What is the main goal of the Dodd-Frank Act in relation to mortgage finance?

The main goal of the Dodd-Frank Act in relation to mortgage finance is to enhance consumer protections. The Act was established in response to the 2008 financial crisis, with the intention of preventing such a catastrophe from occurring again. One of its key components is the establishment of the Consumer Financial Protection Bureau (CFPB), which oversees financial products and aims to safeguard consumers in their financial transactions, particularly in mortgage lending.

Under the Dodd-Frank Act, various measures were implemented to ensure that lenders act in a more responsible manner, offering loans that borrowers can actually afford and providing greater transparency in the lending process. This includes requiring lenders to verify a borrower's ability to repay a loan and mandating clearer disclosure of loan terms and fees, thus protecting consumers from predatory lending practices and ensuring they have a better understanding of their contracts.

The other options do not accurately reflect the Act's primary focus. For instance, promoting risky lending would directly contradict the Act's objectives. Eliminating real estate commissions or simplifying loan agreements were not the focal points; rather, the Act sought to increase safeguards and clarify the lending process for consumers.