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
AI Mortgage Practitioner: June 2025
MBA and PhoenixTeam have partnered to help you and your organization unlock the future of mortgage with the power of AI. The AI Mortgage Practitioner Course will equip you with the essential skills and hands-on expertise to understand how AI is trans
MBA and PhoenixTeam have partnered to help you and your organization unlock the future of mortgage with the power of AI. The AI Mortgage Practitioner Course will equip you with the essential skills and hands-on expertise to understand how AI is transforming the mortgage industry.
Led by industry AI leader, Tela Mathias, this three-day training event will teach MBA members the core AI concepts for the purpose of discovering, developing, and deploying practical AI solutions for the mortgage industry. In a live, virtual setting, we will walk you through foundational AI concepts, real-world use cases, and roll-up-your-sleeve activities, all designed to help you apply AI in your business.
The partnership with MBA and PhoenixTeam enables MBA members to access this training at discounted pricing and to have priority with registrations in a class with limited capacity.
Objectives
- Foundational AI concepts and how they apply to the mortgage industry
- Real-world use cases and insights from industry-leading AI experts
- Hands-on activities to enhance your skills, such as prompt engineering and risk management
- Strategies for AI deployment and understanding ROI in your operations and much more
Date/Time
- Wednesday, June 25 - Friday, June 27 (See below for specific times for each day.)
Agenda*
Day One: Wednesday, June 25 (1:00 PM - 4:00 PM ET)
- Welcome
- Activity: Where are you on your AI journey?
- AI Foundational Definitions and Concepts
- History of AI Broadly
- Activity: Conversational AI
- History of AI In Mortgage
- AI in Mortgage Today (Guest Speaker)
- Activity: Classifying AI Technologies
- How a Large Language Model Works
- Activity: Reasoning AI
- The Race to AGI
Day Two: Thursday, June 26 (1:00 PM - 4:00 PM ET)
- Prompt Engineering
- Retrieval Augmented Generation
- Activity: Prompt Engineering with RAG
- Use Case Identification (Guest Speaker)
- Large Group Activity: Use Case Brainstorming
- Designing AI Experiments
- Running AI Experiments
- Activity: Running Experiments
- Levels of Autonomy and Human in the Loop
- Advanced Topic: Agentic AI
Day Three: Friday, June 27 (11:00 AM - 2:00 PM ET)
- Legal and Regulatory Landscape Issues
- AI Risks and Risk Management (Guest Speaker)
- Activity: Classifying and Mitigating Risk
- Large Language Model Guardrails
- Model Types and Considerations
- Activity: Designing Guardrails
- Deployment Approaches
- Cost of AI and Return on Investment
- Closing the Course
*The agenda is subject to change to meet the evolving nature of the subject matter.
Experience Level
- Entry-Level
- Intermediate
Target Audience
- Mortgage professionals and managers who need to understand how to navigate and work with AI tools
Course Cancellations, Transfers, Substitutions or Extensions:
- For more information on course cancellations, transfers, substitutions or extensions, please review our MBA Education Policies.
Speaker(s)
- Tela G. Mathias, COO and Managing Partner at PhoenixTeam and CEO at Phoenix Burst
- Various Guest Speakers
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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