Mortgage Loan Originator Licensing Practice Test 2025 – Complete Exam Prep

The Department of Housing and Urban Development (HUD) serves as the regulatory authority for the Federal Housing Administration (FHA). This is because HUD oversees various federal housing programs and policies, including those related to the FHA, which plays a critical role in providing mortgage insurance on loans made by approved lenders. This insurance helps to facilitate home ownership, particularly for first-time home buyers and those with less than perfect credit. HUD’s involvement ensures that FHA programs align with broader housing policy objectives and government initiatives to promote affordable housing solutions.

The other entities mentioned have distinct roles in the broader financial and housing ecosystem but do not specifically regulate the FHA. The Federal Housing Finance Agency primarily oversees government-sponsored enterprises like Fannie Mae and Freddie Mac, while the Consumer Financial Protection Bureau focuses on protecting consumers in financial transactions. The Office of the Comptroller of the Currency primarily regulates national banks and federal savings associations. Thus, the alignment of HUD's mission and responsibilities with the FHA underscores why it is the correct answer.