What is the Consumer Financial Protection Bureau (CFPB)?

The Consumer Financial Protection Bureau (CFPB) is a federal agency responsible for consumer protection in the financial sector. Its jurisdiction includes banks, credit unions, securities firms, payday lenders, mortgage lenders and servicers, foreclosure relief services, debt collectors, and other financial companies operating in the United States.

The bureau’s creation was authorized by the Dodd-Frank Act’s passage in 2010 as a legislative response to the financial crisis and recession of 2008. It writes and enforces rules for financial institutions, examines bank and non-bank financial institutions, monitors and reports on markets, and collects and tracks consumer complaints. Mortgages are a top priority for the CFPB, and in 2012, it issued the TILA-RESPA Integrated Disclosure (TRID) rule, a sweeping reform of the manner in which mortgage closings are conducted. It also administers and enforces the Real Estate Settlement Procedures Act (RESPA).