Examining AI-Powered Mortgage Through the Lens of Federal Law

1 minute read | June.15.2026

As artificial intelligence becomes increasingly integrated into mortgage lending and servicing, financial institutions face growing pressure to balance innovation, efficiency and customer experience with existing legal, regulatory and risk management expectations.

Attorneys from Orrick’s Financial & Fintech Advisory team partnered with the Mortgage Bankers Association (MBA) to examine how existing federal mortgage, consumer protection and fair lending laws apply to the growing use of AI across the mortgage lifecycle.

Their work culminated in a white paper that explores how mortgage lenders and servicers are deploying AI across customer engagement, loan origination, underwriting, servicing, compliance and risk management.

Key legal and policy topics covered include:

Human oversight expectations and the role of licensed mortgage loan originators in AI-assisted lending
Principles-based approaches to AI governance and risk management, including fair lending, explainability, model validation, data privacy, vendor oversight and consumer protection
Practical considerations and emerging best practices for deploying AI responsibly while supporting innovation and operational efficiency

The publication will be of interest to mortgage lenders, servicers, compliance and legal professionals, risk managers, technology leaders and policymakers evaluating the future of AI in housing finance.

Read the report on mba.org

Authors

Jeffrey Naimon Partner, Financial & Fintech Advisory, Strategic Advisory & Government Enforcement (SAGE)

Washington, D.C.

See my bio

D:+1 202 349 8030
E: [email protected]

Practice:

Financial & Fintech Advisory
Strategic Advisory & Government Enforcement (SAGE)
Fintech

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See full bio

Jeffrey Naimon Partner

Washington, D.C.

He defends financial services companies facing complex examination or enforcement matters before the Consumer Financial Protection Bureau (CFPB), the Federal Trade Commission (FTC), and federal and state banking regulators, with a focus on fair lending, unfair, deceptive or abusive acts and practices (UDAAP), loan servicing, privacy and credit reporting, debt collection, servicemember protections and other consumer protection issues.

He assists banks and nonbanks (including fintech entities) structure, negotiate and operate a variety of partnerships, outsourcing programs and other third-party arrangements, including performing due diligence, negotiating transactions and advising on ongoing oversight protocols to meet regulatory expectations for third-party arrangements.

Jeff also assists in negotiating acquisition, capital markets and servicing transactions, advising on how best to structure the transaction to reduce risk and expedite deal closure, performing due diligence and assisting in obtaining the necessary change of control and other regulatory approvals.

Jeff is consistently recognized as a leading lawyer in Financial Services Regulation: Consumer Finance (Compliance) in Chambers USA, which praised him for his "extremely high intellect regarding compliance matters and negotiation skills. There's none better at arguing a disputed point." He is also a Fellow of the American College of Consumer Financial Services Lawyers.

He currently serves as the Co-chair of the Professional Development Task Force and previously served as Co-chair (2011-2013) and Co-vice Chair (2008-2010) of the Truth in Lending Subcommittee of the American Bar Association’s Consumer Financial Services Committee and has authored numerous articles on consumer financial services.

Prior to joining Orrick, Jeff was a partner at Buckley LLP.

Caroline Stapleton Partner, Financial & Fintech Advisory, Strategic Advisory & Government Enforcement (SAGE)

Washington, D.C.

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D:+1 202 461 2904
E: [email protected]

Practice:

Financial & Fintech Advisory
Strategic Advisory & Government Enforcement (SAGE)
Fintech

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See full bio

Caroline Stapleton Partner

Washington, D.C.

Client-centered experiences are at the heart of Caroline’s practice. She has provided a wide variety of institutions, from fintech startups to multinational banks, with tailored, practical guidance that considers each company’s unique characteristics and strategic goals. Caroline draws on her prior experiences as an attorney at a federal prudential regulator and as the head of compliance at a consumer finance company to give clients a comprehensive picture of the legal risks and opportunities each new matter presents.

Her work on behalf of financial services providers has included:

Providing guidance regarding novel or complex regulatory questions, often in the context of developing new financial products and services
Performing compliance risk assessments of marketing, underwriting, pricing, origination, servicing and loss mitigation activities
Advising banks and supervised lenders with examinations by federal and state regulators, including responding to exam findings, CAMELS ratings, Matters Requiring Attention (MRA/MRIA) and enforcement referrals
Strategically responding to and defending enforcement actions by state and federal regulators, including the Consumer Financial Protection Bureau (CFPB), Office of the Comptroller of the Currency (OCC), Federal Deposit Insurance Corporation (FDIC), Federal Reserve Board and Department of Justice (DOJ), and, if necessary, negotiating favorable settlements
Developing strategies for bank partnership, state licensing and bank charter opportunities for consumer financial services providers
Conducting internal investigations of suspected misconduct or violations of an institution’s policies and/or regulatory requirements

In these and other representations, Caroline brings strong substantive knowledge of the key federal and state statutes and regulations governing the financial services industry. Her specific areas of focus include:

Fair lending and anti-discrimination laws, including the Fair Housing Act (FHA) and the Equal Credit Opportunity Act (ECOA)
Prohibitions on unfair, deceptive or abusive acts or practices (UDAP and UDAAP)
Technical regulatory compliance under federal and state laws governing loan marketing, disclosures, settlement practices, servicing and collection practices, consumer reporting and electronic payments
Federal preemption, including under the National Bank Act
Compliance management best practices and regulatory expectations, including third-party vendor and merchant oversight
Treatment and disclosure of confidential supervisory information (CSI)
State lease-to-own laws and regulations

Prior to joining Orrick, Caroline was senior counsel at Buckley LLP. She also has served as an attorney-advisor in the litigation division of the OCC, where she represented the agency in civil litigation, bank receivership preparation, employment disputes and other administrative contexts. Caroline also gained valuable in-house experience as the head of compliance and assistant general counsel of a Richmond-based consumer finance company.

Steven vonBerg Counsel, Financial & Fintech Advisory, Strategic Advisory & Government Enforcement (SAGE)

Washington, D.C.

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D:+1 202 524 7893
E: [email protected]

Practice:

Financial & Fintech Advisory
Strategic Advisory & Government Enforcement (SAGE)
Fintech

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Steven vonBerg Counsel

Washington, D.C.

Steve’s practice is focused on the full spectrum of federal mortgage lending laws, particularly those that have come out of the Consumer Financial Protection Bureau (CFPB), including the Ability-to-Repay and Qualified Mortgage (ATR/QM) rule, the Loan Originator Compensation rule, the Truth in Lending Act-Real Estate Settlement Procedures Act (TILA-RESPA) Integrated Disclosure rule (TRID), RESPA Section 8, the 2013 Mortgage Servicing Rules and the Home Mortgage Disclosure Act (HMDA) amendments.

Steve is active in the mortgage industry, writing articles and is a regular speaker at mortgage industry conferences. He was a contributing author to the CFPB Mortgage Origination Handbook (2nd Edition). Steve also holds a Certified Mortgage Banker designation from the Mortgage Bankers Association and also completed the MBA's Future Leaders Program in 2018.

Prior to joining Orrick, Steve was Counsel at Buckley LLP.

Lauren Bomberger Managing Associate, Financial & Fintech Advisory, Strategic Advisory & Government Enforcement (SAGE)

Washington, D.C.

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D:+1 202 461 2970
E: [email protected]

Practice:

Financial & Fintech Advisory
Strategic Advisory & Government Enforcement (SAGE)
Fintech

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See full bio

Lauren Bomberger Managing Associate

Washington, D.C.

Lauren’s practice covers a wide spectrum of banking and consumer financial services issues, with particular experience in:

Fair lending, including the Equal Credit Opportunity Act (ECOA/Regulation B) and the Fair Housing Act (FHA);
The Community Reinvestment Act;
Prohibitions on unfair, deceptive, or abusive acts or practices (UDAAP); and
Enforcement and supervisory matters, including counseling clients on examination responses, responding to regulatory subpoenas and information requests, and consent order compliance.

Lauren has significant experience advising clients on matters involving fintech, traditional retail banking products, including mortgages and other consumer lending products, and private banking. Lauren also assists clients in their interactions with federal regulatory agencies, including the Federal Reserve Board of Governors (FRB), the Office of the Comptroller of the Currency (OCC), and the Consumer Financial Protection Bureau (CFPB), and has successfully represented a client in an appeal of a material supervisory determination before the Federal Deposit Insurance Corporation (FDIC).

Lauren received her J.D. from the American University Washington College of Law (magna cum laude, Order of the Coif). During law school, she served as Executive Editor of the American University Business Law Review and was awarded the T. Morton McDonald Award for excellence in legal scholarship.

Prior to joining Orrick, Lauren was an associate at Buckley LLP.