Hi, I’m Adam DeSanctis with the Mortgage Minute, the latest news from the Mortgage Bankers Association. MBA last week published a new white paper examining how existing federal laws and regulations apply to the use of artificial intelligence in mortgage lending. Developed with direct input from MBA’s ResBog members and prepared by our outside counsel at Orrick, the paper provides practical guidance on the legal and compliance considerations associated with AI adoption in lending and servicing. The paper reinforces a quote-unquote, “human in the loop approach,” emphasizing that mortgage professionals remain accountable for lending decisions while AI serves as a tool to support efficiency and better outcomes. Among its key conclusions, the paper notes that AI tools do not require their own mortgage loan originator license under the SAFE Act, but a licensed MLO should remain assigned to every transaction. It also highlights the need for lenders to continue complying with consumer protection requirements and avoid misrepresentations when using AI-enabled tools. The paper further outlines governance best practices, including oversight of fair lending bias, explainability, data privacy, cybersecurity, and third-party risk management. This white paper complements MISMO’s new Framework for Responsible AI in Mortgage Ecosystems, or FRAME, and serves as an educational resource to help members navigate this rapidly evolving area while adopting AI responsibly and compliantly. Go to mba.org to read the white paper. That’s it for this week. Thank you for listening.
Adam DeSanctis, VP, Communications at Mortgage Bankers Association
As a strategic public affairs and communications executive with nearly two decades of experience, Adam has deep expertise in strategy, management, and media relations. He is widely regarded as an expert in a variety of communications, including advocacy, brand, executive, crisis, grassroots, and social media. In his career, he has been the MBA spokesperson on a wide variety of real estate research and advocacy-related issues, promoted MBA research and advocacy efforts to financial, political, and trade industry media and on MBA’s social media channels, and secured media opportunities for MBA leadership on key real estate trends and issues, generated media coverage for MBA’s research and data on mortgage applications, credit availability, homebuilder applications, mortgage forbearance/delinquencies, commercial real estate originations, and forecasts, and other industry analysis, developed key strategic initiatives for MBA’s organizational public affairs plan, media relations and member communications support for mPower, MBA’s Opens Doors Foundation and MBA’s Diversity, Equity, and Inclusion programs.