NMP - July 2018 - 77

OCIAL MEDIA a special focus on SOCIAL MEDIA a special focus on SOCIAL MEDIA a sp

on the organization, depending
on the form and content of the
communications. The best way
to handle this is to have a
policy in place that clearly
states are not to imply that the
company shares their opinion.
Sean A. Riley, President and
Legal Counsel for Mortgage
Equity Partners, a direct lender
with offices in New England
and Florida said, "The presence
and acceptance of social media
marketing requires new thinking
around risk management."
Things to consider
As technology changes faster
than regulations can be drafted,
we will have to apply current
best practices to our social
media marketing strategies.
Future considerations would
include apps such as Snapchat,
which allows you to send a
message that disappears after
two minutes. How can you
regulate a digital or video
message that disappears? If
you as an LO share a post
made by a Realtor on Facebook
is there a monetary value
connected to that? Does that
constitute an implied
endorsement? Are you
providing them a "kickback" if
you have a lot of followers and
you share their open house
listing with 1,500 of your
followers? Is that Realtor
indebted to you in some way?
If you follow any social media
blogs or groups you will hear
over and over that the most
important part of your social
media strategy is engagement.
Engagement means sharing,
liking and commenting. At this
time, in my research I have not
found any specific regulations
governing this behavior.
Technology creates amazing
opportunities, but also poses a
lot of new questions regarding
ethics for the mortgage
industry. It seems unlikely that
we will get clarity from the
CFPB now as the current
Director, Mick Mulvaney, tends
to be less in favor of strong
government intervention. The
recent legal case involving
Zillow did not give us any legal

precedent by which we can
base our decisions. It seems
that responsibility of social
media marketing compliance
will fall to the organizations
themselves. Mortgage lenders
will have to have a
comprehensive compliance and
risk management program in
place as the use of social
media marketing becomes
more widespread, and as social
media companies continue to
push toward the paid
advertising model.
For now, here are some tips
to keep your social media
marketing on track:
1. Know your company social
media policy.
2. Avoid talking rates.
3. Companies should have a
marketing approval process
and LO's should use it.
4. Know who your Compliance
Officer is.
5. Make sure the NMLS
number for the company
and Loan Officer are visible
in all ads and on all social
media profiles.
6. Do not use personal
accounts for professional
marketing. Have a business
and personal account when
applicable.
7. Know who the regulators in
your industry are and what
they say.
8. If a financial institution
engages in residential
mortgage lending the Equal
Housing Opportunity logo
must be displayed, as
applicable.
9. Be sure your e-mail
signature contains proper
disclosures and the NMLS
number for the company
and the MLO number.
10. When using rates in any
form of advertising, digital
or otherwise, make sure
you comply with Reg.
Z/TRID and other necessary
disclosures concerning the
APR.
11. Know the social media
policies of the state
jurisdictions by which you
are licensed, as they vary
from state to state.

Mary Kamelle is Marketing Manager at Mortgage Equity
Partners and a content writer based out of Lynnfield,
Mass. She can be reached by phone at (781) 309-1773 or
e-mail MKamelle@MEPLoans.com.

77

n National Mortgage Professional Magazine n JULY 2018

What are the concerns
for the lender/loan
officer using social
media marketing
In addition to the violations of
the regulations listed above,
there are some additional risks
for the LO and lender
undertaking a social media
marketing campaign that need
to be considered and managed.
There are many review sites on
line that customers can use to
share their opinion regarding
what is what like working with
you. How did it go? Do you
share the same opinion as your
borrower? Sites like Yelp! are
more than happy to give
consumers a platform to share

their customer experience. On
Yelp! You must be a registered
user. The only requirement to
be a registered user is an email account. If your reviews
are positive there is no
problem, however, when you
receive a negative review you
should respond promptly. You
should be checking on your
accounts frequently. When you
respond be careful not to share
any detailed account
information and do not get into
a social media "he said-she
said" online. Be professional
and encourage the dispute be
rectified offline.
The CFPB also has a
complaint site. This site is for
consumers to submit
complaints with regard to
financial products and services.
There is a five-step process
whereby consumers submit
complaint, CFPB staff reviews
it and if found to be valid it is
sent to the company for a
response. The final part of the
process is that the complaint is
published in the CFPB
database and becomes public
record. The risks for lenders are
clear in that if the claim is
submitted that is not valid it still
become part of the public
record and could have a
negative effect on the
companies' reputation.
You should be sure to
monitor all of your accounts in
order to respond timely and
appropriately. Responding to
inquiries online is another area
of concern. It can be harmful to
a companies' reputation if
inquiries are not responded to
efficiently.
Third-party concerns come
up again when you are working
with vendors who provide
social media marketing
services. While you are turning
over the marketing
responsibilities to third-party,
you have to regularly monitor
the information placed on
social media sites. Monitoring
is the direct responsibility of
the company, as part of a
sound compliance management
system.
Online employee activity
needs to be monitored as well.
All companies should be aware
that employees'
communications via social
media may be viewed by the
public as reflecting the
organization's official policies
or may otherwise reflect poorly

NationalMortgageProfessional.com

basis a reasonable person
from making or pursuing an
application.
2. The Fair Housing Act (FHA),
among other things,
prohibits discrimination
based on race, color,
national origin, religion, sex,
familial status, or handicap
in the sale and rental of
housing, in mortgage
lending, and in appraisals of
residential real property.
3. TRID f/k/a-Truth in Lending
Act/Regulation Z: Reg. Z
requires that advertising,
which includes electronic or
social media
communication, must follow
certain standards. Namely,
those advertisements with
any message regarding
rates are required to also
include disclosures about
loan terms and costs. Reg.
Z also covers proper use of
credit and requires that the
lender must provide the
consumer with all the Reg.
Z disclosures within the
required time frame.
4. Gramm-Leach-Bliley Act
Privacy Rules and Data
Security Guidelines: Title V
of the Gramm Leach-Bliley
Act (GLBA) establishes
requirements relating to the
privacy and security of
consumer information. This
is another activity that will
fall to organizations' Risk
Management and
Compliance procedures. As
more and more information
is collected online, it
becomes the responsibility
of the lender and Loan
Officer to protect client
data. This is critical to the
success of a company.


http://www.NationalMortgageProfessional.com

Table of Contents for the Digital Edition of NMP - July 2018

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