[Mary Frances]

We use Encompass CRM (Encompass Mortgage Marketing Automation Software) to send emails. The emails are sent to prospects, customers and referral partners such as realtors.

The emails are mainly general information not promoting a product which include things like: Market Perspective, Monthly newsletters, Home Services Worth Paying For, etc… The one product/service we do advertise is the Federal Home Bank Welcome Home Funds.

All the emails include this verbiage:
This letter is for information purposes only and is not an advertisement to extend customer credit as defined by Section 12 CFR 1026.2 Regulation Z. Program rates, terms and conditions are subject to change at any time.

And the email includes a place to Unsubscribe as well as a physical address, phone number, FDIC logo and EHL logo and the bank’s NMLS# and if an officer’s picture is on the email their NMLS#.

For Can-Spam we are questioning if we should put ADV in the subject line on all the of emails if so, does that contradict the “not an advertisement to extend consumer credit…”.

Encompass CRM also has the ability to send a prospective borrower a series of emails as educational pieces these include a 1st time home buyer that relates to their home buying process such as: getting pre-qualified, finding a home, working through the loan process, closing/moving in. Would this be a violation of RESPA Section 8 if the realtors name and information is included in these emails as co-branding? The bank is not charged for the emails that are sent out. The bank has a monthly fee for using the service.

[Kimberly Boatwright, CAMS, CRCM]

ADV question – CAN-SPAM Laws for Email Marketing Campaigns
Content Compliance
*Make sure the sender information in your “From,” “To,” and routing data accurately identifies you or your business as the sender.
*Don’t send emails with false header information.
*Avoid misleading subject lines that make your email appear scam or spam. For example, if the email contains sexually-oriented information, you need to label it as “SEXUALLY-EXPLICIT” in the first part of the subject
line.
*Identify the email as an advertisement. The CAN SPAM law requires you to identify your email as an advertisement but gives you leeway in how you do this.

The CAN-SPAM Act does not require
*A subject line: The CAN-SPAM Act does not require a specific subject line for commercial emails.
*The inclusion of certain words or phrases: There is no requirement to include specific words or phrases in a commercial email’s subject line or body to ensure CAN-SPAM compliance.

Based on what this states, i do not think you would have to put an ADV in those type of emails.

Section 8 Question:
No, I do not think you can put any realtor information in those emails. Co-branding is considered a thing of value which violates RESPA Section 8.

NOTICE: This email message, including any attachments, is intended only for the addressee, and may contain confidential and privileged information either as protected work product or confidential client information. Any unauthorized review, use, disclosure or distribution is prohibited. If you are not the intended recipient, do not read, copy, retain, or disseminate this message or any attachment, and please contact the sender by reply e-mail or at 888.760.5646 and destroy all copies of the original message and attachments. Neither the transmission of this message or any attachment, nor any error in transmission or misdelivery shall constitute waiver of any applicable legal privilege.

THIS EMAIL AND ITS ATTACHMENTS DO NOT CONSTITUTE LEGAL ADVICE

[Mary Frances]

Would it be better to update this verbiage “This letter is for information purposes only and is not an advertisement to extend customer credit as defined by Section 12 CFR 1026.2 Regulation Z. Program rates, terms and conditions are subject to change at any time” to say “This advertisement is for information purposes only and is not an offer to extend customer credit as defined by Section 12 CFR 1026.2 Regulation Z. Program rates, terms and conditions are subject to change at any time”.

[Kimberly Boatwright, CAMS, CRCM]

The updated version is more straightforward. IMO

NOTICE: This email message, including any attachments, is intended only for the addressee, and may contain confidential and privileged information either as protected work product or confidential client information. Any unauthorized review, use, disclosure or distribution is prohibited. If you are not the intended recipient, do not read, copy, retain, or disseminate this message or any attachment, and please contact the sender by reply e-mail or at 888.760.5646 and destroy all copies of the original message and attachments. Neither the transmission of this message or any attachment, nor any error in transmission or misdelivery shall constitute waiver of any applicable legal privilege.

THIS EMAIL AND ITS ATTACHMENTS DO NOT CONSTITUTE LEGAL ADVICE

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