Mortgage Loan Originator (MLO) Licensing Practice Test 2025 – Your All-in-One Guide to Exam Success!

One of the primary responsibilities of the Consumer Financial Protection Bureau (CFPB) is enforcing fair lending laws. The CFPB was established to ensure that consumers are treated fairly in the financial system, particularly regarding mortgage lending and other consumer financial products. This involves monitoring lenders and financial institutions to ensure compliance with laws that protect consumers from discriminatory practices and abusive behaviors.

The agency enforces several key laws, including the Equal Credit Opportunity Act and the Fair Housing Act, which prohibit discrimination based on race, color, religion, national origin, sex, marital status, and age in lending practices. By overseeing these laws, the CFPB aims to promote equality in access to credit, ensuring that all consumers can obtain mortgage loans without facing discrimination.

In contrast, regulating interest rates is often within the purview of other government agencies or monetary policy rather than the CFPB. Providing loans directly to consumers is outside the CFPB’s function; instead, it focuses on oversight and education. Competing with private lenders is also not a role of the CFPB; it is primarily a regulatory body rather than a lender itself.