The regulatory environment within the real estate industry is changing fast, and mortgage professionals must be on top of the changing laws.
Mortgage companies and loan officers often augment their marketing efforts through mortgage lead purchasing. Loan originators must be aware of the regulatory implications of these types of lead generation activities.
The number of new lead sources available on the Internet, including companies that tout specific leads for targeted groups or loan programs, can bring with it a fair share of scrutiny and regulatory pressure on multiple fronts.
Understand the Laws that Govern Mortgage Lead Generation
- The Consumer Financial Protection Act and state laws (known as “mini-FTC Acts”) prohibit unfair or deceptive acts or practices, including the dissemination of false or misleading advertising. The CFPA also prohibits “abusive” practices.
- Specific statutes, both state and federal, regulate certain marketing channels. For example, the Telephone Consumer Protection Act and CAN-SPAM Act regulate telephone and email communications, respectively, and the Telemarketing Sales Rule applies to many forms of telemarketing. Make sure your lead generation vendor has a SAN number for the National Do-Not-Call Registry.
- There are statutes that regulate specific consumer products and services, such as mortgages, credit cards and other consumer loans (e.g., Truth in Lending Act and Regulation Z, Credit Card Act, and the Mortgage Acts and Practices Advertising Rule (“MAP Rule” or Regulation N)). These laws typically regulate how such products are advertised, in addition to how they must be structured and serviced.
Lenders Now Use the MLS for Mortgage Lead Generation Compliance
MLS networks, the de facto collaboration platform and standard for real estate agents and their home buyers, are now poised to play a much bigger role in making loans more accessible, and understood.
RatePlug’s innovative MLS technology makes the process of buying and selling a home much more efficient and effective. The MLS now has the potential to address multiple needs for buyers, especially in regards to special financing and affordability. And the lender is a major player and the missing piece to the puzzle.
RatePlug MLS-integrated technology can be used as a platform for lenders to generate new home finance mortgage marketing leads and opportunities directly within the listing, while staying compliant.