How to prepare for upcoming robocall rule changes

Retail lenders that rely on robocalling and texting to find prospective clients will have to jump through hoops to continue doing so come Jan. 27.

Changes to the Telephone Consumer Protection Act from the Federal Communications Commission go into effect on that date. One key update is a one-to-one consent rule, requiring companies to obtain consumer consent before sending calls or texts using an auto-dialer.

Failure to do so could result in financial penalties ranging from hundreds to thousands of dollars, per violation.

Mortgage lenders that contact potential leads via telephone will have to be certain that their consumer outreach falls within the parameters of the new guidelines, said Matthew Marx, CEO of digital marketing company Evocalize.

"If you're going to buy lead, you have to know that it was generated with appropriate consent. Otherwise, you're potentially liable as the LO, the lender, or both," said Marx.

The rule will also make it harder for loan officers to jump from one employer to another, while maintaining their existing book of business. 

The reason for this stems from the fact that a consumer's consent will be "inextricably tied to the servicer provider at the time the lead was generated," added Marx. Therefore, each time an LO moves, they'll have to get consent from consumers at their new place of business.

Changes to the TCPA will not impact wholesale lenders. Mortgage brokers that use automated telephone means to reach out to consumers must change their operations, mortgage professionals say. 

However, retail lenders, which are more likely to contact leads via telephone, will have to be vigilant before doing so, or they may be vulnerable to litigation Matthew VanFossen, CEO of Absolute Home Mortgage, said.

"I do think that the biggest concern is going to be that there will be a lot of legal action that we see come from this. We'll see a higher increase of TCPA violations," he said.

VanFossen cautioned companies that rely on lead sellers and lead aggregators to double check contracts.

"I believe we're going to see a lot of lead sellers and aggregators place indemnifications inside of their contracts, so when they sell you a lead they're going to say it's your job to get that consent and that they're not liable for a TCPA violation," the CEO of Absolute said.

This rule only impacts communication over the phone, so retail lenders can still automate their outreach to consumers through other channels, such as email. 

Come April 11, the FCC will also be implementing more simplified means for consumers to refuse contact even if they had previously agreed to it, and they can communicate their decision in any manner they prefer.

Additionally, robocallers and texters will have to honor do-not-call requests in no morethan 10 business days from receipt. 

VanFossen thinks that from a consumer standpoint upcoming changes to the TCPA are positive since they are "inundated with calls, text messages…and it even goes back to the trigger leads, where if a consumer's credit is pulled they're receiving a litany of calls."

"This will help consumers more than mortgage lenders, but in the same respect, mortgage lenders, mortgage brokers," he said. "We're very good at adapting and complying to new rules and regulations. We'll figure out new ways and strategies to be able to implement and comply with the TCPA."