Podcast
Questions and Answers
What is the primary role of the Consumer Financial Protection Bureau (CFPB)?
What is the primary role of the Consumer Financial Protection Bureau (CFPB)?
- To regulate state financial institutions
- To provide loans to consumers directly
- To enforce federal consumer financial laws (correct)
- To guarantee mortgages for consumers
Which of the following is NOT a function of the CFPB?
Which of the following is NOT a function of the CFPB?
- Managing the Federal Reserve's monetary policy (correct)
- Monitoring financial markets for consumer risks
- Supervising non-depository residential mortgage lenders
- Accepting and analyzing consumer complaints
Under the Dodd-Frank Act, which of the following is a core function of the CFPB?
Under the Dodd-Frank Act, which of the following is a core function of the CFPB?
- Stopping discrimination in consumer finance (correct)
- Issuing government-backed loans to consumers
- Regulating the stock market
- Overseeing commercial banks only
What type of financial institutions does the CFPB primarily regulate?
What type of financial institutions does the CFPB primarily regulate?
The Department of Housing and Urban Development (HUD) was created to address issues mainly related to:
The Department of Housing and Urban Development (HUD) was created to address issues mainly related to:
Which function is associated with the CFPB that involves consumer interactions?
Which function is associated with the CFPB that involves consumer interactions?
Which group retains authority over licensees in the financial sector while the CFPB supervises them?
Which group retains authority over licensees in the financial sector while the CFPB supervises them?
What does the CFPB maintain to monitor and resolve consumer complaints?
What does the CFPB maintain to monitor and resolve consumer complaints?
What was the primary purpose of the Federal Housing Administration (FHA) when it was established?
What was the primary purpose of the Federal Housing Administration (FHA) when it was established?
What is the key function of the Government National Mortgage Association (Ginnie Mae)?
What is the key function of the Government National Mortgage Association (Ginnie Mae)?
Which organization primarily protects lenders from borrower defaults on FHA-insured mortgages?
Which organization primarily protects lenders from borrower defaults on FHA-insured mortgages?
What requirement must be met for federally related purchase transactions according to HUD?
What requirement must be met for federally related purchase transactions according to HUD?
Under the Fair Housing Act, which of the following is NOT considered a discriminatory practice?
Under the Fair Housing Act, which of the following is NOT considered a discriminatory practice?
What financial protection does FHA mortgage insurance provide to lenders?
What financial protection does FHA mortgage insurance provide to lenders?
Which program is the most common reverse mortgage program offered by FHA?
Which program is the most common reverse mortgage program offered by FHA?
What aspect does the Office of Fair Housing and Equal Opportunity address?
What aspect does the Office of Fair Housing and Equal Opportunity address?
Which agency oversees public housing within HUD?
Which agency oversees public housing within HUD?
What is one method HUD uses to support homebuyers?
What is one method HUD uses to support homebuyers?
Flashcards
CFPB's Role
CFPB's Role
The CFPB enforces federal consumer financial laws, protecting consumers in the financial market.
CFPB's Responsibilities
CFPB's Responsibilities
The CFPB regulates mortgage lenders/brokers/servicers, and supervises large banks/credit unions. It also oversees firms handling consumer reporting, debt collection, and more.
CFPB's Complaint Handling
CFPB's Complaint Handling
The CFPB collects and responds to consumer complaints, forwards them to relevant companies, and monitors resolutions.
CFPB's Consumer Protection Focus
CFPB's Consumer Protection Focus
Signup and view all the flashcards
HUD's Purpose
HUD's Purpose
Signup and view all the flashcards
HUD's Focus
HUD's Focus
Signup and view all the flashcards
CFPB's Data Analysis
CFPB's Data Analysis
Signup and view all the flashcards
CFPB's Financial Research
CFPB's Financial Research
Signup and view all the flashcards
FHA's role in mortgage lending
FHA's role in mortgage lending
Signup and view all the flashcards
Ginnie Mae's function
Ginnie Mae's function
Signup and view all the flashcards
HUD's role in Foreclosure avoidance
HUD's role in Foreclosure avoidance
Signup and view all the flashcards
Fair Housing Act
Fair Housing Act
Signup and view all the flashcards
HUD's role in Fair Housing
HUD's role in Fair Housing
Signup and view all the flashcards
FHA Mortgage Insurance
FHA Mortgage Insurance
Signup and view all the flashcards
Reverse Mortgage (HECM)
Reverse Mortgage (HECM)
Signup and view all the flashcards
Home Ownership Counseling
Home Ownership Counseling
Signup and view all the flashcards
Higher cost mortgage counseling
Higher cost mortgage counseling
Signup and view all the flashcards
Public Housing Administration
Public Housing Administration
Signup and view all the flashcards
Study Notes
Consumer Financial Protection Bureau (CFPB)
- Created to enforce federal consumer financial laws and protect consumers
- Consolidates responsibility from multiple agencies
- Independent bureau within the Federal Reserve System, accountable to President, Congress, and judiciary
- Primary regulator of non-depository residential mortgage lenders, brokers, and servicers
- Supervises large banks, thrifts, credit unions, and their affiliates (assets over $10 billion) and larger companies in consumer reporting, debt collection, student loan servicing, international money transfer, automobile financing, payday lenders, and private student loan lenders (all sizes)
- Functions under the Dodd-Frank Act to:
- Stop unfair, deceptive, or abusive acts in consumer finance
- Enforce laws preventing discrimination
- Accept and address consumer complaints (online reporting system, searchable database)
- Forward complaints to companies and monitor resolution
- Share complaint data with other agencies
- Report complaint data to Congress
- Analyze data for supervision, law enforcement, and rulemaking
- Provide financial education
- Research consumer experiences with financial products
- Monitor financial markets for new consumer risks
- States retain authority over licensees and state law enforcement
Department of Housing and Urban Development (HUD)
- Created in 1965 to coordinate federal efforts addressing urban housing problems
- Consolidates five existing independent agencies:
- Federal Housing Administration (FHA) (1934): Insures mortgages for single-family, multifamily, residential care facilities, and hospitals
- Public Housing Administration (1937): Oversees public housing
- Federal National Mortgage Association (Fannie Mae) (1934): Created a secondary mortgage market
- Urban Renewal Administration (1949): Led slum clearance projects
- Community Facilities Administration (1965): Oversees various community development programs
- Current HUD role in residential mortgage lending:
- Houses the FHA, which insures mortgages, protecting lenders against borrower default
- Works through the Government National Mortgage Association (Ginnie Mae), guaranteeing mortgage-backed securities for FHA, VA, and USDA-insured mortgages
- Provides foreclosure avoidance and loss mitigation programs
- Offers homeownership counseling programs, requiring notice of available counseling services to all federally related purchase transactions
- Sets requirements for higher-cost mortgages (written counseling notice)
- Has a Reverse Mortgage (HECM) counseling requirement
- HUD's Office of Fair Housing and Equal Opportunity enforces the Fair Housing Act; addressing discrimination in:
- Mortgage loans (making, refinancing, loan information)
- Loan terms
- Property appraisals
- Loan purchasing
- Maternity leave
- Disability
- Other financial assistance related to residential real estate
- Maintains the Office of Public and Indian Housing (PIH)
- Conducts research on housing and market trends
Studying That Suits You
Use AI to generate personalized quizzes and flashcards to suit your learning preferences.
