Did the previous owner die of a communicable disease that can be transmitted by contact with surfaces such as a carpet?

If that is what it says; if the bank really wanted to enforce it, they would probably sue for fraud and if the FBI or Attorney General got involved it could escalate to wire fraud because the money has been transmitted over the phone lines or internet.

<--- "3.2 file" is a standard mortgage industry format used to transmit the data in loan files. 

What happens if one of the kids transmits it to a high risk person.To cover my backside I'd probably have an attorney send a warning letter.