NMLS Uniform State Test (UST) Mortgage Practice Exam 2025 - Free Mortgage Practice Questions and Study Guide

Question: 1 / 400

Which entity provides oversight of the Loan Estimate and closing disclosure regulations?

Federal Housing Administration (FHA)

Consumer Financial Protection Bureau (CFPB)

The Consumer Financial Protection Bureau (CFPB) is the entity that provides oversight of the Loan Estimate and Closing Disclosure regulations. These documents were introduced under the TILA-RESPA Integrated Disclosure (TRID) rules, which the CFPB implemented to enhance consumer understanding of the mortgage process.

The Loan Estimate must be issued to borrowers within three business days of receiving a loan application, providing crucial information about the terms of the loan, estimated costs, and other details. The Closing Disclosure, on the other hand, is provided to the borrower at least three business days before closing, containing final details about the mortgage loan, including the loan terms, monthly payments, and closing costs.

The CFPB was created in response to the financial crisis of 2008, with a primary focus on protecting consumers in the financial sector. This includes ensuring that consumers receive clear and timely information regarding their mortgage transactions, fostering transparency and accountability in lending practices. Therefore, the agency plays a key role in regulating and enforcing compliance with the Loan Estimate and Closing Disclosure requirements, making it the correct answer in this context.

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Federal Reserve

Department of Housing and Urban Development (HUD)

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