EthicsQuestion 332 of 400
An originator wants to email a borrower's full loan file, including SSN and bank data, over an unsecured public connection. The best practice under GLBA safeguards is to:
a.Send it unencrypted for speed
b.Post it to a public website for convenience
c.Use secure, encrypted transmission to protect the NPI
d.Text the documents to the borrower's phone unencrypted
Explanation
GLBA's Safeguards Rule requires protecting NPI, so sensitive files should be transmitted using secure, encrypted methods. Sending unencrypted email, posting to a public website, or texting unencrypted documents all expose NPI and violate safeguarding duties.
Law Reference: Gramm-Leach-Bliley Act (Safeguards)Practice all 400 questions free — no signup required.
Related questions on this topic
- Which combination on a purchase file is the STRONGEST red flag for occupancy fraud?
- The core purpose of consumer protection laws like UDAAP in mortgage lending is to:
- An agent tells homeowners 'you should sell now before more minority families move in and prices drop,' hoping to profit from panic sales. This illegal practice is:
- Under RESPA, a mortgage broker takes a real estate agent to an expensive dinner every time the agent sends a referral. This is most likely:
- A lender refuses to count a borrower's part-time income solely because the borrower is a woman on maternity leave, assuming she 'won't return to work.' This assumption most likely violates ECOA on the basis of:
- Which loan feature, when combined with a borrower who clearly cannot afford it, is a hallmark of predatory lending?
Last reviewed: · editorial process
PrepPass Editorial Team · Verified against NMLS SAFE Mortgage Loan Originator National Test · How we review