MBA Releases New White Paper on AI Framework, Best Practices

The Mortgage Bankers Association released a new white paper titled “Examining AI-Powered Mortgage Through the Lens of Federal Law,” prepared by Orrick, Herrington & Sutcliffe.

The paper provides an overview of MBA members’ engagement and implementation with AI use and regulation. It poses and analyzes key legal questions for the industry about the use of AI.

It also emphasizes the need for an industry-developed shared framework. The white paper notes: “As one MBA member remarked, if the industry fails to act collectively, ‘fifty different states will regulate us in fifty different ways.’ ”

“The white paper serves as a useful resource to help lenders and servicers understand the legal and regulatory risks as AI adoption continues to rapidly change the mortgage process,” said Brendan Kelleher, MBA associate vice president of Government Housing Finance. “We thank the Orrick team for their expertise and partnership in drafting this white paper and members of our Residential Board of Governors for offering their incredible insights.”

Click here to read or see below