A mortgage lender wants to share a borrower's credit report information with a marketing company. Under the Gramm-Leach-Bliley Act, this action:
Correct Answer
C) Can only occur if the consumer has not opted out of such sharing
Under GLBA, sharing nonpublic personal information with non-affiliated third parties for marketing purposes requires that consumers be given the opportunity to opt out. If they haven't opted out, the sharing is permitted.
Why This Is the Correct Answer
Under GLBA, sharing nonpublic personal information with non-affiliated third parties for marketing purposes requires that consumers be given the opportunity to opt out. If they haven't opted out, the sharing is permitted.
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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Previous Question
A borrower's loan application includes a request for a specific loan amount, but during underwriting, the lender determines they qualify for a higher amount and wants to offer it. The loan terms remain the same except for the loan amount. What action is required?
Next Question
A lender's HMDA data analysis reveals a pattern where minority applicants are more frequently required to provide additional documentation compared to similarly situated non-minority applicants. This pattern would most likely indicate: