Which legislation prohibits predatory lending?

The Secure and Fair Enforcement of Mortgage Licensing Act is designed to enhance consumer protection and reduce predatory lending practices by establishing guidelines for mortgage licensing and regulatory compliance. This legislation requires mortgage lenders and brokers to be licensed and adhere to certain standards, thereby fostering transparency and accountability in the lending process.

By ensuring that lenders are qualified and that they adhere to specific practices, the Act aims to protect consumers from abusive lending practices that could lead to financial distress. It focuses on the licensing of mortgage professionals to ensure that they have the necessary knowledge and skills to guide consumers appropriately, thereby mitigating the risk of predatory lending.

The other choices address different aspects of financial regulation but do not specifically target predatory lending practices. For instance, the Fair Credit Reporting Act governs the collection and dissemination of consumer credit information, while the Truth in Lending Act requires clear disclosure of the terms of a loan but does not inherently prevent predatory lending. The Home Mortgage Disclosure Act requires lenders to provide information on their mortgage lending patterns to promote transparency but is not solely focused on predatory lending practices.