Marketing Compliance in 2025: Navigating a Shifting Regulatory Landscape in the Mortgage Industry

The mortgage industry is undoubtedly at a crossroads of sorts in 2025. Interest rates remain high, competition for borrowers is fiercer than ever, and marketing efforts are becoming more aggressive as lenders and loan officers look for any and every competitive edge. At the same time, the regulatory landscape is constantly shifting in an ongoing effort to match new technologies and strategies and keep them in line with the laws on the books. While the expectation in some circles is that America’s new presidential administration may bring a reduction in federal enforcement, it is quite possible that state regulators may also ‘fill the gap’ with increased oversight and audits.

Whatever the shifting sands of elections or rate changes might bring, when it comes to marketing efforts, compliance is not just a best practice – it’s a necessity. This includes ‘alternative’ methods of advertising like co-marketing efforts between lenders and real estate agents. Co-marketing continues to gain in popularity, and as it does, so do the potential risks of violating the Real Estate Settlement Procedures Act (RESPA) and a variety of associated state regulations. Understanding where the lines should be drawn between legitimate marketing strategies and prohibited referral payments will be critical for mortgage professionals looking to thrive in 2025.

The 2025 Regulatory Landscape

Federal Changes: A Shift in Enforcement?

With a new administration in place, the current speculation posits that federal regulatory agencies, such as the Consumer Financial Protection Bureau (CFPB) and the Department of Justice (DOJ), may take a less aggressive stance when it comes to systemic enforcement. While ‘lighter’ regulation can have industry-wide benefits, a reduction in oversight could embolden some lenders and loan officers to take greater risks in their marketing strategies, believing they are less likely to face federal penalties for discovered malfeasance.

However, history has shown that compliance risks don’t just magically disappear with a shift in federal priorities. Instead, the weight of enforcement responsibilities tends to shift to the state level.

The State-Level Counterbalance

State regulators have already been stepping up their enforcement efforts, and this trend is expected to continue into 2025. Many states are filling any perceived enforcement gaps by increasing audits, fines, and scrutiny of marketing practices.

In particular, state regulators have shown a growing interest in social media marketing and website compliance. The internet continues to be a rapidly expanding market, with many lenders and LOs heavily focusing on cultivating their corner of an enormously large potential customer base. But just like ‘traditional’ advertising, regulations still very much apply online. Over the past few years, examinations have continued to reveal infractions related to misleading advertising, improper disclosures, and violations of co-marketing guidelines. There is no reason to believe that state agencies will suddenly desist in actively monitoring online marketing strategies to confirm compliance with RESPA, state-specific regulations, and even federal regulations. Will federal agencies let off the gas a little once the current administration makes its opinion known? Possibly. But that doesn’t mean all regulators have stopped watching.

The Mortgage Industry’s Response: Increased Marketing Efforts

High Rates = Competitive Marketing

As noted in the introduction, there are challenges in today’s mortgage climate that are making big waves throughout multiple departments and disciplines. With interest rates remaining high and fewer borrowers entering the market, mortgage lenders and loan officers are nearly forced to intensify their marketing efforts in order to capture an ever-more-limited pool of potential clients. This competitive pressure has led to:

• More frequent and targeted digital advertising campaigns.
• Increased use of social media for direct consumer engagement.
• More strategic collaborations with real estate agents to expand referral networks.

Agent Co-Marketing: A Double-Edged Sword

Co-marketing between lenders and real estate agents has become an increasingly popular strategy to diversify efforts and reach potential borrowers. While it can be an effective way to generate leads, it also carries significant compliance risks.

One of the primary concerns under RESPA is ensuring that co-marketing arrangements do not cross the line into illegal referral payments. The moment a lender pays for marketing that directly benefits a real estate agent without proportional cost-sharing, the arrangement could be viewed as a kickback, which is strictly prohibited under RESPA.

Navigating the Fine Line: RESPA Compliance in 2025

Key RESPA Rules to Watch

1. No Payments for Referrals – RESPA absolutely prohibits any payments or items of value in exchange for referrals. If a lender provides marketing funds to an agent and receives referrals in return, this is illegal and could result in significant fines and penalties.
2. Transparent and Proportional Cost-Sharing – If lenders and agents engage in co-marketing, they must ensure that each party pays their fair share of expenses based on the value each party receives. Unbalanced financial burdens within such an agreement will result in suspicion from regulators and questions about possible under-the-table arrangements.
3. Clear Disclosure of Relationships – Any marketing material that involves a co-branded effort should include clear disclosures and details about the business relationships involved.

Examples of Risky Practices

With the above rules in mind, marketers must be extremely cautious of entering into co-marketing arrangements, because misconduct by either party will cast a light on both. Some regulatory red flags might include:

• Inequal joint social media advertising, where the lender funds the majority of the cost but the real estate agent is receiving a disproportionate amount of exposure.
• Exclusive referral arrangements, where an agent consistently refers business to a single lender in exchange for paid marketing services.
• Failure to document cost-sharing agreements, making it difficult for regulators to prove or disprove compliance when auditing.

Violations of RESPA can lead to fines, reputational damage, and even potential loss of licensure, making it essential for lenders to proactively ensure their marketing efforts remain compliant.

Best Practices for RESPA Compliance

To mitigate these possible risks, lenders and loan officers should:

1. Maintain clear, written agreements that outline the details of a co-marketing relationship, as well as its cost-sharing structures.
2. Regularly review marketing content to ensure that both parties are fully complying with federal and state regulations.
3. Leverage compliance monitoring tools to flag potential issues before they become the target of enforcement actions.

The Role of Technology in Staying Compliant

Compliance Tools for 2025

In an era of ever-increasing digital marketing, compliance technology has become a necessity for mortgage marketing teams, as well as their overall organization. After all, with the sheer volume of advertising materials floating around online, the burden on marketing teams to vet and ensure compliance for every piece can be burdensome at best, and impossible at worst. Solutions like ActiveComply ’s SocialShield? and WebCompass? can help lenders and loan officers breathe easy by:

• Monitoring social media and website content to ensure it meets the most up-to-date regulatory standards.
• Tracking and flagging potential violations before they escalate into fines… or worse.
• Providing automated reports that simplify compliance audits and reviews.

Instead of being bogged down in an endless compliance bottleneck, lenders and their teams can utilize these tools to maintain oversight without risking a slowdown in business growth.

Proactive Monitoring is No Longer Optional

Waiting around and hoping that regulators don’t identify potential violations in your marketing efforts is an impotently reactive step on a path towards a stack of fines and a crippled reputation. In 2025, mortgage companies must take an aggressively proactive approach. Using real-time monitoring solutions can not only take pressure off of your marketing and compliance teams, it can help ensure that all marketing content, co-marketing efforts, and social media engagements remain within legal boundaries and allows sales teams to take their content to market quicker. Why would we want to slow down sales efforts and marketing efforts when there are solutions out there to help?

A Forward-Looking Approach to Marketing Compliance

Aligning Marketing with Compliance

One of the most effective ways to ensure compliance in 2025 is by fostering closer collaboration between marketing and compliance teams. Organizations with poor communication, where the left hand doesn’t know what the right hand is doing, create a recipe for potential disaster. To alleviate the possibility of confusion between teams, organizations should:

1. Implement clear compliance training for all loan officers and marketing staff.
2. Establish straightforward internal guidelines for advertising and co-marketing strategies.
3. Encourage transparency and accountability between teams to prevent unintentional violations.

By integrating the extreme importance of compliance into the marketing process from the start, lenders can reduce risks and create sustainable growth strategies.

Staying Ahead of Enforcement Trends

With state regulators increasing their focus on marketing compliance, mortgage professionals must stay engaged, vigilant, and informed about emerging enforcement trends. This can be achieved through:

• Regular compliance training sessions for all employees within sales and marketing teams.
• Engaging with industry associations to stay updated on all regulatory changes.
• Conducting internal audits to identify and address potential compliance gaps before they become liabilities.

Conclusion

As 2025 unfolds, mortgage professionals will be faced with a complex regulatory environment shaped by shifting federal oversight, increased state enforcement, and aggressive marketing efforts. To navigate these rough waters successfully and remain compliant, lenders and loan officers must understand and adhere to RESPA regulations (particularly in regard to co-marketing practices), proactively monitor marketing efforts using technology-driven compliance solutions, and foster a culture of compliance by aligning marketing and compliance teams.

Ultimately, compliance is not just about avoiding penalties – it’s also about building and maintaining a reputable brand that can thrive in a highly competitive mortgage landscape. Mortgage lenders and loan officers looking to stay ahead of compliance risks should consider leveraging solutions from trusted providers like ActiveComply to monitor their marketing activities and ensure full regulatory adherence. By embracing technology-driven compliance strategies, mortgage professionals can confidently market their services while staying within legal boundaries, ensuring long-term success in an evolving industry.