[Senate Hearing 117-325]
[From the U.S. Government Publishing Office]




                                                        S. Hrg. 117-325

 
         NOMINATIONS OF PARISA SALEHI AND BRIAN MICHAEL TOMNEY

=======================================================================

                                HEARING

                               before the

                              COMMITTEE ON
                   BANKING,HOUSING,AND URBAN AFFAIRS
                          UNITED STATES SENATE

                    ONE HUNDRED SEVENTEENTH CONGRESS

                             FIRST SESSION

                                   ON

                            NOMINATIONS OF:

 PARISA SALEHI, OF THE DISTRICT OF COLUMBIA, TO BE INSPECTOR GENERAL, 
                           EXPORT-IMPORT BANK

                               __________

  BRIAN MICHAEL TOMNEY, OF VIRGINIA, TO BE INSPECTOR GENERAL, FEDERAL 
                         HOUSING FINANCE AGENCY

                               __________

                            DECEMBER 7, 2021

                               __________

  Printed for the use of the Committee on Banking, Housing, and Urban 
                                Affairs
                                
                                
                                
                                
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             U.S. GOVERNMENT PUBLISHING OFFICE 
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            COMMITTEE ON BANKING, HOUSING, AND URBAN AFFAIRS

                     SHERROD BROWN, Ohio, Chairman

JACK REED, Rhode Island              PATRICK J. TOOMEY, Pennsylvania
ROBERT MENENDEZ, New Jersey          RICHARD C. SHELBY, Alabama
JON TESTER, Montana                  MIKE CRAPO, Idaho
MARK R. WARNER, Virginia             TIM SCOTT, South Carolina
ELIZABETH WARREN, Massachusetts      MIKE ROUNDS, South Dakota
CHRIS VAN HOLLEN, Maryland           THOM TILLIS, North Carolina
CATHERINE CORTEZ MASTO, Nevada       JOHN KENNEDY, Louisiana
TINA SMITH, Minnesota                BILL HAGERTY, Tennessee
KYRSTEN SINEMA, Arizona              CYNTHIA LUMMIS, Wyoming
JON OSSOFF, Georgia                  JERRY MORAN, Kansas
RAPHAEL WARNOCK, Georgia             KEVIN CRAMER, North Dakota
                                     STEVE DAINES, Montana

                     Laura Swanson, Staff Director

                 Brad Grantz, Republican Staff Director

                       Elisha Tuku, Chief Counsel

                Corey Frayer, Professional Staff Member

                 Dan Sullivan, Republican Chief Counsel

                      Cameron Ricker, Chief Clerk

                      Shelvin Simmons, IT Director

                    Charles J. Moffat, Hearing Clerk

                      Jason T. Parker, GPO Detail

                                  (ii)


                            C O N T E N T S

                              ----------                              

                       TUESDAY, DECEMBER 7, 2021

                                                                   Page

Opening statement of Chairman Brown..............................     1
        Prepared statement.......................................    17

Opening statements, comments, or prepared statements of:
    Senator Toomey...............................................     2
        Prepared statement.......................................    17

                                NOMINEES

Parisa Salehi, of the District of Columbia, to be Inspector 
  General, Export-Import Bank....................................     4
    Prepared statement...........................................    19
    Biographical sketch of nominee...............................    20
    Responses to written questions of:
        Chairman Brown...........................................    40
        Senator Toomey...........................................    41
        Senator Sinema...........................................    45
Brian Michael Tomney, of Virginia, to be Inspector General, 
  Federal Housing Finance Agency.................................     6
    Prepared statement...........................................    29
    Biographical sketch of nominee...............................    31
    Responses to written questions of:
        Chairman Brown...........................................    46
        Senator Toomey...........................................    47

                                 (iii)


         NOMINATIONS OF PARISA SALEHI AND BRIAN MICHAEL TOMNEY

                              ----------                              


                       TUESDAY, DECEMBER 7, 2021

                                       U.S. Senate,
          Committee on Banking, Housing, and Urban Affairs,
                                                    Washington, DC.
    The Committee met at 10 a.m., via Webex and in room 538, 
Dirksen Senate Office Building, Hon. Sherrod Brown, Chairman of 
the Committee, presiding.

          OPENING STATEMENT OF CHAIRMAN SHERROD BROWN

    Chairman Brown. The Senate Committee on Banking, Housing, 
and Urban Affairs will come to order. This hearing is in the 
hybrid format. Our witnesses are in person. Members have the 
option to appear either in person or virtually, or even both if 
they choose.
    The Committee meets today to consider two nominations, 
Parisa Salehi to be Inspector General of the Export-Import Bank 
and Brian Tomney to be Inspector General of the Federal Housing 
Finance Agency. We congratulate the nominees and thank them for 
appearing here today and for their willingness to serve in 
these important roles. I also want to welcome their families 
and friends in attendance and I've met them, and those watching 
from home, and each nominee, certainly feel free at the 
beginning or during your testimony to introduce family members, 
either here or watching from somewhere else, by name.
    It is so important that the Biden administration is working 
to fill inspectors general vacancies. These positions are vital 
to making our Government work for people, and to ensuring tax 
dollars are put to good use for the people whom we serve.
    The Trump administration took unprecedented steps--
unprecedented in the sense that Presidents of neither party had 
done this in the past--to undermine IGs across the Executive 
branch. They either sidelined them, or fired them without 
cause, simply for doing their jobs, for showing independence, 
which is their job, and pursuing the facts, which is also their 
job.
    Through audits, evaluations, and investigations, 
inspectors' general offices play pivotal roles in uncovering 
abuse, waste, and fraud, ensuring American tax dollars are 
protected.
    The nominees today possess the independence, honesty, and 
integrity--qualities we all want and expect in an inspector 
general--things they need to take on these critical roles. And 
both nominees appearing before us are clearly qualified.
    Ms. Salehi currently serves as the Chief of Staff to the 
Inspector General of the Department of State. She assists the 
IG on enterprise risk management and oversees the Congressional 
and public affairs sections of the IG office. Prior to joining 
State, she served in the USAID inspector general office.
    Previously, Ms. Salehi spent more than 4 years at Ex-Im 
Office of Inspector General, serving in various roles, 
including as Acting Inspector General from 2018 to 2019. If 
confirmed, she would be rejoining an office she is familiar 
with, and her experience with the bank's charter and its 
operations will enhance her office's work.
    When she served as the Acting Ex-Im Inspector General, my 
office found that she was very responsive to requests when we 
needed additional information concerning her office's 
investigations and reports.
    Ex-Im, as we know, is vital to manufacturers in Ohio and 
Montana and Pennsylvania and throughout the country. It will be 
Ms. Salehi's job to help ensure that the bank works 
efficiently. She will help the bank comply fully with its 
charter and other statutory requirements. I believe she is well 
prepared to step into this job immediately.
    Welcome to the Committee.
    From 2006 to 2017, Mr. Tomney served in various roles at 
DOJ. From 2006 to 2009, he served as a trial attorney in DOJ's 
criminal division, where he investigated drug trafficking and 
narco-terror organizations. From 2009 to 2014, Mr. Tomney 
served as Counsel for Rule of Law in the Office of the Deputy 
Attorney General, where he engaged with teams of Federal 
prosecutors and attorneys in efforts to root out corruption and 
support the rule of law in Afghanistan and Iraq. He went on to 
serve in several roles, including Assistant Deputy Attorney 
General.
    Mr. Tomney has a proven commitment to service, even in the 
toughest situations. Early in his career he spent more than a 
decade as a paramedic and a firefighter. He will bring those 
same values with him to this job, ensuring that FHFA is working 
for all homeowners and all renters.
    Welcome to the Committee, Mr. Tomney. We are glad you are 
here today too.
    Thank you to both of you for your willingness to serve. I 
look forward to your testimonies today.
    Ranking Member Toomey.

         OPENING STATEMENT OF SENATOR PATRICK J. TOOMEY

    Senator Toomey. Thank you, Mr. Chairman. Ms. Salehi and Mr. 
Tomney, welcome to both of you and your families. I commend you 
both for your commitment to public service and your willingness 
to serve in these important roles to which you have been 
nominated.
    Mr. Tomney, if confirmed, you will have a challenging job. 
The GSEs led us into the 2008 financial crisis through their 
excessive risk taking, and Congress established FHFA as a tough 
regulator to ensure that never happened again. But instead of 
being the cop on the beat, the Biden administration seems 
intent on turning FHFA into a coconspirator with the GSEs.
    FHFA has taken a number of troubling steps to extend credit 
to risky borrowers and undermine the GSEs' financial condition. 
It has proposed reductions in the GSEs' capital requirements, 
lowered guarantee fees and has said it is considering further 
cuts, suspended restrictions on the GSEs' risk layering and 
acquisitions of investor and second home loans, relaxed the 
GSEs' underwriting requirements, and replaced much of FHFA's 
senior leadership.
    Meanwhile, housing prices, of course, have skyrocketed an 
astonishing 18.5 percent in just the last 12 months. So I think 
it is a question of when, not if, these good times for the 
housing market come to an end, and I worry that FHFA's enabling 
of risky lending, together with the Administration's total 
disinterest in recapitalizing the GSEs through outside private 
capital, has placed the GSEs on a path that could well lead to 
another round of taxpayer bailouts.
    Mr. Tomney, if that were not already enough, your job will 
be made more challenging by an Administration with no 
discernable housing policy besides giving mortgages to as many 
borrowers as possible with little regard to their ability to 
repay.
    Housing is expensive, in part, because our housing policy 
subsidizes demand while ignoring supply constraints. Our 
Democratic colleagues' reckless tax-and-spend bill makes little 
effort to increase housing supply.
    The Senator Schumer earmark, or the ``Schu-mark,'' as I 
call it, and as I discussed at the October 21st hearing, would 
spend up to $40 billion renovating New York City's existing 
public housing. Much of the other housing funds would go to 
imprudent downpayment assistance and rental vouchers that add 
further to housing demand. The bill even creates an astonishing 
invitation to mortgage fraud by making $15 billion available to 
borrowers who sign an attestation, truthfully or not, that they 
are, quote, ``first-generation homebuyers,'' end quote. 
Amazingly, you can qualify so long as your parents do not 
currently own a home and you have not owned a home in the last 
3 years. So much for ``first generation'' homebuyer.
    We need to try something different than the same housing 
policies that caused the 2008 financial crisis. To that end, in 
March I proposed principles to guide housing finance reform 
discussions. The Administration, however, has shown no interest 
in real reform, and even missed a September 30th deadline to 
report on its plan.
    Mr. Tomney, given the path the Administration has put us 
on, I suspect you might soon be investigating how we so eagerly 
doubled down on 50 years of failed housing policy and thereby 
predictably led the GSEs into what could be another round of 
taxpayer bailouts.
    Now turning to Ex-Im. Ex-Im claims that it only takes risks 
that private lenders are unable or unwilling to take. We should 
stop right there and ask ourselves: If private lenders are 
unwilling or unable to take a risk, why should taxpayers be 
forced to take that risk?
    Yet, at the same time, Ex-Im also claims it only makes safe 
bets. It is obviously impossible to do both. Ex-Im cannot only 
take transactions so risky that no one else will do them, and 
at the same time only be doing safe transactions. The fact is 
Ex-Im wins business by systematically underpricing the risk it 
takes. That is why borrowers go to Ex-Im instead of any number 
of private lenders that will not offer deals on the same terms 
as Ex-Im will. That is why our largest banks go to Ex-Im for 
loan guarantees. The Ex-Im terms are too good to be true, at 
least in the private sector.
    And it is important to note that the vast majority of 
American exports get done without Ex-Im support. We have 
reviewed annual export data from 2007 through 2020. In that 
period, the highest percent of U.S. exports using Ex-Im 
financing was in 2012, and it was 2.3 percent. And that was 
when Ex-Im had everything going for it. It was fully 
operational, had a quorum on its board, and it had not reached 
its lending limit.
    The reality is we are the world's second-largest exporter 
of goods behind only China, we lead the world in value-added 
exports, and we do it almost entirely without Ex-Im financing.
    Not only is Ex-Im financing generally not needed, but it is 
often nothing more than crony capitalism providing taxpayer-
financed subsidies to some of the world's largest companies who 
have plenty of access to private capital. Ex-Im's recent deal 
guaranteeing an $82 million loan from JPMorgan to Qantas for 
the purpose of buying jet engines from GE is just one example.
    Generally, the same giant lenders, exporters, and foreign 
companies--often State-owned--benefit from Ex-Im while 
taxpayers take the risk. There is also a history of waste, 
fraud, and abuse at Ex-Im. Ex-Im's IGs have identified numerous 
concerning practices at the bank over the years. If confirmed, 
Ms. Salehi will have the important responsibility to serve as 
an independent watchdog.
    Mr. Chairman, I look forward to hearing from today's 
nominees.
    Chairman Brown. Thank you, Senator Toomey.
    Would witnesses please rise and raise your right hand.
    Do you swear or affirm that the testimony you are about to 
give is the truth, the whole truth, and nothing but the truth, 
so help you God?
    Ms. Salehi. I do.
    Mr. Tomney. I do.
    Chairman Brown. Do you agree to appear and testify before 
any duly constituted committee of the Senate?
    Ms. Salehi. I do.
    Mr. Tomney. I do.
    Chairman Brown. Thank you. Please be seated.
    I welcome you both to the Committee. As I said, if you 
would like to introduce family and friends, proceed.
    Ms. Salehi, please begin your testimony. Thank you.

STATEMENT OF PARISA SALEHI, OF THE DISTRICT OF COLUMBIA, TO BE 
                 INSPECTOR, EXPORT-IMPORT BANK

    Ms. Salehi. Thank you, Chairman Brown, Ranking Member 
Toomey, and Members of the Committee. I am honored to appear 
before you today as the President's nominee to be the Inspector 
General of the Export-Import Bank of the United States.
    I would not be here today without the generous support of 
my family, friends, and colleagues. I would particularly like 
to recognize my mother, whose hard work and determination has 
afforded me many opportunities. She grew up far away from this 
free land, in a place where she was legally required to get her 
husband's permission to do many simple things, like travel. 
Through selfless acts she ensured that her kids would have 
better and brighter life choices than the ones available to 
her. I would also especially like to thank my partner, Burk, 
who is here with me today, and has been supportive of my 
professional growth for the past 18 years.
    I have also benefited from the wisdom of many formal and 
informal mentors along the way, who have graciously invested in 
and supported me. The list is long, so I can only name a few: 
my sister, Atousa, Peter Briggs, Jeanie and Kent Henricksen, 
Allison Lerner, and Mark Greenblatt. I have learned many life 
lessons from all of them, which I hope to pass forward.
    If confirmed, I will be living proof of the American story, 
that if you work hard you will 1 day go places no one thought 
possible. I am a first-generation American and very proud of 
it. Common to many first-generation Americans, my professional 
path has not been easy or without sacrifices. To know that 
someone like me can appear before you is the fulfillment of the 
American dream--my dream.
    With many years of experience, both in the public and 
private sectors, I believe I offer unique qualifications to 
lead as the IG for Ex-Im. My experience as Counsel to the Ex-Im 
IG and subsequent services as Ex-Im's Acting IG allows me to 
hit the ground running. I have learned from strong leaders at 
the Offices of Inspectors General at the U.S. Agency for 
International Development and the Department of State, where I 
currently serve as the Chief of Staff. Both agencies have 
taught me important lessons on effective oversight. If 
confirmed, I hope to build on that foundation.
    I appreciate Ex-Im's important mission of supporting 
American jobs by facilitating the export of goods and services. 
IGs play an important role in conducting reliable, objective, 
fact-based oversight. Should I be confirmed, I am committed to 
conducting audits and investigations relating to the programs 
and operations of Ex-Im, as required by the law, and serving in 
this role independently, with fairness and integrity. I will 
seek to bring positive change to Ex-Im programs through 
constructive relationships with Ex-Im leadership. As Acting IG, 
I invested considerable time in building those relationships 
and I will continue to do so, if confirmed, while maintaining 
the independence of my office.
    Inspectors general play a vital role in rooting out bad 
actors. By partnering with other stakeholders, Government 
agencies at the Federal and State level, and by promoting a 
whole-of-Government approach we can make progress in this 
effort and foster trust in Government programs. Bad actors can 
erode trust in Federal programs, which can prove fatal to the 
long-term success of any agency program. If confirmed, I will 
ensure that my office helps deter those actors by maximizing 
accountability.
    If confirmed, I will uphold the IG Act's dual reporting 
requirements to keep the agency head and Congress ``fully and 
currently informed'' about problems and deficiencies relating 
to agency programs and operations and commit to direct and 
transparent communications with congressional stakeholders.
    Ex-Im's inspector general position has been vacant since 
June 2014, the longest-running IG vacancy in the Federal 
Government. Even in the absence of a permanent IG, OIG 
professionals at Ex-Im have worked hard to advance the mission 
and conduct meaningful oversight. I acknowledge their 
accomplishments and dedication under these challenging 
conditions and would welcome the opportunity to work hand-in-
hand with them, support them, facilitate their work, and bring 
about the stability of a permanent IG, should I be confirmed.
    In closing, I appreciate the opportunity to give back and 
serve the American people and the country that has made my 
first-generation American story possible.
    Thank you and I would be pleased to respond to any 
questions you might have.
    Chairman Brown. Thank you, Ms. Salehi. Mr. Tomney, welcome.

STATEMENT OF BRIAN MICHAEL TOMNEY, OF VIRGINIA, TO BE INSPECTOR 
            GENERAL, FEDERAL HOUSING FINANCE AGENCY

    Mr. Tomney. Chairman Brown, Ranking Member Toomey, thank 
you for the opportunity to appear before the Committee today 
while I sit before you as nominee for Inspector General to the 
Federal Housing Finance Agency, and thank you to President 
Biden for nominating me to this very important position in 
Government service.
    At the outset, I would like to thank my family members 
watching remotely and those here, including my son, Michael, 
who I love very much, and my brother, Chris, who honorably 
served 32 years in the United States Coast Guard. My two older 
sisters, Laura and Karen, cannot be here but I appreciate all 
of their support throughout the years.
    Serving the public is a rewarding career path. However, it 
often comes at the expense of missed family holiday gatherings, 
weddings, little league games, and school events. And although 
my parents are both deceased, I believe my core value of 
service to others emanated from them.
    For over 30 years, I have served the public in roles 
offering me an intimate view of challenges faced by ordinary 
Americans. As a young man serving as a paramedic/firefighter, I 
cared for people experiencing homelessness, mental illness, and 
domestic violence. This work established a foundation of care, 
compassion, and empathy toward all people that permeates my 
professional career.
    During my service at the Department of Justice, I held 
accountable individuals violating our Nation's laws. I proudly 
led many brave public servants engaged in supporting rule of 
law efforts overseas following the terrorist attacks on 
September 11, 2001. And I reimagined an initiative that sought 
to revisit prison sentences for certain individuals sentenced 
under drug laws of the 1990s.
    Collectively, this arc of public service has helped shape 
who I am personally and professionally: I am a thoughtful, 
independent, and objective seeker of facts; I believe that 
Government service should embrace and promote the value of 
transparency and integrity; and I believe there is no greater 
honor than service to the American people.
    In the private sector, many of these common threads readily 
transferred to compliance and ethics teams I have worked with 
in the financial services industry, in particular integrity, 
accountability, and transparency.
    As Chief of Staff in the Compliance and Ethics department 
of a Fortune 100 company, I helped ensure the department 
maintained sound financial practices and used strategic 
communications to support departmental operations. Furthermore, 
I have developed, grown, and led teams enhancing regulatory and 
Board reporting. I also challenged the business to strengthen 
internal controls, refined independent testing, and helped 
ensure the proper remediation of any findings. These combined 
efforts focused on guiding teams to be well-managed, efficient, 
and effective.
    Currently I lead the Office of Corporate Investigations. 
Here, my teams conduct rigorous and independent investigations 
into allegations of insider fraud, whistleblower claims, and 
unethical business practices.
    FHFA has a vital role in maintaining the stability and 
liquidity of the mortgage market, and it furthers equal and 
affordable access to America's housing market. That is why it 
is critical to the American people that the Office of Inspector 
General fulfill its core mission, which is to promote economy, 
efficiency, and effectiveness while also protecting FHFA and 
the entities it regulates against fraud, waste, and abuse.
    Since 1978, inspectors general have been independent, 
objective, and nonpartisan finders of fact. The key to their 
success is the ability to remain independent and objective--to 
put it simply, to call balls and strikes. Their duty to report 
to Congress is an equally important function driving 
transparency in how our Government's departments and agencies 
are functioning.
    The independence of an IG does not make them immune from 
accountability for their actions. IGs must set the bar and hold 
themselves to the highest standards of ethics and integrity.
    If confirmed as inspector general, I will exercise my 
duties with the same level of independence and objectivity that 
has defined my entire professional career. I will ensure FHFA 
OIG conducts its audits, evaluations, and investigations in a 
fair and rigorous manner. I commit to a transparent and 
responsive relationship with this Committee and Congress. I 
will endeavor to develop a productive, thoughtful working 
relationship with the FHFA Director, as an effective 
relationship will best serve the agency, the entities it 
supervises, and the American public. Moreover, I will lead FHFA 
OIG with candor, transparency, and humility.
    For me and many in my family, the call to public service is 
strong. We have a long tradition of military, Government, first 
responder, and other frontline workers who, like me, believe 
caring for and protecting our fellow citizens is the highest 
honor. My three decades of public service share several common 
themes: independence, integrity, and a belief in the honor of 
service to the American people. If confirmed, I very much look 
forward to the opportunity to serve this great country once 
again.
    Thank you, and I look forward to your questions.
    Chairman Brown. Thank you, Mr. Tomney.
    Ms. Salehi, Ex-Im OIG has previously worked to help the 
bank reduce fraud and risk. I applaud that focus as the risk of 
fraud is a significant challenge for financial institutions, 
both in the public and the private sectors. We know the Ex-Im 
OIG has also helped identify limited instances when exterior 
parties have attempted to perpetrate fraud against Ex-Im, the 
banks that partner with Ex-Im, to lend to exporters and U.S. 
taxpayers.
    So talk, if you would, about your approach to reducing 
fraud when evidence of fraud is identified and how your 
professional experience has helped to ensure that Ex-Im IG's 
office can effectively work with DOJ and other law enforcement.
    Ms. Salehi. Thank you, Senator. I appreciate the question. 
I have over 25 years of experience in white-collar crime or 
Government investigations, both in the Federal Government and 
in private practice.
    When bad actors penetrate the programs of any U.S. 
Government agency it erodes the trust of the American people. 
And so my approach, if confirmed, going in would be to take a 
whole-of-Government approach by engaging with all the 
stakeholders that are necessary to defer waste, fraud, and 
abuse. By that I mean I would be working with the Department of 
Justice, prosecutors and attorneys. I would, of course, be 
working with the law enforcement partners, other Government 
agencies such as Office of Special Counsel, Office of 
Government Ethics or others that have a stake in the game to 
ensure that we can deter penetration into those Government 
programs.
    Additionally, I will be working, if confirmed, with my Ex-
Im OIG staff and look for opportunities where we can introduce 
internal control measures to the management at the Export-
Import Bank of the United States so that they can partner with 
us in preventing fraud altogether.
    Chairman Brown. Thank you. Mr. Tomney, oversight of FHFA 
and the GSEs involves a wide range of issues from lender fraud 
to agency options and cybersecurity. How do you prioritize 
issues for evaluation and investigation in that agency?
    Mr. Tomney. Thank you for the question, Mr. Chairman. If 
confirmed, one of the first areas I will get into is assessing 
how the agency has been prioritizing those decisions. 
Historically, they have looked for general buckets, including 
effective and enhanced provision of the entity conservative 
operations, the risk posed by counterparties and third parties, 
and importantly cyber concerns.
    I think once I am able to get in to see how they have 
distributed their resources and human capital I will be in a 
better position to assess exactly how to prioritize, but 
certainly matters such as cybersecurity is certainly a whole-
of-Government concern, and that will certainly be one of my 
priorities I will be looking at.
    Chairman Brown. As more and more of the mortgage process 
moves online, what new challenges do the GSEs and FHFA face?
    Mr. Tomney. Thank you, Mr. Chairman. The challenges are 
broad, particularly as policymakers weigh different policies. 
As an OIG, I would envision ensuring robust oversight of 
whichever tact policymakers take and use the opportunity to 
produce meaningful reports that can help stakeholders, such as 
Congress and the agency, to understand the tradeoffs they may 
be making with those decisions.
    Chairman Brown. Thank you. Senator Toomey.
    Senator Toomey. Thank you, Mr. Chairman. Ms. Salehi, during 
your time as Acting IG at Ex-Im, the IG office conducted an 
evaluation of Ex-Im's policies and procedures to ensure the 
bank does not crowd out the private sector and only supports 
transactions where Ex-Im financing is necessary. This, I 
believe, is known as Ex-Im's additionality policy.
    Ex-Im was found to have insufficient recordkeeping in some 
respects, which increased the risk that the bank might not 
consider all relevant information about replacing private 
capital when it approved transactions. In May of 2020, the 
board of directors strengthened its policies to protect against 
crowding out private sector capital. It is yet to be seen if 
the new policies are being properly observed.
    Will you commit to conduct another evaluation to determine 
if Ex-Im is, in fact, complying with its updated policies and 
procedures that are designed to prevent crowding out of private 
sector capital, and also will you commit to reviewing the 
updated policies themselves to ensure that they actually are 
achieving Ex-Im's statutory mandate not to replace private 
capital?
    Ms. Salehi. Thank you, Senator, for the question. If 
confirmed as the IG for the Export-Import Bank of the United 
States it would be my job to be looking at policies and 
procedures of the bank and reporting them to you and to the 
head of agency and the American public in a transparent 
fashion.
    Of course, I know that this issue of additionality is one 
that is very important to you, and I would be happy to meet 
with you and your staff to understand your concerns better and 
take those concerns to my staff, and consult with my staff, as 
we set about our work and do our risk analysis of our 
priorities.
    Senator Toomey. You would acknowledge that it would fall 
under your purview to determine if these policies are being 
properly implemented.
    Ms. Salehi. Yes.
    Senator Toomey. OK. In September of 2019, Ex-Im approved 
the second-largest loan in its history. It was a $4.7 billion 
loan project for an LNG development in Mozambique. 
Unfortunately, in that same year, we learned of deep corruption 
in the Government of Mozambique that extended all the way to 
the former finance minister who had been arrested in a $2 
billion fraud and money-laundering scheme that directly hurt 
U.S. investors.
    Now to be clear, Mr. Chang was out of office by the time 
Ex-Im agreed to the LNG deal, but I just think that the Chang 
affair revealed deep and pervasive corruption within the 
Government of Mozambique, and I worry about whether Ex-Im is 
taking adequate steps to ensure that its financing deals are 
not subject to some kind of corruption.
    Can you commit to doing everything that you can to ensure 
that Ex-Im does not unwittingly enrich corrupt officials, 
particularly in countries with long histories of corruption?
    Ms. Salehi. Thank you, Senator. Rooting out bad actors and 
investigating fraud, waste, and abuse is the core of every OIG 
mission, and I commit to doing just that, if confirmed.
    Senator Toomey. Thank you.
    Mr. Tomney, if confirmed, one of your responsibilities will 
be to investigate mortgage fraud that affects Fannie Mae or 
Freddie Mac. In the lead-up to the 2008 financial crisis, the 
GSEs got into the business of acquiring so-called no-doc and 
low-doc loans, where the borrower simply attested to his or her 
eligibility without any independent verification.
    Well, predictably, some borrowers lied about their income 
and other key factors considered in the underwriting, and 
predictably, many of those borrowers eventually defaulted, 
resulting in significant losses at the GSEs that were then 
borne by the taxpayers.
    Unfortunately, or Democratic colleagues are pursuing this 
reckless tax-and-spending bill that will return the GSEs to the 
precrisis practice of relying on unverified borrower 
attestations. It is inevitable, in my mind, that some 
borrowers, once again, will misrepresent their circumstances in 
order to get, for instance, downpayment assistance.
    If you are confirmed, Mr. Tomney, and if this bill becomes 
law, will you commit to vigorous investigations of borrowers 
who knowingly lie about their eligibility for downpayment 
assistance on GSE-acquired loans?
    Mr. Tomney. Thank you, Ranking Member Toomey, for the 
question. Yes, if confirmed, I believe one of the key roles of 
Office of Inspector General is to engage in robust enforcement 
efforts, and this would certainly be an area that, should that 
law pass, I believe would come under our purview, and like we 
have seen with a lot of the stimulus investigations going on, 
we will continue to engage in robust enforcement efforts.
    Senator Toomey. Thank you. I appreciate that. I would just 
point out, if past practices by some at the Department of 
Justice and some at the CFPB are any indication, if I were a 
lender and a borrower lied on his application and I extended 
credit in part because of a lie, or I should say relying on the 
lie, I would be worried that I would be the one that would be 
subject to investigation and made to face the consequences. But 
I appreciate your answer.
    Thank you, Mr. Chairman.
    Chairman Brown. Thank you, Senator Toomey.
    Senator Menendez, from New Jersey, is recognized.
    Senator Menendez. Thank you, Mr. Chairman.
    Mr. Tomney, I was pleased to read in the FHFA Office of 
Inspector General's annual plan for fiscal year 2022 that the 
office you are nominated to lead is planning an audit of, 
quote, ``FHFA's initiatives responding to the Executive order 
on advancing racial equity and support for underserved 
communities through the Federal Government.''
    Given the immense disparities faced by minority home 
buyers, I believe it is imperative that FHFA does everything in 
its power to promote racial equity in its role as a regulator 
of housing finance.
    Do you agree that reviewing FHFA's racial equity 
initiatives will make the agency more effective?
    Mr. Tomney. Thank you, Senator, for the question. I agree 
that there have been new discussions and focus in that area, 
which is certainly the purview of the policymakers, and to the 
extent that more focus is paid in that area I certainly commit 
to engage in robust oversight of that activity so that we can 
provide information to key stakeholders such as Congress and 
yourself, as well as the agency, to understand the course of 
action that they are taking.
    Senator Menendez. So if you are confirmed you are going to 
follow through on what the FHFA already said that they are 
intending to do. No?
    Mr. Tomney. Thank you, Senator. Yes, to the extent that the 
OIG has committed to engaging in that, yes.
    Senator Menendez. Well, the FHFA plays a critical role in 
maintaining a fair and healthy housing finance market, and a 
critical part of that mission is ensuring that all home buyers, 
regardless of race, are treated fairly. So will you commit to 
making this review a top priority, if confirmed?
    Mr. Tomney. Senator, yes.
    Senator Menendez. All right. Now I was glad to see that the 
fiscal year 2022 FHFA plan contained a planned evaluation of, 
quote, ``the FHFA's efforts to identify and address potential 
appraisal bias and valuation disparities.''
    Now home ownership is the cornerstone of intergenerational 
wealth in our country, particularly for low- and middle-income 
Americans. However, home ownership can only lead to wealth 
building if homes are properly appraised and valued. Will you 
commit to making this review a top priority?
    Mr. Tomney. Senator, thank you for the question. I 
certainly commit to, if confirmed in the office, rolling up my 
sleeves and making sure that that is addressed quickly.
    Senator Menendez. Well, I appreciate hearing that because 
minority homes, we know, are not properly appraised in value, 
thanks to numerous studies, including one from Freddie Mac 
showing that about 15.5 percent of single-family properties in 
majority Latino, and 12.5 percent in majority Black census 
tracts are appraised lower--lower--than their contracted price, 
compared to 7.4 percent in white neighborhoods. That is a 
fundamental, dramatic difference. That is why these types of 
audits would be so important.
    So if confirmed, what will you do to ensure that FHFA's new 
appraisal policies are effective and not harmful to minority 
home buyers?
    Mr. Tomney. Thank you, Senator. To the extent that those 
policies are implemented, I will ensure that the office follows 
through with doing rigorous assessments, looking at metrics and 
models to ensure that they are producing meaningful reports 
that are helpful to all of the stakeholders, including the 
American public.
    Senator Menendez. Ms. Salehi, Ex-Im has always found ways 
in which it can improve--I believe it has ways, I should say, 
in which it can improve when it comes to racial equity. For 
instance, the most recent Ex-Im competitiveness report noted 
that only 14.6 percent of Ex-Im's director small business 
support went to minority- and women-owned businesses. These 
businesses were among the hardest hit by the pandemic, so it is 
critical they have access to the tools and assistance to remain 
competitive. By the way, before the pandemic, they were also 
the greatest rate of growth among small and mid-sized 
businesses in the Nation.
    Do you agree that part of Ex-Im's mission is to support 
minority- and women-owned business efforts to engage in 
international commerce?
    Ms. Salehi. Yes, Senator. In the 2019 reauthorization of 
the bank I believe that Export-Import Bank has a mandate for 
small businesses, to do business with small businesses.
    Senator Menendez. So how would you help Ex-Im improve their 
performance when it comes to the issues of racial equity?
    Ms. Salehi. Thank you for that question. This issue of 
diversity and inclusion is a priority of mine. It is a very 
important issue, and I hope that when and if I am confirmed, to 
be able to basically bring that fact that diversity matters at 
the top and ensure that my Ex-Im OIG staff finds areas of 
opportunity when they do their work, of audits and inspections 
and evaluations, with an eye toward diversity, inclusion, and 
this priority.
    I also would like to make sure that my own staff, within 
Ex-Im OIG is empowered to think through these issues of 
diversity and inclusion and include them wherever possible for 
management of the bank to think through them.
    Senator Menendez. Well, let me close by saying an IG's 
purpose is to make the agency they oversee more efficient and 
effective, and Ex-Im certainly has a lot of room to improve on 
making racial equity a greater reality, so we look forward to 
working with you upon your confirmation to make sure that 
happens.
    Thank you, Mr. Chairman.
    Chairman Brown. Thank you, Senator Menendez. Senator 
Tester, of Montana, is recognized.
    Senator Tester. Thank you, Mr. Chairman and Ranking Member, 
and I appreciate both of you being here today for your 
respective positions. You have both talked, in your opening 
statements, about being independent and objective, which I 
agree with 100 percent. The question is, how will you work to 
protect your independence and fend off any sort of interference 
by the agency head or, quite frankly, one of us? Go ahead, 
whoever wants to go first.
    Mr. Tomney. Thank you, Senator, for the question. To your 
point, independence is the heart of the role of an inspector 
general, and I have said to others that but for that 
independence then OIG is nothing but a paper tiger. I think 
developing a productive working relationship with the director 
of the agency is essential, because at this core contentious 
relationships often do not end up good for either side. So that 
is not to cede my independence or objectivity. In fact, it is 
for those moments where we might disagree on something, and we 
can disagree without being disagreeable.
    And so I look forward to developing that relationship as 
well as I look forward to developing a productive relationship 
with Congress, again, so once again my independence and 
objectivity will not be questioned, but that does not mean I do 
not listen to key stakeholders such as yourself.
    Senator Tester. I will come back. Ms. Salehi.
    Ms. Salehi. Thank you, Senator. So within OIGs we have 
professional standards that we have to abide by. For example, 
our auditors, the auditing standard that requires them to be 
independent of mind and appearance. And of course, if 
confirmed, if I am leading a group of auditors in that office, 
that applies to myself in that I have to conduct myself and my 
office in a way that is independent both in fact and in 
appearance. And so I plan on conducting myself in such a way.
    Senator Tester. So tell me what you would do--this is for 
both of you, because it applies to both of you--tell me what 
you would do if the director would stonewall you on 
information? Because oftentimes--and I agree with you, Mr. 
Tomney, that it is good to have that relationship--but 
oftentimes they might not like your recommendations. They might 
not think they are fair. They might not think they are just. So 
what do you do when they stonewall you?
    Mr. Tomney. Thank you, Senator. It is true, I am sure 
inspectors generals are not necessarily the life of the party 
when they come walking in, but I believe that developing that 
relationship that is productive is important. If I am unable to 
get access to information, access to information is fundamental 
to the work and we cannot conduct full, robust, and fair 
audits, evaluations, and investigations without it. If I am 
unable to work through within the agency then there are 
alternatives, such as speaking with folks in Congress.
    Senator Tester. OK. Ms. Salehi, do you have anything to 
add?
    Ms. Salehi. My colleague and I see eye to eye, Senator. I 
believe that there are a number of legislations currently in 
front of Congress that the intent of them are to strengthen the 
inspectors general to be able to do their work more 
independently and better. And the same, you know, if the 
constructive relationships that we have with the head of the 
agency does not work and we have barriers such as access to 
information or access to the head of agency, I would certainly 
engage with your office and members of Congress to ensure that 
those barriers are known to you.
    Senator Tester. Yeah, I would hope you would do that, and I 
would hope you would do that quickly, because you are our eyes 
and ears, and it is really important.
    I need you to answer this pretty quickly, and I think you 
can. You will be overseeing 26 FTEs--I believe that is 
correct--in FHFA, about 121 FTEs. What role will the folks 
under you play in determining priorities?
    Ms. Salehi. For me, Senator, consulting with my staff about 
what needs to be done, especially the staff that is currently 
there and knows the bank best, would be my high priority. We 
engage in a risk-based process, and staff, along with all other 
stakeholders, decide.
    Mr. Tomney. Senator, I echo my colleague's comments as 
well. A good leader will always listen to the subject matter 
experts and take that into consideration. Leaders should 
surround themselves with folks who tell them what they need to 
hear, not what they want to hear.
    Senator Tester. I want to thank you both for being here and 
putting yourself up for this job. I will tell you that some 
people in the Senate do not like the FHFA because some people 
do not like the 30-year fixed rate mortgage, and I can tell you 
some people do not like Ex-Im because they see it as supporting 
people who do not need support. I hope that does not stop them 
from voting for you, because we need your eyes and ears in 
these departments. We can have a debate about the other stuff 
at another point in time. Thank you.
    Chairman Brown. Thank you, Senator Tester. Senator Cortez 
Masto is recognized from her office, from Nevada.
    Senator Cortez Masto. Thank you, Mr. Chairman. Mr. Tomney, 
Ms. Salehi, congratulations on your nominations.
    Mr. Tomney, let me start with you. Everybody is aware of 
Freddie Mac and Fannie Mae. They are household names for many 
Americans. But few folks are aware of the Federal Home Loan 
Bank system. The Nation's 11 Federal Home Loan Banks are 
charged with meeting the affordable housing, the community 
development needs of the States, and the communities they 
serve.
    So my question, Mr. Tomney, to you is, if confirmed as 
inspector general, will you commit to take a fresh look at the 
distribution of work in the OIG and ensure that the FHLBs are 
given the appropriate level of meaningful oversight as outlined 
in their mission? And that includes each Federal Home Loan 
Bank's community lending plans.
    Mr. Tomney. Thank you, Senator, for the question. I agree 
with you that if you stopped random people on a sidewalk that 
most people would be able to at least be familiar with Fannie 
Mae or Freddie Mac, and generally speaking what they do, and 
perhaps far fewer would understand what the Federal Home Loan 
Bank system is all about.
    So yes, Senator, if confirmed, I look forward to getting in 
the office, rolling up my sleeves, seeing where the current 
breakdown of resources are devoted, and taking a fresh look to 
ensure that not only are we looking at the Federal Home Loan 
Bank system but to make sure that to the extent that we do 
reporting on it that those reports are meaningful to key 
stakeholders like yourself. And I look forward to working with 
you and your staff, if confirmed, to do so.
    Senator Cortez Masto. I appreciate that because I have 
concerns that the Federal Home Loan Banks are not meeting the 
needs of all the communities. Let me just give you an example. 
In previous years only one bank has any goal for Native 
Americans in the community. And so I am hopeful that you will 
really take a look at that and be transparent and provide the 
information Congress needs to be able to work with Federal Home 
Loan Banks as well. So thank you for your comment.
    Let me touch on cybersecurity very quickly, and I know some 
of my colleagues have. Fannie Mae and Freddie Mac rely heavily 
on counterparties and third parties to originate and service 
their mortgages, enterprise, purchase, and provide operational 
support for a wide array of professional services. This 
reliance creates an opening for cybercriminals.
    So these counterparties and third parties would be under 
your office's oversight. How do you see the OIG office 
monitoring and reporting on cybersecurity during the selection 
and procurement process of these counterparties and third-party 
service providers?
    Mr. Tomney. Thank you, Senator, for the question. Certainly 
the counterparty and third-party risk area has dovetailed 
extensively into the cybersecurity world. If confirmed, I look 
forward to getting up to speed on exactly what has been done so 
far. There are certain statutory reports that OIGs within the 
Government do. I am not convinced that that is nearly enough. 
And so if confirmed, I can commit to you that that will be one 
of the focus areas for me, because as you State, the risk is so 
very high, particularly with the volume of NPI and PII 
information that is out there that could be the subject of 
criminal actors.
    Senator Cortez Masto. Thank you. And then, when 
appropriate, can you promise transparent and accessible 
delivery of your findings to Congress?
    Mr. Tomney. Senator, yes.
    Senator Cortez Masto. Thank you.
    Ms. Salehi, same question. When appropriate, can you make 
sure that transparent and accessible delivery of your findings 
to Congress as well?
    Ms. Salehi. Absolutely, Senator, yes.
    Senator Cortez Masto. Thank you. Ms. Salehi, the Export-
Import Bank is important to Nevada companies. Twenty-six 
companies in Nevada use the Ex-Im Bank to sell their products 
to buyers abroad. You have extensive experience at the Ex-Im 
Bank. If confirmed as the inspector general, what barriers do 
you expect to have as an IG and what will you need to overcome 
those barriers?
    Ms. Salehi. Thank you for the question, Senator. Obviously 
I am not currently at the bank and only have access to the 
public information. In reviewing those public reports and 
information I cannot identify any specific issue currently that 
they may be facing.
    However, in general, as we have talked about here before, 
the general barriers for any IG would be, for example, lack of 
funding if the agency program or the agency has grown in size 
and, for example, their OIG has not grown in the same level and 
extent. That would be an issue because that would hinder the 
ability or the OIG to produce meaningful and impactful 
evaluations and audits.
    Another barrier would be if there is a lack of access to 
information or to the agency head. It is very important to have 
those constructive relationships with the agency head. And I 
guess last I will mention, also, the issue of independence, 
which we discussed before, and that would be a barrier if not 
recognized by the agency.
    Senator Cortez Masto. And I know my time is almost up, but 
let me just ask you this, because you both talked about 
independence. I have heard my colleagues ask you questions 
about that. How important is it to get the independent facts 
that you need? It is crucial to be able to [inaudible] 
functions of the jobs. Isn't that right?
    Ms. Salehi. That is correct, Senator. It is a core value 
for us in OIGs to be independent of mind and to look at facts 
in a nonpartisan fashion, and lead the facts wherever they take 
us.
    Senator Cortez Masto. Thank you. I know my time is up. 
Thank you, Mr. Chairman.
    Chairman Brown. Thank you, Senator Cortez Masto.
    That is it for the hearing. Thank you to both our nominees 
for being here today and providing testimony. It was a 
productive discussion of the issues and thanks for your candor. 
I hope to move forward quickly on Ms. Salehi's nomination and 
Mr. Tomney's nomination.
    For Senators who wish to submit questions for the hearing 
record those questions are due at the close of business on 
Friday, December 10th. To the nominees, we would like to have 
your responses back to us by noon on Tuesday, December 14, 
2021.
    Thank you again for your testimony. With that the hearing 
is adjourned.
    [Whereupon, at 10:52 a.m., the hearing was adjourned.]
    [Prepared statements, biographical sketches of nominees, 
and responses to written questions supplied for the record 
follow:]
              PREPARED STATEMENT OF CHAIRMAN SHERROD BROWN
    The Committee meets today to consider the nominations of: Parisa 
Salehi to be Inspector General of the Export-Import Bank; and Brian 
Tomney to be Inspector General of the Federal Housing Finance Agency.
    We congratulate the nominees and thank them for appearing here 
today, and for their willingness to serve in these important roles.
    I also want to welcome their families and friends in attendance and 
watching from home.
    It's so important that the Biden administration is working to fill 
inspectors general vacancies. These positions are vital to making our 
Government work for people, and to ensuring tax dollars are put to good 
use for the people we serve.
    The Trump administration took unprecedented steps to undermine IGs 
across the executive branch. They either sidelined them, or fired them 
without cause, simply for doing their jobs-for showing independence and 
pursuing the facts.
    Through audits, evaluations, and investigations, inspectors' 
general offices play pivotal roles in uncovering abuse, waste, and 
fraud-ensuring American taxpayer dollars are protected.
    The nominees today possess the independence, honesty, and 
integrity--qualities we all want and expect in an inspector general--
they need to take on these critical roles.
    And both nominees appearing before us today are clearly qualified.
    Ms. Salehi currently serves as the Chief of Staff to the Inspector 
General of the Department of State where she assists the IG on 
enterprise risk management and oversees the Congressional and public 
affairs sections of the IG office. Prior to joining the State 
Department, Ms. Salehi served in the USAID inspector general office.
    Previously, Ms. Salehi spent more than 4 years at Ex-Im-OIG, 
serving in various roles, including as Acting Inspector General from 
2018 to 2019. If confirmed, she would be rejoining an office she is 
very familiar with, and her experience with the Bank's charter and its 
operations will enhance her office's work.
    When Ms. Salehi served as the Acting Ex-Im Inspector General, my 
office found that she was very responsive to requests when we needed 
additional information concerning her office's investigations and 
reports.
    Ex-Im is vital to manufacturers both in Ohio and throughout the 
country. It will be Ms. Salehi's job to help ensure that the bank is 
working efficiently. And she will help the Bank comply fully with its 
charter and other statutory requirements. She is well prepared to step 
into this job immediately.
    Welcome to the Committee, Ms. Salehi.
    From 2006 to 2017, Mr. Tomney served in various roles at the 
Department of Justice. From 2006 to 2009, he served as a Trial Attorney 
in DOJ's criminal division, where he investigated drug trafficking and 
narco-terror organizations.
    From 2009 to 2014, Mr. Tomney served as Counsel for Rule of Law in 
the Office of the Deputy Attorney General, where he engaged with teams 
of federal prosecutors and attorneys in efforts to root out corruption 
and support the rule of law in Afghanistan and Iraq. He went on to 
serve in several roles, including Associate Deputy Attorney General.
    Mr. Tomney has a proven commitment to service, even in the toughest 
situations--early in his career, he spent more than a decade as a 
paramedic and firefighter.
    He will bring those same values with him to this job, ensuring that 
FHFA is working for all homeowners and renters.
    Welcome to the Committee, Mr. Tomney. We are glad to have you here 
today.
    Thank you to the nominees for your willingness to serve. I look 
forward to your testimonies today.
                                 ______
                                 
            PREPARED STATEMENT OF SENATOR PATRICK J. TOOMEY
    Thank you, Mr. Chairman.
    Ms. Salehi and Mr. Tomney, welcome to you both. I commend you for 
your commitment to public service.
    Mr. Tomney, if confirmed, you'll have a challenging job. The GSEs 
led us into the 2008 financial crisis through their excessive risk 
taking. Congress established FHFA as a tough regulator to ensure that 
never happened again. But instead of being the cop on the beat, the 
Biden administration seems intent on turning FHFA into a coconspirator 
with the GSEs.
    FHFA has taken a number of troubling steps to extend credit to 
risky borrowers and undermine the GSEs' financial condition. It has 
proposed reductions in the GSEs' capital requirements, lowered 
guarantee fees and has said it is considering further cuts, suspended 
restrictions on the GSEs' risk layering and acquisitions of investor 
and second home loans, relaxed the GSEs' underwriting requirements, and 
replaced much of FHFA's senior leadership.
    Meanwhile, housing prices have skyrocketed an astonishing 18.5 
percent in the last 12 months alone. I think it's a question of when, 
not if, these good times for the housing market come to an end. I worry 
that FHFA's enabling of risky lending, together with the 
Administration's total disinterest in recapitalizing the GSEs through 
outside private capital, has placed the GSEs on a path toward another 
round of taxpayer bailouts.
    Mr. Tomney, if that were not already enough, your job will be made 
more challenging by an Administration with no discernable housing 
policy besides giving mortgages to as many borrowers as possible with 
little regard to their ability to repay.
    Housing is expensive because our housing policy subsidizes demand 
while ignoring supply constraints. The Democrats' reckless tax-and-
spend bill makes little effort to increase housing supply.
    The Senator Schumer earmark, or ``Schu-mark'' that I discussed at 
the October 21st hearing, would spend up to $40 billion renovating New 
York City's existing public housing. Much of the other housing funds 
would go to imprudent downpayment assistance and rental vouchers that 
add to housing demand.
    The bill even creates an astonishing invitation to mortgage fraud 
by making $15 billion available to borrowers who sign an attestation, 
truthfully or not, that they are ``first-generation homebuyers.'' 
Amazingly, you can qualify so long as your parents do not currently own 
a home and you have not owned a home in the last 3 years. So much for 
``first generation'' homebuyer.
    We need to try something different than the same housing policies 
that caused the 2008 financial crisis. To that end, in March I proposed 
principles to guide housing finance reform discussions. The 
Administration, however, has shown no interest in real reform, and even 
missed a September 30th deadline to report on its plan.
    Mr. Tomney, given the path the Administration has put us on, I 
suspect you might soon be investigating how we so eagerly doubled down 
on 50 years of failed housing policy and so predictably led the GSEs 
into another round of taxpayer bailouts.
    Now turning to Ex-Im. Ex-Im claims that it only takes risks that 
private lenders are unable or unwilling to take. We should stop right 
there and ask ourselves: if private lenders are unwilling or unable to 
take a risk, why should taxpayers be forced to take that risk?
    Yet at the same time, Ex-Im also claims it only makes safe bets. 
It's impossible to do both. Ex-Im can't only take transactions so risky 
that no one else will do them, and at the same time only be doing safe 
transactions.
    Ex-Im wins business by systematically underpricing risk. That's why 
borrowers go to Ex-Im, instead of any number of private lenders that 
will not offer deals on the same terms as Ex-Im.
    That's why our largest banks go to Ex-Im for loan guarantees. The 
Ex-Im terms are too good to be true-at least in the private sector.
    It's important to note that the vast majority of American exports 
get done without Ex-Im support. We've reviewed annual export data from 
2007 through 2020. In that period, the highest percent of U.S. exports 
using Ex-Im financing was in 2012 and it was only 2.3 percent. And that 
was when Ex-Im had everything going for it. It was fully operational, 
had a quorum on its board, and had not reached its lending limit.
    The reality is: we're the world's second largest exporter of goods 
behind only China. We lead the world in value-added exports. And we do 
it almost entirely without Ex-Im financing.
    Not only is Ex-Im financing generally not needed, but it's often 
nothing more than crony capitalism providing taxpayer-financed 
subsidies to some of the world's largest companies who have access to 
private capital. Ex-Im's recent deal guaranteeing an $82 million loan 
from JPMorgan to Qantas for the purpose of buying jet engines from GE 
is just one example.
    Generally, the same giant lenders, exporters, and foreign 
companies--often State owned--benefit from Ex-Im while taxpayers take 
the risk. There's also a history of waste, fraud, and abuse at Ex-Im.
    Ex-Im's IGs have identified numerous concerning practices at the 
bank over the years. If confirmed, Ms. Salehi will have the important 
responsibility of serving as an independent watchdog.
    Mr. Chairman, I look forward to hearing from today's nominees.
                                 ______
                                 
                  PREPARED STATEMENT OF PARISA SALEHI
              To Be Inspector General, Export-Import Bank
                            December 7, 2021
    Thank you, Chairman Brown, Ranking Member Toomey, and Members of 
the Committee. I am honored to appear before you today as the 
President's nominee to be the Inspector General of the Export-Import 
Bank of the United States.
    I would not be here today without the generous support of my 
family, friends, and colleagues. I would particularly like to recognize 
my mother, whose hard work and determination has afforded me many 
opportunities. She grew up far away from this free land, in a place 
where she was legally required to get her husband's permission to do 
many simple things, like travel. Through selfless acts she ensured that 
her kids would have better and brighter life choices than the ones 
available to her. I would also especially like to thank my partner, 
Burk, who is here with me today and has been supportive of my 
professional growth for the past 18 years.
    I have also benefitted from the wisdom of many formal and informal 
mentors along the way, who have graciously invested in and supported 
me. The list is long, so I can only name a few: My sister Atousa, Peter 
Briggs, Jeanie and Kent Henricksen, Allison Lerner, and Mark 
Greenblatt. I have learned many life lessons from all of them, which I 
hope to pass forward.
    If confirmed, I will be living proof of the American story--that if 
you work hard, you will one day go places no one thought possible. I am 
a first-generation American and very proud of it. Common to many first-
generation Americans, my professional path has not been easy or without 
sacrifices. To know that someone like me can appear before you, is the 
fulfillment of the American dream--my dream.
    With many years of experience both in the public and private 
sectors, I believe I offer unique qualifications to lead as the IG for 
Ex-Im. My experience as Counsel to the Ex-Im IG and subsequent service 
as Ex-Im's Acting IG allows me to hit the ground running. I have 
learned from strong leaders at the Offices of Inspector General at the 
U.S. Agency for International Development and Department of State, 
where I currently serve as the Chief of Staff. Both agencies have 
taught me important lessons on effective oversight. If confirmed, I 
hope to build on that foundation.
    I appreciate Ex-Im's important mission of supporting American jobs 
by facilitating the export of goods and services. IGs play an important 
role in conducting reliable, objective, fact-based oversight. Should I 
be confirmed, I am committed to conducting audits and investigations 
relating to the programs and operations of Ex-Im, as required by the 
law, and to serving in this role independently, with fairness and 
integrity. I will seek to bring positive change to Ex-Im programs 
through constructive relationships with Ex-Im leadership. As Acting IG, 
I invested considerable time in building those relationships and I will 
continue to do so, if confirmed, while maintaining the independence of 
the Office.
    IGs play a vital role in rooting out bad actors. By partnering with 
other stakeholders, Government agencies at the Federal and State level, 
and by promoting a ``whole of Government'' approach, we can make 
progress in this effort and foster trust in Government programs. Bad 
actors can erode trust in Federal programs, which can prove fatal to 
the long-term success of any agency program. If confirmed, I will 
ensure that my office helps deter those actors by maximizing 
accountability.
    If confirmed, I will uphold the IG Act's dual reporting 
requirements to keep the agency head and Congress ``fully and currently 
informed'' about problems and deficiencies relating to agency programs 
and operations and commit to direct and transparent communications with 
congressional stakeholders.
    Ex-Im's Inspector General position has been vacant since June 
2014--the longest-running IG vacancy in the Federal Government. Even in 
the absence of a permanent IG, OIG professionals at Ex-Im have worked 
hard to advance the mission and conduct meaningful oversight. I 
acknowledge their accomplishments and dedication under these 
challenging conditions and would welcome the opportunity to work hand-
in-hand with them, support them, facilitate their work, and bring about 
the stability of a permanent IG should I be confirmed.
    In closing, I appreciate the opportunity to give back and serve the 
American people and the country that has made my first-generation 
American story possible.
    Thank you and I would be pleased to respond to any questions you 
might have.

[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]


               PREPARED STATEMENT OF BRIAN MICHAEL TOMNEY
        To Be Inspector General, Federal Housing Finance Agency
                            December 7, 2021
    Chairman Brown, Ranking Member Toomey, thank you for the 
opportunity to appear before the Committee today while I sit before you 
as nominee for Inspector General to the Federal Housing Finance Agency 
(FHFA). And thank you to President Biden for nominating me to this very 
important position in Government service.
    At the outset, I would like to thank my family members here and 
those watching remotely. Serving the public is a rewarding career path. 
However, it often comes at the expense of missed family holiday 
gatherings, weddings, little league games, and school events. I have 
been blessed with family and close friends who have supported me at 
every turn. And although my parents are both deceased, I believe my 
core value of service to others emanated from them.
    For over 30 years, I have served the public in roles offering me an 
intimate view of challenges faced by ordinary Americans. As a young man 
serving as a paramedic/firefighter, I cared for people experiencing 
homelessness, domestic violence, and mental illness. This work 
established a foundation of care, compassion, and empathy towards all 
people that permeates my professional career.
    During my service at the Department of Justice, I investigated and 
held accountable individuals violating our Nation's laws. I proudly led 
many brave public servants engaged in supporting rule of law efforts 
overseas following the terrorist attacks on September 11, 2001. And I 
reimagined an initiative that sought to revisit prison sentences for 
certain individuals sentenced under drug laws of the 1990s.
    Collectively, this arc of public service has shaped who I am 
personally and professionally:

    I am a thoughtful, independent, and objective seeker of 
        facts,

    I believe that Government service should embrace and 
        promote the value of transparency and integrity, and

    I believe there is no greater honor than service to the 
        American people.

    In the private sector, many of these common threads readily 
transferred to compliance and ethics teams I have worked with in the 
financial services industry: in particular, integrity, accountability, 
and transparency. Effective and meaningful risk management requires 
complete, honest, and transparent assessments, investigations, and 
reporting.
    As Chief of Staff in the Compliance and Ethics department of a 
Fortune 100 company, I helped ensure the department maintained sound 
financial practices and used strategic communications to support 
departmental operations. Furthermore, I have developed, grown, and led 
teams enhancing regulatory and Board reporting. I also challenged the 
business to strengthen internal controls, refined independent testing, 
and helped ensure the proper remediation of any findings. These 
combined efforts focused on guiding teams to be well-managed, 
efficient, and effective.
    Currently, I lead the Office of Corporate Investigations. Here, my 
teams conduct rigorous and independent investigations into allegations 
of insider fraud, whistleblower claims, and unethical business 
practices.
    FHFA has a vital role in maintaining the stability and liquidity of 
the mortgage market, and it furthers equal and affordable access to 
America's housing market. The Agency's role is unique because it acts 
as both regulator and conservator to Fannie Mae and Freddie Mac, and as 
regulator of the Federal Home Loan Bank System. That is why it is 
critical to the American people that the Office of Inspector General 
(OIG) fulfill its core mission, which is to promote economy, 
efficiency, and effectiveness while also protecting FHFA and the 
entities it regulates against fraud, waste, and abuse.
    Since 1978, Inspectors General (IGs) have been independent, 
objective, and nonpartisan finders of fact. They and their staff have 
saved the Government substantial monies, held criminals accountable, 
and endeavored to have our Government work better. The key to their 
success is the ability to remain independent and objective--to put it 
simply, to call balls and strikes. Their duty to report and be 
responsive to Congress is an equally important function driving 
transparency in how our Government's departments and agencies are 
functioning. The independence of an IG does not make them immune from 
accountability for their actions. In fact, the very nature of the IG 
role requires more than just avoiding conflicts of interests or the 
appearance of a conflict of interest: IGs must set the bar and hold 
themselves to the highest standards of ethics and integrity.
    If confirmed as the FHFA Inspector General, I will exercise my 
duties with the same level of independence and objectivity that has 
defined my entire professional career. I will ensure FHFA OIG conducts 
its audits, evaluations, and investigations in a transparent, 
professional, thoughtful, fair, and rigorous manner. I commit to a 
transparent and responsive relationship with this Committee and 
Congress. I will endeavor to develop a productive, thoughtful working 
relationship with the FHFA Director, as an effective relationship will 
best serve the Agency, the entities it supervises, and the American 
public. Moreover, I will lead FHFA OIG with candor, transparency, and 
humility.
    For me and many in my family, the call to public service is strong. 
We have a long tradition of military, Government, first responder, and 
other frontline workers who, like me, believe caring for and protecting 
our fellow citizens is the highest honor. My three decades of public 
service share several common themes: independence, integrity, and a 
belief in the honor of service to the American people. My personal 
journey leading up to this nomination has well-prepared me for the 
challenge of this important position. If confirmed, I very much look 
forward to the opportunity to serve this great country once again.
    Thank you. I look forward to your questions.
    
[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]
    
    
    
        RESPONSES TO WRITTEN QUESTIONS OF CHAIRMAN BROWN
                       FROM PARISA SALEHI

Q.1. Where have you excelled in past and current positions in 
attracting, hiring, and promoting people of color in positions 
in your organization? Where might there be room for 
improvement?

A.1. I am a first generation American and a woman. Diversity 
and inclusion are important to me, personally. I understand 
that commitment to having a diverse workforce starts at the 
top. In every position that I have held within the Federal 
Government, whether as a GS-14 hiring manager or a career 
Senior Executive, I have hired and promoted people of color and 
those who identify with other marginalized identity groups, 
because I believe that diversity of thought and a varied lens 
by which we see the world strengthens any team.
    Through hirings or internal promotions I have taken 
advancing diversity seriously to implement what I believe in: 
that promoting qualified individuals from underrepresented 
communities, including people of color and minorities, matters.
    I am an active member of CIGIE's Diversity, Equity, and 
Inclusion working group. Additionally, in my current position 
as Chief of Staff at the Department of State OIG, I directly 
hired four individuals, three of whom identified themselves as 
people of color or belonging to a minority group. In addition, 
I participated in many panel interviews on behalf of others 
within the State OIG leadership group and actively ensured that 
diversity is a consideration in many of those hires. I work 
with State OIG's Diversity and Inclusion council as well as 
Human Resources to ensure that we find creative ways of 
engaging with Historically Black Colleges and Universities to 
attract talent. I worked at USAID OIG's Office of Management, 
and led a group of about 90 professionals, many of whom I 
promoted. My team was the most diverse group within the 
organization. At Ex-Im OIG, I promoted people of color to 
higher positions of influence. While at the Department of 
Agriculture, the majority of my staff, some of whom I hired, 
identified themselves as people of color.

Q.2. What is your plan for creating an inclusive working 
environment for employees within your office?

A.2. If confirmed, I plan to create an inclusive working 
environment by:

  1.  Ensuring Ex-Im OIG's performance and strategic plans 
        include diversity and equity goals and objectives.

  2.  Partnering with the CIGIE Diversity, Equity, and 
        Inclusion working group to remain informed of best 
        practices to attract and recruit diverse talent.

  3.  Working with my team's hiring managers to promote 
        attracting, hiring, and retaining diverse talent.

  4.  Initiating open conversations within Ex-Im OIG regarding 
        diversity and inclusion as a regular meeting as 
        appropriate.

  5.  Empowering my staff to review the policies and procedures 
        of the Bank, with an eye towards diversity and 
        inclusion. In other words, when possible, our audits or 
        evaluations will contain recommendations on how Ex-Im 
        can improve its performance regarding issues of equity 
        and inclusion.
                                ------                                


        RESPONSES TO WRITTEN QUESTIONS OF SENATOR TOOMEY
                       FROM PARISA SALEHI

Q.1. Congressional Oversight--Please provide your philosophy on 
how the Export-Import Bank of the United States (Ex-Im) will 
approach and respond to Congressional information requests 
(both for documentary information and oral testimony), if you 
are confirmed.

A.1. Congress created the offices of inspector general (OIGs) 
to assist in its oversight of the Executive branch. If 
confirmed as the Inspector General at Ex-Im, I will lead Ex-
Im's OIG to share information in a transparent and nonpartisan 
fashion and according to the law. This will apply to both 
testimonies and written products such as audits, evaluations, 
and reviews. Timeliness in reporting is also a key element of 
effective oversight, and without timely Ex-Im OIG reports, Ex-
Im's ability to respond to such oversight efforts and Congress' 
ability to conduct effective oversight of Ex-Im's operations 
are limited. Therefore, I will be focused on timely and 
transparent oversight, if confirmed.
    Additionally, if confirmed, my role will be to make 
recommendations to the Bank's Chairman on how to improve Ex-
Im's relationships with Congress, as part of any potential 
audits or evaluations that my office might conduct.

Q.2. If confirmed, do you intend to respond to information 
requests differently depending on who is making the 
Congressional information request (whether it's the chair of 
the Congressional committee, the Ranking Member, or another 
member of Congress)? Please answer ``yes'' or ``no.'' If your 
answer is ``yes,'' please explain.

A.2. If confirmed as the Inspector General, I will lead Ex-Im's 
OIG to share information in a transparent and nonpartisan 
fashion and according to the law. I plan to respond to 
information requests from all stakeholders. In the event of 
specific requests, I will ensure that Ex-Im OIG works closely 
with Congressional staff to provide timely and useful 
information, should I be confirmed.

Q.3. Will you commit that, if confirmed, you will respond in a 
timely manner and fully comply with all information requests 
from me? Please answer ``yes'' or ``no.'' If your answer is 
``no,'' please explain.

A.3. If confirmed, I commit to respond in a timely manner and 
fully comply with information requests by you and all 
stakeholders in accordance with the law and through Ex-Im OIG's 
audits and evaluations or reviews.

Q.4. Will you commit that, if confirmed, you will make yourself 
and any other Ex-Im employee expeditiously available to provide 
oral testimony (including but not limited to briefings, 
hearings, and transcribed interviews) to the Committee on any 
matter within its jurisdiction, upon the request of either the 
Chairman or Ranking Member? Please answer ``yes'' or ``no.'' If 
your answer is ``no,'' please explain why.

A.4. I commit to making myself and other Ex-Im OIG employees 
available to provide oral testimony to the Committee on any 
matter within its jurisdiction, upon the request of either the 
Chairman or Ranking Member.

Q.5. Do you believe that Ex-Im or Ex-Im's Office of the 
Inspector General (OIG) may assert any privileges or other 
legal justifications to withhold information (whether records 
or oral testimony) from Congress? Please answer ``yes'' or 
``no.''

A.5. If confirmed as the Inspector General, I will lead Ex-Im's 
OIG to share information in a transparent and nonpartisan 
fashion and according to the law. While disclosing information 
to Congress with transparency and in a nonpartisan manner will 
be my guiding principle, if the law requires and thus prohibits 
Ex-Im OIG not to disclose the information, I must follow the 
law.

Q.6. If you answered ``yes'' to the preceding question, please 
list every such privilege or other legal justification and 
provide the legal basis for why you believe Ex-Im or Ex-Im's 
OIG may use such privilege or legal justification to withhold 
information from Congress.

A.6. I am not currently familiar with any Ex-Im specific 
privileges or legal justifications to withhold information. 
However, in my general oversight experience, in circumstances 
when, on balance, disclosing the information might not be 
permissible, I commit to seek the advice of counsel, as well as 
those in the Inspectors General community, such as CIGIE, who 
have the expertise to guide me in identifying what information 
I would be legally permitted to share. Some examples of the 
type of information that may not be disclosed, absent 
extraordinary justification, might be:

  1.  Personally Identifiable Information to safeguard, for 
        example, a whistleblower's identity during an ongoing 
        investigation (to avoid a chilling impact on disclosing 
        wrongdoing);

  2.  Information about an open criminal investigation (to 
        comply with the law);

  3.  Executive Privilege (this privilege belongs to the Agency 
        and not the OIG, therefore, OIG may not waive the 
        privilege);

  4.  When otherwise required by the law.

Q.7. In an effort to be open and transparent with Congress and 
the public, will you commit not to assert any such privilege or 
legal justification against Congress that you listed above? If 
not, why not? If so, please identify all such privileges or 
legal justifications that you will commit to not assert against 
Congress.

A.7. I will commit to transparent and open communication 
whenever legally permissible. Additionally, I commit to seek 
the advice of counsel, as well as those in the Inspectors 
General community, such as CIGIE, who have the expertise to 
guide me in identifying what information I would be legally 
permitted to share.

Q.8. Private Sector Financing--During the December 7, 2021, 
Banking Committee hearing for your nomination, I asked you: 
``if you would commit to conduct another evaluation to 
determine if Ex-Im is in fact complying with its updated 
policies and procedures that are designed to prevent crowding 
out of private sector capital, and also will you commit to 
reviewing the updated policies themselves to ensure that they 
are actually achieving Ex-Im's statutory mandate not to replace 
private capital?'' In your response, you did not commit to 
conduct an evaluation of Ex-Im's updated additionality 
policies. However, during the hearing you were willing to 
commit to at least one other Senator's request for a 
commitment.
    Will you commit to conduct an evaluation of Ex-Im's updated 
additionality policies?

A.8. Congress created offices of inspector general in 1978 to 
assist in its oversight of the executive branch. As a member of 
the IG community, I believe my duty in assisting Congress is 
paramount. As the Inspector General, it is my role to review 
the policies and procedures of the Bank to ensure they are in 
accordance with the law and the Congressional intent. 
Therefore, should I be confirmed, I commit to working with you 
and your staff to fully understand your concerns relating to 
additionality as part of my oversight of the Bank. Though I do 
not currently hold a position at Ex-Im OIG, and therefore am 
not aware of Ex-Im OIG's workload, staffing challenges, or 
priorities, I commit to working with my staff at Ex-Im OIG to 
ensure that the timing of a follow-on review produces relevant 
recommendations to Ex-Im and Congress, so that Ex-Im 
supplements and encourages private capital as opposed to 
competing with it.

Q.9. If the answer is ``no,'' can you please explain the reason 
why you will not commit to this evaluation?

A.9. N/A.

Q.10. Priorities as Inspector General--During the December 7, 
2021, Banking Committee hearing for your nomination, Senator 
Bob Menendez (D-NJ) asked you: ``so how would you help Ex-Im 
improve their performance when it comes to the issues of racial 
equity?''
    In your response, you stated: `` . . . this issue of 
diversity and inclusion is a priority of mine. It's a very 
important issue and I hope that when, and if I am confirmed, to 
be able to basically bring that tone of, the fact that 
diversity matters, at the top and ensure that my Ex-Im OIG 
staff finds areas of opportunity in, when they do their work of 
audits and inspections and evaluations, with an eye towards 
diversity, inclusion and this priority. I also would like to 
make sure my own staff within Ex-Im OIG is empowered to think 
through these issues of diversity and inclusion and include 
them wherever possible for management of the Bank to think 
through them.''
    Can you elaborate further on how you would operationalize 
your diversity and inclusion priority?

A.10. If confirmed, I would operationalize my commitment to 
diversity and inclusion concepts by:

  1.  Ensuring Ex-Im OIG's performance and strategic plans 
        include diversity and equity goals and objectives.

  2.  Partnering with CIGIE Diversity, Equity, and Inclusion 
        working group to have best practices top of mind.

  3.  Working with my team's hiring managers to promote 
        attracting, hiring, and retaining diverse talent.

  4.  Initiating open conversations within Ex-Im OIG regarding 
        diversity and inclusion as a regular meeting at the 
        frequency that suits my staff.

  5.  Empowering my staff to review the policies and procedures 
        of the Bank, with an eye towards diversity and 
        inclusion. In other words, when possible, our audits or 
        evaluations would contain recommendations on how Ex-Im 
        can improve its performance regarding issues of equity 
        and inclusion.

Q.11. Please list additional priorities that you have as Ex-
Im's Inspector General, if confirmed.

A.11. If confirmed, in consultation with my Ex-Im OIG staff, I 
would like to understand the organizational priorities that we 
should focus on to possibly include:

  1.  Review the new programs and policies of Ex-Im, as a 
        result of the 2019 Reauthorization of the Bank, so that 
        we can provide timely and transparent information to 
        Congress and to the Chairman of Ex-Im through our 
        audits, evaluations, and reviews, to ensure taxpayer 
        protections.

  2.  Thoroughly investigate all allegations of fraud and 
        misconduct to deter waste, fraud, and abuse.

  3.  Perform a workforce analysis to ensure that Ex-Im OIG has 
        the resources that it needs to function as an effective 
        oversight body, which is especially important as the 
        office has been without a PAS IG since June, 2014.

Q.12. Have you had any discussions with the White House, Ex-Im, 
or Ex-Im's OIG staff about potential OIG priorities if you're 
confirmed? If so, please identify the priorities and explain 
what, if any, potential changes and modifications that may 
result from the priorities.

A.12. I have not had any discussion with White House, Ex-Im, or 
Ex-Im's OIG staff about potential OIG priorities.

Q.13. Fraud From COVID-19 Legislation/Measures--Ex-Im's OIG 
Semiannual Report to Congress that was released last month 
states the OIG anticipates an increase in suspicious 
transactions due to the COVID-19 pandemic. The report points to 
other investigative agencies that are overwhelmed by fraud 
stemming from COVID-19 related legislation such as the CARES 
Act and other relief measures.
    Given the potential large amount of fraud that is expected 
to arise over the coming years, what steps will you take to 
ensure proper oversight of Ex-Im's transactions?

A.13. If confirmed, I would consult with my staff on how to 
take the following steps:

  1.  Knowing that Ex-Im has created special initiatives in 
        response to the COVID-19 pandemic, understand the 
        impact of these measures on the Bank's mission of 
        supporting American jobs by leveling the playing field.

  2.  Trace financial transactions, both as a routine part of 
        any of our investigations of suspicious activities, and 
        to oversee Ex-Im's efforts in being a good steward of 
        taxpayers' monies.

  3.  Collaborate with other Government oversight bodies in an 
        effort to build on their experiences in understanding 
        the nature of these bad acts and to recommend 
        preventative measures and internal controls to Ex-Im.

Q.14. The Ex-Im OIG Fiscal Year 2022 Congressional Budget 
Justification indicates the OIG has 26 full-time equivalent 
employees (FTE). Do you anticipate requesting additional OIG 
FTEs as result of an increase in suspicious transactions 
stemming from the pandemic?

A.14. If confirmed, I hope to perform a workforce analysis and 
consult with the current staff to ensure that we have the FTEs 
as well as a sufficient budget to be able to function as an 
effective oversight body, and request for an increase in OIG 
FTEs if it is determined that the current staff is unable to 
perform any additional and necessary work.

Q.15. Climate Policies on Ex-Im Financing--Ex-Im has long been 
financing energy related projects. In its 2020 Annual Report, 
Ex-Im reported that oil and gas represented 25.6 percent of its 
total exposure. However, given the Biden administration's 
favoritism for renewable and sustainable energy projects, there 
may be pressure within Ex-Im to reevaluate these past deals and 
refrain from financing oil and natural gas deals in the future.
    Will you commit to investigating any reports or allegations 
of political interference occurring during Ex-Im's evaluation 
and decision making surrounding the issue of whether or not Ex-
Im will support a fossil-fuel related loan, financing, or 
project?

A.15. Accountability for the exercise of Government authority 
is key to our Nation's governing ethical principles. 
Independent Government audits, in turn, provide essential 
accountability and transparency over Government programs and 
operations by providing objective analysis and information to 
decisionmakers and the public. I will commit to overseeing the 
review of any allegation of wrongdoing independently and 
swiftly. That is the core function of any OIG.

Q.16. Answering Questions for the Record--Please describe with 
particularity the process by which you answered these questions 
for the record, including identifying who assisted you in 
answering these questions along with a brief description of 
their assistance.

A.16. I received the questions Friday 12/10/2021, in the 
afternoon. I drafted my responses to these questions the same 
day. On Saturday 12/11/21, I read my initial answers and made a 
few edits. I finalized my responses on Monday 12/13/21, and 
submitted them to the Ex-Im liaison for transmittal to the 
Senate Banking Committee.
                                ------                                


        RESPONSES TO WRITTEN QUESTIONS OF SENATOR SINEMA
                       FROM PARISA SALEHI

Q.1. In your current capacity as Acting Inspector General, how 
do you assess the efficiency of existing Ex-Im programs and the 
efficacy of existing taxpayer protections?

A.1. I currently serve as the Chief of Staff at the Department 
of State OIG. I did, however, serve as the Acting Inspector 
General for Ex-Im in 2018-2019. In that role, I assessed the 
efficiency and effectiveness of the programs through conducting 
fact-based, data driven audits, evaluations, inspections and 
reviews. Through these reviews, OIGs make recommendations to 
the agency that they oversee on how to improve their policies 
and operations in order to ensure that the agency is acting as 
a responsible steward of taxpayer's monies. If confirmed, I 
will consult with my staff and all stakeholders, including 
Congress, to ensure that my office engages in impactful 
oversight and to ensure Ex-Im is acting as a responsible 
steward of taxpayers' monies.

Q.2. If confirmed, what reforms would you consider making to 
processes within your purview to improve oversight at Ex-Im and 
protect the public trust?

A.2. If confirmed, I will:

  1.  Consult with my Ex-Im OIG staff who are currently working 
        at the Bank and know the programs and the operations of 
        the Bank well.

  2.  Engage in a risk-based exercise to plan our work and 
        decide which processes and operations of the Bank we 
        will examine near and long term. In that planning we 
        will ensure to consider all stakeholders' views 
        regarding any potential reforms.

  3.  Consider whether we have the necessary resources and 
        tools for effective oversight and to perform the audits 
        and evaluations necessary to recommend reforms to Ex-
        Im.

  4.  Review Ex-Im OIG's strategic and performance plans with 
        an eye towards improving our oversight.

  5.  Report the findings of any reports regarding reforms to 
        Congress, the Chairman of the Bank, and the American 
        people transparently and independently.
                                ------                                


        RESPONSES TO WRITTEN QUESTIONS OF CHAIRMAN BROWN
                   FROM BRIAN MICHAEL TOMNEY

Q.1. Where have you excelled in past and current positions in 
attracting, hiring, and promoting people of color in positions 
in your organization? Where might there be room for 
improvement?

A.1. Attracting, hiring, and promoting people of color, as well 
as individuals from other diverse backgrounds, has been a core 
value of mine throughout my professional career. In particular, 
I am proud to have deployed a diverse team of attorneys and 
staff to historically less inclusive places such as 
Afghanistan. Leading by example in these distant locations not 
only supported the importance of diversity here at home, but it 
also gave hope and resilience to some historically brutalized 
minority communities living overseas. More recently, I have 
attracted, hired, and promoted individuals of color in my 
current role leading internal fraud investigations. A team of 
investigators who more accurately represent the diversity of 
the company helps to ensure our investigations are thoughtful 
and fair, and drives consistent outcomes across the 
organization.
    To be sure, there is always room for improvement. As an 
initial matter, acknowledging and remaining mindful of implicit 
bias in our everyday life and work is critical. If confirmed, I 
look forward to consulting with other Inspectors General to 
consider their best practices in this space and leverage their 
collective wisdom to help me (and my team) avoid blind spots.

Q.2. What is your plan for creating an inclusive working 
environment for employees within your office?

A.2. An inclusive working environment starts with creating a 
safe place to express ideas and welcoming people of all 
backgrounds. Accomplishing this imperative starts at the top of 
any organization. If confirmed, it will start with me. I will 
lead by example and commit to a candid, respectful, and 
transparent office environment that welcomes a diversity of 
people and thoughts. Moreover, I will ensure that my senior 
leadership team follows my lead. An inclusive, respectful 
office environment ultimately leads to innovation, makes us 
work smarter, and helps to ensure that we respect each other as 
individuals. If confirmed, I look forward to consulting with 
other Inspectors General to consider their best practices in 
this space and leverage their collective wisdom to help me (and 
my team) avoid blind spots.
                                ------                                


        RESPONSES TO WRITTEN QUESTIONS OF SENATOR TOOMEY
                   FROM BRIAN MICHAEL TOMNEY

Q.1. Congressional Oversight--What is your philosophy on how 
the Federal Housing Finance Agency's Office of Inspector 
General (OIG) should respond to Congressional information 
requests (both documentary information and oral testimony)?

A.1. Consistent with the Inspector General Act of 1978, FHFA 
OIG should respond to Congressional information requests (both 
documentary information and oral testimony) fully, 
transparently, and timely. If confirmed, I am committed to and 
look forward to developing a positive, candid, and timely 
responsive relationship with Congress.

Q.2. If confirmed, do you intend to respond to information 
requests differently depending on who is making the 
Congressional information request (whether it is the chair of 
the Congressional committee, the Ranking Member, or another 
member of Congress)? Please answer ``yes'' or ``no.'' If your 
answer is ``yes,'' please explain.

A.2. No.

Q.3. Will you commit that, if confirmed, you will timely 
respond to and fully comply with all information requests from 
me? Please answer ``yes'' or ``no.'' If your answer is ``no,'' 
please explain.

A.3. Yes.

Q.4. Will you commit that, if confirmed, you will make yourself 
and any other OIG employee expeditiously available to provide 
oral testimony (including but not limited to briefings, 
hearings, and transcribed interviews) to the Committee on any 
matter within its jurisdiction, upon the request of either the 
Chairman or Ranking Member? Please answer ``yes'' or ``no.'' If 
your answer is ``no,'' please explain why.

A.4. Yes.

Q.5. Mission--How would you describe the OIG's mission?

A.5. The mission of FHFA OIG is to promote economy, efficiency, 
and effectiveness and protect FHFA and the entities it 
regulates against fraud, waste, and abuse, contributing to the 
liquidity and stability of the Nation's housing finance system. 
FHFA OIG accomplishes this mission by providing independent, 
relevant, timely, and transparent oversight of the Agency in 
order to promote accountability, integrity, economy, and 
efficiency; advising the Director of the Agency and Congress; 
informing the public; and engaging in robust enforcement 
efforts to protect the interests of the American taxpayers.

Q.6. How would you describe the OIG's responsibilities as they 
relate to fraud, waste, and abuse at FHFA's regulated entities?

A.6. FHFA OIG is vested with statutory law enforcement 
authority to conduct criminal and civil investigations of 
individuals, whether inside or outside of Government, who 
waste, steal, or abuse Government monies in connection with 
programs and operations of FHFA and the entities it regulates. 
If confirmed, I will ensure the Office of Investigations 
continues to conduct its work in a fair and thorough manner, 
and in accordance with all applicable professional standards.
    Similarly, OIG must conduct meaningful audits, evaluations, 
and other assessments of FHFA and the regulated entities and 
regularly inform the Agency and Congress of identified wasteful 
or abusive practices.

Q.7. Risk Assessments--The OIG uses a risk-based oversight 
strategy. Will you commit to promptly review and, as 
appropriate, adjust the existing risk assessments that guide 
the OIG's oversight?

A.7. If confirmed, I look forward to reviewing the breadth of 
OIG operations to include how it leverages its risk-based 
oversight strategy to guide its activities. As necessary, I 
will adjust existing risk assessments that guide OIG's 
oversight. Moreover, I remain committed to regular and ongoing 
assessments of these processes.

Q.8. What data and other information will you consider in 
reviewing and adjusting the OIG's existing risk assessments?

A.8. While reviewing OIG's risk-based oversight strategy, if 
confirmed, I look forward to benchmarking the processes used by 
other OIGs, factoring in relevant internal documents, and 
seeking out key stakeholder input (e.g., subject matter 
experts, Agency leadership, and Congress).

Q.9. Is there a role for outside or third-party information to 
be used in reviewing and adjusting the OIG's existing risk 
assessments?

A.9. Yes. A thoughtful review of FHFA OIG's risk-based strategy 
need not be artificially constrained. Outside or third-party 
information that is credibly sourced may be considered. That 
said, it will be important to consider the proper weight to 
give such information when factoring in other internal, 
nonpublic material. A more holistic set of data points, 
properly weighted to individual facts and circumstances, will 
better position me to make independent and objective decisions 
on the subject.

Q.10. Operational Risk--Based on your experience in financial 
services, what are some of the key operational risks that might 
be borne by FHFA's regulated entities?

A.10. I have not concluded the regulated entities possess any 
particular operational risks because I lack specific insider 
knowledge of the regulated entities. More generally, however, 
my experience suggests that similar sized companies face the 
risk of a major cyber or data security event as a key 
operational risk. A significant cyberevent may be caused by 
hostile foreign actors seeking to degrade or debilitate a key 
economic driver of stability in the United States, external 
organized fraudsters, or some other combination of malevolent 
actors. Additional key operational risks found in larger 
companies may include a heavy reliance on third parties, ill-
tuned models, ineffective controls, and an array of risks posed 
by human capital who are either poorly equipped to handle rapid 
technological advances or who overly rely on technology to 
manage risk. Lastly, whether considered a subset of operational 
risk or not, resiliency (risk) must also be considered.

Q.11. Fannie Mae and Freddie Mac (each a ``GSE'') each rely on 
a common securitization platform to perform bond administration 
and other securitization functions. Will you commit to conduct 
an audit or other investigation of each GSE's management of the 
third-party risk and other operational risks posed by the 
relationship of a common securitization platform?

A.11. If confirmed, I will ensure the risks associated with the 
common securitization platform (CSP) will be considered as 
standalone CSP reporting or factored into broader topical-based 
reporting (e.g., reporting and analysis of operational and 
third-party risks).

Q.12. Ongoing Conservatorships--Will you commit to conduct an 
audit or other investigation of whether the ongoing 
conservatorships might pose risk to the ability of FHFA to 
effectively perform its regulatory functions and ensure the 
safety and soundness of each GSE?

A.12. Ensuring the safety and soundness of each GSE is vital to 
the stability and liquidity of the mortgage market. As part of 
OIG's robust oversight of FHFA's regulatory and conservator 
responsibilities, if confirmed, OIG will use a risk-based 
oversight strategy to conduct its work (utilizing the approach 
detailed in questions 7, 8, and 9). If confirmed, I look 
forward to reporting on the effectiveness of FHFA's regulatory 
functions as informed by its other responsibilities, including 
potential risks posed by current conservatorship activities. 
Whenever the conservatorship ends, FHFA must be exceptionally 
well-positioned to act as strongly as other independent federal 
financial regulators.

Q.13. In particular, will you commit to conduct an audit or 
other investigation of whether FHFA personnel with overlapping 
conservatorship and safety and soundness responsibilities might 
face conflicts of interest or other similar impediments that 
undermine their ability to perform their safety and soundness 
responsibilities?

A.13. If confirmed, I will seek to better understand whether 
and to what extent there is overlap with conservator and 
regulator FHFA personnel. To the extent FHFA OIG becomes aware 
of a credible conflict of interest allegation, OIG will take 
appropriate action to investigate the matter. To be sure, I 
commit to ensuring that key matters undermining or otherwise 
presenting an impediment from FHFA achieving its goal of 
becoming a world-class regulator will be a part of OIG's work.

Q.14. Will you commit to conduct an audit or other 
investigation of whether FHFA inappropriately consults with, or 
otherwise relies upon, the GSEs in connection with its 
rulemaking activities?

A.14. If confirmed, part of my work will be to determine 
whether FHFA inappropriately consults with anyone, including 
the GSEs, in connection with its rulemaking activities. 
Although consultation in and of itself may not be 
inappropriate, particularly in its role as the Enterprise's 
conservator, a proper balance must be maintained. To the extent 
FHFA OIG becomes aware of an allegation of inappropriate 
communications during the rulemaking process, OIG will take the 
necessary steps to fully assess the matter.

Q.15. OIG Staffing--Will you commit to assess the size and 
scope of the staffing and budget of the OIG, including 
benchmarks against the budgets and staffing of other Offices of 
Inspector General?

A.15. If confirmed, I commit to assessing the size and scope of 
the staffing and budget of FHFA OIG. As part of this 
assessment, I will benchmark the OIG against other offices 
while remaining mindful of the unique nature of FHFA's dual 
role as regulator and long-term conservator. I also commit to 
regular assessments of staffing and budget to adjust for any 
changes in the landscape of FHFA operational requirements. 
Being a good steward of allocated monies while being rightsized 
is fundamental to being well managed.

Q.16. Answering Questions for the Record--Please describe with 
particularity the process by which you answered these questions 
for the record, including identifying who assisted you in 
answering these questions along with a brief description of 
their assistance.

A.16. The sum and substance of these answers are mine and mine 
alone. They are based on my professional experience, a review 
of limited public reporting, and a commitment to fulfilling the 
mission of FHFA OIG. FHFA OIG's Director of External Affairs 
and Risk Analysis assisted me with formatting, helping maintain 
a consistent tone, and ensuring grammatical accuracy to these 
questions.