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What is the Red Flags Rule and how do I comply?

April 26, 2017comply flags red rule

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What is the Red Flags Rule and how do I comply?

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The Red Flags Rule is essentially an identity theft prevention program required by the Federal Trade Commission, for financial institutions and creditors (including mortgage brokers and lenders).* To comply, you need to have a Red Flag Policy in place by December 31, 2010. You can write your own Red Flag Policy or purchase a custom one. MCA offers a Red Flag template that you can fill out yourself, or we can fill it out for you. *(See http://www.ftc.gov/opa/2010/05/redflags.shtm.) (The work done by Mortgage Compliance Advisors on your Red Flag Policy does not constitute legal advice. Our intention is provide you with a platform to build a policy specific to your organization. It is a good idea to have your legal counsel review the policy once it has been prepared.