Senior Reverse Mortgage | Privacy Laws and You

In addition to individual company privacy policies, there are federal laws in place to protect your privacy. Understanding these laws is crucial to knowing your rights and in any transaction requiring your personal information.

Privacy Laws

Equal Credit Opportunity Act (15 U.S.C. § 1691, et. seq.)

This act mandates that lenders and others who extend credit must not discriminate against someone because of their race, ethnicity, religion, sex, or marital status. There is a section of the reverse mortgage application where applicants can provide this type information about themselves. Providing this information allows regulators to evaluate whether lenders are extending credit in an unbiased manner. This act also requires that when credit is denied, the applicant be informed of the reason within 30 days of the denial.

Fair Housing Statute (42 U.S.C. §§ 3604, 3605)

This statute restricts the way information regarding a person's sex, race, religion, and national origin is solicited and used in order to prevent housing discrimination.

Gramm-Leach-Bliley Act (15 U.S.C. §§ 6801, et. seq.)

In 1999, the Gramm-Leach-Bliley Financial Modernization Act was enacted in order to require "companies to give consumers privacy notices that explain the institutions' information-sharing practices. In turn, consumers have the right to limit some – but not all – sharing of their information".[1] The enforcement of this act protects the privacy of the information consumers share with the companies with whom they do business. It also requires companies to put out annual written or electronic notices that describe how the information collected may be shared, the client's right to opt out, and their complete privacy policy. If you decide to pursue a reverse mortgage, you should receive a copy of your lender's privacy policy at the same time that you receive your application. If you are working with a broker, you should receive an additional privacy policy from the broker. Senior Reverse Mortgage does not sell personal information.

Privacy Act (5 U.S.C. § 552a)

This act requires that personal data be collected directly from the applicant as much as possible. It also prohibits the collection of information that is protected by the first amendment, such as religion. Additionally, this act obligates companies to inform applicants of the purpose for collecting information and how it will be used. Information that is collected during the course of a reverse mortgage application will be similar to information that is collected for any loan application, such as name, date of birth, social security number, address, credit history, income and assets.

Right to Financial Privacy Act (12 U.S.C. § 3401, et. seq.)

This act prohibits the federal government from accessing an individual's private financial information without first obtaining a court order or permission from the individual. This act also prevents federal agencies from sharing information unless they can prove that it is legally relevant to the present case.

Fair Credit Billing Act (15 U.S.C. § 1666)

This act requires creditors to investigate any possible billing errors on revolving debts at the request of the borrower and to either provide written evidence of the validity of the disputed charges or correct the error. It also prohibits creditors from taking action against individuals for disputed debts while they are in the process of investigating that debt. This act also requires the timely posting of any activity on any credit, debit, or other revolving account.

Fair Credit Reporting Act (15 U.S.C. § 1681, et. seq.)

The Fair Credit Reporting Act contains regulations that help ensure the accuracy of the information contained in consumer credit reports. It mandates that consumers be informed if and when information contained on their credit report has been used against them. Under this act, credit bureaus must provide consumers with a copy of their credit report upon request. Consumers are eligible to receive a free copy of their report once every twelve months. Any additional reports may be subject to fees. If errors are found on a consumer's credit report, the Fair Credit Reporting Act gives them the right to dispute the errant information and requires creditors to correct any information deemed incorrect or fraudulent.

In addition to these safeguards, which were enacted by the federal government, many states have their own privacy laws. For more information, contact your reverse mortgage loan specialist or your state's attorney general.