Why the FCC’s Latest TCPA Move Matters for Mortgage Lenders

Over the last two years, our industry has been getting ready for a TCPA consent framework that many felt caused more issues than it fixed.

Now, it looks like the FCC is ready to change its approach.

A draft order coming up for review this month shows the Commission plans to pull back the main parts of its 2024 “revoke all” rule and replace them with something more practical. The goal is to let consumers stop unwanted messages without losing the ones they still want.

This difference matters a lot for credit union mortgage lenders.

The Problem with “Revoke All”

The 2024 framework adopted a blanket approach: if a consumer revoked consent for one type of informational robocall or text, that choice would apply to all messages from that organization.

The FCC now says this approach may have been too broad and often did not match what consumers really wanted. The agency is concerned that borrowers may have inadvertently missed important messages, such as fraud alerts, security notices, appointment reminders, and other urgent updates.

Anyone working in mortgage servicing knows about this issue.

If a borrower wants fewer payment reminders, it does not mean they want to miss an escrow shortage notice, a security alert, or an important update about their loan.

A Better Fit for Mortgage Servicing

With these proposed changes, lenders can treat an opt-out request as applying only to the type of message that led to it.

In short, borrowers can be more specific about which messages they want to stop receiving.

This may seem like a small change, but it has big effects on mortgage servicing.

Modern servicing relies on communication, as borrowers receive many messages throughout their loan term. The FCC proposal acknowledges that not all of these communications are the same and that consumers should not have to choose between receiving them all or none at all.

Good News for Credit Unions

One of the most interesting parts of the proposal does not involve opt-outs at all.

The FCC would also expand the existing exemption that allows financial institutions to send certain fraud-related alerts to wireless numbers without prior consent.

Since 2015, this exemption has been limited to wireless numbers provided directly by the customer. Under the proposal, financial institutions could also use numbers obtained from what the FCC defines as a “reliable source”: (1) a spouse or other family member who is authorized to be on the account; (2) a number obtained when the customer calls the institution (such as through Caller ID); or (3) a number included in records obtained from another financial institution.

The exemption itself remains limited to four specific purposes: communications about transactions or events that suggest a risk of fraud or identity theft; possible breaches of customers’ personal information; steps consumers can take to prevent or remedy harm from data breaches; and actions needed to arrange receipt of pending money transfers.

This is a big improvement for credit unions.

Credit unions depend on long-term relationships with their members. Being able to reach members quickly during fraud or security issues helps protect those relationships and the trust that comes with them. The FCC also encourages financial institutions to use the Reassigned Numbers Database to prevent misdirected calls, and emphasizes that institutions must still honor opt-out requests from consumers who do not wish to receive these communications.

Less Compliance Guesswork

The proposal would also let lenders and servicers designate specific methods for consumers to withdraw their consent, rather than requiring institutions to honor opt-out requests made by “any reasonable means.”

Under the proposed rule, institutions may designate one or more of three approved methods as the exclusive means to revoke consent: (1) an automated, interactive voice or key-press activated opt-out mechanism on a call; (2) replying to a text with standardized words like ‘STOP,’ ‘QUIT,’ ‘END,’ ‘REVOKE,’ ‘OPT OUT,’ ‘CANCEL,’ or ‘UNSUBSCRIBE’; or (3) using a website or telephone number designated by the caller. If an institution clearly and conspicuously discloses the designated method on each call or text, it would not be required to process opt-out requests made by other means.

The real result is more certainty.

For years, many organizations have struggled to determine what constitutes a “reasonable” opt-out request, a standard that would have created significant operational challenges, increased costs, and even enabled litigation tactics where litigants bypassed clear opt-out instructions in favor of ambiguous phrases. The FCC now recognizes these challenges and is offering a clearer way forward.

Marketing Rules Still Matter

Mortgage lenders should not see this proposal as easing telemarketing rules.

The FCC has made it clear that telemarketing communications must still comply with more stringent standards; if a consumer withdraws their consent to receive telemarketing calls or texts, that withdrawal extends to all future telemarketing communications from that caller.

In other words, the proposal primarily addresses service and informational messages rather than marketing campaigns.

The Bigger Picture

The most important part of this proposal is the thinking behind it. The Federal Communications Commission is shifting from an all-or-nothing approach to a more flexible one that aims to strike a balance between giving consumers a choice and meeting the practical requirements of essential communications.

This is good news for mortgage lenders and credit unions.

Borrowers can still set their communication preferences, while lenders have a better chance of ensuring important information reaches those who need it.

That matters in an industry built on trust.

In the end, good service is not about sending more messages. It is about ensuring borrowers receive the right message at the right time.

That is exactly what this proposal aims to achieve.

The information reported in this document, financial and otherwise, should not be construed as either legal or investment advice, nor does it represent the views of ACUMA, its Board of Directors, its staff or its members. The author presents information current at the time of publication and is designed to educate ACUMA members and others interested in the credit union mortgage lending industry.