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ARTICLE · 12 JANUARY 2021

Vendor Management Fail: FTC Settles With Mortgage Analytics Company Following Vendor Security Issues

Mintz, Levin, Cohn, Ferris, Glovsky and Popeo, P.C.
Mintz, Levin, Cohn, Ferris, Glovsky and Popeo, P.C.
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Mintz, Levin, Cohn, Ferris, Glovsky and Popeo, P.C.

Mintz, Levin, Cohn, Ferris, Glovsky and Popeo, P.C.

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An oft-used business management concept is to "hire people smarter than you." The concept also applies to hiring vendors – hire vendors that are better than you...

United StatesConsumer Protection
Christopher Buontempo
Christopher Buontempo
Cynthia Larose
Cynthia Larose
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An oft-used business management concept is to "hire people smarter than you." The concept also applies to hiring vendors - hire vendors that are better than you (especially when it comes to information security). Texas-based Ascension Data & Analytics LLC (Ascension), a technology and data analytics company used by the mortgage industry, did not utilize that concept in its vendor hiring process, and as a result, recently entered into a proposed settlement agreement with the Federal Trade Commission (FTC) following charges that it violated the Gramm-Leach-Bliley Act's (GLBA) Safeguards Rule by failing to ensure that its third-party vendor adequately protected mortgage holder personal information.

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