What information must be included in a privacy notice provided to mortgage loan applicants?
Correct Answer
B) How information is collected, used, shared, and protected, plus opt-out rights where applicable
Under the Gramm-Leach-Bliley Act, privacy notices must comprehensively explain what nonpublic personal information is collected, how it is used and shared, how it is protected, and the consumer's rights including any applicable opt-out procedures.
Why This Is the Correct Answer
Under the Gramm-Leach-Bliley Act, privacy notices must comprehensively explain what nonpublic personal information is collected, how it is used and shared, how it is protected, and the consumer's rights including any applicable opt-out procedures.
More Ethics & Fraud Questions
A lender's mobile app prominently displays a 'pre-qualification' feature that asks for minimal information but generates loan amount estimates that are consistently 20-30% higher than what borrowers actually qualify for when they complete full applications. The app includes a disclaimer that estimates are 'subject to full underwriting.' This practice is most likely:
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An MLO tells Asian applicants that they need larger down payments 'because that's what investors prefer for your type of loan,' while telling similarly qualified white applicants that standard down payments are acceptable. This practice represents:
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A mortgage loan originator repeatedly calls a borrower's workplace after being told by the borrower's supervisor that personal calls are not permitted. This conduct would most likely violate:
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A mortgage advertisement includes the phrase 'Subject to credit approval and program guidelines' in 8-point font while the main offer is in 24-point font. The contrast ratio between the text and background meets ADA standards. This disclaimer: