State Artificial Intelligence Law and the Real Estate Finance Industry
In the absence of Congressional action, states have begun debating how to regulate artificial intelligence (AI) in earnest with legislative efforts broadly aimed across industries. In May 2024, Colorado became the first state to enact a statute governing these tools. MBA and its partner state and local associations are engaged in advocacy to ensure the specific needs of the real estate finance industry are considered in these debates and incorporated into any final policy. MBA created a report exploring AI in the Mortgage Industry and a document outlining Myths vs. Facts about the industry's use of AI. Educating state legislator's on the use and purpose of these technologies is key to ensuring these policies do not interfere with the overall mortgage market.
For example, member companies often rely on AI tools they do not own nor control in order to extend sustainable mortgage credit to low- and moderate-income families through the affordable housing programs of the federal government. This includes AI tools developed or required by Fannie Mae, Freddie Mac, the Federal Housing Administration, the Department of Agriculture's Rural Housing Service, and the Veterans Administration's Loan Guarantee Program.
Given the reliance on federal tools, it is vital that state policy makers continue to allow their federal counterparts to manage these systems and not create any unintended consequences through a patchwork of state laws.
ENACTED
Colorado: Consumer Protections for Artificial Intelligence (May 17, 2024)
- Rulemaking Updates: https://coag.gov/ai/
Texas: Texas Responsible Artificial Intelligence Governance Act (June 22, 2025)
All Activity Related to State Artificial Intelligence Legislation
- 2025 State AI Legislative Activity (Active Legislation as of September 17th)
- August 28, 2025: Colorado Governor Polis approves a bill ( SB25B-004) to push the implementation date of the Consumer Protections for Artificial Intelligence Act to June 30, 2026.
- August 6, 2025: Colorado Governor Polis calls for a special session to include amendments to SB 24-205, Consumer Protections for Artificial Intelligence. Special session will convene August 21st 10:00AM local time. See Governor Polis press release here.
- 2025 State AI Regulatory Activity:
- November 22, 2024: California's Consumer Privacy Protection Agency (CPPA) published proposed regulations regarding cybersecurity and automated decision making technology (ADMT).
- February 18, 2025: MBA submits joint comments with California MBA and California Bankers Association in response to the CPPA proposed rule.
- May 9, 2025: CPPA posts a notice with modifications to the November 2024 proposal. Comments are due June 2, 2025 5:00 pm PT.
- June 2, 2025: MBA and California MBA submit joint comments to the CPPA board on their May modifications notice.
- September 22, 2025: California Privacy Protection Agency receives approval on ADMT regulations. The approved final regulations text and other final rulemaking documents can be found here. Businesses that use ADMTs to make significant decisions and are subject to these regulations must comply by January 1, 2027.
- 2025 State AI Related Activity in Congress:
- H.R. 1 - 119th Congress (2025-2026), originally included language in Section 43201. (c) which was a 10-year moratorium on state enforcement or regulation on AI (AI models, AI systems or automated decision systems). This language was ultimately removed prior to passing. To read the language around the moratorium, click here.
- H.R. 1 - 119th Congress (2025-2026), originally included language in Section 43201. (c) which was a 10-year moratorium on state enforcement or regulation on AI (AI models, AI systems or automated decision systems). This language was ultimately removed prior to passing. To read the language around the moratorium, click here.
- State AI Leg & Reg Activity 2023-2024
Related MBA Events
AI for Compliance and Risk Management Professionals
Join MBA Education and PhoenixTeam for a hands-on training that will help mortgage compliance and risk professionals manage oversight, detect anomalies, and ensure regulatory alignment. This 90-minute virtual training is designed specifically for com
Join MBA Education and PhoenixTeam for a hands-on training that will help mortgage compliance and risk professionals manage oversight, detect anomalies, and ensure regulatory alignment. This 90-minute virtual training is designed specifically for compliance officers, auditors, and risk managers who want to harness AI tools to enhance accuracy, efficiency, and foresight in their daily work.
Participants will learn how to use AI to streamline compliance reviews, automate data analysis, identify emerging risks, and generate actionable insights that will help protect both the organization and the consumer. The session also explores the responsible use of generative AI for document summarization, policy monitoring, and internal reporting, while reinforcing guardrails for regulatory integrity and ethical governance.
To thrive in today’s mortgage environment, professionals must pair compliance expertise with a working understanding of prompt engineering, data validation, and AI literacy. This course provides the foundational skills to evaluate, adopt, and apply AI technologies effectively and responsibly.
Date:
- Tuesday, June 23 (2:30 PM - 4:00 PM ET)
Objectives:
- Apply AI tools to streamline compliance reviews by generating document summaries, identifying missing elements, and comparing outputs to regulatory requirements.
- Detect and interpret anomalies or emerging risks in sample mortgage data using AI-assisted analysis and explain how findings align with existing risk frameworks.
- Construct and refine effective prompts that improve the accuracy, clarity, and regulatory alignment of AI-generated outputs in compliance and risk workflows.
- Evaluate AI outputs for accuracy, bias, and regulatory integrity by applying validation techniques and established organizational guardrails for responsible use.
Experience Level:
- Foundational
- Intermediate
Target Audience:
- All single-family mortgage professionals! AI is for everyone and MBA wants to ensure you stay at the forefront of this rapidly emerging and ever evolving landscape.
Speaker(s):
- Tela Mathias, COO and Managing Partner at PhoenixTeam and CEO at Phoenix Burst
Special Discounts:
- Contact David Upbin for group pricing or pricing for multiple registrations.
William Kooper Discusses State Artificial Intelligence Advocacy Efforts
Join MISMO's Artificial Intelligence (AI) Community of Practice (CoP)
MISMO's AI CoP aims to bring together experts and practitioners to collaborate on advancing artificial intelligence standards in the mortgage industry. The AI CoP will also be a forum for industry professionals to stay informed on the latest AI trends and advancements that are transforming the mortgage landscape. Access MISMO Connect to join.
Leave a comment