Misc. Laws Flashcards
What does GLB stand for?
Gramm Leach Bliley Act
What is the Financial Services Modernization Act of 1999?
GLB
What makes up the GLB Act?
- Safeguards Rule
- Financial Privacy Rule
- Pretexting Provisions
Safeguards Rule
take reasonable care to “safeguard” NPPI (lock your cabinet)
Pretexting Provisions
Don’t pretend to be from the government
Financial Privacy Rule
- Defines Non-Public Private Information (NPPI)
- Requires Consumer Privacy Policy sent to consumer annually or before sharing NPPI
What does the PATRIOT Act require creditors to have and maintain?
Customer Identification Programs (CIPs)
According to the PATRIOT Act, what must creditor verify?
SSN / TIN, Address, Name, DOB (SAND)
- Must verify w/ Covered Document (current government issued ID)
- Not required to verify phone number
What is the E-SIGN Act?
Electronic Signatures in Global and National Commerce Act
E-SIGN Act
- Customer always has choice to use E-sigs or not
- May rescind choice and choose a “wet” signature (ink on paper) at any time
What does BSA / AML stand for?
Bank Secrecy Act / Anti-Money Laundering Act
What does BSA / AML say is the amount that must be reported for all cash transactions?
Anything greater than $10,000
According to BSA / AML, one must report all electronic / wire transactions if:
- Insider abuse = any $ amount
- Suspect / Suspicion = $5,000 and up
- All transactions = $25,000 and up
BSA / AML records must be kept for
5 years
If required to report, file SARs w/ FBI, can you tell the person?
NO!
Who governs the Do Not Call Registry?
FTC
If you violate the Do Not Call Registry what is the MAX civil penalty per violation?
$16,000 per violation
How frequently must the National DNC be updated?
every 90 days
How frequently must the Internal DNC be updated?
every 30 days
If on National but not Internal List, EBR rules apply:
- If EBR, may contact 90 days from application
- If EBR, may contact 18 months from closing loan or collecting $
- Even if EBR, consumer may always request internal DNC List
If ever on internal list, must honor DNC. (True or False)
True
If on neither National or Internal DNC List, what rules apply?
Telephone Consumer Protection Act (TCPA) rules apply
- Legal cold-calling hours are 8a-9p consumer’s local time
What is the MARS-O Rule?
Mortgage Assistance Relief Services – governs relief / rescue / modification companies
According to the MARS-O Rule, relief companies cannot collect a fee until when?
Until borrower has bona fide written offer from their current lender which avoids foreclosure that they find acceptable
What is the MARS-O Rule retention?
2 years
What Regulation is the MAP Rules?
Regulation N
What do the Map Rules-N say?
- Mortgage Acts and Practices – governs advertisements
- Clear and Conspicuous and Equal Prominence
What does HPA stand for?
Homeowner’s Protection Act
What does the Homeowner’s Protection Act govern?
Governs PMI (not MIP) — not related to HOEPA
According to HPA, a borrower may request cancellation of PMI at what percentage LTV
80% LTV
According to HPA, a creditor can require:
- New appraisal
- 5 years of PMI
- clean payment history last 12 months
When must automatic cancellation of PMI occur?
When borrower has paid the principal balance
down to 78% of the original value (from consummation)
