Is Vendor Management interaction (contract information, licenses, insurance documents billing etc.) subject to NPPI rules for lenders?

The NPPI rules are going to apply to your vendors handling of your information in the same way they would apply to you. The extent your vendors are collecting or using NPPI about your customers, then it needs to be subject to all the same controls and protections as if you were doing it yourself.

Note: This transcript has been edited from the January 2015 vendor management webinar for clarity and completeness.

Answered By: Ben Olson

What is the fine for CAN SPAM act per occurrence?

Each separate email in violation of the CAN-SPAM Act is subject to penalties of up to $16,000.

Note: This transcript has been edited from the March 2015 RESPA Section 8 webinar for clarity and completeness.

Answered By: Marx Sterbcow

Can you expand on why a live transfer is one to stay away from?

Online lead generation companies where the lead generation company has spoken directly with the consumer and then transfers the “Live Handoff” over to the Lender or Loan Officer (especially if the Lead Generation company is not licensed under the Safe Act in their respective state) is a huge concern for regulators in today’s regulatory environment. The regulators have indicated many of these companies are nothing more than unlicensed “mortgage brokers” who are operating in violation of the Loan Officer Compensation Rule that went into effect on Jan. 1, 2014 because the lead generation company is soliciting consumer information for loan products without a license. The CFPB has publicly stated they are concerned with this type of lead generation marketing tactic because consumers are prone to give out sensitive personal and financial information. Additionally the CFPB has stated that “live transfers” confuse consumers into thinking they are dealing directly with a lender when in fact they are not. In addition to Loan Officer Compensation issues there are a myriad of other compliance headaches (Fair Lending Act, UDAAP, Fair Housing Act, Telephone Consumer Protection Act, Telemarketing Sales Rule, privacy issues, CAN Spam Act, etc.) which make these types of “Live transfer” lead generation companies fertile grounds for regulatory enforcement action.

Note: This transcript has been edited from the March 2015 RESPA Section 8 webinar for clarity and completeness.

Answered By: Marx Sterbcow

By law you are to retain the CD for five years. What happens in year six?

The closing disclosure is currently required because it has non-public information on it that is a five year from the date of closing retention. The question is what happens if in year six suddenly there is an issue where you need to provide it? Well then you’re legal obligation to have it is gone at the end of that fifth year. So if you’re in year six you legally do not have to have that closing disclosure retained. You can destroy it five years and a day after closing.

Answered By: Charles Cain

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