Which entity's regulations ensure fair treatment in lending practices?

The Consumer Financial Protection Bureau (CFPB) is the entity responsible for regulating and ensuring fair treatment in lending practices. Established in the aftermath of the financial crisis of 2008, the CFPB's primary mission is to protect consumers in the financial sector, which includes overseeing the mortgage market, enforcing consumer protection laws, and promoting transparency in financial products.

The CFPB takes action to prevent discrimination in lending, ensuring that all consumers have equal access to credit and are treated fairly throughout the lending process. It implements rules that require lenders to disclose information clearly and fairly, enabling consumers to make informed decisions when obtaining loans.

In contrast, while the Federal Trade Commission (FTC) is focused on protecting consumers from unfair or deceptive practices across a broader range of industries, it does not specifically concentrate on lending practices. The Federal Reserve, primarily responsible for monetary policy and regulating banks, does not specifically address consumer lending protections in the same way as the CFPB. The Securities and Exchange Commission (SEC) primarily oversees securities markets and investment practices, making it irrelevant to the area of lending practices and consumer protection in that space. Thus, the Consumer Financial Protection Bureau is the correct choice, as it is explicitly tasked with ensuring fair treatment in lending.