eastern on c-span threes american history tv. >> the head of the consumer financial protection bureau told members of congress this week that his agency has no interest in accessing personal data on individual consumers. mr. cordray presented the bureau's report to the senate banking committee. this is a little more than an hour and a half. >> good morning. i call this hearing to order. and we have reviewed the cfpb's semiannual report and are here today to conduct regular oversight of the cfpb. this includes making sure that the agency continues to fulfill its mission of protecting consumers and empowering them to make responsible financial decisions, promoting fair competition and industry, and ensuring full access to financial services for all americans. director cordray, welcome back to the committee. i know you share my commitment to transparency and accountability. in fact, this is the 32nd time that a cfpb official has appeared before congress in just over two years, and your 13th of parents. rightly so, your agencies outreach and engagement with both consumers and industry rep

protect small investors. and staying safe, how do you do that? we are on thecase tonight on "the willis rept." melissa: all of that and more coming up. but first,he consumer financial protection bureau. they are trying to accelerate their power this time through car loan they want lenders to guess the race and ethnicity and gender of car loan applicants. with more on this, congressman john campbell of california who is on a conference call with the agency's staff, trying to get an explanation. all right, congressman, what did you learn? >> well, just what you said, the consumer financial protection bureau and a lot of your viewers may notbe familiar with this or have heard of that. it was set up as part of the dodd-frank law. we call it an acronym forhort. they are supposedly there to protect consumers we are supposed to be protecting from predatory lending practices 2008 crisis. what is interesting is that car loans were not a problem in the crisis. they didn't take anything down, there wasn't a problem. they were the cause of anything they didn't make anything go bankrupt. the consumer complaints are vastly lower. gerri: from your op-ed, which i read with interest this morning, it

seen a lot of anecdotal evidence but last year there was also a report that came out from consumer protection bureau which showed that over ninety thousand complaints against the nation's top financial institutions and most of them involved mortgages also auto loans and other unknowns to buy other goods so of course following the housing crisis there were you know there was a reluctance to give out those loans despite the fact that interest rate loans or interest rates excuse me are as a friendly to me these trends they seem to be misleading you know they're positive but you know why would they be misleading. sure well while you know stock markets are going through the roof and corporate profits are also increasing that's very good news for the upper end for wall street however we've seen wages stagnate during the recession and the jobless rate while it's hovered around eighty eight percent over the past several months there are still five million people who are considered long term unemployed have been looking for work for more than twenty seven weeks and other people who have just completely dropp

bureau has issued. host: we are talking with danielle douglas of "the washington post." she is a financial reporter to talk was about the consumer financial protection if you want to get involved in the conversation, the numbers are on your screen. you can also send as messages on twitter and facebook and an e- mail. funds,we get to the let's take a look at an article you wrote earlier this week regarding regulators set to rein in banks on pay day lending. the rules are slated to come up thursday could radically alter the operations of the small but growing number of banks including wells fargo and u.s. bancorp that offered loans tied to anticipated direct deposits of salary. guest: it is an interesting business. wells fargo has probably been the one bank in the business longer desperate 1994 is when they started offering this product called a direct deposit advance. it works like a paid day loan. you are promised to repay this loan as soon as your next deposit goes into your account. everyoblem is, often, $100 you bar, you are charged $10. interest ratenual of 300% that regulators are concerned that banks of the ones getting into this business. wit

cheryl: consumer financial protection bureau was set up to help and serve the american consumer. agency is spending $20 million to buy personal financial data from ten million consumers. how is this helping? what are they looking for? gerri: great question. they say they want to sharpen their regulatory efforts and know how consumers using financial products and miss using financial products so not orally are they being ending reams of information from banks to the point that banks are complaining public about it which is shocking but also buying some of this data from companies like experience or core logic that collate information on individuals. apparently they are not allowed to look at individual information but if you talk to anybody who is intelligent about the use of consumer driven data you understand it is easy to drill down and find out anything you want about individuals whether you have their name or don't have their name. you give someone yours the code they can find everything they need to know about you and heart beats a lot of people are worried about the privacy

. >> the head of the consumer financial protection bureau says his agency has no interest in accessing personal financial data on individual consumers. richard cordray was responding to questions from republicans on the senate banking committee, and was recently renominated to lead the bureau. this is an hour and 40 minutes. >> good morning. i call this hearing to order. we have reviewed the cfp b's semi annual report and are here today to conduct regular oversight. this includes making sure that the agency continues to fulfill its mission of protecting consumers and inpouring -- empowering them to make responsible financial decisions and ensuring all access to financial services are all addressed. director cordray, welcome back to the committee. i know you share my commitment to transparency and accountability. in fact this is the 32nd time a cfpb official has appeared before congress in just over two years. and your 13th appears. your agency's engagement witch both consumers and industry representatives has been widely praised. the cfpb has made significant progress in protecting con

protecting you? the consumer financial protection bureau demanding big banks for this customer data and using taxpayeroney to buy and formation on how taxpayers use credit. with more on this, staff attorney. thank you for stopping by. appreciate your time. i am looking at this. the cftc says we have to have dated driven information to make the right as of rules to make sure we understand what consumers are doing. what they're doing is peering over our shoulder, looking into our bank accounts, credit card accounts, mortgages. isn't that just a brother? >> it is certainly concerning. your financial information reveals quite a bit about you. your credit card records, bank records, revealing not just your financial status but interesting things about your habits the more you go, how much travel, you see in what you do. it is concerning the government is looking into using data brokers and other sources to find out incredible amounts of affirmation of all sorts of people. gerri: here is what they want to spend. 20 million altogether. better credit record. the government has been regulating banks and consum

consumer protections? it's not required that the school tell the student how much remaining federal loan availability they have, and so that is something that also there's legislation pending, it's something that the consumer financial protection bureau could just move forward to require as well, which we have been advocating for. and equally important for the millions of private loan borrowers who have private loans today, many of them with interest rates in the double digits, and really they're saying, we hear from borrowers, the consumer financial protection bureau saying i'm willing to pay $100 a month but they want $500 a month. i don't make $500 a month and they can't get any relief from thei flexibility. the loop is not dischargeable in bankruptcy. so one of the things pending next week is the deadline for commenting on a request for input from the consumer financial protection bureau on suggestions for how to develop a way to make private loan payments more affordable. what kind of a loan modification system, what other typed of relief would help address what they have seen and the complaints they received and the data they're showing, we just see lots of people are going to not be able too buy a home, not participate fully i

just today, for example, the consumer financial protection bureau announced four enforcement actions to end what it said were improper kickbacks paid by mortgage brokers to mortgage lenders. the proposals would require four national insurance companies to pay $15 million in penalties. >> so eamon, what did they allegedly do wrong there? tell us how this whole thing unfolded. >> well, the cfpb says the insurance firms provided kickbacks to lenders by purchasing what were essentially worthless reinsurance that was designed make a profit for the lenders. and that could have inflated the cost that homeowners paid in their mortgages every month. one of the firms, genworth u.s. mortgage insurance says it will pay $4.5 million. and the firm said it agreed to settle so we can, quote, focus on oh sources on working with customers. here is a case where taxpayers were allegedly paying for something they never should have been paying for in the first place. the department of justice announced that floor hand-held llc has agreed to pay $1.1 million to settle allegations that it used federal taxpa

protect small investors. and staying safe, how do you do that? we are on thecase tonight on "the willis rept." melissa: all of that and more coming up. but first,he consumer financial protection bureau

first and foremost, the consumer financial protection bureau has drawn a line in the sand and guinea basically said any originator that comes out with 5% delinquencies will be yanked as an originator. so lenders are not going to take that chance that these people might be bad borrowers again. and then he went on to say that it's the young people that can't take advantage of this. and shouldn't we be -- >> isn't there a point there, though? to get a good credit score, you have to have not just good credit, you have to have a decent longtime credit history. something that a 26-year-old that may be perfectly responsible and will pay back their lender, simply won't have. why not help him or her? >> that's the problem. is that he's basically saying that those people need to come up from their credit score and things like that. we should be teaching them financial responsibility. there's a lot of ways that you learn financial responsibility. go out and get a $2,500 credit card. create credit. don't get a $200,000 or $300,000 house that you may default on and this whole debacle starts all o

. >> the new consumer financial protection bureau, which is part of the dodd frank legislation passed by president obama and the democrats in the house. >> so, one could argue the occ did this because they didn't want the consumer financial production barrel under elizabeth warren to be in charge of this because they have been known to be very kind to the banks. they have been known to bury the banks bodies and known to lie on behalf of the banks, which they did in this independent foreclosure review. recently, they came out with a number that said 4.2% of bow rowers had an error. >> we did this whole review and don't worry, it's only 4.2% of the people have an error. >> just last week, the government had an auditor and they said the occ did not come up with the methodology. they didn't tell each bank how to figure out where they were errors and they basically found out there was no way you could have figured out one consistent error rate across the banks because there was no consistent methodology. it was like reverse methodology. >> an amount of -- less than the treasury department

the consumer financial protection bureau updated existing regulations that until now often declined nonworkinges and partners from getting a credit card. the cfpb says that more than 16 million people the do not work outside the home. the change allows a spouse or stay-at-home partner to be eligible for a card as long as they have access to the income of the partner. >>> and finally, popping up all over the place. this week, the usda announced it would make it easier for folks with food stamps or the supplemental program to buy more food at farmer's markets. they are making it available so they can buy the prospect wireless equipment to accept snap. they will allow them to accept a wider customer base and increase sales in people who use snap to shop at the farmer's market. so folks at the food stands can get access to local products. >> also it is great if they live close to the market and can go in there. >>> and more than two decades since advocates for the blind first asked metro to install the safety devices to stop people from falling over the platforms. but there are still stations that

protect small investors. and staying safe, how do you do that? we are on the case tonight on "the willis report." melissa: all of that and more coming up. but first, the consumer financial protection bureau

on c-span3 at 10 eastern, the head of the consumer financial protection bureau, richard cordray, presents the bureau's semiannual report to the senate banking committee. also on c-span3 a senate judiciary subcommittee looks into constitutional and statutory authority for drone strikes and targeted killings. that's at 4 p.m. eastern. >>> one of the problems when the judges are appointing the public defenders is then the public defender's job is reliant on their approval. and judges are judged, um, on their efficiency often; how fast do they process cases, how quickly do they get through the docket? so they're going to want a public defender that goes along and gets along, that does their bidding. and that's a real challenge. and in new orleans for a long time, the system was also that one public defender was assigned to one courtroom, and the same judge. so they were always arguing before the same judge. >> yeah. >> and the problem with that is that they were then kind of trading clients in a way. like, okay, you know, my private paying client, you know, if you kind of let me spend a littl

richard cordray is director of the consumer financial protection bureau, welcome back to the committee, director cordray. you may begin your testimony. >> ranking member crapo members of the committee, thank you for inviting me to testify that the semiannual report of the consumer financial protection bureau. my colleagues and i are happy to testify before the congress and ranking member hope to have a chance to address issues you raise that required questioning him happy to do it. there are good answers to all of those issues that you raise. born not of the worst crisis, the consumer was the nation's first federal agency whose sole focus is protect consumers in the marketplace. very dedicated to improving lives of everyday americans in restoring trust in consumer financial markets. the semiannual report we discuss about his work over the last six months of 2012. the report illustrates the ways we are using the tools congress provided us to empower consumers and provide a fair transparent and competitive marketplace for consumer finance. we've taken steps to improve working rockets, pa

you hear from the administration , the fed, the department of justice, from consumer financial protection bureau'ssinging the same tune. lenders need to listen up. melissa: it does feel like we may be falling for that trap. evidence of that is, there has been more and more talk circulating about this idea that maybe the down payment is not really matter. most recently from the university of north carolina a study as saying that they looked at low income borrowers with minimum down payments from 98 through the end of last year and found that only five and a half% of those people defaulted or ended up in foreclosure meanwhile, when you look at sub prime mortgages during the big downturn, 25 percent went into foreclosure. so there were trying to say, is really not about the down payment but about what else is going on, all lots of other factors. you could not tie those to the other. what do you think that? >> absolutely disagree. when the buyer has skin in the game it will stay in that property. eliminating a down payment requirement is absolutely crazy. you can save the money for a down payment fami

you have to understand, and this is really important, that the consumer financial protection bureau hasine in the sand with debt to income ratio, if any lender had more than 5% delinquencies. and one of the bigger things that made my blood boil, too many young people get left behind. young people 25, 26. they should be taught financial responsibility and have good credit and be able to get these loans. you and i talk all the time, anything he talks about is on the backs of the taxpayer and that's what this is and this is ridiculous, you're right. this exactly what caused the issue from the beginning. stuart: you should try to tell us how you feel about it? we heard it loud and clear, thank you so much tanya. from housing and stocks, by the way the dow is up 11 points very early going this wednesday morning. let's move away from that, i'm going to get into what is almost pure politics, joining us now is dr. ben carson. we appreciate you being with us again in morning, but you know, doctor, i see you everywhere. radio, tv, talk shows, news shows. you're being attacked harshly. do you thin

the consumer financial protection bureau for example has kind of issued a call for ideas about how topur refinance market. usually borrowers who are going to default often do so in the first couple years after they get a loan. so if you can get over that first hurdle chances are you're not going to default at all. so it seems like the sort of thing that would be ideal but there's not a market for that right now. currently in the private loan market there are a couple of consolidation loans but the private loan market is very constrained because of the credit market right now. and the public loans you can consolidate as well but it doesn't ultimately have the effect of reducing your income. all that happens is there's a weighted average of your current loan so this is something that policy make verse been looking to figure out to do. and there's been some interesting proposals that the government should create kind of slush fund is the wrong word but a specific fund to allow that to happy. because borrowers are looking at interest rates now but and saying they're very low why can't i r

the american immigration lawyers association perry also, the semi annual report on the consumer protection bureaun on homeland security bombing about it -- after the boston marathon bombings. this is about 35 minutes. host: our guest representative jason chaffetz from the utah homeland security committee welcome. guest: thank you. host: we're going to talk about the boston marathon and that but first syria and information coming from the white house what does this mean going forward? guest: very serious situation and in a volatile place of the world but when you step over the red line and start using chemical weapons, that's a scary proposition given their close proximity and we have something senator kerry and others will lead this. i can't talk about what goes on in there, but the administration is taking it very seriously, as they should, and it's a very scary situation. host: how much should be done as far as looking at the evidence and going forward before we make decisions? guest: i think what we're going to hear is what degree of certainty and evidence do they have? you don't want to make

it's something that the consumer financial protection bureau could just when forward to require as well, which we have been advocating before. equally important for the millions of private loan borrowers who have private loans today, many of them with interest rates in the double digits and really they are saying we hear from borrowers the consumer financial protection bureau saying i'm willing to pay $100 a month but a 1500. i don't even make $500 a month and they can't get any relief from their lender or any flexibility to get the loan isn't discharge of all in bankruptcy. one of the things that is also attending next week is the deadline for commenting on a request for input from the consumer financial protection bureau on suggestions for how could we develop a way to make private loans payments more affordable? what kind of loan modification system, what other types of relief would help address what they have seen the complaints that the of received and then the data they are showing where we see lots of people are going to not be able to buy a home cannot participate as long as the

dodd-frank stability oversight council and the consumer financial protection bureau.hese bodies are tasked with far reaching powers that include the power to determine which private companies are deemed systemically important, how they should be resolved if they get at all bankrupting into trouble and what should apply to banks and financial companies that interact with retail consumers. these are broad and wide ranging pal worse. the affordable care act creates the independent payment advisory board which is so independent that it doesn't have any meaningful oversight. to discuss the constitutionality of these legislative bodies as well as the impact the bodies are likely to have on consumers and the health care and financial services industry and on the market generally, we have a great lineup of speakers today. first, michael kamen is the director of policy studies here at the cato institute. he has been at the forefront of measures to challenge the affordable care act both at the federal and the state levels. he's the author of several policy papers on the impact

. >> the consumer financial protection bureau has no confirmed it director and may not have any legal director at all, depending on what the supreme court decides. the supposed reason that the republicans in the senate did not want a vote on this is because they wanted to change the funding of this agency. they wanted to be congressionally appropriated rather than financed by the federal reserve. a very legitimate argument in favorthe supposed reason that oy agencies funded through congressional appropriations? or is this a smokescreen for saying they do not really like this agency and they want to kill it? >> our answer to the question -- i will broaden its scope slightly. the two big bills are worked on were? frank and harrah, they created two new regulatory authorities. in both instances, which traded one single confirmed director. neither had ever been confirmed by the senate. harrah was passed in 2008. -- frank in 2010. here we are in 2013. in 2013.-frank we have done research that will be released next week looking at the question of how long does it take to get independent regu

according to the consumer financial protection bureau, outstanding student loan debt now tops $1 trillion in america. these are people who were retired and planning to live a life of comfort. they can't anymore. grandmothers who cosigned a granddaughter's student loan form. the granddaughter defaults. they're now collecting and garnishing grandma's social security check. in sharon's case, she worries her social security check, hers will be garnished in the future, while other types of household debt continue to decline, there's one that doesn't -- student loan debt. between 2004-2012, there was a 70% jump in the number of student loan borrowers, a 70% increase in the average amount being borrowed for college. borrowers like sharon, clearly over the age of 30, make up 67% of the total outstanding student loan debt. there were some for-profit colleges that are doing the right thing, educating students to succeed in the work force, but there are other bad actors like edmc that continue to spend large portion of their revenue on marketing rather than on educating. this committee report from t