Gramm Leach-Biley Act

All of the following are disclosures required by the Gramm-Leach-Bliley Act, except: A) A modified privacy notice B) An annual privacy notice C) An opt-out notice D) An initial privacy notice

A) A modified privacy notice

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

A) An Affiliate

Financial institutions may deliver an annual privacy notice online if all of the following requirements are met, except: A) The financial institution uses the model form provided in Regulation P B) The consumer is not allowed to navigate away from the page until acknowledging receipt of the notice C) Opt-out rights are not triggered by the institution's information-sharing practices D) Opt-out notices required by FCRA have previously been provided to the consumer

B) The consumer is not allowed to navigate away from the page until acknowledging receipt of the notice

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

B) The county tax assessment on a borrower's property

Financial institutions are not required to provide an initial privacy notice to ______ unless information will be shared with a nonaffiliated third party. A) A customer B) A loan applicant C) An affiliated third party D) A consumer

D) A Consumer

Why are mortgage brokers regulated under the GLB Act? A) They have access to a significant amount of nonpublic personal information B) The GLB Act regulates all real estate transactions, and mortgage brokering is considered a real estate transaction C) Many mortgage brokers work for banks and other financial institutions that are regulated by the GLB Act D) The GLB Act regulates all financial institutions and financial activities, and brokering loans is considered a financial activity

D) The GLB Act regulates all financial institutions and financial activities, and brokering loans is considered a financial activity

All of the following are included in the consumer protections under the Gramm-Leach-Bliley Act, except: A) Advising a consumer about a lender's policies regarding the use of personal information B) Creating policies related to the types of marketing materials that are disbursed to consumers C) Giving consumers the opportunity to limit the use of their personal information D) Establishing a security program to protect consumer personal information from misuse

B) Creating policies related to the types of marketing materials that are disbursed to consumers

The provisions of the GLB Act specifically require compliance with the: A) Safeguards Rule B) MARS Rule C) PATRIOT Act D) Truth-in-Lending Act

A) Safeguards Rule

Which of the following would be considered a reasonable means of opting out? A) The consumer is provided with a toll-free number where he/she can provide opt-out information to a call center representative B) The consumer is advised that he/she must complete a simple form available online and have it notarized C) The consumer is advised that he/she may stop by any service location in person and complete a form or speak with a representative D) The consumer is provided with instructions on writing his/her own opt-out statement

A) The consumer is provided with a toll-free number where he/she can provide opt-out information to a call center representative

An initial privacy notice would be required for all of the following situations, except: A) A financial institution intends to share consumer information with a nonaffiliated third party B) A financial institution intends to share consumer information with an affiliate C) A financial institution intends to share customer information with a nonaffiliated third party D) A financial institution intends to share customer information with an affiliate

B) A financial institution intends to share consumer information with an affiliate

An initial privacy notice is due to a consumer at what point? A) Within seven business days of a customer providing nonpublic personal information sufficient to pull a credit report B) Within three business days of initial contact between the consumer and the financial institution C) No later than the time a customer relationship is established D) No later than three business days prior to settlement

C) No later than the time a customer relationship is established

Information and person protected by the GLB Act

In the context of mortgage lending, a customer relationship and the requirements for protecting customer information exist when: - A customer completes an application for a loan - A customer obtains a loan from a lender or mortgage broker - A financial institution obtains the servicing rights for a loan The GLB Act does not extend protection to publicly available information, which includes: - Information in government real estate records - Information from a telephone book or information included on a public and unrestricted web site - Listed telephone numbers provided by customers

Non-Public Personal Information / Personally Identifiable Info

Is defined by GLBA as personally identifiable financial information -Information provided by a consumer to obtain financial products or services, including information provided to obtain a loan -Account balance and history -The fact that an individual is or has been a customer of a financial institution -Information provided by a consumer to a financial institution or its agent in relation to collecting on or servicing a loan -Information obtained from an Internet "cookie" -Information from a consumer report

Purpose of the GLB ACT

The purpose of the privacy provisions of the GLB Act is to ensure that financial institutions, including mortgage brokers and lenders, protect nonpublic personal information of consumers by: - Advising consumers of the financial institution's policies with regard to the use and exchange of personal information - Offering consumers the opportunity to limit the use and exchange of their personal information - Creating a security program to protect personal information from unauthorized release and disclosure