Mortgage Compliance Leaders Talk Real Challenges, Practical Solutions, and the Role of AI
At our recent COMPLY Mortgage Roundtable, industry leaders gathered for a candid conversation about their recent compliance concerns—from state exams to AI anxieties. Here’s what was said of the most pressing issues.
Joining us for this discussion was compliance and regulatory legal expert, John Henson who throughout his career has led brands through a variety of complex marketing regulations and lead-generation compliance challenges including TCPA and UDAAP.
Below are the themes and takeaways from the conversation.
Ongoing Uncertainty Around State-Level Scrutiny
Licensing Disclosure Language: What’s Still Required & What’s Not?
There was some discussion about state disclosure requirements and if any states have updated or removed their requirements. AllRegs was once a dependable space to get the information, however some felt that there may have been recent updates in the last couple of years that may not have been updated.
All of the attendees agreed that it would be nice to streamline the state disclosures or even allow nmlsconsumeraccess.com to be sufficient enough for disclosing on web and social.
State Exams and Increased Scrutiny
Attendees also observed an uptick in state regulatory enforcement, particularly in areas related to telemarketing. With the FTC and FCC stepping back in light of recent legal setbacks, state agencies are stepping in and tightening their oversight. Mortgage companies that use third-party call centers were reminded to verify that these partners are meeting each state’s requirements, as exemptions for licensees vary widely.
John shared an observation:
One area I’m seeing a lot is telemarketing. I would caution everyone who’s operating a call center to make sure you’re compliant. Most states will exempt mortgage licensees, but some don’t. And if you’re using a third-party call center, make sure they’re following proper state regulations too.
AI: From Skepticism to Strategic Use
Compliance Cautiously Warms Up to AI
Just a short time ago, AI wasn’t a welcome topic in compliance circles. Now, it’s impossible to ignore. Attendees shared that organizations are beginning to experiment with AI tools in areas like underwriting, call center support, and pre-review of marketing materials. But the consensus was clear: these tools are best used to assist—not replace—human reviewers. Skepticism remains strong when it comes to relying entirely on AI for compliance decisions.
One attendee noted:
AI has value, but you still need a human to verify accuracy. I don’t think many companies are willing to take the risk of just turning the keys over to a bot. I wouldn’t be too worried about job loss—but it will restructure how we do our day-to-day jobs.
The Human Element Isn’t Going Anywhere
Participants emphasized that while AI can help scale marketing compliance by identifying red flags faster, human oversight remains essential to ensure accuracy and protect brand integrity. One attendee described a hybrid approach where AI handles the first pass—flagging obvious issues—before a trained compliance professional steps in to make the final call. This model allows compliance teams to review more assets in less time, without sacrificing quality.
The Compliance Culture Conversation
Risk Appetite Is Shifting, but Not Dramatically
Despite talk of deregulation, most companies represented at the roundtable are continuing to operate with caution. Regulatory frameworks like Reg Z, Reg X, and Reg B remain intact, and teams must always be prepared for audits.
Rhonda reminded attendees:
Some folks are relaxing standards, but we have to remember: administrations change. What’s okay now might not be okay four or five years from now. And those exams can go back several years.
Bridging the Gap Between Sales and Compliance
Another recurring theme was the importance of building strong relationships between compliance and sales. Participants noted that when these departments work together, it’s easier to ensure marketing content is accurate and aligned. Starting with foundational checks—like making sure the NMLS ID and Equal Housing Lender logo are present—can help build trust and make compliance feel more like a partnership than a hurdle.
Data Security and Vendor Risk Are Front of Mind
AI Isn’t Exempt from Oversight
As more companies experiment with AI, compliance teams are being urged to treat these tools like any other third-party vendor. Questions around data usage, storage, model access, and training are no longer optional. Regulators like the FTC and CFPB have made it clear that ignorance isn’t an acceptable excuse for compliance failures.
Data Privacy Requires IT and Compliance Collaboration
Some attendees shared cautionary stories—such as being asked whether it was okay to use ChatGPT to analyze a bank statement. The answer was a resounding no. When AI tools are introduced into workflows that involve sensitive consumer data, IT and compliance teams need to work closely to safeguard privacy and avoid unintended violations. Data privacy is paramount. If the compliance team lacks expertise, collaborate with the IT department.
When implementing AI, John Henson recommends asking the following questions:
- What data is input into the system?
- Where is the data stored or processed?
- Is the AI local or API-based?
- Who has access to the AI and its data?
- What dataset was used to train the model?
Final Thoughts from the Roundtable
Despite differing levels of tech adoption and evolving state requirements, the message from the roundtable was clear: proactive compliance is non-negotiable. Whether it’s revisiting your disclosures or evaluating new tools like AI, maintaining strong internal processes and building cross-functional alignment are key to staying audit-ready and risk-aware.
Want to explore how PerformLine helps mortgage companies stay compliant while scaling marketing efforts? Request a personalized demo today.
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