Which federal agency oversees the implementation of RESPA?

The correct answer is the Consumer Financial Protection Bureau (CFPB) because it is the agency responsible for implementing and enforcing the Real Estate Settlement Procedures Act (RESPA). The CFPB was established following the financial crisis in 2008 to provide greater oversight and regulation of financial products and services, including those related to real estate transactions.

This agency enhances consumer protections by ensuring that lenders and other parties involved in real estate transactions comply with RESPA, which aims to protect consumers from unnecessarily high settlement charges and to ensure they are well-informed about the costs associated with closing on a mortgage. The CFPB provides guidance, oversight, and enforcement regarding the rules and requirements outlined in RESPA.

While the Department of Housing and Urban Development (HUD) previously held the responsibility for many of RESPA's implementation aspects, oversight has shifted to the CFPB as part of the broader regulatory framework aimed at consumer protection and financial market stability. The Federal Trade Commission (FTC) generally focuses on consumer protection regarding advertising and anti-competitive practices in many industries but does not oversee RESPA. Similarly, the Federal Housing Administration (FHA) primarily deals with mortgage insurance and does not administer RESPA regulations.