Tougher State Oversight, Rogue Loan Officer Posts, and Unknown Compliance Risks
State regulators like Idaho (yes, Idaho) are increasing scrutiny on marketing compliance. At the same time, loan officers are testing their limits, and compliance teams are most concerned about what they can’t see—unknown content that could put their organizations at risk.
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.
Idaho is zeroing in on marketing compliance
Traditionally, states like New York and California have drawn the most attention from compliance teams. But attendees agreed that Idaho is emerging as a state to watch.
Recent exams have gone beyond standard checks, with detailed reviews of advertising language, disclosures, and timelines. The exams covered not only UDAAP but also federal rules, applied at the state level.
Examiners were described as highly thorough, reviewing materials line by line. They’re also in communication with other states, suggesting that this level of scrutiny could spread.
They let nothing go. They don’t play games
Compliance teams should prepare for deeper reviews and stricter expectations, even in states previously seen as low-risk.
Other states are filling the federal gap
With federal enforcement pulling back, state regulators are stepping into a more active role. Several attendees noted that former Consumer Financial Protection Bureau (CFPB) staff are now working in state roles, bringing their expertise and enforcement mindset with them.
Pennsylvania’s announcement of a new consumer protection agency modeled after the CFPB could be the first of many.
We’re in that calm before the storm.
Multi-state coordination is also on the rise, creating a broader and more complex enforcement environment.
Unknown content is the bigger risk
Teams generally have a handle on what’s submitted for review, but that’s not the full picture. The real risk comes from the content they don’t know exists.
What they send, we can get comfortable with. What’s scary is what’s out there that we don’t know about.
That includes content beyond mortgage products: promotions, claims, and offers across all business lines. Without full visibility, compliance teams are left exposed.
Some attendees emphasized the importance of educating marketing teams on evolving state regulations. As rules change, especially at the state level, staying current will be an ongoing challenge.
I’d rather find it than a regulator.
Tools like PerformLine help by discovering and monitoring unknown or unapproved content at scale before it becomes a liability.
Loan officers are testing limits
Several attendees shared concerns that loan officers are pushing the limits of what’s allowed. And by the time compliance catches it, the damage may already be done.
They’re throwing things against the wall to see what sticks. It’s only a problem once we find it, and by then, we’re all on the hook.
The line between personal and business content continues to blur. Despite internal policies, some loan officers still post business-related content on personal accounts without proper disclosures.
Teams that use automated tools like PerformLine reported catching these issues before they became bigger problems.
We use PerformLine, and it’s caught these issues. We have to talk with loan officers about the difference between personal and business content.
What mortgage teams are doing now
Here’s what participants said that their teams are prioritizing:
- Defining clear lines between personal and professional content
- Monitoring social media and other high-risk channels
- Reinforcing education on disclosure rules and advertising guidelines
- Reviewing third-party marketing and maintaining detailed records
- Using automated tools like PerformLine to monitor web, email, and social media for violations
Monitoring for compliance with PerformLine
With regulatory focus shifting to the states and content showing up across more channels, real-time monitoring is essential.
If you’re wondering:
- Are we seeing the full picture?
- Are we catching issues early?
- Can we scale our compliance without adding more manual work?
We can help.
Schedule a demo to learn how PerformLine can help your team gain full visibility and stay ahead of risk.
