Federal Mortgage LawsQuestion 14 of 400
Under the Gramm-Leach-Bliley Act (GLBA), a financial institution must provide consumers with a privacy notice that:
a.Guarantees the institution will never share any information
b.Explains its information-sharing practices and, in certain cases, offers the right to opt out
c.Is required only for commercial loans
d.Must be signed and notarized by the consumer
Explanation
GLBA requires financial institutions to give consumers a privacy notice describing what nonpublic personal information is collected and shared, and to offer an opt-out for certain sharing with nonaffiliated third parties. It does not guarantee zero sharing, apply only to commercial loans, or require notarized signatures. The notice supports consumer control over personal financial data.
Law Reference: Gramm-Leach-Bliley ActPractice all 400 questions free — no signup required.
Related questions on this topic
- A borrower with a current loan wants to cancel PMI early. Under the Homeowners Protection Act, a borrower generally may REQUEST cancellation of PMI once the loan balance reaches:
- A lender denies a mortgage application partly because of information in the applicant's credit report. Under the Fair Credit Reporting Act, the lender must provide the applicant with:
- The primary purpose of the Home Mortgage Disclosure Act (HMDA) is to:
- Which of the following loans is generally EXEMPT from RESPA coverage?
- After a borrower submits a written qualified written request (QWR) about a servicing error, RESPA requires the servicer to acknowledge receipt within how many business days?
- Under Regulation Z, if an advertisement for a mortgage states a specific interest rate (a triggering rate) or trigger term, it must also disclose:
Last reviewed: · editorial process
PrepPass Editorial Team · Verified against NMLS SAFE Mortgage Loan Originator National Test · How we review