Amherst Securities Group hires experienced mortgage sales team to bolsters its midwest presence
FTC postpones Red Flag Rule implementation: Effective date now Aug. 1MortgagePress.comFTC, red flags rules, NAMB, identitiy theft, Identity Theft Red Flags and Address Discrepancies The Federal Trade Commission (FTC) has issued a statement further delaying enforcement of the the "Identity Theft Red Flags & Address Discrepancies" Final Rule (Red Flags Rule) under the FACT Act. The new effective date is scheduled for Aug. 1, 2009. The rule requires mortgage brokers to develop and implement a written Identity Theft Prevention Program to detect, prevent, and mitigate identity theft in connection with certain financial accounts. Also required is identity theft detection training for employees including processors, loan officers, and sales managers. The guidelines accompanying the final rule are designed to assist financial institutions and creditors in formulating and maintaining a program that satisfies the requirements of the new rule. The Red Flags Rule requires companies to: 1. Develop a written program to detect and respond to potential ID theft. Red Flag Rule detection programs should be appropriate to your company. They can be complex customized solutions or simplistic templates, but must be complete in scope and adhered to by your company. Detection of identity theft can be accomplished through 3rd-party solutions. 2. Train employees on detection. You must train employees who are in a position to detect ID theft. This may be processors, loan officers, sales managers, and more, depending on your operation. Your plan will address this. 3. Update and review your program annually. The written program must be approved by your leadership annually. For more information on the FTC's Red Flags Rules, click here.