Which act was a key element in enhancing consumer protection in the mortgage industry following the 2008 financial crisis?

The Housing and Economic Recovery Act (HERA) was critical in enhancing consumer protection in the mortgage industry in the aftermath of the 2008 financial crisis. This act aimed to stabilize the housing market and set forth provisions to protect consumers against further predatory lending practices. It created the Federal Housing Finance Agency (FHFA) to oversee the government-sponsored enterprises Fannie Mae and Freddie Mac, which had significant roles in the mortgage market. HERA included initiatives for strengthening regulations on mortgage lending, ensuring greater transparency, and providing more resources for home ownership preservation.

By addressing many of the issues that contributed to the housing market collapse, such as lax lending standards and inadequate oversight, HERA has been instrumental in restoring consumer confidence and promoting more responsible lending practices in the mortgage industry. Its provisions laid the groundwork for future legislation aimed at protecting borrowers, demonstrating a commitment to reforming the industry in a way that prioritizes consumer rights and stability.