What significant creation did the Dodd-Frank Wall Street Reform and Consumer Protection Act establish?

The Dodd-Frank Wall Street Reform and Consumer Protection Act was enacted in response to the financial crisis of 2007-2008 to promote financial stability and consumer protection. A notable and significant creation from this legislation is the Consumer Financial Protection Bureau (CFPB). The CFPB was established to oversee and regulate financial institutions with a focus on protecting consumers in the financial marketplace.

The CFPB has the authority to enforce various consumer protection laws and ensures that consumers receive fair treatment in their financial transactions. This includes regulating products and services used by consumers, such as mortgages, credit cards, and student loans, which were areas of concern during the financial crisis. The establishment of the CFPB is a critical component of the Dodd-Frank Act, as it seeks to safeguard consumers from unfair, deceptive, or abusive practices in financial services.

In contrast, the other options do not stem from the Dodd-Frank Act: the Federal Housing Administration was established during the Great Depression, the Small Business Administration was created in 1953 to support small businesses, and the National Consumer Agency does not refer to an established entity but rather might be confused with existing organizations like the CFPB. Therefore, the formation of the CFPB represents a definitive response to the need