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State Artificial Intelligence Law and the Real Estate Finance Industry

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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)

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.
    • February 18, 2025: MBA submits joint comments with California MBA and California Bankers Association in response to the CPPA proposed rule. 

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*This is a sponsored webinar. Please be advised your information will be shared with the sponsor.*In today’s challenging mortgage environment lenders need to maximize their return on every transaction. They must take advantage of every resource avail

*This is a sponsored webinar. Please be advised your information will be shared with the sponsor.*

In today’s challenging mortgage environment lenders need to maximize their return on every transaction. They must take advantage of every resource available to increase efficiency, streamline processing and ensure accuracy at every stage of the application process.

Join industry subject matter experts as they discuss the strategies, solutions and integrations available to build a seamless end-to-end workflow. They will look at how automation and machine learning can reduce the time spent on, and the risk of errors in, manual rework. How seamless integration between best-of-breed solutions streamlines loan analysis and document validation. And finally, the speakers will unpack how increased accuracy and reduced time to close can increase the return on every transaction.

Date/Time:

  • Wednesday, April 23 (2:00 PM - 3:00 PM ET)

Objectives:

  • Understand how to leverage the latest automation tools and resources to improve Mortgage processing efficiency
  • Explore how the integration of best-of-breed solutions streamlines loan analysis and document validation
  • Identify opportunities to reduce workloads and increase accuracy

Experience Level:

  • Intermediate
  • Advanced

Target Audience:

  • Branch Managers and Heads of Mortgage Production
  • Loan Officers, LOAs, and Processors
  • Compliance and Risk Management Professionals
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Speaker(s):

  • Colin Gazinski, Senior Solutions Consultant, Finastra
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William Kooper Discusses State Artificial Intelligence Advocacy Efforts

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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.