Loan Officer Practice Exam 2025 – Comprehensive All-in-One Guide for Exam Success!

The Fair and Accurate Credit Transactions Act (FACTA) includes the Red Flags Rule, which requires financial institutions and creditors to implement policies and procedures for detecting and responding to indicators of identity theft. The Federal Trade Commission (FTC) has the authority to enforce the Red Flags Rule, making it responsible for ensuring that relevant entities comply with the established protocols designed to protect consumers from identity theft.

The FTC's role is crucial as it enforces laws that promote consumer protection and enforce regulations pertaining to fair practices in the credit industry. This includes issuing guidelines that help institutions identify potential identity theft risks and manage them effectively.

In contrast, other entities like the FHA (Federal Housing Administration), HUD (Department of Housing and Urban Development), and the Federal Reserve Board have different regulatory functions related mainly to housing finance, public housing, and overall monetary policy respectively. They do not have direct enforcement powers related to the specific provisions of the Red Flags Rule under FACTA. Therefore, the Federal Trade Commission stands out as the authoritative body for this particular regulation.