We seem to have a loose cannon in our Mortgage Department as they are producing flyers without marketing or compliance approval. We want to help, but need the proper disclosures. In the past we have avoided triggering terms in our advertisements, does anyone have sample language they would be willing to share?

The exact language depends on the product and terms. You simply have to review 226.16 and 226.24 to know what is needed.

You have to get that cannon under control by explaining the risks to them, and possibly their boss.

No offense intended to any Mortgage Loan Officers (MLOs) out there, but if your culprit is an MLO you may want handle this from a different tact. While I agree you should proceed as Andy has specified, I think you should also strive to educate the MLO's. In my experience, the MLO are 1) often times treated like indepenedent contractors, 2) are paid either a small or no base and mostly commission (eat what you kill - i.e. aggressive to close the deal) 3) can be transient employees. Loan production (eating) in many cases could outweigh the pre-deal marketing / compliance, like individual MLO rate sheets, etc. Depending on the level of autonomy that your mortage area possesses, you may want to 1) have compliance training sessions for MLO's and staff, 2) incorporate compliance stipulations into the MLO Confid/Acceptable Use Agreement, 3) formerly, make everyone aware of the policies/regs.

Thank you ...had already pulled the regs and am reviewing. I am a "practical" compliance officer and just want to make life a little easier ...we (marketing director and myself) want to develop a template (hard coded) that all Loan Officers can use where they can make minor edits, etc.

Thanks again,
Kay

To put out an add in our bank without it going through compliace, would be somewhere in the risk structure of tapping a grizzley on the back and asking for his fish. It never happens

While you do try to make things easier...I'd still make sure they understand what happens when they tap grizzleys on the back...and that it will happen to them if they ever issue public advertisements without your blessing.

(I have a big stick you can borrow)

We had that problem when I first got here. Most lenders were sending out what ever letters they wanted, and no one even was looking at them.

The marketing dept, legal, and compliance got together and set up a review process where each item had to pass thru, we first went to management and got them on board.

We presented as a way to assist the lenders, and not a way to hold their efforts back, but at the same time stressing it had to be in the best interest of the bank to do it this way. We started by setting up a few generic letters in a database that they could use. Then as each subsequent piece was review and approved we added to the database.

We have to tweak some based on the purpose but as time goes you should build up a decent file for usage.

Thanks again ...believe it or not, this is still up for debate at my organization!!!

They are now wanting to do a statement stuffer. The never ending story.

Why can't you just help the lenders get it right and then let them be as agressive as they want?

That is exactly what we are trying to accomplish. Hey, the more business they bring in, the better we all are. I am fortunate because our marketing director is working with me.