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The Truth in Lending Act (TILA), through Regulation Z, limits prepayment penalties. Dodd-Frank amendments largely prohibited them on most Qualified Mortgages and restricted them to specific conditions, such as fixed-rate loans within the first three years. RESPA governs settlement, ECOA addresses discrimination, and HMDA covers reporting. Only TILA/Regulation Z regulates prepayment penalties. Therefore, Answer B is correct.

The Fair Credit Reporting Act (FCRA) requires creditors to provide applicants with an adverse action notice if a loan decision is based on information from a credit report. This notice must inform the applicant of their right to request a free copy of the credit report and to dispute inaccuracies. The notice must include the name and contact information of the credit reporting agency. Providing appraisals (A) is an ECOA requirement, GFEs (C) were replaced by TRID disclosures, and income disputes (D) are not part of FCRA. Therefore, Answer B is correct.

The Fair Credit Reporting Act (FCRA) requires creditors to notify applicants when an adverse credit decision is made based on information in their credit report. The notice must include the name of the credit bureau, the applicant’s right to a free copy of the report, and their right to dispute inaccuracies. TILA governs disclosures, RESPA governs settlement practices, and HMDA requires loan data reporting. The specific requirement for adverse action notices related to credit reports comes from FCRA. Therefore, Answer B is correct.

FHA loans are government-backed mortgages insured by the Federal Housing Administration. They allow lower down payments and more flexible credit requirements but require both upfront and annual mortgage insurance premiums. Conventional loans (A) are not government-backed, VA loans (B) are guaranteed by the Department of Veterans Affairs, and USDA loans (C) are guaranteed for rural housing. FHA loans are the correct answer. Therefore, Answer D is correct.

The Federal Housing Finance Agency (FHFA) is the regulator and supervisor of the government-sponsored enterprises (GSEs) Fannie Mae and Freddie Mac, as well as the Federal Home Loan Banks. FHFA oversees the safety and soundness of the GSEs, sets key capital and risk-management standards, and—since the 2008 financial crisis—has also functioned as conservator for Fannie and Freddie. This role is distinct from that of the CFPB, which focuses on consumer financial protection rules (e.g., TILA/RESPA, ECOA, HMDA). HUD administers FHA insurance and numerous housing programs but does not regulate the GSEs. The FDIC insures deposits and supervises certain banks for safety and soundness but has no chartering or supervisory authority over Fannie Mae or Freddie Mac. Understanding these roles clarifies how product eligibility, secondary-market execution, and servicing requirements are shaped by the GSEs under FHFA’s policy direction, while consumer protection rules remain within the CFPB’s remit. Therefore, Answer B is correct.