A mortgage broker wants to share customer application information with multiple lenders to find the best rates. Under GLBA, this practice:
Correct Answer
C) Is permitted as an exception for processing the consumer's transaction
GLBA permits sharing nonpublic personal information with non-affiliated third parties without opt-out requirements when necessary to effect, administer, or enforce a transaction requested by the consumer, such as shopping for mortgage rates.
Why This Is the Correct Answer
GLBA permits sharing nonpublic personal information with non-affiliated third parties without opt-out requirements when necessary to effect, administer, or enforce a transaction requested by the consumer, such as shopping for mortgage rates.
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?
A lender originates a mortgage that meets all QM requirements. Three years later, the borrower defaults and claims the lender violated the ATR rule. What legal protection does the lender have?
For a closed-end mortgage loan, when must the creditor provide the Closing Disclosure to the borrower?
Which of the following documents must be provided to trigger the start of the 3-day rescission period?
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A servicer receives a borrower's qualified written request on December 15th questioning an escrow analysis. Due to the holidays, the servicer's offices are closed December 24-26 and January 1-2. The servicer must respond no later than:
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For third-party services where the borrower is permitted to shop, what is the tolerance level for fee increases?