What is the main function of the Consumer Financial Protection Bureau (CFPB)?

The main function of the Consumer Financial Protection Bureau (CFPB) is to promote financial education and protect consumers. Established in response to the 2008 financial crisis, the CFPB's mission is to ensure that consumers have access to financial products and services that meet their needs and are informed about their options. This includes regulating practices in the mortgage industry to protect borrowers from unfair, deceptive, or abusive practices. The bureau also strives to enhance consumer understanding of financial products through education and transparency, ultimately aiming to empower consumers to make informed financial decisions.

This focus on consumer protection and financial education distinguishes the CFPB's role in the financial regulatory landscape from other functions like setting interest rates, which is typically the purview of the Federal Reserve, or directly approving mortgage applications, a process usually handled by lenders. Similarly, funding low-income housing projects falls under different governmental agencies and initiatives, rather than the specific mission of the CFPB.