Fannie Mae issues AI and machine learning governance framework

On April 8, Fannie Mae issued a Lender Letter establishing a governance framework for seller/servicers’ use of AI and machine learning (AI/ML) in mortgage origination and servicing practices. The framework, which takes effect 120 days from publication, requires seller/servicers that use AI/ML in connection with originating loans sold to or guaranteed by Fannie Mae, or servicing loans on Fannie Mae’s behalf, to comply with applicable laws and the Lender Contract.... By: Orrick, Herrington & Sutcliffe LLP