An MLO's former colleague, now working at a different lender, asks for contact information of previous mutual clients who might be interested in refinancing. The colleague promises to share referral fees. What is the primary violation?
Correct Answer
C) Disclosure of nonpublic personal information without consent
While referral fee issues may also apply, the primary violation is sharing borrower contact information (nonpublic personal information) without proper consent under the Gramm-Leach-Bliley Act. Client information cannot be shared with competitors for solicitation purposes.
Why This Is the Correct Answer
While referral fee issues may also apply, the primary violation is sharing borrower contact information (nonpublic personal information) without proper consent under the Gramm-Leach-Bliley Act. Client information cannot be shared with competitors for solicitation purposes.
More Ethics & Fraud Questions
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A consumer requests to be added to an MLO's internal do-not-call list during a phone conversation. According to FTC regulations, within what timeframe must the MLO honor this request?
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In reviewing a loan file, an MLO notices the borrower's signature varies significantly between the initial application and subsequent documents, and the handwriting style appears different. The borrower states they injured their hand. What should the MLO do?