The Federal Trade Commission has published comprehensive guidance on the Safeguards Rule that requires immediate attention from non-bank commercial lenders. This regulation extends beyond simple compliance requirements to establish a framework that protects both lending institutions and their customers' sensitive financial information.
The updated Safeguards Rule applies broadly to financial institutions engaged in lending activities, including mortgage lending, commercial financing, and loan servicing operations. Covered institutions must now implement a written information security program containing nine specific elements, including designating a Qualified Individual to oversee security protocols, conducting regular risk assessments, and implementing multi-factor authentication across systems.
A critical component for commercial lenders is the strict breach notification requirement. If unauthorized access affects 500 or more consumers' unencrypted information, institutions must notify the FTC within 30 days of discovery.
For non-bank commercial lenders operating on platforms like Salesforce, these requirements align with modern technology capabilities when systems are properly configured and maintained. The rule's emphasis on encryption, access controls, and systematic monitoring creates opportunities to strengthen operational security while meeting regulatory standards. Ultimately, compliance with the Safeguards Rule builds the foundation of trust necessary for sustainable lending relationships in today's security-conscious environment.