Potential TikTok ban looms, forcing mortgage LOs to pivot

A ban that could go into effect in January poses challenges for mortgage professionals who depend on TikTok to connect with clients and real estate agents

TikTok and its China-based owner ByteDance on Monday took a step to stop a potential U.S. ban of the social media platform that is slated for January — a move that is being closely watched by mortgage professionals. 

The companies filed a request with the U.S. Court of Appeals for the District of Columbia to decide on pausing the ban by Dec. 16 while it asks the Supreme Court to take up the case and for President-elect Donald Trump to weigh in.

This follows a Friday ruling by the D.C. appeals court affirming the authority of Congress to act in the nation’s interest and uphold a law requiring ByteDance to either divest TikTok’s U.S. operations by Jan. 19 or sell them. 

The divestment requirement stems from bipartisan legislation passed by the U.S. House of Representatives on March 13. The Senate approved the bill in April and President Joe Biden signed it into law shortly afterward. The law does not make it a crime to continue using the app but prohibits downloads or updates. 

The looming ban poses challenges for mortgage professionals who depend on TikTok to connect with clients and real estate agents, and for borrowers — especially Gen Z and first-time homebuyers — who rely on the platform for homeownership and financial literacy content.

Some loan officers are already pivoting to alternative platforms to sustain their client engagement strategies. But uncertainty over enforcement remains as the White House transitions to new leadership next month.

Trump reportedly wants to stop the TikTok ban, with the platform arguing that there is a “reasonable possibility that the new Administration will pause enforcement of the Act or otherwise mitigate its most severe potential consequences.” 

By Flávia Furlan Nunes and Sarah Wolak

09 December 2024 READ THE FULL ARTICLE HERE