Mortgage advertising comes with rules. But you probably already knew that. Publishers of social media channels know it, too, and their policies ensure you follow those rules. While these strict policies may be frustrating at first, they really are just another way to help abide by mortgage compliance rules.
Keep reading for a discussion of the rules most relevant to mortgage marketing advertising and how social media platforms help to enforce them.
Interest rates can be listed in mortgage advertising, but there are a few mortgage compliance rules to remember. First, the rate must be the actual rate your mortgage company is offering. For social media advertising, this means you will need to be prepared to pull or edit an ad quickly if rates shoot up and you can no longer honor the listed rate.
Second, you must show the annual percentage rate (APR). The simple annual rate or periodic rate paid on an unpaid balance and the APR should be of the same text size and equally conspicuous. Required disclosures must also be conspicuous. Federal mortgage rules specify that internet ads cannot obscure required disclosures through “graphical displays, shading, coloration, or other devices.”
In a review of social media platforms commonly used by mortgage companies, we found that most do not refer to specific mortgage advertising rules. Instead, they commonly say that advertisements must meet all national, state and local regulations.
Pinterest uses the same general language and cites the following example, which would likely apply to interpretations across all platforms:
“Ads for consumer loans, for example, must disclose things like the APR, repayment period, fees and costs, penalties, and information about the lending institution.”
At least one social media channel has found a sure way of avoiding problems with mortgage compliance – Twitter simply doesn’t allow advertisements for banks or lenders!
While social media advertising can be an effective revenue-building tool for mortgage loan officers, it is also important to keep in mind that mortgage compliance rules are always changing. As a loan officer, it’s crucial to stay up-to-date on the latest rules and regulations to ensure that your social media advertising campaigns remain compliant.
Another important aspect of mortgage compliance is ensuring that any claims made in social media advertising campaigns are truthful and not misleading. For example, if a loan officer advertises a specific interest rate, they must be able to provide that rate to any borrower who applies for a loan. Failure to do so could result in legal consequences for the loan officer and their company.
In addition to looking at the rules and regulations surrounding fair housing, the social platforms also help advertisers stay in mortgage compliance when selecting their target audiences.
For mortgage advertising, Facebook requires the use of Special Ad Audiences based on similarities in online behavior and activity rather than on categories like age, gender, ZIP code or other similar descriptors. Facebook encourages broad rather than narrowly targeted audiences for mortgage advertising so that ad buys are seen as inclusive rather than discriminatory. It’s also important that ads not contain language that “implies or asserts personal attributes.”
When it comes to mortgage marketing inside or outside of social media, nothing beats a mortgage CRM like Surefire℠ CRM and Mortgage Marketing Engine by Black Knight.
In addition to providing on-target messaging and images that you can use to build your mortgage advertising program, Surefire has approval systems that help ensure all loan officers are staying within mortgage compliance guidelines.
And while Surefire is known industry-wide for its award-winning content, that’s not the only way to enlist your mortgage CRM’s help in social media ads. You also can use your CRM to search your contacts and build an audience for your ads. Identify a group – like borrowers who closed more than six months ago and have interest rates over a selected range – and use their email addresses to build a targeted ad campaign around refinances.
Whether you’re into social media advertising, email marketing, postal mail, texting or calling, Surefire has something to interest you. We hope you’ll schedule a demo soon!
As content manager at Top of Mind Networks, Renita develops award-winning marketing materials and strategies for mortgage companies. Throughout her career, Renita has managed public relations and produced both printed and online content for clients in the home building, affordable housing, real estate, mortgage lending, financial planning, and
environmental industries. As a ghostwriter, she has contributed to two books on social media marketing. Her work has also been published in numerous print and online trade publications for industries she supports.
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