Mortgage Loan Originator (MLO) Licensing Practice Test 2026 – Your All-in-One Guide to Exam Success!

The Dodd-Frank Act is a comprehensive piece of legislation enacted in response to the financial crisis of 2007-2008, with the primary aim of increasing transparency and reducing risks within the financial system. It introduced significant reforms in financial regulation, particularly in the mortgage industry.

One of the key components of the Dodd-Frank Act is the establishment of the Consumer Financial Protection Bureau (CFPB), which has the authority to oversee and enforce regulations related to mortgage loan origination. Under this act, mortgage loan originators must be licensed, which includes satisfying specific educational and testing requirements. Additionally, the Dodd-Frank Act mandates certain disclosures to consumers regarding loan terms and costs, ensuring a higher standard of consumer protection.

Other acts mentioned, while important in their own right, serve different purposes. The Real Estate Settlement Procedures Act (RESPA) primarily deals with disclosures related to the real estate settlement process, rather than licensing. The Truth in Lending Act (TILA) focuses on the terms of credit and requires disclosures about the costs of borrowing but does not regulate licensing. The Home Mortgage Disclosure Act (HMDA) is concerned with monitoring and reporting lending practices for fair lending purposes, rather than directly overseeing the licensing and operational conduct of mortgage loan origin