Wednesday, June 01, 2005 - By Staff Writer, The Originator
Times
WASHINGTON, D.C. -- If you’re one of those mortgage
originators who thinks the Do Not Call (DNC) laws don’t
apply to you because you’re not making cold calls or
you’re only buying “scrubbed” leads, the
FCC says you’d better listen up.
The federal government formally established the Do Not
Call registry in December 2002 and launched it in June 2003
with joint enforcement from the Federal Trade Commission
(FTC) and Federal Communications Commission (FCC). Yes, the
laws were originally enacted to curb those annoying dinnertime
calls from your typical telemarketer; but the reality is
these laws apply to all U.S. companies that make sales transactions
over the telephone – including mortgage companies.
Beverly Hills compliance attorney Barry Kaye has been closely
following this issue “The DNC laws are having a sweeping
effect across the mortgage industry. The legislation essentially
changes the way mortgage companies must conduct business.
What’s alarming is that many originators don’t
have a clue or are simply not that interested”, says
Kaye.
Given the fact that 40% of DNC citations issued by the
FCC were to mortgage companies, many companies are taking
a gamble. And the stakes are high. The fine for non-compliance
is $11,000.00 per call. Just ask Dynasty Mortgage how quickly
that can add up. Dynasty was recently issued a forfeiture
notice for $770,000.00. You’d think a judgment of this
size would get people reacting. Well, so did I.
The sad truth is that almost all the mortgage companies
I’ve
spoken with who asked not to be mentioned in this article
think the laws don’t really affect them because they
are aren’t making cold calls or they buy “scrubbed” leads.
The FCC says they’re wrong and they aren’t playing
games.
“The FCC website is very clear regarding the DNC laws.
We’ve sent out a message and our enforcement is vigorous,” notes
FCC Director, Office Media Relations, David Fiske.
Any outbound call that you make to someone whom you do not
have an established and direct business relationship with
- to a realtor referral or past client referral, to a person
on a list you purchased – must first be run against
the DNC registry.
“The fact that a realtor gave your card to their client
and told them you’ll be calling does not keep you compliant.
If you think otherwise, you’re wrong. You’re
just totally wrong,” says Kaye.
“You need to first get a SAN and run every call – including
realtor referrals – against the DNC registry at least
once every 31 days. You’ve got to have a written compliance
policy in place and train your employees. You also need to
have a system in place that documents all calls made, proof
of established clients and consumer inquires, and an internal
real-time do not call list.”
If that sound like a lot, it is. Small to mid-sized companies
are clearly at a disadvantage. Membership organizations like
the National Association of Mortgage Bankers and the National
Association of Mortgage Brokers have yet to provide an easy
to access road map on what members can do to stay compliant
like the National Association of Realtors has done for its
members on their website.
Rather than relying on membership organizations for guidance,
Kaye says to consider an outsourced call compliance solution
that takes care of everything for you.
“You’re on your own right now. And until this
issue is really brought to the forefront, chances are we’ll
see many more Dynasty Mortgages in the future.
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