Yes. Mortgage brokers are financial institutions as referenced in the Bank Holding Company Act and are subject to the FTC’s enforcement authority, its Privacy Rule, and Safeguards Rule. The Privacy Rule applies when individuals seek your assistance in obtaining mortgage loans that are primarily for personal, family, or household purposes. Under the Privacy Rule, a customer relationship is established when an individual enters into an agreement or understanding with you to arrange or broker a residential mortgage loan. You also establish a customer relationship when an individual provides personally identifiable financial information to you in an effort to obtain a residential mortgage loan.

Yes. The Rule requires that you provide an initial privacy notice not later than when the customer relationship is established.

A customer relationship is established as soon as an individual provides personally identifiable financial information to you. That means that you must deliver a privacy notice before or at the same time as the individual provides such information in person.

Yes. The Rule requires that you provide an initial privacy notice not later than when the customer relationship is established. As a result, you must deliver a privacy notice not later than when personally identifiable information is submitted.

You may deliver a notice to online applicants by posting your current privacy notice clearly and conspicuously on your website if the applicants acknowledge its receipt not later than when they submit their application information. You must also provide the notice so that your customers can retain it or obtain it later. One way of doing this is to make your current privacy notice available on your website for online applicants who agree to receive the notice at the website.

Subsequent delivery is permitted under certain circumstances. The Privacy Rule permits subsequent delivery of notices within a reasonable time after you establish a customer relationship if (1) providing notice not later than when you establish the customer relationship would substantially delay the customer’s transaction, and (2) the customer agrees to receive the notice at a later time.

No. An individual who has obtained a loan through you becomes a former customer when you no longer provide any statements or notices to the customer concerning that relationship. However, you may need to provide a revised privacy notice and opt out notice if you intend to disclose nonpublic personal information about a former customer other than as described in the initial privacy notice that you provided.

No. The Rule allows you to disclose nonpublic personal information about your customers without providing them a reasonable opportunity to opt out under certain circumstances. These exceptions to the opt out requirement are described at §§ 313.13 through 313.15 of the Privacy Rule. Pursuant to § 313.14, you do not need to allow your customers to opt out of disclosures that are necessary for processing or administering financial transactions that they have requested or authorized. This would include, for example, disclosures to a prospective lender where your customer has authorized you to look for a mortgage loan and the disclosure is necessary to broker the loan. Further, the exceptions under § 313.15 include disclosures of information to a consumer reporting agency that are made in accordance with the Fair Credit Reporting Act, 15 U.S.C. § 1681 et seq.

As a Financial Institution or Mortgage Company you can subscribe to RERAC for one of the following: 

1. Full Program Subscription

The Full Program is currently priced at $535. This program entitles you to the following:

A comprehensive self assessment for compliance

Management of your vendors, Vendor Agreements

Development of your CISP

Customized Compliance Manuals, Privacy Notices, Policies and Procedures

One seat for Comprehensive Privacy and Safeguards training for Privacy Officer

Additional training seats that provide Comprehensive Privacy and Safeguards training for your staff, management are priced at $35 per seat. 

2. Vendor Agreement Subscription

The Vendor Agreement program for vendor management and Vendor Agreements is currently priced at $250. 

If you are Vendor you can choose the Vendor Training Program, currently priced at $225. 

With the Vendor Training program subscription you are entitled to one seat for Vendor Training. Additional seats are $30 per seat. 

All subscriptions are annual and are renewable at 75% of the first year price.  Training seats are not renewed – you will only need to purchase additional seats for new employees at the prevailing price. If your subscription lapses, all programs will terminate including access to the system. 

To get a snap shot of our programs, please click here.