July 21, 2010 - Dodd-Frank Wall Street Reform and Consumer Protection Act

Policy Name: Dodd-Frank Wall Street Reform and Consumer Protection Act, (H.R. 4173)

Date: Effective July 21, 2010

The Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank) remains the most well-known legislation enacted in the wake of the 2008 Financial Crisis, and reformed nearly all aspects of  financial sector regulation. Among its many provisions, Dodd-Frank established the Consumer Financial Protection Bureau (CFPB) as a new federal agency. The CFPB has the responsibility of protecting consumers against predatory lending and helping borrowers make informed credit transactions.

Title XIV of Dodd-Frank, known as the Mortgage Reform and Anti-Predatory Lending Act, focused on standardizing data collection for loan underwriting, while imposing obligations on mortgage originators to lend more carefully to borrowers. This section established national underwriting standards for residential loans, such as the ability to repay rule, and amended the Truth in Lending Act (TILA) to transfer rule-making authority regarding TILA from the Federal Reserve Board to the CFPB.