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
A) 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.
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?
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For a purchase money mortgage with a loan amount of $400,000, which of the following represents the correct method for calculating the APR?
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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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