President Donald Trump signed an executive order Thursday aiming to preempt state-level artificial intelligence regulations, a move that drew praise from trade groups in the housing industry.
The Mortgage Bankers Association (MBA) and the Community Home Lenders of America (CHLA) released statements Friday supporting the efforts to replace a patchwork of state-specific laws with a unified national framework.
The executive order, titled “Ensuring a National Policy Framework for Artificial Intelligence,” aims to establish consistent national standards across the country.
Mortgage lenders argue that varying state regulations stifle innovation and increase compliance costs for independent mortgage banks (IMBs) and other lenders that rely heavily on automated tools for underwriting and fraud detection.
The move comes six months after a legislative attempt to impose a similar moratorium on state-specific AI laws failed to make it out of the Senate. It also follows a government watchdog’s call to issue clearer AI-related guidance in the mortgage industry.
Bob Broeksmit, president and CEO of the MBA, welcomed the news, emphasizing the necessity of federal consistency for modern lending operations that span multiple jurisdictions.
“Technology does not stop at a state border,” he said, warning that a patchwork of laws and regulations would stifle innovation and raise costs for borrowers, while also complicating lenders’ compliance efforts as they modernize their systems.
According to the MBA, the mortgage industry has a long history of adopting evolving technologies to improve the borrowing experience. Broeksmit noted that members have embraced tools ranging from early automated underwriting systems to modern data analytics and advanced fraud detection solutions.
The association views AI as the next phase of this technological progression and posits that a clear federal framework provides the certainty lenders and technology partners need to deploy these tools safely and responsibly.
Similarly, the CHLA commended the move, stating it would help “maximize the full capabilities” of AI. Scott Olson, executive director of the association representing small and midsized IMBs, highlighted the operational stakes for smaller lenders specifically.
Olson said that IMBs are “already gaining efficiencies through the use of AI — and avoiding a patchwork of 50 different state laws is crucial to these efforts.”
The industry’s push for executive intervention follows a legislative setback earlier this year. In June, the CHLA sent a letter to Senate tax negotiators urging them to support a House provision included in H.R. 1, the Republican-led tax-and-spending package.
“That would have created a 10-year moratorium on state laws that limit the use of artificial intelligence (AI),” CHLA said in its statement. “Unfortunately, that provision was dropped by the Senate.”
Looking ahead, industry leaders view the executive orders as a foundational first step — not a final answer.
Broeksmit signaled that the MBA intends to work with policymakers to establish a permanent legislative framework that builds on this order. He said the association would work with policymakers “to provide durable guardrails, protect consumers, strengthen the mortgage system and support a competitive marketplace.”
