I'm no lawyer, but what I gather from some of the seminars I've attended with regard to these matters is that the Gramm-Leach-Bliley Act (15 USC, Subchapter I, § 6801, et seq.) generally prohibits disclosure of certain non-public personal information about a borrower unless the lender notifies the borrower in writing that such disclosure is being made. However, such disclosure to third parties is permissable under the GLBA to the extent that it is necessary to carry out the lender's normal course of business in servicing the borrower.
Most, if not all lenders should have a standard Privacy Policy Notice that they have their borrowers sign at the time of application; otherwise, there would be a clear violation of the GLBA in disclosing the borrower's information to the title insurer without notifying the borrower. Therefore, I don't see any issue with the lender making such disclosure to an abstractor.
Regards,
Scott Perry
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