Diligent real estate and mortgage professionals tend to be
particularly vigilant in rooting out compliance issues in official documents
and when making credit determinations. But how many have ever considered the legal
implications of a poorly worded marketing email, LinkedIn post or TikTok video?
John Levonick, senior partner at Garris Horn PLLC,
and Nanci Weissgold, partner at Alston & Bird, along with moderator,
Leslie Wyatt, director of regulatory compliance at SoftPro, speak on Dodd
Frank Update’s Compliant Marketing Tactics webinar about a host of topics
that should be top-of-mind for any financial institution when marketing their
products and services.
They pick apart common regulatory pitfalls companies must be
able to navigate in their marketing efforts to avoid compliance issues, which
can turn up in some unexpected places. These include marketing practices which
violate the Truth-in-Lending Act (TILA), Real Estate Settlement Procedures Act
(RESPA), Mortgage Acts and Practices (MAPs), Home Mortgage Disclosure Act
(HMDA), various state laws, and more, as well as the implementing regulations
for each.
“I always say, ‘while the technology may be new, the laws
are old,’” Levonick said. “And in using this technology, we have to look at
these laws and translate these laws that never contemplated this level of
technology and apply the laws in a manner that ensures that your organization,
or you as a licensed individual, are not exposing yourself or your institution
to any unnecessary legal or regulatory compliance risk.”
The speakers dedicate a fair amount of discussion to the
topic of social media marketing, which is utilized by virtually all types of
businesses in the real estate space, including brokers, originators, title
services providers, third-party service providers, appraisers and more.
When it comes to marketing language, no matter the platform
or the industry, there are certain “triggering” terms that can result in regulatory
issues. Weissgold and Levonick identify what these are and how they can be
problematic when used carelessly in promotional messages.
Given the potential risks involved, one might be tempted to steer
clear of many digital platforms altogether. However, limiting the ways in which
people may interact with your organization can have negative implications as
well.
“When you’re thinking about redlining, the first thing that
a regulator will look at is your HMDA data and where you are taking applications,”
Weissgold explains. “And, if you’re a lender, are you reaching protected
classes in majority minority neighborhoods? In addition to looking at LO (loan
origination) diversity … another thing to think about, in advertisements, whether
they’re digital or snail mail, [regulators] look at circumstantial evidence and
the lack of diverse models for marketing methods is something they say is
failing to reach minority areas.”
The speakers offered a host of in-depth examples of what not
to do when using social media and other digital marketing tools to their
fullest potential.
To watch the full webinar on compliant
marketing tactics, click here or visit www.doddfrankupdate.com.