In 1991, the Telephone Consumer Protection Act (TCPA) went into effect. At the time, it was primarily intended to regulate robocalls and unwanted faxes. Obviously, times have changed. But that legislation has adapted, and today encompasses calls and some texts, too. 

The fines for not complying with the TCPA are steep: up to $1,500 for a single call or text. And if your mortgage lending institution makes automated calls or sends automated texts to leads, you’re at risk for non-compliance. 

Fortunately, aligning with TCPA requirements doesn’t have to be overly hard. You just need to get express consent from the lead. The latest mortgage marketing tools build in the processes you need to stay above board here. 

Before we get into ways to automatically collect the required consent, though, let’s do a quick dive into the Telephone Consumer Protection Act and how it affects mortgage lenders, brokers, and credit unions. 

What mortgage lenders need to know about the TCPA

This Act governs automated telephone equipment. While the original text of the Act primarily talks about phones and “facsimile machines” (faxes, for our younger readers), decisions in the courts and new rulings have extended it to include automated text messaging, too. 

The TCPA aligns with the National Do Not Call Registry. It specifically prohibits calls, texts, and faxes that come from automated systems that the consumer hasn’t agreed to receive. 

Historically, that primarily applied to robocalling systems. As technology advances, though, AI-generated texts fall under the purview of TCPA, too. 

So, what do mortgage lending institutions need to know about this regulation? The key thing to remember is that it prohibits unsolicited communication from automated systems. 

If you use an automated system to send calls or texts, the only way to prove TCPA compliance is to have express consent from the consumer. Implied consent isn’t enough, and can land you in hot water. 

Penalties for violating the TCPA

The TCPA allows consumers to pursue damages for those unwanted communications. 

You can be sued for up to $500 per violation — and that’s if you can prove you didn’t mean to break the law here. If anyone can prove that you “willfully or knowingly violated” the TCPA, they can increase the award by up to three times (e.g., up to $1,500). And that’s for each unwelcome communication.

In other words, if you sent three automated texts to someone without their consent, you could be on the hook for $4,500.  

How to protect your company and still use the latest marketing tech

If this is new information for you, you might be thinking you need to fully revamp your marketing efforts. As AI makes automated messaging, particularly via SMS texting, more personalized and accurate, you may have leaned in — or, at least, considered doing so. Fortunately, you can still leverage this powerful mortgage marketing tool. 

The TCPA doesn’t ban automated marketing communications. You just need to have permission from the consumer first.

Your team doesn’t need to spend time reaching out to every single consumer who submits a lead form, either. You can finesse your marketing tools to ensure that when folks do submit their contact info, you have the consent you need to use it. 

Building in TCPA compliance

Today’s leading-edge mortgage lead generation tools keep TCPA compliance in mind. And when getting the necessary permissions is already built into your process, it protects your lending institution without requiring extra work for your team. 

Take a lead workflow as an example. As people move through it, they get accustomed to putting in personal information like their home-buying budget and the amount they have saved up for a down payment. By the time they get to the end of that form — when they provide contact information in exchange for a personalized rate — they’re usually ready to take that action.

You can get their express permission right here. With a simple checkbox, you get that lead to actively provide consent to be contacted by your company. 

That’s a great start. But to further engage that lead — and to make sure they truly do want to hear from your team via text — you can build another step into your process. The consumer checking that box clears you to send them an automated text. 

Your first message can be a four-digit code that validates the lead’s phone number. This further ensures TCPA compliance, double-checking that the number you’re texting really does connect to the person who opted into messaging. It also lets that person know to expect texts from your team. 

Once they’ve taken the step to validate their phone number, you have a clear path forward. That lead has indicated that they really do want to get information from your team. By sending pertinent communications, like personalized rate quotes or rate update alerts, you position your team to succeed. 

When the leads sees your company as helpful — and respectful of their communication preferences — it helps to foster positive brand perception. This warms up the lead, making it easier for your loan officers to close the loan. 

Getting TCPA compliance with BankingBridge

All of the features we just outlined that support TCPA-compliance are already built into our BankingBridge tools. If you want to explore using them for your mortgage lending institution, book a demo with us today. 

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