What major act introduced specific mortgage rules and formed the CFPB?

The Dodd-Frank Wall Street Reform and Consumer Protection Act is the major legislation that introduced specific mortgage rules and established the Consumer Financial Protection Bureau (CFPB). Enacted in the wake of the 2008 financial crisis, this comprehensive piece of legislation was designed to prevent the kind of risky financial practices that led to the economic downturn.

One of its key components was the creation of the CFPB, which was tasked with overseeing and enforcing consumer protection laws in the financial sector, particularly concerning mortgage lending practices. The CFPB’s authority includes implementing regulations that govern mortgage disclosure practices, loan origination, and servicing, thereby ensuring that consumers have the necessary information to make informed decisions.

The other acts mentioned do not specifically deal with the introduction of new mortgage rules or the formation of the CFPB. The Fair Housing Act primarily addresses discrimination in housing, the Real Estate Settlement Procedures Act focuses on the settlement process for real estate transactions, and the Sarbanes-Oxley Act is concerned with corporate governance and financial disclosures. Thus, the Dodd-Frank Act is the pivotal legislation that directly relates to the development of mortgage regulations and the establishment of a regulatory body to protect consumers in the financial marketplace.