A key part of the proposal is the push for a single federal customary, with officers warning {that a} patchwork of state-level rules “would undermine American innovation and our means to steer within the international AI race.”
“The Administration appears ahead to working with Congress within the coming months to show this framework into laws that the President can signal,” the announcement acknowledged.
Diane Yu, CEO of mortgage expertise platform Tidalwave, advised HousingWire {that a} federal customary would speed up AI adoption within the trade.
“Now we have lenders in all 50 states utilizing our point-of-sale platform as we speak. Meaning each new state-level AI regulation is one thing our compliance and engineering groups have to judge, interpret and construct for, as a substitute of spending that point making the product higher for debtors and mortgage officers,” Yu stated. “A single federal customary would allow us to make investments that vitality into the product itself.”
Yu stated she’s had conversations with lending executives who’re able to undertake AI however are caught in authorized evaluation as a result of their counsel can’t give them clear solutions for what’s required on a state-by-state foundation.
“Lenders already observe one nationwide set of underwriting tips by means of Fannie Mae and Freddie Mac. Including a second, fragmented layer of AI-specific state guidelines on prime of that doesn’t create readability. It creates paralysis,” she stated, including that “the path [of the framework] is correct” and that the mortgage trade is a federally regulated industry at its core.
“Lenders already adjust to ECOA, Truthful Housing Act, TILA, and RESPA. The GSEs set underwriting requirements nationally by means of Fannie Mae and Freddie Mac. And the federal guardrails aren’t theoretical. Freddie Mac’s Bulletin 2025-16, which went into impact March 3, requires each vendor/servicer to ascertain a complete governance framework for AI and machine studying techniques,” Yu stated.
“Meaning steady monitoring, formal bias testing, alignment with NIST and ISO cybersecurity requirements, senior administration accountability, segregation of duties between AI growth and threat oversight, and impartial audits. That’s not gentle contact. That’s rigorous, mortgage-specific AI oversight, and it’s already taking place on the federal degree.”
Whereas Yu is constructive in regards to the ethos of the framework, she stated she wished the framework addressed mortgage-specific AI use instances.
“One factor that’s lacking from a lot of the AI coverage dialog is the excellence between corporations which are really deploying AI in manufacturing and firms which are simply speaking about it. In mortgage, that hole is large. We’ve been in manufacturing with nationwide lenders for over a 12 months. That’s a special dialog [from] an organization exhibiting a demo at a convention,” Yu stated.
“I’d additionally wish to see the framework deal with one thing particular to mortgage: the trade already loses roughly $600 per mortgage on origination costs, and shutting a mortgage nonetheless takes 43 days on common,” she added. “If the purpose is to guard customers, quicker approvals, decrease prices, and fewer errors are [key to] client safety. The appropriate regulatory framework ought to make it simpler for lenders to undertake expertise that delivers these outcomes, not more durable.”
