State Disclosure Engine

The problem this solves

Every US state with an active mortgage licensing regime — which is to say, every state — imposes its own mortgage advertising and solicitation rules. The rules cover required NMLS identifier formatting, mandatory company/branch identifiers, required physical-address disclosure, state-specific consumer-rights notices, opt-out instruction format, and (in several states) refinance-specific language requirements.

For an LO licensed in one state, this is manageable manually. For an LO licensed in five or ten states — increasingly common as remote work spreads mortgage practice across state lines — manually maintaining the correct disclosure per outbound message is impossible. The result is one of two failure modes: drop disclosures entirely (which surfaces in state examinations), or send the same generic disclosure regardless of state (which is technically non-compliant in several specific states).

The State Disclosure Engine solves this by automating the mapping from (LO's licensed states × borrower's state of residence) → correct disclosure template, applied to every outreach draft as it's generated.

States live today

Ten states are live as of June 2026, covering approximately 70% of US mortgage origination volume. Each state's disclosure rules are versioned and re-rendered with every material rule change.

Q3 2026 roadmap — next 10 states

The next batch of 10 states is in active rule-extraction and template authoring. Target deployment: end of Q3 2026 (September 30, 2026).

Q4 2026: remaining 30 states + DC. Enterprise customers can request priority on specific states as part of their Enterprise SLA.

How it integrates into the outreach flow

1. The LO opens a past-client contact whose property is located in a specific state.
2. LO Radar checks: is the LO licensed in that state per their NMLS-verified license set?
3. If yes, the outreach draft is generated with the appropriate state disclosure block automatically appended, formatted per the state's requirements (footer block in email, footer in SMS, etc.).
4. If no — the LO is not licensed in the borrower's state — outreach is hard-gated. The LO sees a "Licensing gate" status on the contact and must either obtain the relevant license or hand the contact off to a colleague with the right licensure.
5. Every outreach draft is tagged with the state-rule version that was applied, so audit trails can prove the disclosure was current at the time of use.

The "licensing gate" — a feature, not a bug

Several LO Radar customers have flagged the licensing gate as one of the most useful compliance features in the product. The scenario: an LO has past-client data for borrowers in states they originated in years ago but no longer hold active licenses for. Reaching out to those borrowers is a state-licensing violation. The LO Radar gate prevents the violation from ever happening — and surfaces the cleanup opportunity to either reactivate licensure in the relevant state, or formally hand the contacts off to a licensed colleague.

How the rules are maintained

The state-disclosure database is maintained quarterly with two inputs:

• Primary source — each state regulator's published guidance, statutes, and administrative rules. Maintained by a dedicated compliance research process internal to TechStack.
• Secondary cross-reference — Hudson Cook's annual state-by-state mortgage compliance summary (licensed). Used to validate the primary research and catch interpretive nuance that statutory language alone doesn't make obvious.

Material rule changes (NMLS rule updates, state DFI bulletins, court decisions affecting interpretation) trigger an interim refresh rather than waiting for the quarterly cycle. Every disclosure template is versioned with the rule citation, the effective date, and the date the template was last reviewed.

For Enterprise customers, we will provide the full state-rule sourcing documentation under NDA on request.

Questions for the LO's compliance team

Compliance officers reviewing LO Radar's state-disclosure approach typically ask:

• Q: How do you handle states where our internal compliance interpretation differs from Hudson Cook's?
  A: On Enterprise tier, we accept custom disclosure-language overrides per state per branch. Your compliance team's interpretation becomes the template; we maintain the versioning + audit trail.
• Q: What's the LO Radar liability posture if the disclosure is wrong?
  A: LO Radar provides decision-support; the LO and their institution remain the sender. We carry standard SaaS liability framing in the Terms of Service. For Enterprise deployments, we offer indemnification for our specific disclosure-template work product up to the contract value.
• Q: How do we audit which disclosure was used on a specific past outreach?
  A: Every outreach is logged with the state-rule version applied. Branch Compliance Dashboard surfaces this; full audit log export is available on request.