NMLS Uniform State Test (UST) Mortgage Practice Exam

The FACT Act, or the Fair and Accurate Credit Transactions Act, is the correct answer as it specifically addresses issues related to identity theft. Enacted in 2003, this law aims to enhance the accuracy of consumer credit reporting and to protect consumers from identity theft. It contains provisions that allow consumers to obtain free credit reports and also requires credit reporting agencies to place fraud alerts on consumers' credit files when requested, helping to prevent identity theft.

In contrast, the Fair Housing Act focuses on preventing discrimination in housing based on race, color, national origin, religion, sex, familial status, or disability. The Homeowners Protection Act deals primarily with the cancellation and termination of private mortgage insurance (PMI) for homeowners. Lastly, TILA (Truth in Lending Act), also known as Regulation Z, governs the disclosure of credit terms to consumers and does not directly address identity theft issues. Each of these laws has its specific focus and scope that does not relate to identity theft in the way the FACT Act does.