To comply with the FACT Act, what should a mortgage loan originator do with loan applications and documents?

Complying with the FACT Act (Fair and Accurate Credit Transactions Act) requires that sensitive consumer information, including loan applications and associated documents, be handled with care to protect the confidentiality and security of that data. Storing these documents in a secure location when they are not in use minimizes the risk of unauthorized access, thereby safeguarding the personal and financial information of applicants.

This practice is in line with the overarching goals of the FACT Act, which seeks to improve consumer protection against identity theft and fraud, by ensuring that consumer data is both secure and responsibly managed. Maintaining a secure environment helps ensure compliance with regulatory expectations and fosters trust between consumers and mortgage professionals. Hence, the importance of secure storage practices is integral to operating within the legal framework established by the FACT Act.