Balancing Mortgage Creativity and Risk in an Uncertain Regulatory Environment
50% of mortgage professionals said that creative and compliance tension is their biggest compliance challenge.
At the same time, the mortgage industry is facing a period of regulatory uncertainty, marked by shifts in federal oversight and an anticipated surge in state-level enforcement.
At our recent COMPLY Mortgage Compliance Roundtable, industry leaders gathered to discuss the evolving landscape, compliance challenges, and best practices to stay ahead.
Here’s what we discussed.
Balancing marketing creativity and risk
A recurring theme throughout the discussion was the tension between marketing creativity and regulatory compliance. 50% of roundtable participants said that this was their biggest compliance challenge.
With mortgage lenders and loan officers striving to differentiate themselves in a competitive market, marketing teams are eager to push boundaries. However, compliance professionals emphasized the importance of ensuring all promotional materials adhere to regulatory standards to mitigate risks.
One area of heightened focus is marketing compliance on social media. Many organizations are now implementing active monitoring tools to track loan officers’ social media activities, ensuring compliance with advertising and disclosure regulations.
The challenge remains to separate personal and business accounts, as some loan officers continue to post non-compliant content on their public profiles.
To address these challenges, companies are:
- Implementing mandatory social media training for all loan officers
- Enforcing clear guidelines on ad placement, wording, and disclosures
- Leveraging compliance platforms like PerformLine to track and monitor violations in real time
As regulatory oversight fluctuates, third-party marketing compliance has also become a growing concern.
Organizations must ensure that external partners adhere to compliance guidelines and maintain documentation of all corrective actions to demonstrate proactive efforts in case of regulatory scrutiny.
Regulatory uncertainty and increased state-level oversight
One of the most significant discussions at the roundtable revolved around the uncertainty surrounding the Consumer Financial Protection Bureau (CFPB). With leadership changes and operational disruptions at the federal level, state regulators are expected to step in to fill the gap.
During the NMLS 2025 Annual Conference, experts shared their predictions that at least 13 states will aggressively ramp up compliance enforcement in the absence of strong federal oversight, particularly around the use of AI.
While we don’t have a formal list, states such as New York, California, Washington, Illinois, Pennsylvania, and Maryland have already signaled increased regulatory scrutiny.
With the uncertainty surrounding federal enforcement, compliance teams should focus on staying proactive rather than reactive.
Regular audits, robust documentation, and close communication with regulators will be key in navigating this shifting landscape.
Preparing for more stringent examinations
While regulatory changes are still unfolding, companies are already seeing an uptick in audit activity. Some participants reported an increased frequency of examinations as state regulators conduct proactive reviews of marketing practices, disclosures, and compliance protocols.
Many professionals at the roundtable stressed the importance of investing in compliance automation tools to keep pace with evolving regulations.
AI and machine learning are being integrated into compliance monitoring to detect risks more efficiently, identify patterns, and automate reporting processes.
A major takeaway from the discussion was the need to maintain structured compliance documentation to prepare for state audits.
Having a clear record of compliance actions, marketing approvals, and third-party oversight will be crucial in demonstrating adherence to regulations.
Staying ahead of the compliance curve
While federal regulatory shifts introduce an element of unpredictability, the consensus among industry professionals is clear: compliance is not going away.
Instead, organizations must prepare for a more fragmented regulatory landscape where state-level enforcement becomes the primary focus.
To stay ahead, mortgage companies should:
- Proactively monitor regulatory updates at both state and federal levels.
- Ensure marketing and compliance teams work closely together to balance creativity with risk mitigation.
- Invest in technology-driven compliance monitoring tools to enhance efficiency.
- Track and document compliance efforts to prepare for potential multi-state audits.
As the industry adapts to these changes, collaboration and knowledge-sharing will be more critical than ever.
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