Regulatory Terms
14 terms
Federal regulations exist to prevent the lending abuses that fueled the 2008 financial crisis. The Consumer Financial Protection Bureau (CFPB), created by the Dodd-Frank Act, enforces rules governing mortgage origination, servicing, and debt collection. Understanding these regulations is essential because they define your rights when you fall behind on payments — and violating them gives you legal leverage.
The terms in this cluster cover the regulatory framework that governs mortgage lending and servicing in the United States: the laws that require lenders to verify ability to repay, the rules that force servicers to evaluate you for loss mitigation before foreclosing, and the agencies that enforce these protections. When the American Distress Index rises, these regulations are the first line of defense.
Key Consumer Protection Laws
| Law | Year | Primary Protection |
|---|---|---|
| TILA (Truth in Lending) | 1968 | APR disclosure, right of rescission |
| RESPA | 1974 | Servicing rules, escrow, error resolution |
| ECOA | 1974 | Anti-discrimination in credit decisions |
| Fair Housing Act | 1968 | Prohibits discrimination in housing |
| Dodd-Frank Act | 2010 | Created CFPB, QM Rule, ability-to-repay |
| SCRA | 2003 | 6% rate cap + foreclosure protection for military |
See CFPB Mortgage Complaints for how these laws are enforced in practice, or browse mortgage servicer profiles for complaint data on specific companies.