Finance
Which of the following federal laws created the Consumer Financial Protection Bureau (CFPB) to oversee mortgage lending?
ARESPA
BTILA
CThe Dodd-Frank Wall Street Reform and Consumer Protection Act✓ Correct
DFIRREA
Explanation
The Dodd-Frank Wall Street Reform and Consumer Protection Act (2010) created the CFPB, which assumed oversight of many consumer financial protections including mortgage lending regulations.
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Key Terms to Know
Adjustable-Rate Mortgage (ARM)
A mortgage with an interest rate that changes periodically based on a financial index, usually after an initial fixed-rate period.
Deed of TrustA security instrument used in many states instead of a mortgage, involving three parties: borrower (trustor), lender (beneficiary), and a neutral trustee.
AmortizationThe gradual repayment of a loan through scheduled periodic payments that cover both principal and interest.
Loan-to-Value Ratio (LTV)The ratio of a mortgage loan amount to the appraised value or purchase price of a property, expressed as a percentage.
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