AI creates real efficiency only when it’s designed around transparency, human handoffs, and accountability.

Lett me start with the simple part: This is not legal advice. I’m not your counsel, and I’m not here to teach TCPA case law or parse every new FCC memo.    What follows is strategic guidance from someone who builds AI-powered borrower communications for private lenders.

The Regulatory Backdrop

That said, lenders do need to be aware of the legal backdrop. There isn’t a brand-new AI communications law yet, but regulators are applying existing TCP and FCC rules to AI tools. In fact, in February 2024, the FCC clarified that the TCPA covers AI-generated or “human-sounding” voices, meaning prior express consent is required just as it would be for a robocall or prerecorded message. So, the rules are already on the books, and enforcement is catching up as AI becomes more common.

That’s why this article frames disclosure, consent, and opt-outs as foundational. If you set those up today, you’ll be aligned both with current TCPA compliance and with future regulatory direction—whatever it ends up looking like.

From there, we’ll explore how to design the communications layer of your lending process so it’s effective, borrower-friendly, and something you can confidently stand behind—before you ever flip the switch on automation.

Borrower, Not Tech, First

Here’s the reality on the ground. Borrowers care less about the technology and more about clarity and respect. If a text or call feels sneaky, or you can’t show where consent came from, you’ve created a trust problem and an operational risk at the same time. None of us wants that. So, instead of waiting for a “final” regulatory playbook, build a borrower-first program that treats consent, disclosure, and opt-outs as table stakes. You’ll move faster later because you did the unglamorous setup now.

Start by drawing a clear line around scope. The focus here is AI-assisted communications such as calls, texts, and emails used to move a loan forward. This isn’t about underwriting decisions, credit models, or the broader debate over liability if AI makes a mistake. Those are separate issues with their own controls. Borrower outreach is its own lane, and it’s often the first place most lenders turn because the ROI is obvious: fewer missed signatures, fewer stalled files, and less manual follow-up.

If you’re thinking, “We aren’t using AI yet, so we’ll figure this out later,” that’s the real trap. What slows teams down isn’t the dialing technology; it’s the paperwork that comes with it. Updating closing docs and web forms under a deadline while your operations team is pushing for automation is the wrong time to start. Capture the right permissions and expectations now, so when you’re ready to pilot an AI assistant, the path forward is already in place.

Permissions, Disclosure, and Opt-Outs

First, let’s look at what do the right permissions and expectations look like in practice. Your counsel should be able to provide the exact language, but the principle is straightforward: Wherever a borrower interacts with your online forms, point-of-sale flows, or closing documents, make it easy for them to give consent to outreach that may include automation or an AI assistant.

If you’re collecting a checkbox on a loan application, don’t bury the lede. A simple statement such as, “I agree to receive calls, texts, or emails about my loan. Some communications may be sent by automated systems or an AI assistant. I can opt out at any time,” sets expectations clearly. For text messaging, specify that replying “STOP” ends communication. For voice, tell them they can ask for a human at any point. None of that is legal magic—it’s just good business and it aligns borrower expectations with how you’ll actually operate.

Second, don’t overlook disclosure. Borrowers shouldn’t have to guess whether they’re speaking to an AI assistant. If an automated voice kicks off the call, say so up front and give them a zero-friction off-ramp to a person. In practice, that sounds like this: “I’m an AI assistant calling on behalf of [Your Company] to help move your loan forward. If you’d prefer a human, I can transfer you right now.” The point isn’t to wave a compliance flag but to remove confusion. Clarity keeps call outcomes high and complaints low.

Third, make opt-outs work everywhere, immediately—but also within the right scope. If someone replies STOP to a text, that ends the texting, but it doesn’t automatically cut off phone or email. SMS opt-outs are typically treated as channel-specific. That said, best practice is to keep things borrower-friendly and transparent. A simple follow-up confirmation text such as, “You’ve been unsubscribed from text messages. If you’d also like to update your email or phone preferences, click here [link]”—both honors the immediate request and gives them an easy path to manage everything else in one place.

Behind the scenes, treat consent and opt-outs like core data, not marketing metadata. Keep the receipt: what the borrower saw, what they agreed to, when it happened, and where it came from. When a regulator or auditor says, “Show me,” you should be able to deliver in seconds. Just as important, when a borrower asks, you should be able to respect their choice without hunting through five systems.

There’s also the human factor. AI should handle the routine work, not steamroll the situations that need judgement or nuance. Decide ahead of time when a conversation moves from the bot and to a person. Identity friction? Escalate. A complaint or legal request? Escalate. Signs of financial hardship? Definitely escalate. Document those triggers, test them, and make sure the handoff feels seamless. Few things erode trust faster than being stuck in a loop when you need a human ear.

Owning the Program

Vendors matter, but liability rests with you. Tools don’t replace judgment, and they don’t carry your compliance risk—your team does. That responsibility covers everything: what the assistant says, the disclosures you use, how you collect consent, how you log opt-outs, or how you route conversations to a human. Hold your vendors to strong standards, but don’t ignore governance. Keep your own audit trail. Know which prompts are live. Know who approved changes. If you can’t answer those questions internally, it doesn’t matter how slick the AI sounds on a demo.

If you’re looking for a starting point, run a quick “paper drill” before you pilot anything. Pull your current application and closing packages and ask: Do they clearly ask for outreach consent that can include automation or AI? Is the language plain enough that a borrower doesn’t feel surprised on the first call? On your website forms, does the checkbox text match what you’ll actually do? Does your CRM have one place where consent and opt-out status live, synced across channels? Could you prove that status with a timestamped record? If you’re not there yet, that’s your workbench for the next two weeks. When those basics are solid, turning on an AI assistant feels like adding a team member, not taking a regulatory gamble.

One more thing about tone. Compliance shouldn’t feel like a scramble to dodge penalties. That’s not the best frame. The better one is speed with integrity—a process that runs faster because borrowers trust it and your team can explain it. When someone texts back, “Is this a bot?” your staff should be able to answer confidently: “Yes, an AI assistant helps us keep things moving. You can talk to a person anytime, and here’s how.” That’s not a legal position; it’s a service position.

And to close where we started: This isn’t a legal guide. It’s a peer-to-peer reminder from someone who’s seen what happens when teams rush AI before before laying the groundwork. The essentials are simple: Set expectations, earn permission, log the proof, and design the human escape hatch. Do that now, and when you decide to bring AI into borrower communications, it will deliver what you wanted in the first place—a faster, cleaner loan process that borrowers don’t think twice about.