home subscribe advertise reprints e-mail help RSS about us LOG IN

Mortgage News

 

Mortgage News

HOT Topics

production

servicing

compliance

legal

fraud

secondary

jobs

appraisal

site map

www.loan-academy.com/
twitter linkedin
facebook google+
Search:

Mortgage News

News by Subject
Complete list of specialty news sections.

Purchase Subscription
Subscribe to MortgageDaily.com and get immediate access to all news, statistics and archives.

Mortgage Advertising
Reach mortgage executives, loan originators and other people tied to mortgage industry.

Consumer Mortgage News
Free mortgage news for prospective borrowers.

Mortgage Newsletter
Free e-mail newsletter with the latest headlines from MortgageDaily.com.

Mortgage News Reprints
Put entire MortgageDaily.com stories in your online or printed newsletter or publication.

Mortgage Feedget RSS code
Condensed MortgageDaily.com stories free on your Web site or for your RSS reader.

News Archives
Archive of MortgageDaily.com stories by month going back to 1999.

Press Releases
Reports and announcements from MortgageDaily.com.

Mortgage Statistics
Data and statistics for real estate finance.

Mortgage Directories
Directories of lenders, branch operators and mortgage service providers.

Mortgage Graphs
Directories of lenders, branch operators and mortgage service providers.

Privacy News and Privacy Policy
Stories about privacy regualtion, actions and issues. MortgageDaily.com's privacy policy.




Disposal Rule In Effect

Brokers, lenders required to destroy reports

June 6, 2005

By MortgageDaily.com staff


In the wake of the overturned Arthur Anderson criminal conviction, the federal government has implemented a rule that requires mortgage companies to destroy documents and computer files.

Since June 1, lenders and brokers have been required to abide by the Disposal Rule, which requires businesses and individuals to take appropriate measures to dispose of sensitive information derived from consumer reports, the Federal Trade Commission announced. The rule, a part of the Fair and Accurate Credit Transactions Act of 2003, was created as a way to prevent unauthorized access to or use of consumer report information.

A consumer report is defined as including information obtained from a consumer reporting company that is -- or expected to be -- used in establishing a consumer's eligibility for credit, employment, or insurance, among other purposes. Examples of consumer reports include credit reports, credit scores, reports businesses or individuals receive with information relating to employment background, check writing history, insurance claims, and residential or tenant history, according to the announcement.

Last week, the U.S. Supreme Court revealed its decision to reverse a criminal conviction against Arthur Anderson. The accounting firm had been convicted because it directed employees to destroy documents as part of a retention policy while the company was under criminal investigation. But the court noted in its decision, "The jury instructions failed to convey properly the elements of a corrupt persuasion conviction."

Lenders, brokers or any individual using such information for a business purpose are allowed to determine what disposal practices are reasonable and appropriate based on the sensitivity of the information, the costs and benefits of various disposal methods, and changes in technology. Although the Disposal Rule applies to consumer reports and the information derived from consumer reports, the Fed recommended taking protective measures to dispose of any records containing a consumer's personal or financial information.

The information, whether its on paper, electronic files or media, must be disposed of so as to not be read or reconstructed, the FTC reported.



SUBSCRIBERS: Edit Subscription | Subscription Help | or call 214.521.1300

Subscribe Contact Us Site Map

Copyright © 2017 Mortgage Daily, D a l l a s
Subsribers Only:

AMC directory

ARM indexes

mortgage company directory

mortgage regulations

net branch directory

p r i c i n g engine directory

wholesale lender directory

More Mortgage News Resources (full site map):

advertising news

appraisal news

bank news

biggest lenders

commercial mortgage news

corporate mortgage news

credit news

FHA news

financial regulation news

foreclosure news

GSE news

jumbo mortgage news

interest rates

loan modification news

loan originator survey

LOS Newsletter

MBS

mortgage associations

mortgage-backed securities

mortgage books

mortgage brokers

mortgage compliance

mortgage conferences

mortgage directories

mortgage education

mortgage employment

mortgage employment index

mortgage executives

mortgage fraud

mortgage fraud blog

mortgage fraud local news

Mortgage Fraud Index

Mortgage Graveyard

mortgage insurance news

mortgage lawsuits

mortgage leads

mortgage lender ranking

mortgage licenses

mortgage litigation

Mortgage Litigation Index

Mortgage Market Index

mortgage mergers

mortgage news

mortgage politics

mortgage press releases

mortgage production

mortgage public relations

mortgage rates

mortgage servicing

mortgage statistics

mortgage technology

mortgage video

mortgage Webinars

net branch

net branch directory

nonprime news

origination news

originator tools

real estate news

refinance news

reverse mortgage news

secondary marketing

social media

servicing news

subprime news

wholesale lenders