What is the role of the Consumer Financial Protection Bureau (CFPB) in mortgage lending?

The role of the Consumer Financial Protection Bureau (CFPB) in mortgage lending primarily revolves around supervising and regulating financial institutions to ensure consumer protection. This is crucial as the CFPB was established in response to the financial crisis of 2007-2008, with the mission to safeguard consumers from unfair, deceptive, or abusive practices and to promote transparency in financial services.

Through its regulatory framework, the CFPB enforces laws that govern mortgage lending practices, such as the Truth in Lending Act and the Real Estate Settlement Procedures Act. This helps to protect consumers from predatory lending practices and ensures that they have access to clear and reliable information about the terms and costs of their loans.

The other options do not accurately reflect the CFPB's primary function. While it does play a role in overseeing practices in real estate transactions, its main focus is on protecting consumers in the financial marketplace, rather than directly providing loans, assisting in transactions, or promoting housing development. Thus, the CFPB’s function as a regulatory body is essential for maintaining fair lending practices and safeguarding consumer rights in the mortgage industry.