What act was passed in 2010 to create accountability in regulating mortgage lenders and brokers?

The Dodd-Frank Wall Street Reform and Consumer Protection Act, enacted in 2010, was a comprehensive piece of legislation aimed at reducing risks in the financial system and increasing accountability within various sectors, including mortgage lending. The act was largely a response to the financial crisis of 2007-2008 and sought to implement reforms that would address issues such as predatory lending, inadequate consumer protections, and the lack of oversight in the mortgage industry.

One of the key components of the Dodd-Frank Act was the establishment of the Consumer Financial Protection Bureau (CFPB), which was tasked with enforcing consumer protection laws and overseeing financial institutions’ compliance, particularly focusing on mortgage lenders and brokers. This marked a significant shift in regulatory practices by providing a centralized agency dedicated to consumer financial protection, improving transparency, and ensuring that lenders acted in the best interests of consumers.

The other options, while related to aspects of real estate finance or consumer protection, do not encapsulate the broad regulatory changes and accountability measures introduced by the Dodd-Frank Act. For instance, the SAFE Act pertains specifically to the licensing and registration of mortgage loan originators, and the Administration Procedures Act governs the procedures admin agencies must follow, which are not specifically focused on mortgage lenders and brokers