Who Regulates Mortgage Lenders: A Guide to Understanding the Different Agencies

When you’re in the market for a mortgage, it’s important to understand who regulates the lenders you’re considering. In this blog post, we’ll explore the different agencies that regulate mortgage lenders, and what they do to ensure that borrowers are treated fairly.

The Consumer Financial Protection Bureau (CFPB)

The Consumer Financial Protection Bureau (CFPB) was created in 2010 as part of the Dodd-Frank Wall Street Reform and Consumer Protection Act. Its mission is to protect consumers from unfair, deceptive, or abusive practices and to ensure that consumers have the information they need to make informed decisions about financial products and services. The CFPB supervises non-bank mortgage lenders, mortgage servicers, and mortgage loan originators to ensure that they comply with federal consumer financial laws.

The Federal Housing Administration (FHA)

The Federal Housing Administration (FHA) is a government agency that provides mortgage insurance to lenders. The FHA sets standards for mortgages and oversees the lenders that participate in its programs. This includes lenders that originate FHA-insured loans, as well as those that service them.

The Department of Veterans Affairs (VA)

The Department of Veterans Affairs (VA) provides mortgage insurance to veterans, service members, and certain surviving spouses. The VA sets standards for mortgages and oversees the lenders that participate in its programs. This includes lenders that originate VA-insured loans, as well as those that service them.

The Office of the Comptroller of the Currency (OCC)

The Office of the Comptroller of the Currency (OCC) is a federal agency that regulates national banks, including those that originate and service mortgages. The OCC oversees these banks to ensure that they comply with federal laws and regulations, and that they operate in a safe and sound manner.

The Federal Reserve Board (FRB)

The Federal Reserve Board (FRB) is a federal agency that regulates state-chartered banks that are members of the Federal Reserve System. This includes banks that originate and service mortgages. The FRB oversees these banks to ensure that they comply with federal laws and regulations, and that they operate in a safe and sound manner.

State Regulators

In addition to federal agencies, states also have agencies that regulate mortgage lenders. These agencies vary from state to state, but they typically have similar responsibilities, such as licensing and supervising mortgage companies, lenders, and loan originators. They also oversee mortgage brokers, who act as intermediaries between borrowers and lenders.

In conclusion, various federal agencies and state regulators are responsible for overseeing the mortgage lending industry, to ensure that borrowers are treated fairly and to protect them from fraud, deception or abusive practices. The Consumer Financial Protection Bureau (CFPB), The Federal Housing Administration (FHA), The Department of Veterans Affairs (VA), The Office of the Comptroller of the Currency (OCC), The Federal Reserve Board (FRB) are the few among them. If you have any concerns about a mortgage lender, you should contact the appropriate agency for more information.