Gramm-Leach-Bliley Act (BLBA) & Telemarketing and consumer Fraud and abuse prevention act

GLB Act has 3 main requirements

Financial Privacy Rule Consumer right to opt out Safeguard Rule

Organization not required to access the National do Not call registry is because its either

a non profit organization or an organization that only makes phone calls that are - Informational messages - Surveys or political polls - Promoting a political party/candidate - Solicitations for charitable contributions

Records of all Telemarketing activities have to be kept for a period of

24 months

Penalties for violating the GLBA are

A financial Institution can be fined up to $100,000 for each violation The officers and directors of the financial institution can be fined up to $10,000 for each violation Criminal penalties include imprisonment for up to 5 years, a fine or both.

A Loan Originator may call a person on the Do not call registry if the originator has an

Established Business Relationship (EBR) with the person.

How Long do we Honor the Internal Do not call list?

Indefinitely

How Long do we have to honor the Do Not Call List?

Indefinitely

lenders must also maintain an

Internal do not call list. which applies to all mortgage loan originators in the company.

Financial Privacy Rule

Issues Privacy Notice These Notices must be Clear and Conspicuous with respect to their Privacy Practice The Notice Applies to the NON-PUBLIC Personal Info the company gathers

Do not call list

Numbers on the list stay there for ever. List needs to be updated and download every 31 days

An EBR exits with someone who was a

Party to a transaction with the MLO company in the last 18 months or; With someone who made an inquiry with the originator's company within the last 3 months

What entities are exempt from the Do-Not Call list?

Political Organizations and non profit organizations.

GLB Act

Protects Consumer's Privacy.

Safeguards Rule

Requires Financial institutions to develop, implement, and maintain a comprehensive information security program that contains administrative, technnical, and physical safeguards.

Telemarketing and Consumer Fraud and Abuse Prevention Act

a federal law that protects consumers from telemarketing deception and abuse.

Pretexting

occurs when someone tries to gain access to personal non public information without proper authority to do so.

Gram-Leach-Bliley Act (GLBA) encourages

organizations covered by GLBA to implement safeguards against pretexting.

Do-Not-Call Implementation Act

protects consumers from unwanted phone calls from telemarketers.

The Do Not Call Registry was created by

the Federal Communications Commission (FCC) and the Federal trade Commission (FTC)

Telemarketing and Consumer Fraud and Abuse Prevention Act is enforced by

the Federal Trade Commission (FTC)

Why do we have to think of the Safeguard Rule as requiring user ID/Passwords for all RMLO's who access the system

these procedures add other layers of compliance to identify the time and date of log in as well as the filed accessed. These allows the company to track RMLO History.

The Federal Trade Commission(FTC) Fines Telemarketing Companies

up to $42,530