Mortgage lenders and servicers are facing strict new artificial intelligence (AI) and machine learning guidelines from the government-sponsored enterprises (GSEs) that industry attorneys warn will significantly impact daily operations.

The requirements apply well beyond obvious applications like underwriting engines or credit decisioning models. They extend across multiple business areas and stakeholder touchpoints, creating new liability for companies that fail to follow the rules, they said. 

Fannie Mae issued its AI and machine learning governance standards through a lender letter on April 8, with the rules taking effect in August, 120 days after publication. This follows Freddie Mac‘s details ⇒

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