State Artificial Intelligence Law and the Real Estate Finance Industry
In the absence of Congressional action, states have begun debating how to regulate artificial intelligence (AI) in earnest with legislative efforts broadly aimed across industries. In May 2024, Colorado became the first state to enact a statute governing these tools. MBA and its partner state and local associations are engaged in advocacy to ensure the specific needs of the real estate finance industry are considered in these debates and incorporated into any final policy. MBA created a report exploring AI in the Mortgage Industry and a document outlining Myths vs. Facts about the industry's use of AI. Educating state legislator's on the use and purpose of these technologies is key to ensuring these policies do not interfere with the overall mortgage market.
For example, member companies often rely on AI tools they do not own nor control in order to extend sustainable mortgage credit to low- and moderate-income families through the affordable housing programs of the federal government. This includes AI tools developed or required by Fannie Mae, Freddie Mac, the Federal Housing Administration, the Department of Agriculture's Rural Housing Service, and the Veterans Administration's Loan Guarantee Program.
Given the reliance on federal tools, it is vital that state policy makers continue to allow their federal counterparts to manage these systems and not create any unintended consequences through a patchwork of state laws.
ENACTED
Colorado: Consumer Protections for Artificial Intelligence (May 17, 2024)
- Rulemaking Updates: https://coag.gov/ai/
All Activity Related to State Artificial Intelligence Legislation
- 2025 State AI Regulatory Activity:
- November 22, 2024: California's Consumer Privacy Protection Agency (CPPA) published proposed regulations regarding cybersecurity and automated decisionmaking technology (ADMT). Comments are due February 19th, 2025.
Related MBA Events
Essentials for Executives and Board Members: Module XI: Artificial Intelligence in Mortgage Finance: March 2025
MBA is pleased to offer a comprehensive program designed to empower your board members and senior executives in confidently leading your organization. Our Leading Mortgage Organizations: Essentials for Executives and Board Members program consists of
MBA is pleased to offer a comprehensive program designed to empower your board members and senior executives in confidently leading your organization. Our Leading Mortgage Organizations: Essentials for Executives and Board Members program consists of eleven modules created to equip board members and senior executives with the knowledge, tools, and strategies necessary to navigate single-family mortgage challenges, identify opportunities, and mitigate risks throughout the loan lifecycle.
Authored and delivered by industry experts and vetted by MBA, these sessions cover complex mortgage concepts, ensuring participants emerge as stronger fiduciaries capable of making informed decisions. Elevate your board's effectiveness, enhance stakeholder trust, and position your organization for long-term success with this mortgage-focused training.
In this 2025 virtual series, members can choose to attend the sessions they need or enroll in the comprehensive suite of eleven modules. Attendees will receive a certificate completion at the conclusion of each session.
- Module I: Basics of Board Duties and Ethics for Mortgage Lenders and Servicers: Friday, February 7, 2025
- Module II: The Mortgage Landscape: Friday, February 28, 2025
- Module III: Secondary and Capital Markets: Friday, March 21, 2025
- Module IV: Profitability and Benchmarking in Mortgage Finance: Friday, May 9, 2025
- Module V: Mortgage Servicing Rights: Friday, April 11, 2025
- Module VI: Compliance Management: Friday, May 23, 2025
- Module VII: Fair Lending and Community Reinvestment Act (CRA): Friday, June 13, 2025
- Module VIII: Corporate Social Responsibility, DEI, and ESG: Friday, July 11, 2025
- Module IX: Risk Management: Friday, August 1, 2025
- Module X: Fraud and Cybersecurity: Friday, August 22, 2025
- Module XI: Artificial Intelligence in Mortgage Finance: Friday March 7 or Friday, September 12, 2025
*You must register for each session that you would like to attend. They do not need to be taken in order.
Date/Time
- Friday, March 7 (1:00 PM - 2:30 PM ET)
Objectives
- Artificial intelligence (AI) in mortgage
- Considering and selecting the right AI strategy
- Legal and regulatory landscape
- Approach to governance, risk, and controls
- Road mapping and deployment approaches
- Costs of AI
- Getting to the return on investment
- Income statement, cash flow, and balance sheet implications
- Creating an AI-forward enterprise
Who Should Attend?
- This program is exclusive and limited to current Board members and C-Suite professionals at single-family mortgage lenders, servicers, and vendors.
Experience Level
- Advanced
Speaker(s)
- Tela Mathias, Chief Operating Officer and Managing Partner, PhoenixTeam
Special Pricing
- Please contact David Upbin for group pricing and to enroll in the complete package.
William Kooper Discusses State Artificial Intelligence Advocacy Efforts
Join MISMO's Artificial Intelligence (AI) Community of Practice (CoP)
MISMO's AI CoP aims to bring together experts and practitioners to collaborate on advancing artificial intelligence standards in the mortgage industry. The AI CoP will also be a forum for industry professionals to stay informed on the latest AI trends and advancements that are transforming the mortgage landscape. Access MISMO Connect to join.
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