The CFPB is the primary federal regulator of consumer financial products, including mortgages. Created by the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010, the CFPB consolidated regulatory authority that had previously been scattered across multiple federal agencies.
What the CFPB does
- Rulemaking — issues federal regulations under TILA, RESPA, ECOA, HMDA, FCRA, FDCPA
- Supervision and examination — conducts examinations of large depositories ($10B+ in assets) and certain non-depository mortgage lenders
- Enforcement — investigates violations and brings administrative or civil enforcement actions
- Consumer education — publishes guides and tools at consumerfinance.gov
- Complaint handling — operates the consumer complaint database; routes complaints to lenders and tracks resolution
CFPB enforcement against mortgage lenders
The CFPB has pursued multi-million-dollar settlements with mortgage lenders for: RESPA Section 8 violations (kickback arrangements, MSAs), TILA violations (inaccurate APR disclosures, LO comp violations), TRID violations (timing failures on Loan Estimate or Closing Disclosure), fair lending discrimination under ECOA, debt collection violations under FDCPA, and unfair/deceptive practices under UDAAP.
CFPB structure and authority
The CFPB is led by a single Director appointed by the President. It is funded through the Federal Reserve System rather than congressional appropriations, giving it independence from the appropriations process. Its enforcement authority extends to civil money penalties, restitution to consumers, and injunctive relief.
