Arizona Mortgage Brokers Association - On August 1st, 2009, the Federal Trade Commission's (FTC) Red Flag Rule goes into mandatory compliance for all Mortgage Brokers.
You may recall that this rule had been delayed to allow time for compliance. Well, the day of reckoning is here.
Here are the basic four provisions of the statute:
- Identify Relevant Red Flags - identify the red flags of identity theft you're likely to come across in your business.
- Detect Red Flags - Set up procedures to detect those red flags in your day-to-day operations.
- Prevent and Mitigate Identity Theft - If you spot the red flags you've identified, respond appropriately to prevent and mitigate the harm done.
- Update your Program - the risks of identity theft can change rapidly, so it's important to keep our program current and educate your staff.
Once again, it is important that we understand that this Red Flag Rule is not a casual suggestion, on August 1st, 2009, it will be law.
Here are some resources to help you get your program built, if you haven't already:
- Federal Trade Commission (FTC) - Fighting Fraud with the Red Flag Rule - A How-To Guide for Business.
- National Association of Mortgage Brokers (NAMB) - Mandatory Red Flag Compliance Program.
As mortgage brokers, we are always looking for ways to bring value to our clients. It would be a great benefit for you to explain to your clients the steps you now have in place to protect their identity from theft, and fraud!
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