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Have
you ever heard the phrase "... complies
with all applicable laws ...?" That
vague string of words is included in every
broker/originator agreement with their wholesale
funding sources. What do you think it means?
Being unaware of it or ignoring it, could be
expensive. I've seen wholesalers, when they get
squeezed, look 'downstream' to squeeze others.
If you're independent, then as a self employed
individual, you have loads of compliance issues
you must additionally follow (like you must have
a 'written information security plan' - do
you?), or you may be asked to buy back your
loans! Believe me, when a loan get's bought back
by the wholesaler - because their upstream
funding source got burned, they look down hill
at the broker of record, and all the way down to
the originator to see who they can strong-arm
into buying it back from them! Happens every day
in this industry! Things like that won't happen
to you next week, it will happen in a year or
two, when you're doing better and have a little
bit of money, more assets than you do now, etc.
Even if you work for someone else, the
Gramm-Leach-Bliley (GLB) Act requires you comply
with it, and very specifically it effect what
you do when you deal with applicants from your
home/office - even as an employee.
Unless you live alone and nobody ever enters
your home (housekeepers, 16 year old nephew,
neighbors, etc) then you must: 1). lock rooms
and file cabinets where paper records are kept;
2).using password-activated screensavers;
3).using strong passwords (at least eight
characters long) etc. (the list is a long one).
Think about it. Do you "store paper records
in a room, cabinet, or other container that is
locked when unattended;
ensure that storage areas are protected against
destruction or potential damage from physical
hazards, like fire or floods; store electronic
customer information on a secure server that is
accessible only with a password - or has
other security protections - and is kept in a
physically-secure area; don't store
sensitive customer data on a machine with an
Internet connection; and maintain secure backup
media and keep archived data secure, for
example, by storing off-line or in a
physically-secure area" -- if you don't,
you're violating the GLB Act, and you could be
subject to some unpleasant enforcement.
So you work on your computer a lot? Then you
must: "Provide for secure data transmission
(with clear instructions and simple security
tools) when you collect or transmit customer
information. Specifically: if you collect credit
card information or other sensitive financial
data, use a Secure Sockets Layer (SSL) or other
secure connection so that the information is encrypted
in transit; if you collect information
directly from consumers, make secure
transmission automatic. Caution consumers
against transmitting sensitive data, like
account numbers, via electronic mail; and if you
must transmit sensitive data by electronic mail,
ensure that such messages are password
protected so that only authorized employees
have access.
Here's where you can read all about it, all nice
and neat for you to digest in one reading:
http://www.ftc.gov/bcp/conline/pubs/buspubs/safeguards.htm
and remember, when you violate just this one
law, all the loans you work on at home are
subject to be bought back.You may be stunned
to learn what it is you don't even realize you
don't know yet! And this law is one of the
smaller ones you need to comply with, it
ain't only all about selling and cashing big
commission checks.
This isn't just any old commissioned sales job;
there's scores of laws that regulate what you're
allowed to do and what you should not. You don't
get to play with the biggest single asset
most families will ever have, their emotions and
their future, when your training is only 20
minutes deep and you've been on the job a whole
10 months!
CLICK
IT to discuss this point on our Board
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