The FTC enforces laws that protect consumers from deceptive mortgage practices by certain kinds of lenders. The FTC also takes action when companies use illegal tactics directed to people facing foreclosure.
The CFPB is the primary regulatory agency responsible for enforcing federal consumer financial protection laws, including mortgage lending rules. The CFPB has broad authority to investigate and enforce violations of consumer protection laws, and can impose penalties and other remedies for non-compliance.
There are numerous agencies assigned to regulate and oversee financial institutions and financial markets in the United States, including the Federal Reserve Board (FRB), the Federal Deposit Insurance Corp. (FDIC), and the Securities and Exchange Commission (SEC).
The FTC's authority covers for-profit entities such as mortgage companies, mortgage brokers, creditors, and debt collectors – but not banks, savings and loan institutions, and federal credit unions.
The Dodd-Frank Act generally granted rulemaking authority under the TILA to the Consumer Financial Protection Bureau (CFPB). Title XIV of the Dodd-Frank Act included a number of amendments to the TILA, and in 2013, the CFPB issued rules to implement them.
The Federal Trade Commission is authorized to enforce Regulation Z and TILA. Federal law also gives the Office of the Comptroller of the Currency the authority to order lenders to adjust and edit the accounts of consumers whose finance charges or annual percentage rate (APR) was inaccurately disclosed.
Originally enforced by the U.S. Department of Housing & Urban Development (HUD), RESPA enforcement responsibilities were assumed by the Consumer Financial Protection Bureau (CFPB) when it was created in 2011.
The FTC's Bureau of Consumer Protection and the CFPB are two different agencies but have similar missions. The CFPB's purpose is to ensure that all consumers have access to markets for financial products and services and that the markets for these are fair, transparent, and competitive.
Under a new rule from the Federal Housing Finance Agency (FHFA), which took effect on May 1st, borrowers with lower credit ratings and less money for a down payment will qualify for better mortgage rates, while those with higher ratings will pay increased fees.
Poor communication, or a lack of responsiveness, is the most common complaint in the mortgage lending process. Both borrowers and referral partners, namely Realtors, want to know that the lines of communication are open when they have a question or need an update.
Another alternative is to go to a bank or credit union. Regardless of which route you choose, they are all highly regulated at both the state and federal level. Each lender type has to comply with every single rule, law and statute at every level to avoid crushing penalties levied upon them by the regulators.
Regulatory Agencies: Federal, State and City.
The regulatory agencies primarily responsible for supervising the internal operations of commercial banks and administering the state and federal banking laws applicable to commercial banks in the United States include the Federal Reserve System, the Office of the Comptroller of the Currency (OCC), the FDIC and the ...
U.S. Department of Housing and Urban Development. “The Federal Housing Administration (FHA).”
Fannie Mae and Freddie Mac are federally backed home mortgage companies created by the United States Congress. Neither institution originates or services its own mortgages. Instead, they buy and guarantee mortgages issued through lenders in the secondary mortgage market.
Deregulation, excess regulation, and failed regulation by the federal government have all been blamed for the late-2000s (decade) subprime mortgage crisis in the United States.
It changes mortgage fees based on a borrower's credit score. Here's why you should care: If you are an American who has worked hard for good credit, you are likely to pay more on your home loan now than you would have before this revision.
The federal government generally doesn't directly fund housing loans. To get a government mortgage loan, you'll need to work with an approved bank or an online lending service. Some of the most common government housing loans are FHA loans, VA loans and USDA loans.
Fair lending prohibits lenders from considering your race, color, national origin, religion, sex, familial status, or disability when applying for residential mortgage loans.
The Bureau may enforce the law by filing an action in federal district court or by initiating an administrative adjudication proceeding. Administrative proceedings are conducted by an Administrative Law Judge, who holds hearings and issues a recommended decision.
The case was ultimately heard by the U.S. Court of Appeals for the 5th Circuit, which ruled in October 2022 that the CFPB's funding mechanism violated the Constitution's appropriations clause.
The Consumer Financial Protection Bureau is a 21st century agency that implements and enforces Federal consumer financial law and ensures that markets for consumer financial products are fair, transparent, and competitive.
Timing Requirements – The “3/7/3 Rule”
The initial Truth in Lending Statement must be delivered to the consumer within 3 business days of the receipt of the loan application by the lender. The TILA statement is presumed to be delivered to the consumer 3 business days after it is mailed.
The Consumer Financial Protection Bureau (CFPB) continues to assess the rule's effect on consumers and industry professionals. Both NAR and CFPB have created resources to help professionals understand and comply with TRID rules.
Failure to make such disclosures may provide the borrower with grounds to sue for damages. Violations of TILA can range from simple omissions to outright predatory lending practices such as intentionally misleading the borrower as to the terms of the loan.