A mortgage lender plans to sell a portfolio of loans to another institution and wants to provide detailed borrower information to help the buyer evaluate the portfolio. Under GLBA, this transfer of information is:
Correct Answer
B) Permitted as part of a business transaction exception without additional consent
Under GLBA, financial institutions may share nonpublic personal information in connection with proposed or actual sales, mergers, transfers, or other business transactions involving all or part of the institution or its assets. This exception allows sharing necessary information for due diligence and transaction completion without additional customer consent.
Why This Is the Correct Answer
Under GLBA, financial institutions may share nonpublic personal information in connection with proposed or actual sales, mergers, transfers, or other business transactions involving all or part of the institution or its assets. This exception allows sharing necessary information for due diligence and transaction completion without additional customer consent.
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