Privacy in Mortgage Banking transactions
Twenty Questions with Correct Answers
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The Disposal Rule promulgated by the FTC pursuant to the
FACT Act requires:
Select one or more:
a. The proper disposal of consumer credit
reports or information derived from consumer credit reports
b. Provides very specific acceptable manners of disposal
c. Allows for flexibility on the part of the
disposer of the information
d. Applies only to financial institutions
The government agency in charge of enforcing the GLB Act is:
Select one:
a. The Federal Reserve Board (FRB)
b. The Federal Trade Commission (FTC) and the Treasury
Department
c. The Securities and Exchange Commission (SEC)
d. The Office of the Comptroller of the Currency (OCC), the
Office of Thrift Supervision (OTS), the National Credit Union Administration
(NCUA) and the Federal Deposit Insurance Corporation (FDIC)
e. All of
the above
Question 3
The required components of the privacy notice given to
customers include:
Select one:
a. Providing an opt out
b. Notifying the customer of who the NPI is shared with
c. Notifying the customer about how NPI is protected
d. All of
the above
e. Notifying the customer about what type of NPI is
collected
Question 4
The first law to recognize that personal, non-public
financial information was private and should be protected is:
Select one:
a. Privacy Act of 1974
b. Right to Financial Privacy Act
c. Fair
Credit Reporting Act (FCRA)
d. Financial Services Modernization Act (also known as the
GLB Act)
Question 5
The required components of the privacy notice given to all
consumers include:
Select one:
a. Notifying the consumer about what type of NPI is
collected and who it is shared with
b. Providing an opt out
c. Notifying the consumer about how to obtain a copy of the
privacy notice
d. A and B
only
e. B and C only
Question 6
The privacy notice must meet certain appearance requirements
which include:
Select one or more:
a. Clear
and conspicuous language that is easy to understand
b. Must be printed in bold type
c. If
provided on the website, it must be on a page that is regularly accessed by the
customer, or show the link on a page that is regularly accessed by the customer
d. Must be
stated in a way that calls attention to the importance of the notice
e. All of the above
Question 7
Account numbers may never be shared:
Select one:
a. With service providers who cannot initiate charges to the
account
b. For
marketing purposes
c. Even if the account numbers are encrypted and the
recipient has no way of decoding them
d. All of the above
Question 8
Under the GLB Act a financial institution has the
responsibility to:
Select one:
a. Keep financial information private
b. Only share with affiliates after informing individuals of
information sharing policies and providing an opportunity to opt out
c. Never share account numbers for marketing, even if the
customer did not opt out
d. All of
the above
e. Only A and B
Question 9
The GLB Act was enacted to address concerns regarding:
Select one:
a. Technological advances that affected the finance industry
b. Improper use of consumer credit reports
c. Identity theft
d. Both A
and C
Question 10
The opt-out notice required by the GLB Act prior to sharing
NPI with non-affiliated third parties must:
Select one:
a. Provide
a reasonable means of opting out and provide a reasonable time to opt
out
b. Be affective for at least 12 months
c. Be given verbally or in writing
d. All of the above
Question 11
Information that is not subject to the privacy provisions of
the GLB Act is:
Select one:
a. Information that is publicly available
b. Information that the institution reasonably believed was
publicly available
c. Both A
and B
d. Neither A nor B
Question 12
FCRA allows for the sharing of consumer credit information:
Select one or more:
a. With non-affiliates, but only with an opt-out
b. Without providing an opt-out notice
c. With affiliates, and no opt-out is required
d. With
affiliates, but only with an opt-out
Question 13
A consumer, for the purposes of the GLB Act, is someone who:
Select one:
a. Has obtained a financial product from the financial
institution
b. All of the above
c. Obtains
or will obtain a financial product or service
d. Has an ongoing and continuous relationship with the
financial institution
Question 14
The GLB Act allows a financial institution to share NPI with
non-affiliated third parties subject to certain exceptions. Those exceptions
are:
Select one:
a. Service providers and vendors
b. Information shared pursuant to a joint marketing
agreement if the agreement is in writing and for financial products or services
c. To administer or service the account
d. Information is required pursuant to court order,
subpoena, search warrant, or in conjunction with regulatory examination
e. All of
the above
Question 15
The privacy provisions of the GLB Act apply to the
non-public, personal information (NPI) of:
Select one:
a. Consumers
b. Customers
c. Businesses
d. Both A
and B
e. All of the above
Question 16
The required features of the Safeguards Rule include all
except:
Select one:
a. At least one employee specifically designated to
coordinate the program
b. Continuous monitoring, testing and updating of the
program
c. A written safeguarding policy
d. Safe
harbor for institutions who use a third party to provide safeguarding services
Question 17
According to the Safeguards Rule, assessing the risk
includes:
Select one:
a. Employee management and training
b. Testing the integrity of the system
c. Relying solely on third parties to safeguard customer
information
d. All of the above
e. A and B
only
Question 18
In order to deliver the privacy policy via website, the
financial institution must:
Select one:
a. Receive
customer consent to receive it in this manner
b. First provide the policy in paper form at least once
c. Obtain written consent to receive it in this manner
d. Also provide the policy in paper form
Question 19
Privacy of personal and financial information is codified by
the following federal statute(s)?
Select one or more:
a. Equal Credit Opportunity Act (ECOA)
b. Fair and
Accurate Credit Transactions Act (FACT Act)
c. Gramm-Leach-Bliley
Act (GLB Act)
d. Fair
Credit Reporting Act (FCRA)
Question 20
Liability and penalties for violations of the GLB Act
include:
Select one:
a. Liability for the institution as well as for individual
employees and directors
b. Fines of up to $10,000 per individual and $100,000 per
entity
c. Imprisonment
d. Loss of lending privileges
e. All of
the above
Correct answers are in bold type :)
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