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News & Press: Industry News

CFPB Proposes to Amend Gramm-Leach-Bliley Rule to Implement Recent Legislative Exemption

Tuesday, July 19, 2016  
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The Consumer Financial Protection Bureau (CFPB) proposed to implement recent Congressional legislation that allows financial institutions that meet certain requirements to be exempt from sending annual privacy notices to their customers.   When the Gramm-Leach-Bliley Act (GLBA) was passed, ALTA was successful in getting a provision in the Act that exempted title companies or other real estate companies from the annual notice requirement if there was not an ongoing relationship with the customer. However, this proposed change will affect title companies that are affiliated with lenders.

The Gramm-Leach-Bliley Act (GLBA) generally requires that financial institutions send annual privacy notices to customers. These notices must describe whether and how the financial institution shares customers’ nonpublic personal information. If the institution shares this information with unaffiliated third parties in ways other than specified by the statute, the institution typically must notify customers of their right to opt out of sharing and inform them of how to do so.

Federal regulations already establish an alternative delivery method for annual privacy notices. Companies that limit sharing of their customers’ information and meet other requirements can annually post privacy notices online rather than delivering them to customers individually. Under the latest CFPB proposal, any financial institution that meets the criteria for this alternative delivery method would also meet the requirements for the new exception to the annual notice requirement that was passed by Congress in 2015. The proposed rule is available on the CFPB’s website.

California Land Title Association

1215 K Street #1816 Sacramento, CA 95814-3905
Email:  |  Phone: 916-444-2647  |   Fax: 916-444-2851