thank you. we appreciate your time here today. there we go. director consumer finance and protection bureau richard corp. dry. 0 pointed by president obama in 2012 and confirmed by the senate on july 16, 2013. director cordray previously lead the enforcement division. prior to joining the bureau he served on the frontline of con siewmenter production as ohio attorney general.

which he lead state and county banking. investment cet and financing activity. earlier in the year he was an adjunct professor at the ohio state university college of law. served as a state representative for the 33rd ohio house district and first solicitor general in ohio's history. he argued seven candidates -- cases before the supreme court. ladies and gentlemen please welcome cfpb director, richard cordray.

[applause] ♪ ♪ >> i'm not earth wind and fire, but thank you for asking me to come and speak to the convention. those of you here today, as you know represent the single biggest consumer financial market in our nation, and in fact, in the history of the world with a mortgage market topping $10 trillion in value. you first hand how closely tied it is to an overall economic stability and well being. just over five years ago we saw it too clearly as disruption in the housing market precipitated the financial crisis that caused so much damage to the people of this country. and the current economic recovery is occurring in large

part because the housing market is showing increasingly strong sign of recovery. the credit crunch the financial collapse, and the ensuing deep re-- financial event of our generation. they cost americans trillions of dollars and household wealth many lost their jobs, many lost their homes. almost everyone saw their retirement savings shriveled. you had thegraphic view from the frontline as history unfolded with the boom and bust in the housing market. severe dysfunction in the loans supporting mortgage-backed security sent profound shocks reverberating throughout the financial system. the crumbbling of the housing market destroyed jobs across every economic sector in and communities throughout the. the dimension of the failure were astounding. the american dream of home ownership was shake to the foundation. people lost hope and confidence in the future, the housing collapse crippled our economy in

ways not seen for generations. inspect the gat mother and father they passed -- and as you well know the law covers a broad range of topics to address the problem that lead to the crisis and ensure they would not happen again. among the steps taken in the law was the creation of the new consumer financial protection bureau. part of our mission; therefore to ensure that the recent economic meltdown does not repeat itself. the development lead to the financial crisis are inconsistent with the fair, transparent, and competitive markets that we're directed to promote. the aftermath of the crisis severely comprised consumer access to credit which rewere also direct prod mote. to accomplish these objects congress give us a number of tools to ensure even handed oversight and prevent a bad practices from taking root. when honest and innovative businesses can succeed on the merit, it begins the fair

competition that drives growth and progress. appropriate market oversight and even-handed enforcement empowered consumers to make sound financial decisions they can live with over the long long-term. we kept all of this in mind as best we could as we worked to develop and complete the mortgage rules we issued last january. i'm sure you're well aware two of the mortgage rules will be extremely important in addressing some of the most serious problem. the ability to repay were so called mortgage rule is designed to end many irresponsible lending practices by making sure that the simple proposition consumers are getting mortgages they can actually afford to pay back. our services rules -- among other objective a fairer and more effective process for troubled borrowers who face the potential loss of their home. we're committed to open

transparent, and decision making. before we finalize our rule we conduct research and solicit input from all stakeholders. consumers, advocates, industry member, and public officials. the best decision will be those best informed. there's no question that our processes including the many meetings we took in the broad input we received lead to better outcome on the mortgage rules. throughout the process we heard overwhelmingly that the mortgage market in 2012 was vastly different from the mortgage market of 2006. and required much more focus on access to credit than would be true in more normal circumstances. the constrained mortgage lending so prevalent today was critical to the thinking about how to contour our mortgage rules. especially the ability to pay the qm rule. by paying close attention to the input and obtaining and analyzing more up to date data we came to more balanced conclusion how to define it and

tailor the legal consequences. one further illustration of our approach is our treatment of smaller creditors under the rule. through extensive discussion with community banks and credit unions, and analysis of performance data for loans originated during the boom years, we came to recognize that most of the traditional lending practices should not be put in question by the ability to repay rules. especially where smaller institutions make loans they keep democrat own -- own port portfolio. they are more immediately subject to community norms and underwriting standards didn't no crumble. they lost market share to those engaged in the more irresponsible lending practice of that era. so the rules contained provisions that avoid a one-size-fits-all approach. by extending specific protections.

qualified mortgages cover the vast majority of loans made in the market. by no means all the mortgage market. the point is important and shouldn't be misunderstood. there are plenty of good loans made every year. for example loans made to a borrower with comfortable other assets or whose individual circumstance and repayment ability are carefully assessed, nonqm because they do not meet the 43% debt to income ratio or not eligible for purchase. but nonetheless are based on sound underwriting standards and routinely performed well over time. lenders that are long upheld such standards have little to fear from the ability to repay rule. the strong performance of their loans overtime demonstrates the care they have taken in underwriting to ensure that borrow ease have the ability to repay. nothing about that traditional lending molds has changed and continue to offer the same kind of mortgages to borrows whom they evaluate as posing

reasonable credit risk. whether or not they meet the criteria to to be classified as qualified mortgages. last week we took another step to address industry concern about fair lending risk associated with offering only qualified mortgages. together with the other banking agos, we explained our joint viewpoint that we do not anticipate that a creditor's decision to offer only qualified mortgages would absent other factors elevate an institution's fair lending risk. another issue that some consultants and lawyers have raised is whether the law and our rule will deliver the assured and predictable legal protection even for qm loan. we strongly believe they'll do so. there are two key points. the size of the qm space and the effectivenesses of the legal safe harbor. first, by expanding the definition of qualified mortgage for a period of years to include not only loans but satisfy the 43% debt to income test but also loans that are eligible for purchase by the gse

while in conservatorship or eligible for guarantee or insurance from the fha, the va or department of agricultural. the qm space has been drawn broadly. no data is available to model the precise -- for points and fees mandated by the statute that threshold is more than three times the average lender origination fee reported by bank rate.com and most recent annual survey. and our rules provide an even higher threshold for smaller loans. based on the other element we estimate more than 95% of the mortgage loan being made in the current market will be qm as mark san i can recently confirmed. some such as logic can put out lower figure. those figures. not bended to take account of the expanded definition of qrk m that will take effect in january.

instead we're offered a projection of a more distant future when the temporary expansion expires in a period of some years. indeed poor logic acknowledges as long as the temporary expansion remains in effect for gse-qualified loans, which may well be for several years the impact of the regulation, this is a quote will be minor. second our rule does apply the legal safe hair boar to all prime qm loans which affords protective against legal challenges for loans to satisfy the qm criteria. the key point we left little room we purposefully drew bright and sharp line to define the contour of a qualified mortgage. remaining conservativeship --

a large number of industry commenters asked for these bright lines and we agreed that approach made sense. if those line were not drawn as sharply as they have been, then much would have remained to be fought out in the court for years and years before the deaf nice were made clear. we crafted the rule purposefully to avoid that result which is why critics are forced to crime up hypothetical faction dispute whether debt and income were calculated correctly. the main provision of our mortgage rule will take effect in january and we have a team devoted to the regulatory implementation process. we're engaged in vigorous outreach and assistance to financial institutions. we view this as a joint enterprise and interested in learning how we can make things go more smoothly and achieve better results. we believe that the bureau's responsibility for the rules we promulgate does not end with simply find losing a set of

regulation. it's not good enough for us to take the view that once these new rules are published our work is then done we can -- that it's your problem now. if the whole point of our regulations is to protect consumers and promote fair transparent and competitive markets, then we should care and we do care about how well the routes are understand and implemented. how operational issues can be more easily addressed and the amount of effort required. and we have shown that we do care deeply about those things. our regulatory implement project goes further than we are doing many times every day. we have also taking more affirmative step to help the industry understand the rule. we published plain language compliance guide we are update if necessary. we launched a series of video explaining our rules. we worked closely with the other financial regulators to develop examination guidelines that reflect a common understanding

what the rules do and do not require which were publish well in advance of the effective date and available your peru sal. our goal has been to advance notice as we could about what you should expect as they engage oversight on the mortgage rules. there work reflects close cooperation between the consumer bureau and the regulators and the mutual desire to conduct examinations consistently. we distributed a readiness guide with a checklist of things to do before the rules take effect like updating policy and procedures and providing staff training. we produced a joint agency statement addressing qm and fair lending concerns as i mentioned earlier. and we're consulting with consumer groups to determine how best to educate consumers with understandable information about how the new rules will affect them. as we become aware of critical operational, or critical rules.

we have addressed them. m writing through amendment through the official intermentation and the rules themselves. but issued various amendment over the course of the year with a single aim in mind. to ensure the effectivenesses of the rule for making it easier for industry to comply. by addressing and classifying we reduced the need for individual institutions to spend time reaching their own uncertain judgment on these matters. we understand that even though these becial amendments have responded to your request to remove obstacles to implementation they required you to make further adjustment. we do not believe the implementation project should slow the readiness process. congress established this specific deadline for the effective date of the rule that directed us to write and we set the effective date to reflect that deadline. the ability to repay rule in particular has been broadly

expected since the passage of the dodd-frank act in july of 2010. actually requires little more that have become standard in the years since the crisis. and the general contour track the problem that have been identified in this industry for more than five years. most of which are were squarely addressed in the standards set by the services settlement adopted in 2011. we believe it's critical to move forward so they can deliver the new protections intended for consumers and the certainty that the industry has been seeking. that will encourage consumers to take part in a mortgage market with improved confidence about how the market will function even as responsible lenders will be enable to conduct the mortgage businesses profitly. we understand this poses a challenge for industry. just as a writing of such a substantial set of mortgage rules by last january posts a significant change for the new

agency. had we failed to do so many key statutory provisions that congress enaked in the title xiv would have taken in their own right. which everyone recognizes would have been harder on industry and much worse for the mortgage market. we're all in this together and so we appreciate the urgency and the resources that the mortgage industry is bringing to bear in preparation for the approaching effective dates. let me also say our oversight of the new mortgage rules in the early months will be sensitive to the progress made by those lenders and servicers who have been squarely focused on making good faith efforts to come to substantial compliance on time. a point we have been discussing with our fellow regulators. we recognize without effective implementation it cannot happen. it's where we share the

industry's focus on putting it in place successfully. for honest business z and the industry as a economy as a whole. handed oversight promote welfare enhancing enelevation where consumer protections and business opportunities compliment one another and financial institutions lead by modeling -- we believe a marketplace will be ben foicial all involved and lead the long-term stannel financial condition that strengthen the future of this country. thank you. [applause]

coming up on the next "washington journal." representative diana degette of california is here to discuss the roll yum and implement implementation of the obamacare. washington journal is live every morning starting at 7:00 a.m. eastern on c-span.

you're watching c-span2 with politics and public affairs weekdays featuring live coverage of the u.s. senate. on weeknights watch key public policy event and every weekend the latest non-fiction authors and books on booktv. you can see past programs and get our schedules at our website, and you can join in the conversation on social media sites. last week former president delivered remarking on the keystone pipeline, and america's future dependence on oil and fossil fuels. he spoke at the conference held by the center for american progress for 35 in in -- minute. >> is this a great conference or

what? so now it's my pleasure -- [applause] new it's my pleasure to introdisuse a global leader a colleague, and our truest champion in the fight against climate change. vice president al gore. as we sit here today climate change has already gone from abstraction tow reality for many americans. our fires are hotter, our droughts are drier and storms are fiercer. just over a year ago hurricane sandy crippled new york city and new jersey causing some 65 billion in damages. record floods swamped almost 200-miles of colorado, washed away roads, damaging or destroying thousand of homes and killing at least eight people for too long our political leaders found reason to dlag the feet. some dismissed the signs. others thought the danger of climate change would become real long after they dead.

they thought they could lead it to another generation or government to make the hard choices and take the tough votes. al gore saw it differently. he decided somebody need to say the difficult thing, the courageous thing. he told us the truth. climate change is real and dangerous. it's happening now. we should have begun to address the happen habits long ago. it didn't begin when he told the world about the truth. by the time we worked together in the clinton administration as a congressman senator, and vice president, al gore was already the leading expert on environmental policy serving in government. as vice president he was an early advocate of climate action and works alongside president clinton to preserve our public lands, improve our air our water, and our public health and

fight global warming. he was a champion of science and openness. today it is climate change more than any other cause that defines vice president gore in the eye of the public. for good reason. he's a tireless educator and advocate. he knows climate science back ward and forward. he won a nobel prize and starred in an oscar-winning documentary. he stayed up for 24-hours going around the world and naming that call to do something to afnlgt our future. vice president gore is not a man who sees any problem as attractive. he's a man of vision and leadership, man who despite formable opposition has never lost his fervent belief that solutions exist that we can curb rising global temperature build resilience to extreme weather event and save our planet for future generations. please join me in welcoming my

good friend, vice president al gore. [applause] >> thank you. thank you very much. thank you. thank you very much, ladies and gentlemen. i am happy to be sure. and john, thank you for your very generous words. i'm really here for one main reason, that is because of you john, and because of your colleagues here at the center for american progress. i want to congratulate you on this tenth anniversary celebration and gathering. you all make a tremendous difference. i want to congratulate the president. and i want to say you thank you for providing tangible support for an organization that is in the center of things nap is

making a tremendous difference and really get things done. thank you and please continue supporting c.a.p. john to you personally, god bless you. you have so much energy and drive and your values are right. i appreciate what you do. i enjoyed working you in the white house and other ways. admire what your doing. i enjoyed listening to john here. habit he been doing a great job of secretary of state? fantastic! [applause] and i know gina mccarthy was not on this panel. did she speak earlier? [inaudible] i think she's doing a terrific job as head of epa. i want to say i got in -- well, in the wee hours, and i came down a little bit too late to hear the entire panel that was just on. but of course carol browne and tom and van are three amazing individuals making the

tremendous difference. it's an honor for me to share this podium with them. so john mentioned that i just came back from -- [inaudible] 24-hours of reality. is that mic picking up okay? this is the third year a row that the climate reality project went all the way around the world originating content from every time zone and dr. jim kim from the world bank came in live and updated his economic report. we had individuals who have been paying the cost of carbon. they have been suffering the consequence of these extreme weather events the they set off monitor in a refugee camp between kenya and somalia. we had stories reflecting the hardship endured by those who used to make their livelihood around lakes.

we had individuals from bangladesh who had move back from the coastal areas and australia -- all over the world, really, and it was a very moving 24-hour long global telecast. we 20 million viewers. 2220 million twitter messages and impressions and we haven't gotten the count on facebook pin stress, and the other social media. there's a very big change that is underway, and i'm part of what i'm going to tell you about is why i'm optimistic. i use the phrase cost of carbon. john acknowledged governor o'malley is speaking next. a big admirer of your work governor.

john u just mentioned hurricane sandy and the other events that captured attention recently. when the "inconvenient truth" came out. they picked on more than anything else a scene in that movie that featured an animation that showed the ocean water from the atlantic going to have world trade center memorial site. as a result of continuing sea level by the meting ice sheet and the storm surge with the stronger storm. they pointed and said how ridiculous. that's cynical and that could never happen. that's ridiculous. tragically it happened last october 29th. of course, the impact of that event, now $60 billion, $65 billion at last count they called it a once-in a thousand

year storm. a lot of people have forgotten actually just one -- 14 months to the day before hurricane sandy hurricane sandy was hurricane irene which costed $15 billion of damage with the biggest impact a little bit farther north of new york city and vice president got the brunt. we are seeing the once in a thousand year event on a regular basis. boulder, colorado was yosemite park with a one-degree increase in global temperatures which pretty much locked in at this point, there is in many area of the american web a 600% -- six fold increase in the aread by -- burned by forest fires.

my home city of nashville had a once in a thousand year rainfall. thousands lost their homes. they didn't have insurance. pakistan 20 million people displaced from their homes by the biggest flood in living memory caused by one of these huge downpours. this is part of the cost of carbon. it's not included on the balance sheets. it's not included in the way we calculate profit and loss and productivity and growth, which is the hole -- holy grain. it's defined in a totally insane way. it excludes the so-called negative externality like pollution and the extreme weather effect. it excludes the set of values

you all and we all share when we measure progress we exclude not only the negative but the positive externallalty. what are they? investment in education and mental health care they produce benefit that come rolling back in to enrich our lives but not measured and reflected in the math metics we use to define what we mean by progress. it's totally nuts.

threaten it severely with the xline pipeline. let me divert for a moment. [laughter] how ridiculous is that -- it's an atrocity. it's an atrocity. [applause] and i hope indian president obama. i'm a big fan of president obama. i appreciate the speeches on climate. fantastic. i think he means. i think it's a legacy issue. hope as he gets down to the decision on this x l pipeline he really understands very clearly what ised a -- at stale stake here. it should be vetoed. it's an atrocity and the threat to the future. our addiction to these

high-intensity. junkies find veins in the toes after they exhaust all veins. we have got to stop that. but in any case we are excluding all that from the calculation. and we're threatening the groundwater. we're depleting the topsoil. what else is excluded from the way we think about and measure progress? intiewx of north carolina. it's not calling for re-- growth and economy and country have been the times that have coincided with less ini quality. let tell me you it's an issue that those who believe in progress have to grab hold of. when the american people see that our gdp has gone up and had

progress and we're doing great they don't feel it. one reason they don't feel it is that 95% of all of the additional national income we have experienced in the country since the recovery began in 2009 has in fact gone to the top 1%. it's not an occupy wall street slogan. that's a fact. it is demonstrable. it's not in dispute. so when you have a 400 wealthiest individuals in the united having more assets than the bottom 50%. well, you know, we have all of this debate about quantity easing. it's about getting more money and circulation so we have more demand so the hydraulic of the economy will operate. we'll have enough well if we

need more doesn't it matter if 50% of the income goes to the wealthiest 400 people? that takes it out of circulation and the idea they're all just creators? they're not going create jobs if they're not people with money in their pockets able to buy the things that the factories are going make they're going to invest in. this business of income distribution and networth inquality is one we have to grab ahold. the united states is more inequal than tunisia or egypt. and the social mobility in our country, many are well aware of this is now far less than in virtually any european country and many others around the world. when people use the phrase the american dream, no wonder there are too many americans who roll their eyes now the dream is still alive. but we have not had policies and initiative and activism that is

capable of bringing that dream to life. speaking of the great recession. what ignited it? the credit crisis. the sub prime mortgage fiasco. who knew if you made it or couldn't make a monthly payment there was some business risk associated with that? [laughter] when i made my first mortgage after i came back from vietnam i sat across the desk from a banker and the head of citizen bank named walter. and he asked me a long series of questions that i had to answer in writing. i had to write a check -- i used the word a moment ago. down payment. that's right. [laughter] i missed the memo when those

requirements were eliminated. a stripper in las vegas i read got 7 poem home -- home sub prime mortgage. it was a profit center and we got a lot of income rolling in to some businesses as a result of it. but it was a deadly risk to the economy. and when the evaluation that was based on such an absurd set of artificial assumption was challenged then the value collapsed and all of the mortgages were repriced. that's what triggered the credit crisis. now we have on the books of the larnlgt public multinational energy companies $7 trillion of sub prime carbon assets. their evaluation is based on an assumption that is even more ridiculous and absurd than the

assumption that these people couldn't make a down payment or monthly payment. the assumption is those $7 trillion can be sold and burned. they will not be sold and turned. they be sold and burned. we rut. ing as if it's an open suer. it's not an open suer. at the end of the 19th century the epidemic in london and a great doctor made a map and put a dot every time there was a case of the cholera and the -- it was the approximate cause of the cholera epidemic. a few years later they connected more dot and found the real cause of cholera.

it's no longer the terrible -- it's still a problem for millions of people. but not what it was. we have to connect the dots. these 90 million don we put up there every day of global warming pollution adds up. 20 percent will be warming the earth 10 years from now. that's a conservative estimate. jim han zen and the colleague colleagues made the calculation. others say it's a low side. it's a big planet. 400,000 hiroshima bombs is a lot. it's heating up the ocean and the at fear. -- atmosphere.

the day breabd move to the coast it was 89 degree -- 9 degrees physical physical therapy height above average. from when hurricane sandy came. why are we failing to act? well with, democrat is part of it. garden variety and other kind. we are also seeing the fact that our democracy has been hacked. it no longer operates in behalf of the public interest. you know that. corpgs are not people and donors should not be anonymous.

app though isn't irony. we have to become involved. at the end of world war ii a famous poet wroa the line we know. here is a coat. quote, what good is it to save the planet if humanity suffers? [laughter] i guess you're probably like me. you don't know where to start. [laughter] i get the fact that the business model and the other large carbon

polluters are based on extending the artificial vault of the sub prime carbon asset for as long as they can. our job as american citizens is to work with for the formation of public policy based on reality. based on logic based on reason in support of the public interest not private special interests. and because they have achieved so much control over the operation of our democracy doesn't mean we cannot take it back. you think i'm passionate about this? you're damn right i'm passionate about this! [applause] you will hear people say almost like a throw away line. i love this country. i do love this country, damn it! our country is in deep trouble. the dysfunction what happened on capitol hill is pathetic. it's pit of the. it's not enough just to throw an

their way. there are good people there. trapped in a bad system. when i went to congress i felt it was a thrill and privilege i could almost i could almost hear the battle hymn of the republic being hummed when i go to the town hall meetings and take people's ideas and go back and work for them and every vote i cast speech i made foremost in my mind was how is it going to affect my constituents? here is the hack. today member of congress beg rich people and special interest for money so they can meet their daily quota and pile up the war chest so they can buy the 30

second tv ads for the next election. you think it doesn't have an impact on them? it has to they i have have think the telephone calls are going to be tough tomorrow because, you know, the fundraising teams fachly because the way things operate. line up a series of calls. it's all one big mess and we know it. when we talk about the progressive agenda whether it is having a sane energy policy fighting again the climate crisis, health care education, or anything else -- promotion of the public interest is on the back foot back pedaling.

trying to raise and scrounge as much cash they can to do something to fight back. but the special interest funding comes rolling down constantly when the climate bill was pended there were four anticlimate lobbyist for every single member of congress. michael jackson was my favorite. if he had four guys guarding him man on man he wouldn't have scored many points. that's the situation that so many of our champions are in right now. i remember back in 1980 one of

my closest friends in the house of representatives was tom downey. and his wife carol was up here. i used to have dinner with tom on capitol hill and call and make sure it was okay. it was the early cell phone. i thought it was cool. i look back now and it looks ridiculous. then oh my goodness. i got one. i called him. when can you come? knock, knock knock. [laughter] it was like the old scnl skit wow! you have a phone you can walk around with? that same year that same year 1980 at&t spent a lot of money

to make a market projection to figure out how many people around the world would buy those things by the year 2000. twenty years later. and they confidently predicted that 900,000 people would have these mobile phones. wow. that many? that pro diction was not only wrong it was way wrong. by about 120 times over. bark ten or fifteen years ago. people looked at the or solar panel on the roofs of the early adopters and a lot of energy companies and others and department of energy made the careful calculations how many of these things are going to be

built an purchased around the world by the year 2010? those projections were not only wrong, they were way wrong. by 22 times over. 17 times over. multiple of times over. why? in both the case of the mobile phone and the case of solar panels and windmills they did not count on the fact that the cost down curve, the kind of thing we saw in the computer chip industry was going to bring the cost down regularly every single year in a dramatic way. and simultaneously that the quality would continue to go up dramatically. nor can they take in to account the decision to purchase the mobile phone or the scholar cell was not going to be made by utility or centralized

institutions it was by individual and individual business owners. and fourth they did not count on the fact that in the poor countries, the developing countries, where they didn't have the wooden poles with power and trfn -- telephone lines strung out. those folks could leapfrog the old tjt and go straight to the new one. let me tell you today will are billions of people in the world. there's a dispute about how many billions. the research organization actually said 4.2 billion now already have the availability to buy electricity from panel at the rate equal to or less than the grid average price. that estimate is probably too high. it's at least 2 billion. the more the cost goes down we get scaling benefit. the more they squeeze money out of the capital structure the cost of capital and the

levellized cost goes down and become more competitive. it's inevitable that the majority of the world's people within the next three to four years will be able to buy renewable electricity rates equal or below the cost of electricity from other sources like coal and oil. so we have the wind at our backs. literallily. we make this work. we need to fix the dysfunctional democracy of ours. let me tell you the shut down, the same deniers said we won't default if we exceed the debt. no problem there.

that's denial in the supreme. the same people said our president was born in kenya whenever the heck they thought he was born and now they're saying physics cannot be relied upon. global warming pollution does not cause global warming. when our country began we prided ours on having a well-educate citizen i are with the freedom to assemble and speak and work with one another to come up with good sensible policies and that is the reason why the united states became the preimminent nation in all the world. we made better decisions together than the people of any other country on the face of this earth. now we see the craziness who have the arrogance to believe they can create an alternate version of reality and repeat it

enough times with enough force and volume and enough tv arizona ads and lobbyist it can substitute for what we know as your common sense is the real situation we face. we have got to take back our country. i was 11 years old in 1959 when john lewis and his friends at the seminary went to a launch counter in downtown nashville. first sit in anywhere in the country. he was brave enough to get the head beat in. three months later the lunch counters were desegregated. then they moved on to the movie theater. 50 mights away in another part of tennessee one of my friends

made some racist comment and another friend said hey man we don't talk like that. we won that conversation. in millions of conversations throughout the south and throughout this country. we have a long way to go. made some insulting comment. every other person in the line turned and said shutup. we don't accept that. we are winning that conversation what about the conversation on the climate si -- crisis? too often it takes place even in echo chambers or in rooms where the conversation is sort of like that the dysfunctional family where an alcoholic father flies to a rage whatever the term

alcohol is mentioned. everybody else learns to keep the peace by never talking about the elephant in the middle of the room. we're going win this. we're not winning it yet. we're still putting all of this up there an at an accelerating rate. progress is on the way and there will be joy in prevailing. the prevailing is still ahead of us. when the carbon conversation comes up please speak up. win the conversation. when you have conversations with candidates who pussy foot around it we could pay the full salary of every coal miners. that's what i propose in the the senate. pick up every bit of their salary, i mean, it's not -- it's so small compared to the enormous cost that we are paying on this.

we've got to accelerate the transition and move with the tides already carrying us in the right direction. when i was a boy, i remember one other set of conversations. in 1961 within when president kennedy issued that challenge to land a person on the moon and bring them back in ten years. i remember people saying it's ridiculous. it never happen. eight years and two months later neil armstrong set foot on the moon. the moment he did so sheriffs -- there was a great cheer that went up. the average age of the systems engineer was 26. 26. which means their average age when they heard the challenge was 18. we can do this. and today's 18-year-olds are counting on us to do it. c.a.p. congratulations on ten years. thank you for including the climate crisis and the solutions to the climate crisis in the center of your agenda.

thank you for making that agenda possible. let's win it. political will is a you renewable resource. thank you very much. [applause] tonight on c-span the house intelligence committee holds a hearing ons nsa surveillance program and later trayvon martin's mother testifying at the hearing on stand your ground laws. ..