A customer calls to dispute a charge on their mortgage account. The loan servicer shares this complaint information with the original lender to investigate. This sharing is:
Correct Answer
A) Permitted as an exception for processing customer transactions
GLBA permits sharing of nonpublic personal information without opt-out requirements when necessary to effect, administer, or enforce a transaction requested by the consumer, which includes processing customer complaints and disputes.
Why This Is the Correct Answer
GLBA permits sharing of nonpublic personal information without opt-out requirements when necessary to effect, administer, or enforce a transaction requested by the consumer, which includes processing customer complaints and disputes.
More Federal Laws Questions
A mortgage broker's website states 'Qualified borrowers can get loans with down payments as low as 3%.' Which statement about TILA advertising requirements is correct?
A loan's APR increases from 4.25% on the Loan Estimate to 4.35% on the Closing Disclosure due to a rate lock expiration. What action is required?
Which of the following documents must be provided to trigger the start of the 3-day rescission period?
For a closed-end mortgage loan, when must the creditor provide the Closing Disclosure to the borrower?
Which information is NOT required to be included in an AfBA disclosure?
A lender quotes an APR of 4.25% on a mortgage loan, but the actual APR calculation results in 4.28%. Under TILA's APR accuracy tolerance, is this disclosure compliant?
Which of the following fees would NOT be included in the finance charge calculation under TILA?
For a purchase money mortgage with a loan amount of $400,000, which of the following represents the correct method for calculating the APR?
A servicer receives a borrower's written request for payoff information on Monday. The borrower needs the information for a refinance closing scheduled for the following Friday. When must the servicer provide an accurate payoff statement?
A lender provides a borrower with initial TILA disclosures showing an APR of 4.5%. Due to market changes, the final APR at closing is 4.625%. What disclosure requirement applies?
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A credit union's mortgage department shares customer payment history information with the credit union's investment services division to market investment products. Both divisions are part of the same credit union. Under GLBA, this practice is:
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A mortgage broker wants to share a borrower's credit report with the borrower's real estate agent to help negotiate a better purchase price. The borrower verbally agreed to this during a phone call. Under GLBA, is this sharing permitted?