Finance
The Dodd-Frank Wall Street Reform and Consumer Protection Act created the CFPB, which regulates:
ATennessee real estate license law
BConsumer financial products including mortgages, with oversight of lenders and servicers✓ Correct
CSecurities offerings for real estate syndicates
DCommercial property financing exclusively
Explanation
The Consumer Financial Protection Bureau (CFPB) was created by Dodd-Frank to oversee consumer financial products including mortgage lending, loan servicing, and other credit products. The CFPB administers TRID and other consumer mortgage rules.
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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.
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.
Discount PointsPrepaid interest paid to a lender at closing to reduce the mortgage interest rate, with each point equal to 1% of the loan amount.
Private Mortgage Insurance (PMI)Insurance required by lenders on conventional loans with less than 20% down payment, protecting the lender — not the borrower — against default.
State-Specific Concepts
License Law
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