Red Flags Rule Delayed

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MORTGAGE EXPERT
11 · 02 · 09

Implementation of the Red Flags Rule has been delayed again.

The Federal Trade Commission announced Friday that enforcement of the rule has been delayed until June 1, 2010.

The rule, required under the Fair and Accurate Credit Transactions Act, was originally set to be implemented in April. The FTC first delayed enforcement until Aug. 1, then subsequently delayed it again until Nov. 1.

Its purpose is to require firms that handle personal data “to develop and implement written identity theft prevention programs to help identify, detect, and respond to patterns, practices or specific activities — known as ‘red flags’ — that could indicate identity theft,” today’s statement said.

The FTC has established a Web site with a how-to-guide for businesses.

In addition, Informative Research recently announced that it added sample policies and procedures to its broker Red Flags Toolkit in an effort to help its customers maintain compliance. Informative Research said mortgage brokers who don’t service loans require a narrower scope of procedures than traditional lenders.

Mortgage Expert

Mortgage Daily Staff

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