Episode 19: The State of Mortgage Marketing Compliance

Episode Description:

In this COMPLY Marketing Compliance Podcast episode, I sat down with our Senior Director of Client Success here at PerformLine, Rhonda McGill, to discuss the state of mortgage marketing compliance. Last week we hosted a quarterly roundtable with compliance leaders in this space and today Rhonda and I discuss some key takeaways from that event.

This includes doing a lot more – such as examinations and compliance reviews, with a lot less – as we see market trends impacting these teams. As well as the ongoing need for monitoring non-compliant posts and brand mentions across loan officers’ social media channels. We discuss these key themes and some helpful takeaways for folks in this industry to start thinking about and implementing today.

Show Notes:

• 16 Quick Tips for Proactive Fair Lending Compliance: https://bit.ly/3xsUsEy
• Top 5 UDAAP Compliance Issues Across Published Content: https://bit.ly/3xrpEUy
• Top Mortgage Compliance Issues Across Loan Officers’ Social Profiles and Websites: https://bit.ly/3xsgaZ2
• Social Media Compliance Checklist for Overseeing Loan Officers: https://bit.ly/3lDjtKt
• COMPLY Mortgage Compliance Community: https://bit.ly/3IoMaUn
• Connect with Rhonda: https://www.linkedin.com/in/rhonda-mcgill/
• Connect with Ashley: https://www.linkedin.com/in/ashley-cianci/

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About COMPLY: The Marketing Compliance Podcast

The state of marketing compliance and regulation is evolving faster than ever, especially for those in the consumer finance space. On the COMPLY podcast, we sit down with the biggest names in marketing, compliance, regulations, and innovation as they share their playbooks to help you take your compliance practice to the next level. 

Episode Transcript:

Ashley:
Hey there COMPLY podcast listeners and welcome to this week’s episode. This week I sat down with our Senior Director of Client Success here at PerformLine, Rhonda McGill, to discuss the state of mortgage marketing compliance. Last week we hosted a quarterly roundtable with compliance leaders in this space and today Rhonda and I sit down to discuss some key takeaways from that event including doing a lot more in terms of examinations and compliance reviews with a lot less as we see market trends impacting these teams, and the ongoing need for monitoring for non-compliant posts and brand mentions across loan officer’s social media channels. We discuss these key themes and some helpful takeaways for folks in this industry to start thinking about and implementing today. And finally, make sure you listen to the end of today’s podcast for a very special announcement. As always, thanks for listening and enjoy. 

Ashley:
Hey, Rhonda, welcome to the podcast!

Rhonda:
Hey AC, thank you so much for having me back on the COMPLY podcast. You know, I always enjoy myself anytime that I get to hang out with you and discuss two of my favorite topics, marketing compliance, and PerformLine!

Ashley:
We love having Rhonda on the podcast and so do all of our listeners. So today, Rhonda, we’re gonna talk about the state of mortgage compliance. And to be even more specific, really it’s the state of mortgage marketing compliance, right? And this is the perfect time to talk about this subject because we just had our quarterly mortgage roundtable with compliance leaders in this space last week. So for those who aren’t aware, Rhonda hosts these amazing virtual roundtables quarterly as an opportunity for those in the mortgage compliance space to come together, discuss what’s happening in the industry, share best practices, and sometimes just to share common grievances of what’s going on in their space. And I’ll note that even though Rhonda and I are gonna discuss common themes from our event last week, engagement in these sessions is completely confidential. So we won’t be sharing any names, titles, companies any kind of identifying information of anyone who partook in that event, but rather just some common themes and hopefully some good next steps for those in the space as well. So let’s start at a super high level, Rhonda. What would you say were some of the common themes that we are seeing in the industry today?

Rhonda:
As we all know, the marketing conditions continue to present its challenges. Marketing professionals are continuously being tasked with finding new ways to set their brands apart from their competitors. And as a result, we’re seeing riskier advertising. There’s a lot more A-and-B testing that’s going on in order to see what sticks with the consumers. So some are having to get creative with smaller budgets than they’ve had in previous years, and we’ve all had a look to learn how to do a little bit more with a lot less in some instances. But I say all that because it all brings a larger headache for the compliance world because in some instances they are also a smaller team that is being tasked to do more than just marketing compliance. A lot of the folks that we were talking to said they’re taking on additional compliance tasks throughout the business.

Rhonda:
So monitoring was definitely a concern. Some folks are really concerned that, you know, they’re doing all that they can within their space to really protect their brand and to protect the business. So monitoring was definitely something that kind of kept coming up with folks. So needless to say, a few of our professionals have said that they’ve, they haven’t seen a decrease in the number of assets coming through from marketing. And they also haven’t seen a decrease in the number of examinations coming from regulators. So they’re all kind of weighing the pros and the cons and how to make sure that they’re able to take care of their business. And I think one of the other areas we that I heard that kind of stuck with me, and I don’t know if you recall, we spoke, we listened, and heard a lot about loan officers utilizing social media a little bit more than they had in the past.

Rhonda:
And this is also a monitoring challenge for a lot of marketing compliance professionals because they’re, it’s hard to stay on top of the social media posts and those increasing challenges are also coming from increased use of vanity URLs. And then just there seems to be a little bit of a business gap when it comes down to the training and just making sure that, you know, when what you learn in the beginning of your career as a loan officer is carrying through throughout your career and that you’re understanding the importance of staying compliant.

Ashley:
Definitely

Rhonda:
Especially within social media, yeah.

Ashley:
Yeah, I think those two are definitely two of the key themes I heard as well last week from these folks. So just to summarize, point one, is if I had to say it in a couple words, like doing a lot more with a lot less in all aspects of these folks careers and, roles and responsibilities. And then two is one that we’ve heard for years now is social media loan officers monitoring compliance, but they’re getting a lot more creative in the space as the markets change and evolve. So yeah, absolutely agree with those.

Rhonda:
And then all of the, every, seems like every time we have a roundtable, there’s a new social media platform.

Ashley:
Exactly, exactly.

Rhonda:
It’s like staying on top and staying ahead of, you know, finding out where LOs are posting and what they’re posting and all making sure it’s compliance. So it’s a lot of hats being worn by our compliance professionals out there.

Ashley:
Absolutely, absolutely. Awesome. So I, so those two themes there, I wanna break them both down a little bit more. So I’m gonna start with the first one. And you mentioned this too, but, but a few of our attendees had mentioned an increase in regulatory actions and exams just given where we are in the market. And, and somebody had asked about what they could warn their teams about as it pertains to violations in this space and specifically with their LOs. So is there anything that you can share with this group of folks onto that would be helpful as they look towards the rest of the year in terms of potential violations and things that folks are gonna be looking out for?

Rhonda:
Yeah, so one of the things that we were discussing that came up was around the fair lending, specifically folks were kind of leaning towards like what’s happening with the redlining and all that good stuff. And at that particular roundtable, we hadn’t heard much about a decision that came out on Friday, just a couple of days later when the District Court of Illinois dismissed the redlining case that the CFPB had brought against Townstone Financial. So if you recall it was alleged that Townstone had violated ECOA by making statements on their radio shows and their podcasts that were discouraging African-American applicants from applying for mortgages and discouraging potential applicants from living in African-American neighborhoods from applying for mortgage loans and also discouraging applicants that were seeking to apply for a loan to purchase homes located in those neighborhoods.

Rhonda:
So it was a multi-fully loaded allegation. But this here was, it was thrown out by the District Court in Illinois. So needless to say, it’s not over. It’s more than likely that this CFPB is not gonna take the loss. They’re more than likely going to appeal the decision on this one. So I think this is far from over and definitely want to watch. But what I would say is with that with them having to take that blow, that it’s gonna be interesting to see if how they’re going to utilize UDAAP, because as we all know they, you know, broadened the definition to include discrimination. So now I would say maybe UDAAP is gonna be little bit more of the approach. But it’s definitely, it, it’s an unfortunate situation on both sides. You know, as you know, we’re all about protecting a consumer, but just making sure that there’s some clarity around those decisions so that, so that at least from a compliance standpoint you know, folks will know what to do and what to monitor for.

Ashley:
Yeah, absolutely. That’s so interesting to share that update news since we had met with that group of folks. Hot News, heard it here first. That’s so helpful and it’s true. Like we talk about UDAAP all the time, not just in the mortgage industry, but like across all industries that we help in consumer finance, it’s broad. And just to take, a note on that too, and the two things Rhonda just mentioned, fair lending and UDAAP. We have a couple pieces of content that we’ve built out to help folks with these exact things. So I will drop these in today’s show notes, but we do have a 16 Quick Tips for Proactive Fair Lending Compliance content piece that’s helpful for that fair lending piece that Rhonda just mentioned as it pertains to redlining. And then we also have a Top 5 UDAAP Compliance Issues Across Published Content piece that I will share as well.

Ashley:
UDAAP is something we hear over and over again, so as we learn more and can be more helpful to share that information with, with this audience, we’ll absolutely do so. So look for those two in today’s show notes. So the other theme you shared, Rhonda, is the social media compliance through loan officers. Again, something we hear over and over again from the mortgage industry. Social media, something that loan officers use time and time again to get more business, especially in this market, they’ve gotta be really creative. It’s a key concern for their compliance teams though, to make sure they’re monitoring and staying on top of all their loan officers across all the different channels. So it continues to be, let’s say, a thorn in the side of these like marketing compliance professionals who are responsible for these loan officers, remaining compliant across Facebook, LinkedIn, Twitter, YouTube. And then two that I hadn’t even thought about before, Rhonda, Zillow and their loan officer email signatures. So really creative. So, can you speak a little about the complexity of monitoring for compliance across all these channels and across all the LOs, and then maybe you could also share some thoughts on just best practices to help anyone that’s dealing with these struggles.

Rhonda:
Yeah, and you know, we were speaking a little bit about best practices and things that folks are doing that are helpful, but also there were some folks who shared that, you know, they need felt like more needed to be done. So definitely some of the tips that were shared and best practices was around, you know, when your LOs are onboarding, just making sure that you are that first touchpoint from a marketing compliance standpoint to really talk them through what they, why it’s so important for them to be in compliance when they’re out there doing any type of posting or setting up websites or whatever. But a lot of times, you know, some of the concern is that when people are onboarding, you’ve got so much information coming at you as coming left and right and you will forget, you know, as a loan officer you are going to forget because you know, if you’re state licensed, you’re taking state examinations, you’re taking all of these different you know, different educational components to get your license.

Rhonda:
So the last thing that’s on your mind might be that marketing compliance, but that marketing compliance could be the difference between a loan officer keeping and maintaining their license and not being able to maintain a license in a state. So definitely it’s, you know, on the burden of the loan originator, but also on compliance to really make sure that they are providing ongoing resources, opportunities for training, and just reminders to that there’s opportunities for them to really tighten up, give them examples. So it was really nice to hear that a lot of our compliance professionals are really going that extra distance, especially now because there is so much competition out there and everyone’s trying to, you know, stay relevant out here. So just making sure that they have that clear, that clarity around what they can and cannot do.

Rhonda:
And it was really great to have someone mention our compliance manual that we had put together and shared as a part of our content piece, but clear documentation and just making sure that you understand what the federal and the state regulations require being in compliance with the SAFE Act and making sure, you know, you have your guidelines in place. So I was impressed. You know, we had some very, very interesting dialogue and a lot of folks are really, really going that extra mile. So kudos to everyone who is out there in the compliance space that’s utilizing kind of the lull and the mortgage origination to really sharpen up their tool belts and cause one thing for sure, as we have said and as everybody shared, examinations are not going anywhere. So just making sure that they have a plan in place, that was huge.

Rhonda:
So we also spoke a little bit more about the importance of having a strong compliance monitoring program and documentation and being able to store different versions making brand protection a top priority. So these are recurring themes that we hear at every roundtable, but I really felt like this particular roundtable, there was a true, it was a different feel. It was one that, you know, it just seems like folks are saying, you know, when the market does turn, I wanna make sure that the doors of my company haven’t closed because we aren’t compliant. So people are really going that extra mile to make brand protection a top priority. Because when things take a turn for the better and I’m pretty sure that they will, hopefully your business is gonna be around and not forced to close their doors because of poor compliance that, you know, led to absorbing fines and penalties from regulators. So it looks like there’s a serious commitment from the community, the compliance community, to really be involved with making sure that they are compliant.

Ashley:
Definitely. And you said this, but I think this group deserves a huge kudos for how much effort they’re putting in right now with, you know, not a ton of resources, but, you know, knowing how important their role is in their company. So kudos to you.

Rhonda:
And I appreciate them taking the time because some of them have been our repeat visitors, they’re our repeat guests, and I appreciate that they take the time to come back and that they’re getting so much value that they’re now starting to build that network with one another and they’re having those serious discussions about how to share best practices. What are we doing in our business, how can we, you know, stay engaged. So I was really impressed with this crowd this time.

Ashley:
So was I, and this is a perfect segway, Rhonda, to my last talking point. So we’ve been running these roundtable programs for two years now. Can you believe that? Two years? Isn’t that crazy?

Rhonda:
I know! Like really two years?

Ashley:
Doing the math. I was like, this is right.

Rhonda:
Time flies when you’re having fun at PerformLine.

Ashley:
Agreed, agreed. But every time we meet with this group, they’re full of wonderful insights and really the benefit is that they get to speak with each other like you just said, and build this community with folks who are in the exact same shoes that they’re in. So this is a perfect time. Did you wanna talk about the official launch of our COMPLY Mortgage Compliance Community and what that entails and how folks can join?

Rhonda:
Yes. This has been my baby for a long time. It’s been a long time coming. I am so excited about it because I always share with, and I you say I get excited about this. I get so excited about it because I remember being in marketing compliance and sometimes feeling like I had nobody to turn to other than the people who I was working with and we were all throwing our hands up like, ‘I don’t know, I don’t know what other people would do.’ And then you’re online, you’re searching, trying to find somebody’s website to get an example, and now we have a place where folks can get together and have these conversations throughout the workday and when they have a thought or throw in a best practice or plan to come to an event together or whatever it is. Just being able to know that you have that network is amazing.

Rhonda:
So the COMPLY community is offering our regulatory compliance, thought leadership, peer connections through content, events, podcasts, webinars, roundtables, you name it, we’re doing it! We have a Slack community. I am again, so excited to share this community as, because it’s just been my passion. But for future roundtables, we also are asking a little bit more from folks, you know, to really come prepared to participate, turn your cameras on. This is a roundtable, not a blackout. So we wanna make sure that everybody has their cameras on, that we are having an engaging discussion, not just a handful of people. And even if you don’t say anything, but just be present, be, you know, turn your camera on and I just like it, just nod your head but let us know that you are there with us. You’re hearing the folks around the table.

Rhonda:
I’m not doing this because I’m working in marketing compliance anymore. I’m doing it because I’ve been there. I understand how important it is to have that community and I was committed to bringing it together. I am committed to seeing it through, but ultimately the people that are driving that community are the people that are a part of that community. So I am looking forward to more folks getting involved with our compliance community. This is just a first of hopefully what will be many, for many industries. So all the rest of you, we haven’t forgotten about you, but we’re gonna start with mortgage and we’re gonna work our way through because regardless of what you do in this compliance space, it is so important to know that you have a network of people who you can lean on and just your trusted community of people that you can go to. And it doesn’t always have to be in the four walls of your business.

Ashley:
Yeah, absolutely. Absolutely. So we’re as excited as Rhonda is about this community

Rhonda:
I don’t know if anyone’s excited as I am

Ashley:
That’s true. Maybe not as excited as Rhonda, but still super excited. So I will drop in today’s show notes, a link to sign up for this community and what will happen if you request your invite because it is reviewed, we wanna make sure the right folks are joining this community. So if you are accepted, you’ll be added to the Slack channel that Rhonda mentioned. That’ll be kind of our hub where all the conversations will take place and updates about events and webinars, roundtables, all those things will come through that. So if you’re interested, check out today’s show notes to request your invite into the community. So it’ll be awesome to see that community grow and to have conversations there and, and have these folks really help each other, like you said, throughout the workday, which will be great.

Rhonda:
Remember you guys are the subject matter experts. You know this information, you have things that you can share. Use this as a forum to be able to share, learn, and grow. If you’ve been on my LinkedIn, I say it every week, we are going to learn and grow together and that’s what this is all about.

Ashley:
Amazing. Well we are so lucky to have Rhonda. I’ll also just plug to0 that our next mortgage roundtable is May 3rd at 1:00 PM so be sure to join that compliance community so that you get updates about our next roundtable, Rhonda leads them, they’re fantastic. Lots of good conversations happen there. So look for all of these things we’ve mentioned in today’s show notes. Rhonda, thank you so much. As always, it’s always a pleasure to have you on the podcast.

Rhonda:
Thank you again for having me and I look forward to the next time.

Ashley:
Awesome. Thanks so much. 

Rhonda:
All right

Ashley:
Thanks for listening to this week’s episode of The COMPLY Podcast. As I mentioned during today’s episode, we have a ton of resources in today’s show notes that touch on the themes that were discussed, including resources on fair lending, UDAAP, a piece on the top mortgage compliance issues across loan officers, social profiles and websites, and a social media compliance checklist for overseeing loan officers. And last but certainly not least, if you’re interested in joining the COMPLY Mortgage Compliance Community, you can find a link to request your invite in today’s show notes. Thanks so much for listening and we’ll see you next time.