Which federal agency regulates the mortgage industry at the national level?

The Consumer Financial Protection Bureau (CFPB) is the correct answer because it was established under the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 specifically to oversee and regulate the mortgage industry, along with other financial sectors. The CFPB’s mission is to protect consumers in the financial marketplace, ensuring that they are treated fairly and have access to accurate information when obtaining loans or mortgages. The bureau has various powers, including the authority to create and enforce regulations that lenders and mortgage originators must follow, and it also supervises institutions for compliance with federal consumer financial laws.

The Federal Reserve, while influential in managing monetary policy and banking supervision, does not directly regulate the mortgage industry. The Department of Housing and Urban Development (HUD) primarily focuses on national policies and programs that address America's housing needs and improve and develop the nation's communities but does not have the same direct regulatory authority over the mortgage industry as the CFPB. The Federal Housing Finance Agency (FHFA) oversees government-sponsored enterprises (like Fannie Mae and Freddie Mac) and manages their activities in the secondary mortgage market but is not the primary regulator of the overall mortgage industry. Thus, the CFPB stands out as the dedicated agency for consumer protection and regulation in the mortgage sector