mr. cordray. i'll remain to take your questions. let everybody get out the door while i survey the field. clear my throat. and look to the associated press. >> can you confirm the drone strike in pakistan and comment on what the assassination would mean for the al qaeda organization and your fight against it, and secondly for u.s. relations with pakistan? >> i can tell you that our intelligence community has intelligence that leads them to believe that al qaeda's number two leader al libbi is dead. i can't get into details of how his death was brought about, but i can tell you that he served as arc did a's general manager responsible for overseeing the group's day-to-day operations in the tribal areas of pakistan, and he managed outreach to al qaeda's regional affiliates. his death is part of the degradation that's been taking place to core al qaeda during the past several years, and that degradation has depleted the ranks to such an extent that there is now no clear successor to take on the breadth of his responsibilities, and that

cordray? >> thank you, mr. chairman. i want to first indicate that i strongly agree with the tenor of the questions that we heard from senator corker and senator warner with regard to the volcker rule and those aspects. i think we covered that thoroughly, but i want to indicate i would have had we not had a full discussion on that, and i encourage you to take their comments to heart as we move forward. i'm very concerned about how we're moving forward in the regulatory climate with the response to things like the jpmorgan issues and others. i want to just shift the focus for a minute and mr. cordray, i want to talk to you first. the housing credit market continues to be very tight, and i'm hearing a lot of concern about how dodd-frank will reduce credit availability through the proposed rules through qualified mortgage that increases liability and qualified residential mortgage that requires a 20% down payment. i know that last week the cfpb reopened the comment period for the qualified mortgage proposal until july 9th.

mr. cordray. they'll be talking about college student aid transparency. then mr.acarney will continue with his briefing. in the meantime, waiting for this to start we'll bring awe portion of today's "wall street journal." our guest this morning, mark zandi, moody analytics, chief economist and talk answer calls for fed action after a weak jobs report issued by the labor department last week. >>> mark zandi, chief economist analytic, thanks for joining us from west k4e69or, pennsylvania. >> good morning. thanks to having me. >> calls for federal action after we all the saw the weak jobs report come out last week, but the fed's main purpose is monetary policy. how does that relate to job growth? >> well, the federal reserve play as very key role in terms of the broader economy, and job creation. it lowers interest rates in times of difficulty like the current period to make it easier tore people to borrow money. for businesses to borrow money, go out, invest and to hire. takes pressure off people who borrowed lots of money already, debtors, and brings down debt serv

mr. cordray, i want to talk to you first. the housing credit market continues to be very tight. and i'm hearing a lot of concern about how dodd-frank will reduce credit availability through the proposed rules for qualified mortgage that increases liability and qualified residential mortgage that requires a 20% down payment. i know that last week the cfpb reopened the comment period until july 9th, seeking comments about data that can be used to model the relationship between the borrower's ability to repay and variables such as the consumer ratio of debt to income. panel to discuss the impact of this proposed rule? >> thank you, senator, for the question about the qualified mortgage or ability to repay rule. one of the reasons we did reopen the comment period is we have been recently able to obtain significant amount of data from fhfa that gives us a better window into the mortgage market. we're all, i think, quite concerned. i know all of you are as well, about the direction and trajectory of that market. this is an important rule in helping shape the future of that market. we

mr. cordray mainly, the house republicans are using a lot of the appropriation bills to cut back on spending in some of the areas that constitute achievements, the ag appropriations bill cuts back on th cftc. what does this mean for enforcement and implementation of dodd-frank? do you have anything in terms of appropriations of from your department? >> if you do not have resources, it makes it hard to enforce the law. the cfpb is like other agencies. those agencies have been taken up for many years. it is very important for us to do a job of protecting the american consumer. we have seen it. it helped lead to the financial crisis we are working to fix. >> how would enforcement be affected? >> given that the proposals you are talking about do not affect the cfpb, i am not in a position to give a specific. it is common sense that if you do not have the resources to enforce the law, you are not going to enforce it affectively. >> if you look at the ryan budget, you see a couple hundred thousand children lose access to head start. that is the best investment we can make. you would see hundreds o

mr. chairman, that concludes my oral statement, glad to respond to statements. >> thank you. director cordray, please, proceed. >> chairman johnson, ranking member shelby, members of the committee, thank you for the opportunity to testify today as part of this panel of my colleagues. as director of the consumer financial protection bureau, i'm committed to being accountable to you and we're always happy to have the chance to discuss our work with you. this is the 18th time that the new bureau's testified before either the house or the senate, and i'm pleased to be here again today. my testimony will focus on the areas you specified in the letter inviting me to testify at this hearing. you asked about our bank supervision program. we've been focussed on recruiting and hiring the best team we could find to supervise financial institutions with our focus on consumer protection. we're blessed with great talent. the former commissioner of banks in massachusetts leads our bank supervision team. the former associate director at the ftc leads our non-bank supervision team. our examiners are working t