This morning, the Federal Trade Commission announced a further extension of the enforcement date for the Red Flags Rule. The previous enforcement deadline, June 1, 2010, has now been extended to December 31, 2010. The FTC states that the reason for the extension is to allow congress time to “consider legislation that would affect the scope of entities covered by the Rule.” However, the FTC goes on to say that the announcement “does not affect other federal agencies’ enforcement of the original November 1, 2008 deadline for institutions subject to their oversight to be in compliance.”*
The FTC’s Red Flags Rule is designed to reduce identity theft by requiring organizations to “implement a written Identity Theft Prevention Program designed to detect the warning signs – or ‘red flags’ – of identity theft in their day-to-day operations, take steps to prevent the crime, and mitigate the damage it inflicts.” Mortgage Compliance Advisors reminds mortgage brokers and lenders that although the enforcement deadline may have moved, it is still a sound business decision to implement a written identity theft prevention program as soon as possible. Most financial institutions are already taking steps to mitigate identity theft, but a written policy is a smart way to help protect customers and the company and to make sure proper procedures are followed.
As a simple solution to help mortgage brokers and lenders comply with the Red Flags Rule, Mortgage Compliance Advisors announced the launch of its succinct, customizable Red Flag Policy. The Policy is tailored specifically to an organization’
*(Read the FTC’s announcement at: http://www.ftc.gov/
To learn more about MCA’s Red Flag Policy or to get started, visit http://www.mortgagecomplianceadvisors.com/
