comforting commitment. one of the things imy hope we see from this new majority in congress, is meaningful oversight and leadership to restore america's leadership in the world. i hope we see congress hold this administration accountable and do everything we can so that we stand withr allies, and we demonstrate the resolve that is necessary to stand up to those who pose serious threats to the national security of this country, to those who would seek to murder innocent americans. that's what we need3j%ñ from a republican majority. is bold, positive leadership on jobs, on liberty onpsecurity, we need to demonstrate that we believe the words we said on the campaign trail. we need to demonstrate that we

will actually fight for the men and women of america and not simply for the growing growing growing, power of washington, d.c. that's what this conference is about, so i want to close the way i started by simply saying to each of you, thank you. thank you for urging.nb this< majority to earn the mandate we've been given. god bless you. [ applause ]t( >> thank you very much senator cruz, very much appreciate that. senator cruz has time forc a few questions, before we go to questions, brief housekeeping update. representative jordan will be here soon, and was actually able to get off his plane earlier, we are going to have representative

jordan coc÷ up, he's going to give a speech about conservative action in the next congress in 2015. and then after him, we'll have our freshman members of congress have a panel. so as awesome as senator cruz is, please also stick around and don't everybody follow him out the door. because you'rexd going to learn a lot from these house membersy-2 about the things that you're going to be hearing about in 2016, because of the actions they take on the house floor this year. questions for senator cruz, yes, ma'am.#( [ inaudible question ] ñ >> one of our real concerns as a citizen is the leadership that's going to do it. i do not have confidence=k in our leadership in the house of representatives or the é@senate, and are we going to have leadership and rise up and do that and put their mind to it just asb business is tryzó reach a goal do we have b"táq'ators

in congress nown7 going to work towards those goals and gather? >> it is a great question, what i can tell you is i hope so. you know, i think my, a lot of people across this]kk countryt naturally distrust politicians. i think that is ai] healthy sentence.."sç to focus on than the priorities of the american people. when we were campaigning obamacare and stopping amnesty< .e1jf

leadership doesn't care what i or any other member of congress says. the best way to get leadership to actually follow through on those commitments is for you, is for the men and women in this room for the people who elected us to make clear that we expect elected officials to follow through. i'll tell you one of the things÷ i've learned 27 million texans who i!u represent to doc is hold all of usabilitiable including me, hold us accountable for the promises we make. and that is theko way to max my miez the likelihood that congress holds. i don't know if we will, but i'm going to do everything humanly possible to encourage us to do exactly that.tn-h sir right t(here.

>> yes, sirlp i'm with the pakistani spectators first of all, thanks for acknowledging islam in pakistan and the killing of innocent children. and my question is, since? they are killing more muslims than anybody else, and it seems to be fight between iran --

declared, and the labtd they have seized billions of oil revenue, their qualitatively dangerous and we'd act to protect our national security and secondly with regard to iran, if iran were to acquire nuclearñi weapons capability, in

my view the dangerous qualitatively different. that the risks are unacceptedly high, the iranian regime with nuclear weapons woulds7 use those%s@r(tf o nuclear weapons and the best case se their yes, itd arms race throughout the middle east as arab countries throughout the middle east rush for counterbalance. and that makes the entire world much more dangerous. so i don't think we should do whatt( sometimes the obama administration the objective is which is try and producemy political harmony and --

( don't have to empower( bureaucrats over z( lives++x the impossible becomes possible with thexd american >> i think we have time for one more question. one more question,ó[c÷ú and, uj right there.3ól

>> or whetherxp j5ñ the shameful tr]@ámenti] of the nation ofr israel. been the most6 administration to the xdñrcnation.i]xdñiw3 consistently this+++xdc?

words to him. tell putin i'll have more flexibility after the election. how's that worked out? or whether it is the treatment of iran we're allowing billions will continue to build enrichudñ uranium.zvqnaj0rw@1p gnt3ñ4h>i7çb)éb their embrace from the presidentx,e1h&ñnbn-b$w

and our enemies do not fear us that is a dangerous state of affairs for the united states, and it's a dangerous state of affairs for the world. and it needs to change. thank you. >> senator thank you. [ applause ]

>> we'll be live from the heritage foundation later today for discussion on judicial elections and campaign finance laws, the event comes as the supreme court hearing oral argument today in a case that will decide whether states can bar judicial candidates from campaign funds that'll be live at 12:30 p.m. eastern here on c-span 3. later we'll hear about the foreign policy priorities for the european union from the eu's foreign affairs. she's speaking at the brookings institution, you can see is live at 2:45 p.m. eastern. now, the brookings institution recently heard from consumer financial director richard cordray. highway talked about the current state of the home mortgage market and what his department was doing to better prepare consumers for the financial responsibilities of owning a home. this is 50 minutes.

>> thank you for having me today, and i bring you best wishes for the new year. i can also offer what i regard as sage council from nash who once advised about the new year, ring out the old, ring in the new, but don't get caught in between. for myself every january has marked a significant personal development at consumer financial protection bureau. four years ago, that was when i first joined the bureau three years ago, president obama named me as the first director by means of a recess appointment. two years ago we finalized our first set of important new rules to improve the mortgage market, last year, after i had been confirmed as director thanks to the u.s. senate, those rules went into effect all across the country, and this year, we're continuing that ongoing work by helping consumers gain greater control over the mortgage process. the american mortgage market is nor mentioned remains the single

largest consumer financial market in the world. and as we know all too well, in the run up to the financial crisis, it was our mortgage market that was deeply damaged by reckless lending. the damage caused the broader economy to crash, and while the housing market has been gradually recovering, it has lagged the pace of recovery in many other sectors over the past five to six years. as directed by congress, our ability to repay rule was designed to ensure that lenders will offer only mortgages that consumers can actually afford. that rule also knows the qm rule put in place new protections for consumers to strengthen the housing market by rooting out reckless lending while enabling and protecting responsible lending that is sounder and more sustainable. since the time our mortgage rules were implemented almost exactly one year ago today we have not seen dramatic changes as some feared. i recall seeing some rash predictions such as that the price of mortgages would double, and the volume of mortgages could be halved.

but by the time these rules went in effect, lenders retreated from the worst sorts of lending that took us into the financial crisis such as ninja loans, if you remember those. loans so-called because they could be made to people even with no income, know jobs, and no assets. loans with negative am medical reportization often made to those who could not afford the interest accruing so they owed more over time, also dried up in the immediate aftermath of the financial crisis. our rule is put further measures in place to make sure the irresponsible lending would never be allowed to reappear. at the same time, however we did not anticipate that our rules would effect the broader market in an intense or abrupt fashion. instead, we included a provision so that loaned backed by fannie mae andtyyd freddie mack would be protected. this ensures that thousands of small creditors such as community banks and credit unions can continue to do the kind of responsible lending they've always done to serve

their markets across this country. in these ways, we protected key elements of the current mortgage market, even as we installed new guardrails to prevent irresponsible lending long after memories of the crisis may have faded. the mortgage market continues to heal from the great damage done by the financial crisis, with foreclosure rates and delinquencies continuing gradually to fall. home values have been improving and the volume of homes underwater with more owed on the mortgage than the home is worth remain on an encouraging, but gradual downward trajectory. there are also growing sign of pent up demand of first time home buyers. this has been a slow sediment of the market for several years, but would give it a definite boost. so a core purpose of the rule was to help restore reliability to the mortgage market. when people take out a loan to buy a home they deserve to have confidence that they're not being set up to fail. with such confidence they could be more actively engaged in the process of seeking a good

outcome. they could choose the lender and the product with the term's best suited to their budget teen their vision of what they want for themselves and their families. making these choices effectively will depend on people being actively engaged in weighing their options and understanding how to shop around. but we know it can be difficult to shop for a mortgage it's hard to understand how to shop, and the process can be intimidating to say the least especially with all the paperwork. that's why we're releasing our no before you -- know before you owe initiative called owning a home. it is designed to empower consumers to make good decisions and talk to lenders with confidence. kmurps will be able to gain greater control over the outcomes of the mortgage process, and maximize the benefits of this major transaction. the report we're issuing today on the consumer's mortgage shopping experience is based on results from new data in the national survey of mortgage borrowers, a joint initiative between the bureau and federal finance housing agency. when we see that almost half of

consumers that take out a mortgage fail to shop before applying for a mortgage, this means they seriously considered only a single lender or broker before making their decision. by contrast most consumers put substantial effort into considering their differing housing needs. they routinely weigh the most basic questions about which house to buy, such as where they want to live and how many bedrooms or bathrooms they think they will need. but they do not seem to be as careful or as confident in weighing the economic aspects of the mortgage decision, such as what down payment they can afford or what mortgage terms fit their unique financial needs. given the importance of this major purchase almost nobody looks only at one house and decides to stop right there. consumers spent considerable time looking at different neighborhoods and different homes for sale. the same should be true choosing mortgage loans. when you're spending a lot of money, you are literally betting the house on the choices you're making and it can be highly beneficial to shop around. our study also found that consumers are getting much of

their information about mortgages from sources that have a vested interest in the outcome. for example, 70% report relying on their lender or broker a lot to get information about mornls, while only 20% rely heavily on websites and 2% rely heavily on housing counselors. certainly they can be valuable resources and they are. but it is worth recognizing that they also have an important personal stake in selling the mortgage. what is best for them is not always going to be best for the consumer. and because lenders and brokers have different business models, they may make money in different ways to stay competitive. so it's in the consumer's best interest to ask questions and get as much information as possible from several lenders or brokers, before making a decision. people may well, as i said put more time and effort into shopping for the house and also for things like smaller products, such as appliances and televisions than they do in shopping for the right mortgage. the failure to look around can

mean real money lost for consumers. for example borrowers with a good credit rating and 20% down payment, the range of interest rates can span a half percent or even more. for a borrower taking out a 30 year fixed year loan for $230,000, interest rate of 4% instead of 4.5% translates into $60 of savings per month. the borrow would save about $3500 in mortgage payments. the lower interest rates means they'll pay off principle in the first five years even while making lower payments. by not shopping around, consumers are often throwing good money down the drain. an important and interesting finding from our survey, and when i emphasize this consumers with more confidence in the knowledge about the mortgage process were more likely to shop. this was especially true for those who said they were very familiar with available interest rates. they were almost twice as likely to shop as though unfamiliar. clearly we need to try to

instill more confidence in consumers and by empowering them, we can help them make the most of this process. at consumer bureau, we're working to reduce the information gap between lenders who understand mortgage pricing inside out and consumers to whom the process can often feel like a mystery. it is time to start changing the culture of how people obtain their mortgages. we need to change the process from one of getting a mortgage so a passive activity, to one of shopping for a mortgage, more active activity. consumers have much more power than they may realize. they can use that power to take control of their financial outcomes. to help consumers become better and more informed shoppers we're improving mortgage disclosures. this summer, our know before you owe forms will become the new reality in the mortgage market. helping consumers understand their options choosing the best deal they can and avoiding costly surprises at the closing table. the forms are consumer-tested to be more readily accessible and user friendly which will ease

the process of applying for and closing on a loan. we will also soon be bringing out a more consumer-friendly edition of the booklet people receive when they apply for a home. although our new mortgage regulations limit various risky product features, mortgages still can have different terms and features for consumers to understand. key components of a loan include the loan term type, and interest rate. loan terms typically vary between 15 and 30 years. loan types include conventional loans as well as those offered by the fha or ba among others. interest rates can be fixed or adjustable, and the up front cost for mortgages often vary across lenders even for the same consumer on loans with otherwise identical product features. shopping for mortgage can occur at different points in the pros, but consumers are well advised to kags a wide net early on. the consumer may begin by researching different loan options. once the consumer knows more, may be ready to meet with lenders and ask questions about

the application process. once the consumer made an offer on a home, she's ready to apply from different lenders. finding the best deal depends on comparing the available officer, which may vary based not only on the interest rates but costs and terms. owning a home has great new tools to help consumers throughout the home buying experience from the very start of the process all the way to the closing table. these too manies can be found on our website at consumerfinance.gov/ consumerfinance.gov/owningahome. and a closing checklist written in plain language. if consumers need help understanding the difference between a fixed rate and adjustable rate mortgage our tools will assist. if people need help deciding how much they can borrow, tools will help with the calculations. or if they need help understanding the new mortgage disclosure forms owning a home will be able to explain all that. we're working to add these and other tools over the course of this year to get people a comprehensive and comprehensible

picture of the entire home-buying process. one critical feature contained in owning a home is the rate checker. a tool currently release that helps consumers understand what interest rates may be available to them. it incorporates information from lenders internal rate sheets information that they use to calculate what interest rate is available for a particular consumer. in other words, we're giving consumers direct access to the same type of information that the lenders themselves have. borrowers looking to buy a single family home can use the rate checker to input their own information and find out what interest rates they're likely to be offered from lenders in their area. by plugging in their credit scores with, their location, and information about the loan they're seeking, they can see the rates lenders are offering to borrowers like them. this is different from other websites that usually quote potential rates based on averages for borrowers with great credit and a large down payment. those idealized versions of what you may be offered can be

misleading because of course, not all consumers have high credit scores or can afford a large down payment. the result is that many consumers go to lenders and are quoted surprisingly different rates, which can leave them confused and uncertain about whether the quoted rates make sense. many websites focus primarily on soliciting perspective customers. they require people to surrender their personal information, e-mail address, but often much more, information that may be used for marketing or sales purposes. by contrast owning a home has no hidden agendas, and the bureau does not retain any personal identifying information. instead, it simply enables consumers to have more of the information they need to be savvy shoppers and get the best deals they can. our new set of tools also offers an understanding of how lower rates translates into dollars saved. it can be hard to understand what it amounts to in actual dollars. so our tool makes it easy to compare different interest rates and see how much they will cost.

consumers will be able to be go to our website and plug in information as often as they like to become more familiar with their options. understanding what rates they could expect to be quoted in the market will help them see the value of shopping, and gain more confidence about the crucial decisions they need to make about which mortgage to choose. and it is worth noting again from our survey findings that as consumers gain more confidence about the process they become more likely to shop for a mortgage in the first place. when consumers actively shop for mortgage, they will be in a better position to make the best decision they can about what is possibly in many cases probably the single largest financial transaction of their lives. the set of tools contained in owning a home complete with the critical rate checker feature will help consumers do that more effectively. let me take a second to debunk a popular myth. you can shop around for mortgage and it will not hurt your credit score. within a certain window of time generally between 14 and 45

days, it is increasing over time, they are treated as a single inquiries. other creditors realize you're only going to buy one home at the same time in all likelihood. you can shop around and even submit multiple applications to obtain multiple initial estimates. the affect on your credit will be the same no matter how many lenders you consult. for these reasons, it's vital that consumers meet with several lenders early on and ask lots of questions. but wait until they receive official loan offers to make their final election. starting this summer, they will be communicated on the know before you owe loan estimate form which will summarize the estimated loan cost. by demystifying the jargon you can be better informed and more productive. in addition you can have a reliable estimate that can only change in limited ways the

application stage and the closing. this will build their confidence and empower them to make the right decisions for themselves and their families. the central purpose of the consumer bureau we've said many times is to assure that empowered consumers have access to markets that are fair transparent, and competitive. that is good for consumers, for the honest businesses that seek to serve them, and for the american economy as a whole. our important new set of mortgage rules is creating a clean r mortgage market. consumers are better protected from the pitfalls and boobi traps that hurt so many people and led to the financial crisis. when people failed to shop because they're intimidated they're putting themselves in harm's way. one of the duties at the consumer bureau is to educate and empower them as much as we can. we're seeking to change the culture of how consumers go about obtaining mortgages in this country by making it more possible and more fruitful for them to shop around. people should walk away from the mortgage process feeling secure that they have made a sound and sustainable decision about their

future, and they should be right to feel that way. we've seen all too clearly that when consumer financial products are misunderstood, they can do real damage to people's lives. consumers need to make the best choices that fit their circumstances. nobody can do that for them. and they need to be responsible for the choices they make. at the consumer bureau, we're seeking and finding ways to help them get exactly where they want to go and improving their financial futures. please join us in supporting this important and exciting work. thank you.

>> thank you, rich. one of the hottest topics in governess is how government can do more to help the middle class and all consumers. in recent days, leaders of both parties here in d.c. have come out with proposals, doing proposals in some cases in that regard. you and the cfpb team have been doing that every day. since you took the helm three years ago in ways large and small, it seems to me that owning a home initiative is a large way that you're doing that. i thought we'd start by my asking you a couple questions about that and other subjects. and then we'll open things up for questions from the floor.

so, tell us how you hope these new online and other tools are going to change the home buying process for consumers in practice. what does it mean to the real lives of these folks? and what else can the bureau do that can push you a little to encourage inform shopping by consumers? >> first of all, the mortgage transaction as i said is for most people the most important transaction of their lives. it is the most money they will ever spend. it has to do with achieving what we all consider to be a fundamental part of the american dream, homeownership. and also studies have shown, even through the crisis and even through the extreme variations and house prices around the country that sustainable home ownership remains the single and most effective ways that middle class families can save money and build wealth for their futures. partly that's because of the forced savings component of making regular monthly mortgage

payments, but it's a very important part of developing and maintaining and improving a future for yourself and those who depend on you. so that's quite important. and what we found in our report as i said was, consumers are very intimidated by this process. and when they're intimidated, they start to not engage and when they fail to engage, they do not get the best outcomes for themselves. and by making tools available that people can use that are fairly straightforward, understandable, and accessible, and again, a lot of this is very complex and often deliberately so because it makes it difficult for consumers to find their way we can make it possible for consumers to understand their choices better, weigh those choices more effectively and come to the best outcomes for themselves. that's what we all should want. and that's part of the work we're doing at the bureau not only in the mortgage market, but

consumer finance household markets. >> so understand a way, and then engage as consumers, and what about the other part of the question? what else can the bureau do, along these lines to encourage even more informed shopping by consumers? what else can we look forward to? >> so there's there's i would say numerous things that we're actively engaged in on this front. one of the first set of tools we put together was paying for college. that's another one of these transactions that comes along for families, typically once maybe twice, maybe once in a generation i guess is fair to say, and it has become an expensive proposition for many families, and to be able to be in a better position to understand your choice twobs weigh them not just a matter of liking a school the same way you like a house by the economic side and making good comparisons both among choices and also to know what those choices mean in

the long run. how much you're going to owe when you come out of school what your repayment rights may be, whether you're going manage that. for people to think about that up front and not fail to think about it, and then regret later that they didn't think about it more as many people have told us they do is another way in which this occurs. we also are doing consumer education and engagement in many ways across the spectrum of the bureau. ask cfpb is one of the sets of information that we have developed and continue to develop on our website so that consumers who now have a new situation or something they don't understand it may be that a debt collector is pursuing them, they don't know their rights or may be they're trying to understand their credit rating, credit report and credit score, they don't know how to go about improving that. all of that kind of information is available at consumerfinance.gov, people can get it in realtime when they need it, and we think that that's helping people have more

confidence about making good choices for themselves. >> one of the web tools, the consumer complaint aspect of cfpb.gov stirred up a little bit of a flap recently because of the determination to include the so-called consumer narrative. in those web forms, can you reflect for us a little bit about the brew ha-ha and the outcome? >> god forbid that people should know what other people are saying and complaints about these companies, and they, by the way say those things on many websites having nothing to do with the consumer bureau but one of the things i want to go back, let me just say, the consumer complaint function building a federal agency from scratch has been an enormous challenge. we haven't always gotten

everything right, and it takes realtime and effort to do that as well as do our work, but its been a great challenge for us and a great opportunity. one of the pieces of that was that congress said that we had to have a consumer complaint, consumer response function build it from scratch and we build it not having any sense of what the actual volume would be of complaints from the american public. that volume is enormous and it's growing. we have had over half a million complaints thus far across the range of products. we had more than 250,000 last year alone so the volume is increasing. and every one of those is a voice of the consumer that tells us about a problem that they're seeing in their lives in realtime, each one of those is an anecdote everyone derives them as not being true statistics and data, but when you have hundreds of thousands of individual instances, it becomes in the aggregate real meaningful data, and we look at the patterns of to prioritize

our enforcement and supervision work, and we continue to push on industry, and they are beginning to get it, and stepping up the plate, and recognizing they should look at the patterns of what their customers tell them about themselves and respond accordingly. it's changing life on the ground for whether consumers are being trited fairly. that's very important and i'm very proud of the people at the bureau who have been doing that workday in and day out from the beginning. >> so before we turn it over to the audience for questions, when we announce that we were going to host you, we heard, i heard personally, from many of the folks that i had worked with when we were doing our listening about the cfpb in the white house, putting together the frame plan, i heard both from folks i talked to in the business sector and the consumer sector. so i'm just going to ask you a follow-up representing both of

those points of view. first on the consumer complaints, business as they have on a number of things you've done really on everything you've done had strong feelings about that. what steps did you take to make sure that the complaint process was also fair to the financial industry and to business? >> so that's very important to me personally. i think it's very important to the bureau. we are doing some things that create change in the industry. the change was needed, consumers need to be treated fairly and it's sometimes difficult to know the exact parameters of what that means. so we have made efforts from the beginning, and i think everybody would credit this, that we have consistently been accessible and transparent about people speaking to us and express our concerns. we get it from across the spectrum here. we take that into account to form late any kind of proposal

or policy or response to concerns. on the consumer complaints in particular, there was a lot of concern initially that we said we were going to have a public data base, it wasn't enough for us to have complaints and work them and resolve them and think about what that means as a pot earn in prioritizing our own work, but we thought that the public ought to have access and think about it in terms of what it might mean about choices they would make. and notably we thought it was important for industry to be able to see not only what they now see which is what their own customers tell them about their own products, but what kind of problems might exist in the industry at other providers, and that's something they can learn from it avoid problems or see if they're doing better or worse, and respond accordingly. that's important information they didn't have access to that before. but i will say there's very sensitivities around changes and changes that can be pressing on people. and we want to be thoughtful and responsive to that on our

mortgage rules, we have several times gone back in and adjusted and revised various things in response to feedback we hear and monitoring the market and seeing what change is occurring. and i believe that's been a hallmark in the bureau and it will continue to be over time. >> now turning to the e-mails that i received from the consumer activists, they requested, and some are here, but requested that i ask you, first of all they're complimentary of the work you're doing, and you mention the word transparency, the cfpb has really been seen as a model agency on it's government transparency. not by everyone, but i give you that, that's somewhat of a hobby of mine, i give you high marks and i think there's a big world out there that you've done a good job on that. no one agrees on everything here but there'd be no need for

brookings if we agreed on everything. but a question that i, i did get was under the dodd frank arbitration study provision taken you a while to do the preliminary study, we're waiting on the final study and folks were curious to the extent you can talk about it, i know you're in midstream, but folks ask me to inquire about that. the reason for the timetable and when we can expect the final study and some rules. >> okay i want to be a little careful about what i would say because as you say, it is midstream. it's notable, the dodd frank act had provisions in it about arbitration in various contracts, and its been the law of the land going back to the 1920s, the federal arbitration act that arbitration has become seen as an acceptable

alternative forum for resolving disputes to our courts. and attitudes on that have evolved over time. in the dodd frank act it said specifically congress legislated there would be no arbitration in mortgage contracts. that that's in there and that's law of the land. it also then went on to say as for other types of consumer finance contracts, arbitration was put on the plate as a live issue. and it said specifically that the consumer bureau should conduct a study and issue a report to congress on various aspects of arbitration what it means, thousand works you know, what the consequences are. and then based on what that report contains, consider policy judgments about what to do or not to do about arbitration clauses and consumer finance contracts. it has taken time for us to do a thorough job of work on that,

but it is progressing, and when it is complete we will then, we should report to congress be in the fairly near future, and at that point we will be in a position to make judgments. i would not want to prejudge any of the steps until the report is complete and issued and that's something we've tried to be very careful about. i'll continue trying to be careful about it today. >> i think you've succeeded. all right. with that, i'm going to open the floor to questions. so let's see, i'll start by calling on calling on dan burger. >> how are you? good to see you. >> good to see you too. >> just wondering whether the cfpb has any initiatives concerning abusive mortgage servicing practices including abusive foreclosures and whether

or not it has any initiatives concerning abusive force plate insurance practices. and then i'd like to ask whether or not you have a view on whether the federal government could stimulate refinancing the millions of mortgages that are underwater by making changes or instituting policy initiatives in that respect which would produce tremendous benefits consumers and tremendous thing to the economy. >> let me try to deal with both pieces of that. the first piece mortgage servicing. this is an issue that has aggravated me going all the way back to my days as a state and even local initial ohio. i served as our state treasurer at the time that the foreclosure crisis was just beginning to break across the midwest indiana, michigan, and ohio were the leading states at that time. and of course became a national phenomenon by the time i was

attorney general was when the robosigning scandal broke into view. it continues to be the case that mortgage servicing, particularly in a challenging environment is a difficult undertaking, and i have not been satisfied with the performance of mortgage servicers, although its been improving in some respects, it is not problem-free. we now have new measures in place, the consumer bureau has adopted new mortgage servicing rules that are fairly comprehensive, they built on a lot of work done by other policy makers. they are now understood through the industry, they are uniform they apply to all mortgage servicers, whether they are banks or chartered institutions or others. that's a very important level playing field. we now back the rules through enforcement and supervisory effort which is meaningful. we have rules in place that are uniform, and we have real teeth behind those rules. we had enforcement activity around the new rules, we have supervisor activity that's ongoing and we'll continue to

police this market because many people have been badly hurt by some of the problems in that period, and i have seen it in my community and communities across the country. as for refinancing of underwater mortgages, you're really more in the realm of programs that the treasury department has worked on and has been developing and states have been working on programs and developing them and to some extent, we can jawbone the private sector to do more refinancing. we done some of that -- we've done some of that on mortgages and student loans. the nature of the student loan is you take out the loan when you're trying to get through school, and you're more of a risk, then if you get through school, and now you're in a different place you know, should you have the ability to refinance that loan at that point and build going forward? i think that you should and there are a lot of people who think you should and some industry is stepping up and respond to this. the overhang of student loan debt, right now, in our society among young people who are also

happen to overlap the class of first time home buyers perspective, first time home buyers is significant and the domino effects in our economy are very large and very meaningful negative factor that we need to meaningful negative factor that we need to think about, the high cost of higher education and what it means about the student loan burdens and how we service those. these are all pieces that matter to the country and important grounds to consider how we do better on public policy and execution. >> hi director, cordray [ inaudible ]. you've spoken about the importance of mortgage choice this morning. given those issues and those benefits that you see to people being able to shop around, do

you have any particular concerns about the one-third to one half of borrowers being manufactured homes and have no choice. >> we have had a lot of talk about manufactured housing and we understand this market better and we issued a white paper last year as you no doubt will recall that surveyed how the manufactured housing industry and how the market has evolved over the last decade or two. there are parts of this country where manufactured housing looms very large as a portion of housing stock particularly rural areas and some of the more difficult terrain i think of appalachian segments of southeastern ohio but there are many around the country. and making sure that people are treated fairly in terms of being able to buy and finance

manufactured housing is an important part of this spectrum and something we'll continue to pay attention to. the white paper represented a serious effort to lay groundwork for people thinking about policy measures, whether it is us or the congress or others and so it will continue to be a focus of in tension for us because of the fact it is a meaningful alternative for us especially because it is on the lower san diego of the buying spectrum. >> we have time for one more question. >> i'm taylor with the new england council. thank you for taking the time for us. i was hoping you would speak about first-time home buyers sand if there is growth there and whether you are satisfied with that growth? >> we have to go back to the

back drop of this. everybody agrees but they have different account of the causation, that it was the housing and mortgage market that broke and caused the financial kries illinois. and when there is an element of this generally throughout the economy, it is almost inevitable that area of the economy will be the slowest to recover and repair itself. the damage was so deep it takes longer to recover. that has been our experience. since the crisis going back to 2008 and 2009. so we're talking five, six almost seven years now, the housing market has lagged the recovery in the economy. that also means over time we have pent-up demand and we're seeing signs of that among first-time homeowners. and the department had a great succinct of the things weighing

on the housing market as they change we'll see how they change, when they talk about this in their open market committee minutes from june of last year with first-time home buyers what with we don't know is whether there has been a temporary lull that will lead to increased demand or a permanent change going on here. the student loan overhang if it is not alleviated could be a more permanent change or temporary over a longer period of time. if attitudes toward credit and borrowing and home buying have changed among young people because they view it as a riskier market, that could be a dynamic to extend for some time. people are speculating about this now. we don't yet know. i personally think that would be a mistake, because as i said earlier, home ownership continues for the middle class in this country to be the single greatest engine of building

wealth. most of the wealth is tied up in their homes and they build wealth by being a homeowner. so the notion that you have a significant segment of our young people who would miss that opportunity and miss the savings that can come with that and would be -- i think a negative for the economy and a negative for our society. so i'm concerned about that and i think people need to make good judgments about the possibility of home ownership and not shy away from it simply because they tend to be most focused on most immediate results that they saw in the recent past. so it is a market that is recovering and i believe that first-time homeowners will begin to recover at greater pace but we don't know that for sure and we'll all be interested to see how it helps. >> i had hoped to do more from the audience. >> my answers were too long.

>> i think the questions were too hard. i've promised your staff that i will get you out of here timely. i had one more question that i wanted to pose to you. i'll ask you to answer for us, you gave your maiden speech as cfpb director here at brookings, i think on your first day, in 2012. we sit here now three years later, can you quickly tell us what -- looking back now over that three-year period what the biggest surprise has been, both pleasant and otherwise of those three years as you thought it might have unfolded when you sat here three years ago. >> there was a pleasant surprise that i hoped would confirm but i didn't know when i was confirmed by the senate in july of 2013.

so that was meaningful. what i would say about the processes i've encountered at the bureau there are two things i didn't appreciate before i came. number one is we operate in a space that is crowded with other policymakers. congress is the primary policymaker in our country and that is appropriate. but there are a number of agencies that have different rules and they overlap and we have to work together effectively to do our jobs appropriately and that takes realtime and effort to put in together. we've been in the landscape where we have received that time and effort from our colleagues and we think they have received that from us but it is not a given. and the second thing i would say is i came to this job from attorney general in ohio which was enforcement and i was not familiar with the regulatory side of things. it takes longer than i wanted or expected to work through the

thorough processes of -- these are complicated issues. there were tough questions today and these are what we are dealing with every day. how to do enough but not too much and how to handle consumer protection and access on the other and these things take time and effort and take analysis and data and so things move more slowly than i like but hopefully they come out better at the other end. >> as you noted, it is tough to set up a new agency. not every new agency that has been set up has as happy of a story to tell as the extremely successful three years that you've enjoyed. and we're very pleased to have you here today. i can tell from the many hands that were raised that we easily could have gone longer so i would like to invite you back to come and talk to us again and share your reflections and let

me go back and thank you again and all of those who worked on dod frank and think about it. the fact that an agency like this was established to look after the middle class in this country, the average consumer and to recognize they make choices every day that affect their lives. some are difficult choices they don't understand and some are choices they make all of the time but to the extent we can be in a position to help them do that better, that is significant across the whole country and we recognize that as our mission and motivates us and makes it a pleasure to go to work every day. >> thank you. thank you for the work that you and all of your colleagues do. [ applause ]

tonight join cspan for the president's state of the union address starting at 8:00 eastern and then the speech at 9:00 and the republican response by joni ernst immediately after the speech. and a look at the allentown stage for governor wolf taking over with a budget of $2 billion.

the swearing in taking place outside of the pennsylvania state house in harrisberg. state lawmakers and the singers and performers here before tom wolf and his swearing in today in harrisberg. [ singing ] ♪ hallelujah ♪ hallelujah ♪ freedom come, freedom come

♪ freedom come freedom come ♪ ♪ hallelujah, hallelujah ♪ freely come ♪ we will share your burden ♪ ♪ come with your sorrow ♪ we

will share your sorrow ♪ ♪ sing it away sing it away ♪ ♪ hallelujah, hallelujah, hallelujah ♪ inside these walls ♪ come one and all ♪ come if your guilty ♪ we are all guilty ♪ come for forgiveness ♪ we all need forgiveness

♪ bring your anger ♪ bring your hatred ♪ bring your burden ♪ bring your sorrow ♪ hallelujah! ♪ hallelujah! ♪ spirit come ♪ come spirit ♪ freedom come ♪ hallelujah

♪ hallelujah ♪ hallelujah! ♪ hallelujah! ♪ freedom come ♪ hallelujah! ♪ for each child that is born a morning star rises and sings to the universe ♪ for each child that is born, a morning star rises and sings to

the universe who we are ♪ each child that is born a morning star rises and sings to the universe ♪ we are the grandfather ancestors, we are the spirlt ♪ we are one ♪ we are one ♪ ♪ we are one

♪ we are our grandfather's dreams ♪ we are the breath of our grand grandfather's spirit ♪ we are one we are one ♪ ♪ we are one, we are one ♪ ♪ we are our grandmother's

spirits ♪ we are our grandfather's dreamings ♪ we are the spirit of god ♪ each time a morning star rise s and sings to the universe of who we are ♪ ♪ we are one ♪ [ applause ] ♪ in this moment as i stand before you ♪ deciding while lifetimes are fading away ♪ in the dawn somewhere there is a rebirth of hope and a time of

peace on the day ♪ if he opens his eyes before you ♪ there are some folks that long for the very first time ♪ there are hearts being broken and hearts that will climb ♪ there is room to love all human kind ♪ in this moment we are one and the same ♪ ♪ there is no future or past only right now ♪ and in this moment, i need this now ♪ there is no greater love than the love between us right now ♪ right now right now ♪ ♪

♪ [ singing ] ♪ you are my friend and my lover, my sister and my brother united for the good of us all ♪ ♪ in this moment, we're one and

the same ♪ there is no future, no past only right now ♪ and in this moment ♪ i make this vow ♪ there is no greater love than the love you and me ♪ celebrating each day with dignity ♪ brother, we came and proud to be in this moment ♪ [ applause ] ♪ my eyes gone on ♪ above a salutation ♪ i hear a real distant song

♪ that hails a new creation ♪ through all of the turmoil and the strive ♪ i hear the music ringing ♪ a song echo in my soul ♪ how can i keep from singing ♪ ♪ through the turmoil we roar ♪ i hear the truth ♪ with all of the darkness around ♪ sun in the night is giving ♪

[ singing ] ♪ since i believe the love above ♪ how can i keep, how can i keep from singing ♪ ♪ la la la la la ♪ la la la la la ♪ ♪ how can i keep how can i keep my silence when i hear the bells of freedom ringing ♪ ♪ when friends rejoice far and near, how can i keep from singing ♪ ♪ in cell and dungeon dark, my bells to them are ringing ♪

♪ how can i keep ♪ how can i keep from singing ♪ ♪ la la la la la ♪ la la la la la ♪ ♪ how can i keep ♪ since i believe ♪ i believe i believe ♪ how can i keep

♪ how can i keep how can i, can i keep from singing ♪ ♪ la la la la la ♪ la la la la la ♪ how can i keep, how can i keep from singing ♪ singing, singing, singing singing, singing ♪ [ applause ] from chester, pennsylvania, please welcome the chester children's chorus led by dr. john alston.

and cspan3 live here in harrisburg, pennsylvania, the election of tom wolf, the only candidate to unseed a republican governor. he will bar all executive branch employees from accepting gifts and prohibiting no-bid contracts with private firms. he will use a bible that has

been in his family since the mid 1800s and the ceremony being held right outside of the state capitol. >> i have no power. we're going acapella. give me a d-flat, would you.

♪ one two, take me to the water ♪ come on you all ♪ take me to the water ♪ take me to the water ♪ to be that time ♪ nothing but the righteous ♪ nothing but the righteous ♪ nothing but the righteous ♪ shall see god ♪ shall see god ♪ i know i got religion ♪ i know i got religion ♪ i know i got religion ♪ yes, i do ♪ yes, i do [ applause ]

♪ people all over the world ♪ join hands ♪ start a love train ♪ people all over the world join hands ♪ start a love train a love train ♪ ♪ all those over in africa ♪ tell all of the folks in egypt and israel too ♪ please don't miss this train at the station ♪ because if you miss it i feel sorry, forsorry for you ♪ ♪ people all over the world join hands, start a love train ♪ a love train ♪ ♪ people all over the world,

join hands ♪ ♪ start a love train, a love train ♪ ♪ jeremiah was a bullfrog ♪ never understand a word that he say ♪ but he sure had a mighty fine time ♪ yes he sure had a mighty fine time ♪ joy to the world ♪ all the boys and girls ♪ joy to the fishes in the deep blue sea ♪ joy to you and me ♪ ♪ if i was the king of the world, i'd tell you what i do

♪ i'd put my arms around you ♪ yes, i'd put my arms around you ♪ joy to the world ♪ all of the boys and the girls ♪ joy to the fishes in the deep blue sea ♪ joy to you and me ♪ joy to all the fishes in the deep blue sea ♪ joy to you and me ♪ [ applause ] >> good to you all. have a seat. ladies and gentlemen please welcome today's special guest and join us in thanking them for their service to the commonwealth of pennsylvania and to the united states of america. welcome to the stage the honor

of the governor elect's cabinet. ♪ [ music playing ] ♪ [ saints go marching in ] ♪]o

the honorable members of chief court, thomas sailer, max bear and justice cordele stevens. ♪ [ music playing ]

♪ ♪ ♪ attorney general the honorable kathleen king. state treasurer author cord and dean paskuale.

♪ [ music playing ] passenger's congressional district, scott perry, from the

17th congressional district, representative manhunt cartwright. from pennsylvania's 14th congressional district representative mike doyle. representing pennsylvania's senior united states senator bob casey jr., his wife terese casey. ♪ [ music playing ] ♪ [ yankee doodle dandy ]

♪ lieutenant govern jim caulley and his wife suzanne. [ applause ] ♪

[ music playing ] and the swearing in of the pennsylvania governor taking place outside of the pennsylvania state house in

harrisburg. some of the performances ahead of the swearing in of the businessman tom wolf. the allentown newspaper taking a look at the construction that happened earlier of the stage that now many are gathered on. governor wolf taking the oath of office inheriting a budget deficit of about $2 billion. >> governor ed randel governor tom corbett and his wife susan. ♪ [ music playing ]

lieutenant governor mike stack, his wife tanya and son

justin. [ applause ] ♪ [ music playing ]

and now please welcome, joined by the next first lady of pennsylvania, francis wolf and his daughters kate and sarah, the next governor of pennsylvania, tom wolf. [ applause ] ♪

♪ ♪

♪ ladies and gentlemen, please remain standing and remove your hats for the presentation of the colors by american veterans post 189 of greater piston pennsylvania.

♪

please welcome from york county, pennsylvania, committee co-chair virginia reid walsh. [ applause ] >> i pledge allegiance to the flag of the united states of america, and to the republic for which it stands, one nation under god,in divisible with liberty and justice for all. and now, to sing the national anthem from mt. wolf pennsylvania dr. elizabeth murphy.

♪ oh, say can you see ♪ by the dawn's early light ♪ what so proudly we hail ♪ at the twilight last gleaming ♪ whose broad stripes and bright stars ♪ through the perilous fight ♪ o'er the ramparts we watched ♪ were so gallantly streaming ♪ and the rockets' red glare ♪ the bombs bursting in air ♪ gave proof through the night ♪ that our flag was still there

♪ oh, say does that star spangled banner yet wave ♪ o'er the land of the free ♪ and the home of the brave ♪ [ applause ] and now to perform the pennsylvania state song, pennsylvania, pittsburgh native, demora chanel. ♪ pennsylvania, pennsylvania ♪ mighty is your name

♪ steeped in glory and tradition ♪ object of our claim ♪ with bravery and freedom ♪ tyranny we cry ♪ until the independence ♪ fill the countryside ♪ pennsylvania, pennsylvania ♪ ♪ ♪ pennsylvania pennsylvania

♪ birthplace of a mighty nation ♪ keystone of the land ♪ freedom to proclaim ♪ may the voices of tomorrow ♪ glorify your name ♪ pennsylvania pennsylvania ♪

[ applause ] please take your seats and welcome to the podium our master of ceremonies the 45th govern of pennsylvania ed rendell. inaugurals are by their very nature a time for renewal and home. citizens come from every corner of the commonwealth to renew their faith in democracy and hope that today starts us down the road to significant and positive change. and although today is a day to surely look forward, it is also a day to pause and look back and

thank governor tom corbett and the women who worked for him on their tireless work for pennsylvania. [ applause ] today we gather together to inaugurate the 47th governor of pennsylvania as an embodiment of hope. tom wolf is a kind and compassionate man. a man of strong faith and conviction. he believes in the democratic process and the integrity and bipartisanship to make it work. he believes deeply that government can and should be a catalyst to create opportunity for all of our citizens and to protect the most vulnerable among us. so today, as this son of york takings his -- takes his oath of office, he carries with him the hope and good wishes of all pennsylvanias -- or at least

most pennsylvanians. so let us begin. [ applause ] and now to perform the invocation from york pennsylvania reverend w. love lovelace. >> let us pray. oh, lord, your glory fills all of the world. we give you thanks for this great land that we call our home and in particular for the quality of life we share in the commonwealth of pennsylvania. we are blessed with fertile fields for farming profitable industry, sound institutions of learning, compassionate care providers, dedicated service personnel and honorable government. we pray we may be a people mindful of the blessings we enjoy and give into mutual

regard all who call this commonwealth their home. give to tom, who we have chosen as the 47th governor wisdom and strength to lead your people in a fresh start. give him patience to listen carefully and thus determine the best course of action as he works with other elected leaders for the benefit of all residents of our state. give him courage and wisdom as he's called upon to make hard decisions. give him a sense of joy and accomplishment as he fulfills his responsibilities as governor. pour out your blessing upon francis, katie and sarah as they support tom in his calling to serve the people of pennsylvania. and finally help all of the people of pennsylvania accept our responsibilities to not only elect trustworthy leaders but to

support all public officials in their calling to serve faithfully. we offer this prayer in your most holy name, oh lord, for you exalted as head above all. amen. >> ladies and gentlemen please welcome the youngest participant in today's event winner of the why i want to be governor essay contest, from hanover elementary school sidney highlig. [ applause ] >> i want to be governor because i can help the kids in need by building schools providing

shelter, food and clean water to drink. i can also help to provide items to schools to keep children like me in school. i can also help the schools by providing computers healthy lunches, teachers. finally, i can help by ensuring life-saving vaccines that are given to the children or people that need them. these are many of the reasons why i want to be governor. another reason why i want to be governor is because i can help -- help provide roads signs and traffic lights to hospitals, cities towns and communities in states that need these items. i believe these items are important because you can use them for traveling to different places. this gives many people a chance to explore this beautiful world and its many wonders. traffic lights up us provide

light. signs help us show people their way to get to where they are trying to go to. this is another main reason why i want to be governor. the final reason why i want to be governor is because i can help people is because i won't have the thought and feeling that i can help people. the way i can do this is by doing -- is by doing the things that i talked about in these past paragraphs. it would be really a dream to be governor because you have the possibility to help people and do what needs to be done to save and protect us. those were the reasons why i want to be governor. [ applause ]

and now to administer york, pennsylvania the honorable judge penny blackwell. >> you're up. sorry. please raise your right hand. and speak after me. i thomas westerman wolf do solly swear. >> do solemnly swear. >> that i will support, obey and defend. >> that i will support, obey and defend. >> the constitution of the united states. >> the constitution of the united states. >> and the constitution of this commonwealth. >> and the constitution of this commonwealth. >> and that i will discharge the duties. >> and i will discharge the duties. >> of my office. >> of my office.

>> with fidelity. >> with fidelity. >> congratulations, governor. >> thank you very much. >> ladies and gentlemen, the 47th governor of pennsylvania, tom wolf. [ applause ] >> thank you. thank you so much. chief justice sailor governor corbett, governor rendell, lieutenant governor stack governors ridge, governor schweiker, everyone who is here president scarnati member of the judiciary leaders and

members of the general assembly family and friends, and above all, my fellow pennsylvanians i am so thankful to so many people here today but i want to start by thanking governor tom corbett for his many years of service to the commonwealth of pennsylvania. please, join me. [ applause ] governor. next i want to thank my best friend and wife of nearly 40 years, frances wolf, the love of my life and my best friend. frances. [ applause ] without her incredible love and support i would not be standing before you today. i would also -- also like to thank my two daughters, sarah and katie. [ applause ]

for so many things. let me say a special thanks to speaker mike turzai for reminding us when he was sworn in as speaker of the house, we cannot take lightly the great history of democracy of which we are a part and encouraging as he said that all members of the legislature to meet with people across the aisle. that's important. [ applause ] and i also want to thank chief justice tom sailor for his observation when he was sworn in that he said any disagreements we may have or quote preachers of our aspirations to value, liberty as well as order and fairness and equality as well as liberty. more than anything i want to thank all pennsylvanians who worked so hard to get me here. [ applause ] thank you very much.

what you did -- what you did was took a chance to vote for a different kind of leader. and to those of you out there who didn't vote for me i hope i'm able to give you a chance over the next four years to believe. [ applause ] because i am an unconventional leader. i am going to be an unconventional governor. i may be first governor in the history of pennsylvania who ever operated a forklift. whoever managed a hardware store. i volunteered and served in the peace corps. i ran a business. i'm not a product of our political system. and during my campaign, i pledged to be a different kind of governor and i will keep that promise. because what we need today is leaders who are willing to listen to each other. and learn from each other. and work together to give all

pennsylvanians a shot at a great life. this age and this time demands nothing less. we're told that we're living through a transformational era. and it is true the world hasn't seen this much change happen this fast since we moved from farms to factories over 100 years ago. and for those of us who are part of that change and who are ready for that change this new era is creating opportunities our ancestors could never have dreamt of. but if you travel across our state, you realize that many of our fellow citizens haven't yet found their place in this new world. travel to bethlehem, or to mount wolf, or to york, or reading or wells borough. from rural counties to inner cities across the commonwealth and the story is the same. we used to know what it took to succeed. we used to know what schooling we needed to get good jobs. we used to know what skills it took to start and run a business and be part of this economy.

but now we're not so sure. we need new skills for this new era. we need to compete in a whole new way and because of that, pennsylvania, our state stands at a crossroads. the industries that we used to rely on to create good jobs they're struggling it survive. paychecks, they're not keeping up with the cost of living. and ordinary families can no longer afford college or higher education. too often when we have looked to our leaders for answers, we have been disappointed. and frustrated to the point where we feel very cynical about our government. i ran for governor because i refused to be part of the first generation of pennsylvanians forced to tell their children that they need to go somewhere else to succeed. [ applause ] thank you. i ran for governor because i believe with all my heart that we can rebuild the middle class and get this state back on

track. after all, remember who we are. like you i have been proud to be many things in my life. but above all i'm proud to be a pennsylvanian. proud i was born here. proud i was raised here. proud that i called this state my home. and that's why i want to restore the belief that pennsylvania is not just another place. not just another state. pennsylvania is something bigger. it is something much better. it is an idea. pennsylvania is an idea that all things are possible. it is that idea that brought william penn here and allowed him to establish a colony built on a foundation unique in the world at that time of tolerance and inclusion. a holy experiment where religious minorities could trade persecution for prosperity and worship god as they saw fit. it is the idea that on one summer day in philadelphia, 56 patriots could sign an

extraordinary declaration that would create a remarkable new country. it is the idea that we can create new things. pennsylvania was the state that gave america its first daily newspaper. its first stock exchange. its first commercial oil well. its first computer and i believe it is first art museum. amazing. we're amazing. we have always pursued the ideas that all things are possible with boldness and with courage. and i refuse to believe that we are any less innovative, any less entrepreneurial, any less committed to building a better future today than our ancestors were yesterday. [ applause ] now, to create new opportunities we need to be bold. we need to work together and we need to get started. we have to respect each other's ideas. we have to respect each other's values. we have to believe that none of us alone has all the answers but

that together we can find an approach that works. that's what i have done throughout my career. i have worked with all kinds of people to turn a business around i had to get everybody to buy into one mission. i had to get everyone to buy into the powerful idea that in that context indeed all things are possible. and i'm going to bring that same mind set to the -- this leadership position that i'm taking on today. so how do we do it? how do we get pennsylvania back on track for ordinary pennsylvanians? how do we help the people of our state make their lives better? as you know, i laid out a plan during the campaign to give pennsylvania a fresh start. and we will debate those ideas, i know, in the days and months and years to come. but i want you to know for the next four years my administration will be dedicated to three simple things. first, jobs that pay. second, schools that teach. and third, a government that works.

that's what the wolf administration is going to be about. so let's start. first, getting pennsylvania back on track means we have to start with jobs that pay. as a business owner i know that the free market requires a constructive partner, a partner in government. that means our government should not do everything. it shouldn't. but it cannot do nothing either. that was a double negative. i know i said that. i meant that. one thing it can do to create more economic activity is to make smart strategic investments in public goods. investments in education, in health, in transportation infrastructure. things that set the table for robust public sector growth. another thing that it can do is create the conditions necessary to bring manufacturing jobs back to our state. that's exactly what i did in my job, in my business that's what i plan to do here. in pennsylvania, we're als