Are you aware of any recent changes to the FTC’s rules and regulations that apply to mortgage brokers and lenders?
The Federal Trade Commission (FTC) recently amended its Standards for Safeguarding Customer Information (Safeguards Rule) to reflect current technology and provide more concrete guidance for businesses. The revised Rule took effect on December 9, 2021 and most mortgage brokers and lenders must comply by June 9, 2023.
Why is the Safeguards Rule important for mortgage brokers and lenders?
Mortgage brokers and lenders collect and store a large amount of sensitive customer information such as Social Security numbers, bank account numbers and credit scores. This information is a prime target for cybercriminals who can use it to commit identity theft and other financial crimes.
The Safeguards Rule helps to protect mortgage brokers and lenders from data breaches and other security incidents by requiring them to implement a comprehensive information security program and this program includes:
- Secure customer information from unauthorized access, use or disclosure.
- Protect customer information from accidental destruction, alteration or loss.
- Dispose of customer information securely when it is no longer needed.
How can mortgage brokers and lenders comply with the Safeguards Rule?
The FTC has provided a number of resources to help mortgage brokers and lenders comply with the Safeguards Rule this includes
- A compliance guide for small entities
- A list of frequently asked questions
- A sample information security program
If you are a mortgage broker or lender in the Chicago business area, Chicago Computer Network can help you comply with the Safeguards Rule and we offer a range of compliance services just for you
- Risk assessments
- Development and implementation of information security programs
- Security awareness training and Incident response planning
- Service provider oversight and Multi-factor authentication implementation
- We can also help you to develop and maintain a compliance management program to ensure that you are always up-to-date on the latest FTC requirements.
Contact us today to learn more about our compliance services for mortgage brokers and lenders or DOWNLOAD YOUR FREE FTC REPORTS HERE.