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#2248380 - 01/29/21 04:04 PM Email marketing to realtors
Compliance Poster Offline
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We are considering sending email advertisements to realtor offices in our area, with no charge for receiving the emails. The content will include mortgage information such as emerging topics, changes, and issues. I realize that CAN-SPAM is in play but can a communication like this run afoul of RESPA rules on a thing of value being provided in exchange for business or referrals? We wouldn't tie the emails to sending us business. But I have a concern nevertheless. Will you please share your thoughts?

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#2248381 - 01/29/21 04:12 PM Re: Email marketing to realtors Compliance Poster
rlcarey Online
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rlcarey
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Galveston, TX
How is marketing to realtors a Section 8 issue? If that was the case, how would you ever do it using any media?
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#2248384 - 01/29/21 04:32 PM Re: Email marketing to realtors rlcarey
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Yes that’s true. Maybe I’m being overly conservative. But I’m afraid of educational information being considered as a thing of value. Providing rate sheets are impractical and somewhat worthless, since rates are determined case-by-case via risk-based pricing.

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#2248386 - 01/29/21 04:41 PM Re: Email marketing to realtors Compliance Poster
rlcarey Online
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rlcarey
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Galveston, TX
Sounds like nothing but a newsletter type communication to me.
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#2248407 - 01/29/21 08:40 PM Re: Email marketing to realtors rlcarey
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Okay. Thank you for your input.

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#2248435 - 01/30/21 04:19 AM Re: Email marketing to realtors Compliance Poster
Inspector Offline
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I agree. Unless you are providing some sort of unique information that would be behind a subscription or normally cost the agent money to access i don't think it would be a problem. Providing information about loan programs etc. sounds like it would be fine.
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Opinions expressed are my own and do not reflect legal advice or the opinions of my employer.

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#2248442 - 01/30/21 05:33 PM Re: Email marketing to realtors Compliance Poster
Richard Insley Online
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Richard Insley
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Toano, VA
Don't get out of the habit of thinking about Section 8, however. It's one of the few cases where violations can lead to criminal penalties.
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#2248477 - 02/01/21 05:07 PM Re: Email marketing to realtors Compliance Poster
Tesla Offline
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Hopping on to this one - our lenders want to send flyers to realtors to distribute when appropriate. For example, if they are showing a vacant lot to someone, the lenders want the realtor to give the person a lot loan flyer with terms and conditions and a small ad for a construction loan (We offer construction loans too!). The plan is to email the flyer to the realtor.

I have lots of concerns but maybe I am being too conservative. First, how do we know the realtor doesn't alter the flyer, only distribute to certain classes of people, explain the loan terms (APR, fees, etc.) correctly or email the ad to consumers without CAN SPAM. I told them emailing the flyer to the realtor for the purpose of distribution does not trigger CAN SPAM before I found out more about their plan. Am I being too conservative? Does anyone else allow this?
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#2248492 - 02/01/21 06:42 PM Re: Email marketing to realtors Compliance Poster
Richard Insley Online
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Richard Insley
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Toano, VA
If the bank's name is part of the flyer and it ends up in the hands of a consumer, then there's an automatic assumption that you intended for it to be an "advertisement" within the meaning of the various consumer protection laws/regs. That would make you responsible for the "printed" content of the flyer. What a realtor (or any other third party) adds to the flyer isn't totally beyond your control, so there's going to be an assumption that you knowingly permitted the additions, and would be responsible for whatever the realtor places in a consumer's hand or email box. Obviously, you will want to include some CYA instructions to the realtors--and that MAY be sufficient to deflect responsibility for such problems as disparate treatment, etc.
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#2248499 - 02/01/21 07:37 PM Re: Email marketing to realtors Compliance Poster
Tesla Offline
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Thankyou. Would it be safe to say sending the flyer by email to the realtor would not require CAN SPAM as we are not marketing to the realtor directly?
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#2248519 - 02/02/21 03:03 AM Re: Email marketing to realtors Compliance Poster
Inspector Offline
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I would say that it would depend on the circumstances of the relationship. CANSPAM covers commercial messages, “any electronic mail message the primary purpose of which is the commercial advertisement or promotion of a commercial product or service." So if a realtor asked you to send them some flyers to pass out, probably fine. If you are sending emails to market, even to market to realtors to market for you, I would say it would be covered.

I find this guide helpful when thinking about whether emails are covered, https://www.ftc.gov/tips-advice/business-center/guidance/can-spam-act-compliance-guide-business
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Opinions expressed are my own and do not reflect legal advice or the opinions of my employer.

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#2248551 - 02/02/21 07:13 PM Re: Email marketing to realtors Inspector
Tesla Offline
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Posts: 3,726
Ok thank you.
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It's not that I take life for granted. It's only that the good won't make it. Innocence dies, while Villany Thrives.

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