Overview
- Fifty-seven percent of mortgage professionals surveyed by National Mortgage News expect AI-driven underwriting to drive the biggest industry change this year, with lenders targeting shorter cycle times and earlier risk detection.
- California’s AB 1018, drafted to prevent algorithmic discrimination, raised operational concerns by layering new requirements over federal rules, and industry engagement helped narrow the proposal as it heads into potential 2026 reconsideration.
- States are moving ahead with oversight as California extends privacy rules to automated decision-making and Colorado enacts a comprehensive AI law covering high-risk systems such as credit eligibility tools.
- The White House’s Dec. 11, 2025 executive order seeks a national AI framework, and perceptions of a looser federal stance are encouraging adoption, though leaders caution that data security and compliance must remain paramount.
- Lenders are urged to formalize AI governance, tighten vendor contracts for transparency and bias testing, and scale deployments incrementally with human oversight because institutions remain accountable for AI-driven outcomes.