Which of the following information sharing activities would be considered an exception to the opt-out requirements under the Gramm-Leach-Bliley Act?
Correct Answer
B) Providing account information to a credit bureau for reporting purposes
GLBA provides exceptions to opt-out requirements for certain activities necessary for business operations, including sharing information with credit bureaus for credit reporting purposes. This is considered a permissible disclosure exception.
Why This Is the Correct Answer
GLBA provides exceptions to opt-out requirements for certain activities necessary for business operations, including sharing information with credit bureaus for credit reporting purposes. This is considered a permissible disclosure exception.
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 amount increases from $400,000 to $425,000 due to additional loan costs discovered during underwriting. The original Closing Disclosure was provided 5 business days before the scheduled closing. What action must the lender take?
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A loan originator refuses to provide mortgage services to properties located in a predominantly Hispanic neighborhood, claiming the area has declining property values. This practice is an example of: