QUESTION
This article is the second installment of
The Day of AI Reckoning, first published
on September 9, 2026, which is a response to a reader who
asked, in part:
A day of reckoning is coming, I promise you. Where's the regulation? Who's liable if AI makes a mistake? Who will reimburse me if I get sued because of an AI error? Why is there no quality control? Why are all these FinTech companies springing up all over the place with AI promotions?
Let's get real. I have no confidence that AI technology is a new type of economic revolution. Maybe it is for the billionaires who run it, since it seems to be a revolution in how fast they can become mega-billionaires.
Will there be a day of AI reckoning in mortgage banking?
COMPLIANCE SOLUTIONS
AI POLICY PROGRAM FOR MORTGAGE BANKING™
Policies and procedures for artificial intelligence related to mortgage banking compliance administration, mortgage loan origination compliance, mortgage servicing compliance, and industry best practices—including, but not limited to, applicable federal and state banking and consumer lending laws.
AI FOR MORTGAGE LOAN
ORIGINATION - SALES MANUAL
Sales Manual provides 9 chapters
covering the full AI-powered origination funnel in a 90-day implementation
roadmap, with clear team roles for fair lending, FCRA, and advertising
compliance guidance built into every chapter. Sample AI prompts, an ROI
tracking framework, and a compliance glossary.
RESPONSE
In Part II, we discuss:
- Capital Markets Are Starting to Ask the Same Question
- Public Is Rejecting the Infrastructure, Not Just the Valuations
- Data Center Opposition
____________________________________
Distributed after publication of all three articles.
Orders distributed first come, first served.
____________________
Here are a few recent related articles:
Capital Markets Are Starting to Ask the Same Question
Your skepticism showing up in mortgage compliance departments has a mirror in the capital markets. Through mid-to-late 2026, AI-adjacent equities have undergone a sustained, and at times sharp, repricing. Chipmakers lost over a trillion dollars in combined market value in a single stretch this summer amid concerns that AI infrastructure spending may be peaking faster than expected.
Software stocks have fared worse than chips in some cases. For example, as I write, Oracle is down more than 50% from its late-2025 high, Microsoft is down nearly 10%, and Meta is down more than 20%. Two contradictory investor theories are driving them: on the one hand, AI will make incumbent software obsolete; on the other, software companies have overspent on AI without adequate returns. One thing I learned at Wharton is that contradictory investor theories are a huge warning sign. And in this case, both narratives can't be true. The market's inability to settle on one signals unresolved uncertainty about what AI is actually worth in production, not just in a demo.
Meanwhile, the AI champs are rising. Whether you look at private-market valuations or explosive financial metrics, AI purveyors have grown staggeringly since late 2025. For instance, Anthropic (Claude) is up about 175%, OpenAI (ChatGPT) is up over 70%, Alphabet (Gemini) is up about 26%, and Google (DeepMind) is up 61%. Most of these have a knack for generating debt without generating a penny of profit.
