Federal Mortgage Law · 24% of the SAFE exammedium
Correct answer: The 2007–2008 financial crisis and collapse of the housing market
The Dodd-Frank Act was enacted in 2010 as a direct legislative response to the 2007–2008 financial crisis, which was fueled in large part by risky mortgage lending practices, lack of regulatory oversight, and the collapse of the housing market. Among its key provisions, Dodd-Frank created the CFPB and established new rules for mortgage origination, including ability-to-repay requirements. "The savings and loan crisis of the 1980s" is incorrect — the S&L crisis led to FIRREA in 1989. "The passage of the Gramm-Leach-Bliley Act in 1999" is incorrect — the dot-com bust did not trigger major mortgage lending reform. "The 2007–2008 financial crisis and collapse of the h..." is incorrect — the GLBA was a deregulatory act, not a response to systemic lending failures.
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