Effective email marketing can make all the difference for your business. As one of the most important tools a loan officer has, it’s important to understand how to properly email in order to reap its benefits. Not every loan officer is using it safely, with some sharing too much information, while others are not sharing enough.
Did you know that lenders can be fined up to $16,000 for a single email in violation of the CAN-SPAM Act? It takes just one non-compliant email being forwarded to the CFPB or the Federal Trade Commission (FTC) for you to have serious questions to answer — and quite possibly, major fines to pay.
To engage in effective email marketing, lenders need to monitor the activities of their sales teams and have policies and procedures in place to act as an insurance policy against loan officers “going rogue” on email. In the case of an audit, having such policies in place and a system to ensure they were followed can ward off potential trouble. Download the full ebook to learn all the rules lenders should be keenly aware of.
Here are some key things to watch out for:
• APR disclosures. Email is no different than any other medium when it comes to providing rates. If you provide mortgage rates to a borrower, APR (annual percentage rates) disclosure must be included.
• Licensing & NMLS numbers. The state or states in which a lender does business and the NMLS (Nationwide Mortgage Licensing System) number of the loan officer and lender should be on every email, as well as on the lender’s physical address.
• Unsubscribe/Opt-Out. According to the CAN-SPAM Act, any unsolicited email must give the recipient an option to say, “I don’t want this.” Failure to abide by this can result in FTC fines.
• Don’t get too personal. Nowadays, a consumer can access their email accounts from any device, so you don’t know for sure whether your email will be read by a third party. Don’t include account numbers or repeat your borrower’s home address. If your borrower is providing a gift letter, you don’t need to mention details. Say, “I need the gift letter we discussed last week.”
The bottom line is you don’t want to hope your loan officers are doing the right thing on email. You want to be sure.
To make sure you are making the most of your email marketing efforts, download the full ebook – An Email Marketing Guide for Mortgage Lenders – for more tips.
You should always consult a suitably qualified attorney regarding any specific legal problem or matter. The comments and opinions expressed in this document do not constitute legal advice.
About the author: Chris Backe is the director of financial services at Velocify, and a sales automation expert with more than 20 years of experience offering technology solutions to multiple industries. Chris has spent the last 10 years in the financial services industry, holding various positions at industry leading technology companies including Ellie Mae and Salesforce. He can be reached at firstname.lastname@example.org.