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A borrower applies for a mortgage and asks the MLO whether they intend to sell or share the borrower's personal financial data with third parties. Under the Gramm-Leach-Bliley Act, the lender must:

Ethics · 18% of the SAFE exammedium

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Correct answer: Provide a written privacy notice explaining data-sharing practices and give the borrower the right to opt out

The Gramm-Leach-Bliley Act (GLBA) requires financial institutions to provide customers with a written privacy notice that clearly explains the institution's information-sharing practices and must provide the right to opt out of certain sharing with non-affiliated third parties. "," violates GLBA's transparency requirements. "Disclose only to government regulators and not to th..." is too absolute — GLBA does not require signed authorization for all sharing; it requires notice and opt-out rights for non-affiliated sharing. "Refuse to answer, as this information is proprietary..." is incorrect because the disclosure obligation runs to the customer, not just to regulators.

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