"A single federal standard would let us invest that energy into the product itself. Lenders already follow one national set of underwriting guidelines through Fannie Mae and Freddie Mac. Adding a second, fragmented layer of AI-specific state rules on top of that doesn't create clarity. It creates paralysis."
"Lending executives are ready to adopt AI but are stuck in legal review because their counsel can't give them clear answers for what's required on a state-by-state basis. The direction of the framework is right and that the mortgage industry is a federally regulated industry at its core."
"Freddie Mac's Bulletin 2025-16, which went into effect March 3, requires every seller/servicer to establish a comprehensive governance framework for AI and machine learning systems, meaning continuous monitoring, formal bias testing, and alignment with NIST and ISO cybersecurity standards."
The proposal emphasizes the need for a single federal standard for AI regulations to prevent a fragmented state-level approach that could hinder innovation. Diane Yu, CEO of Tidalwave, argues that a unified standard would facilitate AI adoption in the mortgage industry, allowing companies to focus on product improvement rather than navigating complex state laws. Current compliance with national underwriting guidelines shows the necessity for a cohesive regulatory framework, as fragmented rules create confusion and slow progress in AI implementation.
Read at www.housingwire.com
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