The Fair & Accurate Credit Transaction ACT (FACTA) & The Red Flags Rule Compliance Course

This 35-minute course aims to equip mortgage loan originators with a clear understanding of the Fair and Accurate Credit Transactions Act (FACTA) of 2003 and the Red Flags Rule, focusing on their role in protecting consumer information and preventing identity theft. Participants will learn how to provide accurate credit information, promptly correct errors, safeguard sensitive data, and raise awareness about identity theft. Additionally, the course will cover the implementation of written identity theft prevention programs, ensuring compliance with both FACTA and the Red Flags Rule to enhance consumer data protection and promote transparency in the mortgage industry. This course will focus on the following topics:

• The scope of FACTA’s creation.
• An introduction and explanation of the Fair Credit Reporting Act and how it applies to the mortgage industry.
• Why FACTA was enacted and the special requirement it created for mortgage lenders.
• Consumer Reports.
• The Red Flags Rule, which amended FACTA in 2007, and mandates that all mortgage lenders and brokers must have a written identity theft plan to detect, prevent and mitigate identity theft in connection with certain financial accounts.
• Enforcement of the Red Flags Rule.
• Covered Accounts.
• Identity Theft Prevention Program Requirements.
• The importance of the Red Flags Rules to MLO’s.