Quiz Time: Gramm-Leach-Bliley Act

July 13, 2017

The following is a Q&A on a few data/document sharing scenarios as they relate to compliance with the Gramm-Leach-Bliley Act. Answers were provided by Richard Andreano and Kevin Leitao of the law firm Ballard Spahr.

1. You are leading a conference-style closing with five or six different parties in the room. Can you discuss the details of the buyer’s mortgage in the presence of third parties – including real estate brokers and the seller?

    • No, not without affirmative consent from the buyer or seller (if applicable)Disclosure is disclosure. It does not matter whether it is in writing or read aloud. Consider how to capture and retain the affirmative consent.

2. The buyer’s real estate agent asks the settlement/closing agent for a copy of the buyer’s Closing Disclosure “to help make sure everything goes smoothly.” Can you provide the Closing Disclosure form to the real estate agent?

    • No, not without affirmative consent from the buyer. The buyer’s Closing Disclosure has the buyer’s NPI. The buyer’s real estate agent does not need to have this NPI as part of their role on behalf of the buyer

3. The buyer’s real estate agent asks the settlement/closing agent for a copy of the ALTA Settlement Statement “to help make sure everything goes smoothly. Can you provide the Settlement Statement form to the real estate agent?

    • No, not without affirmative consent from the buyer. Like the Closing Disclosure, the ALTA Settlement Statement has the buyer’s NPI. The buyer’s real estate agent does not need to have this NPI as part of their role on behalf of the buyer

4. You are doing a closing where one of the parties is participating using email from another state. Is email an acceptable way to send closing documents with NPI back and forth?

    • It depends ... Regular email is not a secure way to transmit the consumer NPI in Closing Disclosures or Settlement Statements. Better practices include: secure email delivery and secure online portals


Contact ALTA at 202-296-3671 or communications@alta.org.

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