law
Dodd-Frank Act
The Dodd-Frank Wall Street Reform and Consumer Protection Act is a 2010 federal law passed after the financial crisis. For real estate, it created the Consumer Financial Protection Bureau, set ability-to-repay and qualified mortgage standards, restricted certain risky loan features, strengthened appraiser independence rules, and led to the combined TRID loan disclosures. It shapes how lenders underwrite and disclose residential mortgages.
- Exam tip
- Link Dodd-Frank to the CFPB, ability-to-repay rules, and qualified mortgages. It is often the answer when asked which law created the CFPB.
- Example
- Because of Dodd-Frank's ability-to-repay rule, a lender must verify a borrower's income and debts before approving a mortgage.
Related terms & state variants
Sources
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Last verified: 2026-10-23