What must MLOs ensure regarding borrower data privacy?

Mortgage Loan Originators (MLOs) must prioritize the privacy and security of borrower data, which is governed by the Gramm-Leach-Bliley Act (GLBA). This federal legislation requires financial institutions, including mortgage lenders, to protect consumers' personal financial information and provide privacy notices. Under the GLBA, MLOs must implement policies and procedures to safeguard sensitive customer data and ensure that it is not disclosed to unauthorized third parties.

The requirement for borrower data privacy through the GLBA underscores the importance of transparency and consumer trust in the lending process. MLOs are also expected to take reasonable steps to prevent data breaches and unauthorized access to borrower information, further aligning with the spirit of the law. Thus, recognizing the relevance of the GLBA in safeguarding borrower data leads to a better understanding of the legal framework within which MLOs operate.