When must a financial institution provide the initial privacy notice to a consumer under the Gramm-Leach-Bliley Act?
Correct Answer
B) No later than when the customer relationship is established
The GLBA Privacy Rule requires financial institutions to provide the initial privacy notice no later than when the customer relationship is established, which means at or before the time of establishing the relationship.
Why This Is the Correct Answer
The GLBA Privacy Rule requires financial institutions to provide the initial privacy notice no later than when the customer relationship is established, which means at or before the time of establishing the relationship.
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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A borrower applies for a mortgage and provides documentation that appears altered. The loan officer notices inconsistencies in the employment verification letter. This situation represents:
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An online mortgage advertisement displays 'Refinance today! 3.5% rate available.' Under TILA, what makes this advertisement potentially non-compliant?