18 January 2011 ~ 0 Comments

Red Flags Compliance. How This Affects All Mortgage Brokers and Creditors

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Home Page > Finance > Mortgage > Red Flags Compliance. How This Affects All Mortgage Brokers and Creditors

Red Flags Compliance. How This Affects All Mortgage Brokers and Creditors

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Posted: Oct 08, 2008 |Comments: 0
| Views: 967 |



The Red Flags Act is apart of the Fair and Accurate Credit Transactions (FACT) Act of 2003. This act was put into place in hopes of protecting consumers against identity theft and other types of credit fraud.  All financial institutions and creditors, both big and small, are required to be compliant with the Red Flags Act by November 1, 2008, or face potentially large fines and difficult audits by the Federal Trade Commission (FTC).

There are 4 Red Flags Compliance issues that you need to be aware of:

1. When is the compliance deadline?

As stated before, November 1, 2008 is the deadline for you to be compliant with this new law.  There has been almost no publicity regarding this November 1, 2008 deadline and it is expected to catch a lot of mortgage brokers, financial institutions and creditors off guard.

2. Who must comply with these new rules? 

Basically any company working with consumer credit; mortgage brokers, banks, credit unions, credit issuers, utility companies, auto dealers, healthcare companies, debt collection agencies, etc.

3. How can you quickly comply with Red Flags Act? 

The following is just a basic overview of the items that all companies must comply with, to get a more detailed explanation you can visit the FTC Website or view a special report on the topic at Red-Flags-Help.com

Owners of companies (or senior managers) must approve the identity theft prevention program as well as be involved in the oversight, development, implementation and administration of the program.

The company must have specific procedures in writing regarding the implementation, audit compliance, training of staff, issuing annual reports and overseeing anyone granted access to accounts.

The important aspects of this act are to have specific procedures in writing, produce annual reports and have a strict procedure for handling suspicious documents or activities. Companies are now responsible for helping to detect fraudulent activities and responding according to the Red Flags Act.

It is not enough to just keep a watchful eye out for problems. And it is not enough to only take action when there is a problem in the future. These rules are real and written procedures must be put into place before November 1, 2008 or else companies can face strict enforcement.

4. What is the next step in getting compliant?

If you work with consumer credit in anyway, then you must take action now and get compliant. There are 2 ways to achieve this.

You can do it yourself by reading through the 256 page FTC Report (just Google “FTC red flags compliant” to see the report).  I have read through parts of this report and was thoroughly overwhelmed.

Or you can find a company that specializes in helping companies getting compliant.  I contacted several companies regarding this and found that prices and quality were very inconsistent.  Do your due diligence and choose wisely because finding the right company can make this process go much smoother and faster for you.

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Byron Walker -
About the Author:

To get more details on the Red Flags Compliance act and learn which companies can best help you get compliant, the fastest, visit my website at: http://www.Red-Flags-Help.com and download a Special Report on this time sensitive topic.

Questions and Answers

Ask our experts your Mortgage related questions here…200 Characters left

What are the red flags that i might look for in the financial statements of a money lending company to the public
I was diagnosed with bpd 7 yrs ago. Im also a recovering opiate addict. & a mom of 3 girls. I’m worried that bpd characteristics may surface. could you please list warning signs and red flags…
What are some red flags in a relationship ?

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Article Tags:
red flag, red flags, red flags compliant, red flags compliance, red flags act, red flags law, ftc red flags compliance, mortgage brokers, financial institutions, fact act, facta, fais, fica, financial service providers

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Jan 18, 2011

The Week in Lending

INFO THAT HITS US WHERE WE LIVE Down in Orlando, Florida, last week there were more housing market forecasts for the year just begun. Bottom line? Housing economists are cautiously optimistic about a recovery during 2011. These economists were presenting their views at the annual meeting of the National Association of Home Builders (NAHB). None of the experts see a robust upturn for housing.

By:
Vooris Lockwood Burnsl

Finance>
Mortgagel
Jan 17, 2011

7 Key Tips on How to Structure the Best Mortgage Terms for Seller/Owner Financing

This article is meant to help sellers/owners structure the terms of a mortgage if they are financing it themselves. This tips are meant to help the seller or owner see the highest returns and maintain the option of selling the mortgage to an investor at a later date.

By:
Tyler Millerl

Finance>
Mortgagel
Jan 17, 2011

Obama Loan Modification Plan: How to get approval?

If you use these same steps and method to prepare your application, you will have a very good chance of getting the Obama Loan Modification Plan Approval.

By:
bilywordonedl

Finance>
Mortgagel
Jan 17, 2011

Red Flags Compliance. How This Affects All Mortgage Brokers and Creditors

If you are a mortgage broker or anyone that deals with consumer credit, then the Red Flags Act directly affects you. If you are not compliant with these new rules by November 1, 2008, then you could be facing large fines and difficult audits. See the 4 points below to see how this new Federal Law affects you.

By:
Byron Walkerl

Finance>
Mortgagel
Oct 08, 2008
lViews: 967

Email Marketing Strategies For Your Online Business Opportunity

Learn the top email marketing strategies that internet marketing experts use for their online businesses.

By:
Byron Walkerl

Internet>
Emaill
Jul 18, 2008

Find Your Perfect Business, Top 10 Requirements For The Perfect Business Opportunity

There certainly isn’t a shortage of business opportunities out there. If you are looking to find the perfect business model then you need to see this “Top 10 Requirements” list so that you can make the best decision. Don’t get caught up in the excitement of a new opportunity without first making sure your new business meets these 10 critical steps.

By:
Byron Walkerl

Business>
Business Opportunitiesl
Jul 07, 2008

Recession Proof Business Opportunities, Top 3 Small Business Ideas

Finding the perfect small business opportunity can be tough. Finding one that will succeed in a recession can be even tougher. Learn the top 3 recession proof business models that will not just survive, but actually thrive in recessionary times.

By:
Byron Walkerl

Business>
Business Opportunitiesl
Jun 30, 2008
lViews: 17,004

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