EthicsQuestion 314 of 400
Under the Gramm-Leach-Bliley Act, a mortgage company's duty to protect customers' nonpublic personal information (NPI) primarily requires it to:
a.Maintain safeguards to keep NPI secure and provide a privacy notice
b.Publish customers' loan balances for transparency
c.Share NPI freely with any marketing partner
d.Delete all customer records after closing
Explanation
GLBA requires financial institutions to provide privacy notices and to maintain administrative, technical, and physical safeguards for NPI. Publishing balances or sharing NPI freely would violate privacy duties, and GLBA does not mandate deleting records after closing.
Law Reference: Gramm-Leach-Bliley Act (Privacy) / SafeguardsPractice all 400 questions free — no signup required.
Related questions on this topic
- Which of the following mortgage advertising claims is most likely to be a prohibited misrepresentation under Regulation N?
- Repeatedly refinancing a borrower's loan primarily to generate new fees, with little or no net benefit to the borrower, is a predatory practice known as:
- Which of the following is most characteristic of predatory lending?
- A loan officer leaves printed loan applications containing Social Security numbers on an unlocked desk overnight in a shared building. This most directly violates:
- Under GLBA, before a financial institution shares a consumer's NPI with certain nonaffiliated third parties, the consumer generally must be given:
- A title company pays a mortgage broker $200 for each loan referred to it, with no service performed in return. Under RESPA Section 8, this payment is:
Last reviewed: · editorial process
PrepPass Editorial Team · Verified against NMLS SAFE Mortgage Loan Originator National Test · How we review