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
State of the Market: Tech Trends Shaping the Future of Mortgage Lending
*This is a sponsored webinar. Please be advised your contact information will be shared with the sponsor.*Join us for an exclusive deep dive into the current and future landscape of mortgage technology amidst the evolving state of the economy and mar
*This is a sponsored webinar. Please be advised your contact information will be shared with the sponsor.*
Join us for an exclusive deep dive into the current and future landscape of mortgage technology amidst the evolving state of the economy and market trends.
As the mortgage industry navigates shifting economic conditions, we’ll explore how cutting-edge loan origination systems, servicing innovations, and the increasing role of AI are reshaping loan manufacturing and operations.
Discover how to stay ahead in a rapidly evolving market, streamline operations, and deliver superior borrower experiences in the current economic environment. Whether you're a lender, servicer, or industry professional, this webinar will arm you with the insights you need to thrive in 2025 and beyond.
Date/Time
- Tuesday, May 13 (2:00 PM - 3:00 PM ET)
Objectives
- Understand the impact of current and future economic conditions on the mortgage industry, including market trends and evolving consumer behavior
- Explore advancements in mortgage technology, such as loan origination systems and servicing innovations, and how they are reshaping loan manufacturing and operations
- Gain insights into the growing role of artificial intelligence in the mortgage industry, particularly in streamlining operations and improving efficiency
- Stay ahead of industry changes; gain the knowledge needed to stay competitive in a shifting economic and technological landscape
- Prepare for the future; get equipped with insights and strategies to navigate future industry disruptions and capitalize on emerging opportunities, ensuring success in 2025 and beyond
Experience Level
- Entry-Level
- Intermediate
Target Audience
- C-Suite Executives, CEO, CFO, COO, CTOs
- President, Senior Vice President, Vice President
- Director
- Mortgage Lending, Mortgage Operations, Mortgage Servicing, Mortgage Originations, Residential Lending, Residential Operations
- Mortgage Professionals with 5+ years of experience
Speaker(s)
- Sean Dugan, CEO, Dark Matter Technologies
- Mike Fratantoni, Chief Economist and Senior Vice President of Research and Business Development, Mortgage Bankers Association
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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