Which of the following describes the role of the Federal Trade Commission in mortgage lending?

Which of the following describes the role of the Federal Trade Commission in mortgage lending?

• A. To provide loans to first-time homebuyers
• B. To regulate and enforce compliance of lending laws
• C. To offer insurance for mortgage loans
• D. To sell mortgage-backed securities

Answer: (B)

The Federal Trade Commission (FTC) plays a crucial role in regulating various aspects of consumer protection, including those related to mortgage lending. By focusing on the enforcement and compliance of lending laws, the FTC ensures that lenders adhere to fair practices, thereby protecting consumers from deceptive and unfair business practices. This involvement includes monitoring adherence to laws such as the Truth in Lending Act and the Fair Credit Reporting Act, among others. While providing loans to first-time homebuyers, offering insurance for mortgage loans, and selling mortgage-backed securities involve other entities such as banks, insurance companies, and government-sponsored enterprises, these activities are not within the FTC's purview. The FTC's primary mission centers around safeguarding consumer rights and promoting competition in the marketplace, which is why the regulation and enforcement of compliance with lending laws is the correct description of its role in mortgage lending.

The Federal Trade Commission (FTC) plays a crucial role in regulating various aspects of consumer protection, including those related to mortgage lending. By focusing on the enforcement and compliance of lending laws, the FTC ensures that lenders adhere to fair practices, thereby protecting consumers from deceptive and unfair business practices. This involvement includes monitoring adherence to laws such as the Truth in Lending Act and the Fair Credit Reporting Act, among others.

While providing loans to first-time homebuyers, offering insurance for mortgage loans, and selling mortgage-backed securities involve other entities such as banks, insurance companies, and government-sponsored enterprises, these activities are not within the FTC's purview. The FTC's primary mission centers around safeguarding consumer rights and promoting competition in the marketplace, which is why the regulation and enforcement of compliance with lending laws is the correct description of its role in mortgage lending.