A borrower requests that their loan information not be shared with any third parties. Can the lender honor this request completely?
Correct Answer
B) No, some sharing may be necessary for loan processing and is permitted by law
While borrowers have privacy rights, some sharing of information is necessary for legitimate business purposes such as credit reporting, loan processing, fraud prevention, and regulatory compliance. These exceptions are permitted under GLBA and other federal laws.
Why This Is the Correct Answer
While borrowers have privacy rights, some sharing of information is necessary for legitimate business purposes such as credit reporting, loan processing, fraud prevention, and regulatory compliance. These exceptions are permitted under GLBA and other federal laws.
More Ethics & Fraud Questions
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A mortgage company's radio advertisement mentions a '3.25% rate.' What is required under Regulation Z?
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An MLO consistently asks female applicants detailed questions about their family planning intentions and childcare arrangements, while not asking male applicants similar questions. The MLO explains this helps assess 'income stability for long-term loans.' This practice represents: