QUESTION
We need guidance on using artificial intelligence in our mortgage banking and servicing operations. Unfortunately, we have not found anything of much value. As the President and CEO of our company, I have met with our Board for almost a year to discuss governance and the utilization of AI. Being present in all states and territories, we require guidance on both state and federal requirements nationwide.
Our lawyers provide us with white papers and legal guidance, but we have yet to receive policies based on mortgage banking experience and expertise. The last policy we got from them was basically useless. I'm a lawyer myself, but I don't need citations or case law. Why is it taking so long for professionals to provide us with the guidance we need to ensure compliance with AI-related issues?
We need your help. For years, we have been following you. Recently, we decided to use your firm to support our compliance department. I spoke to you recently about this AI challenge, and you told me that your team is working on a comprehensive AI policy. I believe you said it would be published this month. Please share your AI policy with the mortgage community.
What is the policy on artificial intelligence you are offering?
COMPLIANCE SOLUTION
Artificial
Intelligence Policy Program for Mortgage Banking
ANSWER
I enjoyed our call. We look forward to working with your compliance personnel. Indeed, we assembled a team of our compliance experts to develop policies and procedures for artificial intelligence. It quickly became clear that one policy would not do. In fact, several policies are needed. We realized that a comprehensive policy program was required, rather than just a single policy. A programmatic structure best meets the compliance demands.
Today, we are issuing the first set of AI policies and procedures specifically designed for the mortgage banking industry. Consistent with its comprehensive approach, we have structured it as a policy program. Thus, there is a cost-effective base policy, as well as several supporting policies. At no additional cost, we maintain and expand the policy program for the first twelve months, as needed, and extensions are available. Updating is necessary in response to the rapidly changing regulatory environment associated with artificial intelligence.
A few days ago, we conducted a demonstration for several regulators, examiners, and our money center bank clients. The feedback was enormously encouraging, and we were grateful for their interest.
Order as soon as possible. There is already considerable demand! We will schedule collaborative support!
New Issuance
Outline
Artificial Intelligence Policy Program for Mortgage Banking™
1. Artificial Intelligence Policy Program for Mortgage Banking – Overview
2. Artificial Intelligence Policy – Foundational Guidelines
3. Artificial Intelligence Workplace Policy
4. Artificial Intelligence Credit Underwriting Policy
5. Artificial Intelligence - Do & Do Not Policy
6. Artificial Intelligence - Ethics Policy
Each of
these policies interacts with and complements the others.
It is essential to work with our LCG Compliance Managers to conform the texts to ensure the policies accurately reflect the financial institution's actual use of Artificial Intelligence in its operations.
- Policies are reviewed as stand-alone documents. A consolidated version of the policies is available.
- LCG Compliance Manager support is included in the purchase price of the policy documents.
- LCG will maintain the subject policies and procedures for 12 months from the purchase date.
Every
effort will be made to conform the policies to the institution's compliance
management system.
Upon
reaching the final version, the Master is kept in our encrypted extranet for
your use. The Master version is retained in the extranet and updated for
substantive changes in applicable laws and Best Practices.
For additional support or information, please email compliance@lenderscompliance group.com.
Contact Us via our website.
For more articles on this topic, please visit: Artificial Intelligence.
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This article, Artificial Intelligence Policy Program for Mortgage Banking, published on October 30, 2025, is authored by Jonathan Foxx, PhD, MBA, the Chairman & Managing Director of Lenders Compliance Group, the first and only full-service, mortgage risk management firm in the United States, specializing exclusively in residential mortgage compliance.
