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?
Correct Answer
C) No, because written consent is required for sharing with non-affiliated third parties
Under GLBA, sharing nonpublic personal information with non-affiliated third parties generally requires clear written consent from the consumer. Verbal consent is insufficient, and real estate agents are typically non-affiliated third parties, not service providers to the financial institution.
Why This Is the Correct Answer
Under GLBA, sharing nonpublic personal information with non-affiliated third parties generally requires clear written consent from the consumer. Verbal consent is insufficient, and real estate agents are typically non-affiliated third parties, not service providers to the financial institution.
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