When may an MLO share borrower information with an investor or loan purchaser?
Correct Answer
C) When necessary for loan underwriting, purchase, or servicing as disclosed in privacy notices
Under GLBA, financial institutions may share nonpublic personal information with affiliates and nonaffiliated third parties for legitimate business purposes such as loan underwriting, sale, or servicing, provided this is disclosed in privacy notices and opt-out procedures are followed where required.
Why This Is the Correct Answer
Under GLBA, financial institutions may share nonpublic personal information with affiliates and nonaffiliated third parties for legitimate business purposes such as loan underwriting, sale, or servicing, provided this is disclosed in privacy notices and opt-out procedures are followed where required.
More Ethics & Fraud Questions
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An MLO discovers that multiple loan applications from different borrowers contain identical handwriting in the signature sections, despite different purported signers. The applications were submitted by different real estate agents. What is the most appropriate immediate action?
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Previous Question
A mortgage loan originator receives a lead from a real estate agent about a potential borrower. Before calling this consumer, the MLO must:
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A mortgage company advertises 'Guaranteed approval for all credit types!' but internally has minimum credit score requirements of 580. This advertisement is problematic because it: