What is the primary purpose of the Dodd-Frank Act?

The primary purpose of the Dodd-Frank Act is to regulate financial institutions and improve consumer protections. This legislation was enacted in response to the 2008 financial crisis, aiming to address systemic risks in the financial system and provide greater oversight of financial markets. It established several new regulatory frameworks to ensure transparency and accountability among financial institutions, particularly those deemed "too big to fail."

One significant component of the Dodd-Frank Act is the creation of the Consumer Financial Protection Bureau (CFPB), which focuses on protecting consumers in financial transactions, including mortgages. This agency is responsible for implementing and enforcing federal consumer financial laws, ensuring that consumers receive fair treatment in financial products and services.

While other options listed address aspects of the real estate and mortgage industry, they do not encapsulate the overarching intent of the Dodd-Frank Act, which centers on comprehensive regulation of the financial sector to safeguard consumers and enhance financial stability.