A Borrower's Right to Privacy in a Mortgage Transaction

A customer relationship is established when: A. A seller and a consumer have engaged in a financial transaction within the preceding 18 months B. A seller and a consumer have engaged in a financial transaction at least three times in the preceding 18 months C. A seller and a consumer have engaged in a financial transaction within the preceding 36 months D. A seller and a consumer have engaged in a financial transaction at least three times in the preceding 36 months

A. A seller and a consumer have engaged in a financial transaction within the preceding 18 months

The Telemarketing Sales Rule limits calls to: A. Between the hours of 8 am and 9 pm in the consumer's time zone B. Between the hours of 8 am and 9 pm in the caller's time zone C. Before 8 am and after 9 pm in the consumer's time zone D. Before 8 am and after 9 pm in the caller's time zone

A. Between the hours of 8 am and 9 pm in the consumer's time zone

Initial privacy notices and opt-out notices: A. May be combined in one document B. Must be provided as separate documents C. May be combined with other disclosures into one document D. May be combined in one document only if they are printed on paper that is a different color from other disclosures

A. May be combined in one document

The Gramm-Leach-Bliley Act protects the privacy of nonpublic personal information using all of the following methods, except: A. Requiring financial institutions to obtain permission for the use and sharing of consumers' nonpublic personal information B. Advising consumers of the financial institution's policies regarding the use and exchange of personal information C. Offering consumers the right to opt out of the sharing of nonpublic personal information D. Requiring a security program for the protection of nonpublic personal information

A. Requiring financial institutions to obtain permission for the use and sharing of consumers' nonpublic personal information

This federal law gives the CFPB the authority to address violations of the GLB Act. A. The Dodd-Frank Act B. The Safeguards Rule C. The CFPB Act D. The Telemarketing Act

A. The Dodd-Frank Act

The Gramm-Leach-Bliley Act requires compliance with: A. The Safeguards Rule B. The Telemarketing Rule C. The Privacy Rule D. The Removal Rule

A. The Safeguards Rule

Which of the following would not be categorized as nonpublic personal information? A. The county tax assessment on a borrower's property B. A loan applicant's personal cell phone number C. A customer's account number with his or her loan servicer D. Number of days late a consumer has paid his or her credit card bills

A. The county tax assessment on a borrower's property

Interstate calls under the Telemarketing Sales Rule are regulated by the: A. FCC B. FTC C. CFPB D. NMLS

B. FTC

Information that is protected as nonpublic personal information under the GLB Act would include: A. Information in government real estate records B. Information found on a credit report C. Listed telephone numbers D. Information on an unrestricted website

B. Information found on a credit report

The Gramm-Leach-Bliley Act's privacy provisions are found under: A. Title III B. Title V C. Title VII D. Title IX

B. Title V

According to the Fair Credit Reporting Act, lenders and brokers are __________ that can be obtained from consumer reports. A. Entities that report information B. Users of personal financial information C. Entities with primary access to nonpublic information D. Users of loan data

B. Users of personal financial information

The Safeguards Rule requires security programs for the protection of personal information to include all but which of the following elements? A. Oversight of service providers B. Designation of an employee to coordinate the security program C. A procedure for obtaining customer permission to dispose of their personal information D. Regular testing and monitoring of the security program

C. A procedure for obtaining customer permission to dispose of their personal information

Under the GLB Act, which of the following is defined as a company that is controlled by, or under common control with, another company? A. A partnership B. An associate C. An affiliate D. A joint venture

C. An affiliate

The Gramm-Leach-Bliley Act is enforced by: A. The FTC B. The FCC C. The CFPB D. The FBI

C. The CFPB

Which of the following is not an exception to the requirement to provide an opt-out notice? A. The financial institution only shares customer information with third parties who perform settlement services for the customer B. The financial institution only shares information with affiliates C. The financial institution shares information with non-affiliated third parties D. After securing contractual agreements for the protection of personal information, the financial institution discloses information in order to obtain services for marketing purposes

C. The financial institution shares information with non-affiliated third parties

Violations of the Telemarketing Sales Rule are also regarded as ________________ under the Federal Trade Commission Act. A. Mortgage fraud B. Abusive solicitation practices C. Unfair or deceptive trade practices D. Misleading or predatory trade practices

C. Unfair or deceptive trade practices

Privacy notices must describe the categories of ___________________ collected and disclosed by a financial institution. A. Personal information B. Nonpublic personal information C. Public and nonpublic personal information D. Public personal information

B. Nonpublic personal information

Consumers may bring a civil action to enforce the Telemarketing Sales Rule if they have suffered: A. $500 or more in actual damages B. $5,000 or more in actual damages C. $50,000 or more in actual damages D. $15,000 or more in actual damages

C. $50,000 or more in actual damages

Annual privacy notices are due: A. No later than January 31 of each calendar year B. No later than December 31 of each calendar year C. Each year until the customer relationship ends D. Each year until the customer waives the right to receive annual notices

C. Each year until the customer relationship ends

The implementing regulations of the Gramm-Leach-Bliley Act are known as: A. Regulation C B. Regulation X C. Regulation P D. Regulation Z

C. Regulation P

The Telemarketing Sales Rule requires telemarketers and sellers to update their call lists by cross-referencing the Do-Not-Call Registry: A. Every 30 days B. Every 31 days C. Every 60 days D. Every 61 days

B. Every 31 days

The scope of the GLB Act does not extend to: A. Purchase money mortgages B. Refinances C. Home equity lines of credit D. Loans for commercial or agricultural purposes

D. Loans for commercial or agricultural purposes

How often are consumers required to update their information on the Do-Not-Call Registry? A. Every 18 months B. Every five years C. Every ten years D. Never; registration is permanent

D. Never; registration is permanent

A third party who receives nonpublic personal information because a customer did not opt out has the authority to disclose that information to any of the following, except: A. Affiliates of the financial institution that released the information B. The third party's own affiliates C. Any other party if disclosure would be legal based on the fact that the financial institution originally disclosing the information could release the information D. Third parties are never permitted to receive nonpublic personal information

D. Third parties are never permitted to receive nonpublic personal information

Sellers and telemarketers under the Telemarketing Sales Rule are required to keep records of materials related to their telemarketing materials for a period of: A. 24 months B. 12 months C. 36 months D. 48 months

A. 24 months