(20hr) Day 4 - Privacy Laws - Discussion Questions

1.) Explain the GLBA and its general impact on lending activities and protection of consumer information.

2.) Explain the USA Patriot Act and its application in mortgage lending and your role as regulated by the Act.


3.) What is considered to be proper consumer information disposal?


4.) What is your role and responsibilities for security dictated by the FTC Disposal Rule?


5.) Summarize the main points of the Telephone Consumer Protection Act (TCPA) and the role and responsibilities of the MLO as regulated by this Act.


www.mymortgagetrainer.com

16 comments:

  1. 1.)
    The GLBA addresses concerns relating to consumer financial privacy. It put restrictions on financial institutions use of borrowers nonpublic information. It requires disclosures before sharing or selling this information.

    2.)
    The Patriot Act is used to stop money laundering for terrorist funding. It opened up communication between financial institutions to stop this from happening. You are required to know who your clients are. You can submit a SAR to FinCEN if you suspect suspicious activity.

    3.)
    Burn it, Shred it, Pulverize it, delete if electronic. Make sure it can't be reconstructed or accessible in any way.

    4.)
    Safe storage practices, routinely destroying unneeded reports, choosing a destruction system, monitoring compliance.

    5.)
    Consumers have the right to be placed on a do not call registry. MLO's are charged with complying with the do not call requirements. Monitoring company specific lists, accessing the national registry, and maintaining and documenting records of this process.

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  2. 1 of 5
    GLBA was a large part of financial service reform overall, but it stepped up protection for the borrower by requiring disclosing who they share their private information with other institutions & it also included giving the consumer the option to opt out of the sharing.

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  3. 2 of 5
    The Patriot Act is to avoid terrorist acts on the USA. The role of the MLO is to verify that the funds the borrower is seeking is not for any type of terroistic activity

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  4. 3 of 5
    Disposal of private information is anything that is within reason to keep borrowers information secure within your office setting...be it an office shredder or hiring a shredding company to manage.

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  5. 4 of 5
    MLO role & responsibility is that this requirement totally applies to them & to all who work in the office as well. Must utilize protocols to protect consumer information.

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  6. 5 of 5
    MLO fall under this list & consumers have the option to be put on a do not call list. They are also responsible to educate themselves on the updated registries

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  7. 1 of 5
    The GLBA was created to address concerns about consumer financial privacy. Information that would be considered non-public (SSN, banking info, etc.) must be protected by the institution that obtains/holds such information. They cannot provide to third parties, especially if the consumer "opts out" of that service. It was also enacted to help protect against identity theft.

    2 of 5
    The Patriot Act was created to focus on terrorist financing and money laundering acts. Financial institutions are allowed to report and look into suspected incidents if there is activity that leads them to believe either is happening. The government can also request information from financial institutions if they suspect such activity. MLOs are frontline workers who can spot any fraudulent or questionable activity that "doesn't fit" a typical transaction. This information can be reported to FinCEN when applicable.

    3 of 5
    A method chosen by the company that fits under the FTC's "disposal rule." This is determined by the size and needs of the company disposing of information. Usually, a hired shredding company or inside shredding machines for smaller businesses. There is also a requirement to delete any electronic files and scrubbing of those devices that once held the files (when said devices are also disposed of).

    4 of 5
    Store the information in the most secure way possible. Once the holding period is over, shred/delete the files in compliance with the disposal rule and through methods that are provided by the company.

    5 of 5
    TCPA restricts telemarketing calls and the use of pre-recorded and automated dialing systems and messages. MLO needs to check the "do not call" list to make sure they are not violating the Act. Doing so could result in a $16,000 fine. Anyone requesting to be on a "do not call" list must have their request documented within 30 days of notification.

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  8. 1 of 5
    Designed to increase protection of consumer's privacy and information collected as part of an application of a loan and to limit sharing of information

    2 of 5
    To focus on prevention of money laundering and to deter and punish terrorist activity

    3 of 5
    Shredding, burning, pulverizing physical records, deleting/destroying electronic records

    4 of 5
    Insure that sensitive documents are locked and protected, not left in open view on desks. Keep computer locked when not in use.

    5 of 5
    To restrict telemarketing calls to those that have opted out. MLOs are required to remain up to date with this law and abide by checking the 'do not call list' before soliciting for business

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  9. 1 of 5
    Gives the consumer protection of privacy and information collected by a lender. Bars the Creditor from sharing or selling personal information to 3rd party vendors and any unaffiliated groups.

    2 of 5
    Is used to stop money laundering that is associated with any terrorist activities. Requires the lender to report any suspicious money and verify that the money is obtained legally.

    3 of 5
    The destruction of records such as shredding, burning or pulverizing material and mindful disposal of papers and files. Can be contracted by a 3rd party to destroy. Wiping of all electronic devices containing personal information before disposal.

    4 of 5
    The role of MLO is to mindfully keep and lock sensitive information of consumers. Follow guidances set forth to protect the consumers' information. To make known the rules for everyone in the company of the rules and regulations of how to store and destroy consumer information.

    5 of 5
    Protects the consumer from unwanted and unsolicited calls. Requires MLO to keep do not call registries. No sales calls or automated dialing. To keep up with company do not call logs and national registries.

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  10. 1 of 1:
    GLBA is a "right to financial privacy" Right to, "opt-out" of sharing personal information collected by lenders.

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  11. 2 of 2:
    Patriot Act, To fight money laundering scams and terrorism, theft of personal information. MLO is a front line defense in detection of such questionable criminal activities.

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  12. 3 of 3:
    First know the procedures and rules of a company's disposal rules. Make sure not to leave papers or open electronic devises on desks for others to see. Make sure of time periods that paper work should be disposed of. Use of shredders, burning, and deleting or wiping of electronic devises.

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  13. 4 of 4:
    Make sure the your work space and electronic devises are secured and not visible for others to see.

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  14. 5 of 5:
    For those that have opted-out can not receive calls from solicitors. An MLO needs to confirm that a person is not on the DNC list before calling. fines can be asset for anyone disregarding the DNC list.

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  15. 1 of 5
    The GLBA is a large law that covers a variety of different aspects of the financial industry. For
    our purposes, we are going to focus on the privacy provisions of the law. The privacy provisions
    of the GLBA restrict the disclosure of nonpublic customer information by financial institutions. In
    addition, all financial institutions must provide customers the opportunity to "opt-out" of the
    sharing of the customers' nonpublic information with unaffiliated third parties. The Act
    establishes minimum federal privacy standards but allows states to adopt stricter standards not
    inconsistent with federal law. Finally, the Act imposes criminal penalties on anyone who obtains
    customer information from a financial institution under false pretenses.
    2 of 5
    the purpose of the Act is “to deter and punish terrorist acts in the United States and
    around the world, to enhance law enforcement investigatory tools, and for other purposes.” The provisions of the Patriot Act that pertain to mortgage brokers mostly are designed to verify
    the identity of borrowers, to prevent money laundering, and to facilitate the flow of information
    between financial institutions and the government.
    3 of 5
    • Burning, shredding, or otherwise pulverizing paper documents containing the information
    in a way that they cannot be reconstructed.
    • Erasing and destroying electronic files or media containing consumer reports in a way
    that information cannot be read or reconstructed.

    4 of 5
    “properly dispose of such information by taking reasonable measures to protect
    against unauthorized access to or use of the information in connection with its
    disposal.” It is up to the organizations themselves to determine what constitutes a
    “reasonable measure,” a provision included to insure fairness for smaller businesses
    that may only require a single in-office shredder, whereas large corporations may employ
    an outside shredding company.
    5 of 5
    Main points is to establish rules and guidelines for telemarketing.

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  16. 1 of 5
    The GLBA is a large law that covers a variety of different aspects of the financial industry. For
    our purposes, we are going to focus on the privacy provisions of the law.
    2 of 5
    the purpose of the Act is “to deter and punish terrorist acts in the United States and
    around the world, to enhance law enforcement investigatory tools, and for other purposes.” The provisions of the Patriot Act that pertain to mortgage brokers mostly are designed to verify
    the identity of borrowers, to prevent money laundering, and to facilitate the flow of information
    between financial institutions and the government.
    3 of 5
    Burning, shredding, or otherwise pulverizing paper documents containing the information in a way that they cannot be reconstructed. Erasing and destroying electronic files or media containing consumer reports in a way
    that information cannot be read or reconstructed.

    4 of 5
    properly dispose of such information by taking reasonable measures to protect against unauthorized access to or use of the information in connection with its
    disposal.
    5 of 5
    To establish rules and guidelines for telemarketing and retention timeframes of docs .

    ReplyDelete