CFPB Regulations Practice Examination
2026 Practice
Questions and Answers with Detailed
Rationales & instant pdf download
1. What is the primary mission of the CFPB?
A) Regulate stock exchanges
B) Protect consumers in financial markets
C) Manage federal tax policy
D) Oversee insurance companies
Correct Answer: B) Protect consumers in financial markets
The CFPB’s core mission is to ensure consumers are treated fairly in
financial products and services.
2. Which law established the CFPB?
A) Glass-Steagall Act
B) Dodd-Frank Act
C) Fair Credit Reporting Act
D) Truth in Lending Act
Correct Answer: B) Dodd-Frank Act
The CFPB was created under the Dodd-Frank Wall Street Reform and
Consumer Protection Act of 2010.
3. RESPA primarily governs:
,A) Credit card disclosures
B) Mortgage settlement costs
C) Auto loans
D) Student loan forgiveness
Correct Answer: B) Mortgage settlement costs
RESPA regulates disclosures and prohibitions of kickbacks in real
estate settlement services.
4. TILA requires lenders to:
A) Report to credit bureaus monthly
B) Disclose credit terms and costs
C) Approve all loan applications
D) Set interest rate caps
Correct Answer: B) Disclose credit terms and costs
The Truth in Lending Act ensures clear disclosure of credit terms and
costs.
5. The Fair Credit Reporting Act (FCRA) focuses on:
A) Banking mergers
B) Credit reporting accuracy and privacy
C) Mortgage underwriting
D) Insurance claims
Correct Answer: B) Credit reporting accuracy and privacy
FCRA regulates consumer credit information collection and use.
6. ECOA prohibits discrimination based on:
A) Income level
B) Credit score
, C) Race, gender, and other protected classes
D) Employment history only
Correct Answer: C) Race, gender, and other protected classes
Equal Credit Opportunity Act ensures fair lending practices.
7. The CFPB primarily supervises:
A) Only state banks
B) Only credit unions
C) Large financial institutions and certain nonbanks
D) Insurance companies only
Correct Answer: C) Large financial institutions and certain nonbanks
The CFPB supervises major banks and nonbank financial companies.
8. Which regulation governs mortgage servicing standards?
A) Regulation Z
B) Regulation X
C) Regulation E
D) Regulation C
Correct Answer: B) Regulation X
Regulation X implements RESPA, including servicing standards.
9. Regulation Z implements:
A) FCRA
B) TILA
C) ECOA
D) FDCPA
Correct Answer: B) TILA
Regulation Z enforces Truth in Lending Act requirements.
2026 Practice
Questions and Answers with Detailed
Rationales & instant pdf download
1. What is the primary mission of the CFPB?
A) Regulate stock exchanges
B) Protect consumers in financial markets
C) Manage federal tax policy
D) Oversee insurance companies
Correct Answer: B) Protect consumers in financial markets
The CFPB’s core mission is to ensure consumers are treated fairly in
financial products and services.
2. Which law established the CFPB?
A) Glass-Steagall Act
B) Dodd-Frank Act
C) Fair Credit Reporting Act
D) Truth in Lending Act
Correct Answer: B) Dodd-Frank Act
The CFPB was created under the Dodd-Frank Wall Street Reform and
Consumer Protection Act of 2010.
3. RESPA primarily governs:
,A) Credit card disclosures
B) Mortgage settlement costs
C) Auto loans
D) Student loan forgiveness
Correct Answer: B) Mortgage settlement costs
RESPA regulates disclosures and prohibitions of kickbacks in real
estate settlement services.
4. TILA requires lenders to:
A) Report to credit bureaus monthly
B) Disclose credit terms and costs
C) Approve all loan applications
D) Set interest rate caps
Correct Answer: B) Disclose credit terms and costs
The Truth in Lending Act ensures clear disclosure of credit terms and
costs.
5. The Fair Credit Reporting Act (FCRA) focuses on:
A) Banking mergers
B) Credit reporting accuracy and privacy
C) Mortgage underwriting
D) Insurance claims
Correct Answer: B) Credit reporting accuracy and privacy
FCRA regulates consumer credit information collection and use.
6. ECOA prohibits discrimination based on:
A) Income level
B) Credit score
, C) Race, gender, and other protected classes
D) Employment history only
Correct Answer: C) Race, gender, and other protected classes
Equal Credit Opportunity Act ensures fair lending practices.
7. The CFPB primarily supervises:
A) Only state banks
B) Only credit unions
C) Large financial institutions and certain nonbanks
D) Insurance companies only
Correct Answer: C) Large financial institutions and certain nonbanks
The CFPB supervises major banks and nonbank financial companies.
8. Which regulation governs mortgage servicing standards?
A) Regulation Z
B) Regulation X
C) Regulation E
D) Regulation C
Correct Answer: B) Regulation X
Regulation X implements RESPA, including servicing standards.
9. Regulation Z implements:
A) FCRA
B) TILA
C) ECOA
D) FDCPA
Correct Answer: B) TILA
Regulation Z enforces Truth in Lending Act requirements.
