It can apply only if the firm maintains customer information concerning fewer than 5,000 consumers, and it removes only four listed duties. Citation: 16 CFR 314.6.
Primary source: 16 CFR 314.2(h)(2)(xi)
Does the under-5,000-consumer exemption apply to a mortgage broker?
Details
Small broker shops may fall below 5,000 consumers, but retained leads, denied applications, and old loan files count toward the data footprint the firm should evaluate. The 16 CFR 314.6 exception removes four listed obligations only. The firm should document the count method, because old files, leads, former customers, and retained records can matter.
Primary source: 16 CFR 314.2(h)(2)(xi).
FAQ
Does the under-5,000-consumer exemption apply to a mortgage broker?
It can apply only if the firm maintains customer information concerning fewer than 5,000 consumers, and it removes only four listed duties. Citation: 16 CFR 314.6.
What is the data-flow issue for a mortgage broker?
Borrower data moves through lead intake, loan-origination systems, credit pulls, document-upload portals, income and asset verification, lender submissions, and broker email. The WISP should name both the LOS and the lender/vendor portals where nonpublic personal information leaves the broker's direct system.
Is this legal advice?
No. It is source-cited educational content for a template product, not legal advice.