Bureau of Consumer Financial Protection, 1700 G Street NW Washingtor, D.C. 20552 December 31, ‘The Honorable Robert Menendez United States Senate {528 Hart Senate Office Building ‘Washington, D.C. 20510 Dear Senator Menendez, [vite in response to your leter of December 17,2019, regarding the Consumer Financial Protection Bureau's (Bureau) supervision of servicers’ handling of loans owned by the federal government. The Bureau takes very seriously the responsibilities ithas toll consumers, and particularly to students. The Bureau is committed to fulfilling its responsibilities with respect to these borroiwers, and to working with the Department of Education (Department) on the federal student loan portfolio to make sure that federal consumer financial protection laws are followed, ‘As you know, the Department terminated two Memoranda of Understanding (MOUs) with the Bureau effective October 1,2017. Executing new MOUs isa priority for the Bureau, and we are ‘working with the Department to that end. ‘The Bureau's Private Education Loan Ombudsman is working to establish an MOU with the Department’ student Ioan ombudsman to ensure coordination in providing assistance to and serving borcowers seeking to resolve complaints related to their private education or Federal student loans. In the absence ofan MOU, the Department continues tohave acess to the Bureau's public complaint database. Bureau staffalso continue to analyze complaint data and provide that analysis technical assistance when requested by the Department. In connection ‘withthe Bureau's authority to supervise larger participants in the student loan serving market, coneumerfinance.govBureau staf are also inactive discussions with the Department with respect toan MOU. -ecgaing Bure enforcement and supervision effort ‘Lam optimistic thatthe Bureau will come toan agreement with the Department that allows both the Bureau and the Department to fulfil their statutory responsibilies and work cooperatively to protect student loan borrowers. I continue to believe thatthe best outcome for consumers is tohave federal agencies united in the understanding of our respective responsibilities and how \we ae going to move forward. ‘Because ofthe inherent nature of multi-party negotiations, itis not rossbleto provides specific timeframe in which the Bureau and Department wil be able to finalize MOU terms. I would be happy, however, to provide you a copy ofthe final MOUs when they ae executed. In addition, ith respect to your question regarding future Bureau supervisory activity, the Bureau generally doesnot comment on or confirm the existence of any ongoing or future enforcement Investigation or supervisory examination, Should you have any questions about this response, please donot hesitate to contact me, or have your staff contact Janel Fitzhugh ofthe Bureau's Office of Legislative Affairs, Ms, Fitzhugh ean ‘be reached at (202) 435-7149. Sincerely, Kathleen L. Kraninger Director consumerfinance.gov 2