What act implements Regulation H under the Consumer Financial Protection Bureau?

What act implements Regulation H under the Consumer Financial Protection Bureau?

• A. The Mortgage Assistance Relief Services Act
• B. The Secure and Fair Enforcement Act
• C. The National Flood Insurance Program
• D. The Mortgage Disclosure Improvement Act

Answer: (B)

Regulation H was implemented under the Secure and Fair Enforcement for Mortgage Licensing Act, also known as the SAFE Act. This act was established to enhance consumer protection and reduce fraud by setting standards for the licensing and registration of mortgage loan originators. It mandates that all state-licensed mortgage loan originators must be registered with the Nationwide Multistate Licensing System and Registry (NMLSR), ensuring that individuals in this profession meet specific education, testing, and background check requirements. This legislation aims to create a more accountable and transparent mortgage licensing system, thereby protecting consumers and standardizing the requirements across states. By focusing on the licensing of mortgage loan originators, the SAFE Act plays a pivotal role in promoting ethical practices within the mortgage industry.

Regulation H was implemented under the Secure and Fair Enforcement for Mortgage Licensing Act, also known as the SAFE Act. This act was established to enhance consumer protection and reduce fraud by setting standards for the licensing and registration of mortgage loan originators. It mandates that all state-licensed mortgage loan originators must be registered with the Nationwide Multistate Licensing System and Registry (NMLSR), ensuring that individuals in this profession meet specific education, testing, and background check requirements.

This legislation aims to create a more accountable and transparent mortgage licensing system, thereby protecting consumers and standardizing the requirements across states. By focusing on the licensing of mortgage loan originators, the SAFE Act plays a pivotal role in promoting ethical practices within the mortgage industry.