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 Mortgage Marketers
Join MBA Education and PhoenixTeam for a workshop that will elevate how mortgage marketers attract, engage, and retain customers through the use of AI. Designed for marketing professionals across lending, servicing, and fintech, this session will equ
Join MBA Education and PhoenixTeam for a workshop that will elevate how mortgage marketers attract, engage, and retain customers through the use of AI. Designed for marketing professionals across lending, servicing, and fintech, this session will equip you with the skills to use AI strategically for campaign design, customer segmentation, content creation, and performance optimization.
Participants will learn how to apply generative AI tools to craft targeted messaging, automate social and email marketing, analyze engagement data, and uncover trends that drive smarter marketing decisions. The course also explores practical prompt-writing techniques, best practices for data ethics and compliance, and real-world use cases of AI-driven personalization that increase borrower trust and conversion.
To stay competitive in a rapidly evolving market, mortgage marketers must blend creativity with technical fluency. This training builds that bridge, freeing time for innovation and building connections with your customer base.
Date:
- Tuesday, August 4 (2:30 PM - 4:00 PM ET)
Special Discounts:
- Contact David Upbin for group pricing or pricing for multiple registrations.
Objectives:
- Use generative AI tools to create targeted marketing content, including emails, social posts, and borrower messaging tailored to specific audience segments and campaign goals.
- Apply AI-driven techniques for customer segmentation and trend identification by analyzing sample engagement or market data to uncover actionable insights that improve campaign performance.
- Construct and refine effective prompts to guide AI tools in producing accurate, compliant, and brand-aligned marketing outputs.
- Evaluate AI-generated marketing content for data ethics, regulatory considerations, and quality, ensuring alignment with mortgage industry standards and organizational guardrails.
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
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.
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