AI Adoption in Mortgage: Insights from D.C.

It’s conference season, which means I’m hopping on planes with destinations unknown – or planned at the last minute. This time, I landed in Washington D.C. for the Mortgage Bankers Association’s Compliance and Risk Management Conference.

For those who didn’t attend, I thought I’d share a few takeaways—and why they matter as we start talking more seriously about AI adoption in mortgage.

11 Key Takeaways from the MBA Compliance and Risk Management Conference

The sessions and hallway conversations in D.C. covered everything from shutdown risks to regulatory updates and even a few lighter moments. These highlights give context for why the industry needs fresh tools—and why AI adoption in mortgage is becoming part of the conversation.

1. “There’s nothing going on.” Not true.

Some folks skipped the conference saying there wasn’t much happening. Not so. State updates alone made it worth the trip. Were they epic? Maybe not. But definitely interesting.

2. Government shutdowns can stall closings.

At the conference, OMB Director Mark Calabria warned a shutdown was likely. At press time, that warning has turned into reality.

For lenders, this means anything tied to federal services—flood certs, insurance, income verification—may be delayed. And when those services pause, loan closings can get stuck in the pipeline.

3. Compliance folks know how to throw a party.

Melissa Koupal’s RegList gathering was once again a party out of bounds. Think Met Gala for compliance pros, minus the couture gowns. Always a highlight. Mark your calendar—RegList has another event in Southern California, November 4–5.

4. States are trying to streamline.

Version 7 of MCR reporting is on the way, promising simpler processes. Through SES, states are exploring shared audits so one state’s exam could count for others. Helpful? Maybe. Concerning? Possibly (DM me for the unfiltered take).

The NMLS also rolled out updates, and one discussion really stuck: my buddy Ray Callahan managed to confuse the state panelists by pointing out how choosing “remote” versus “in-office” for MLOs could have real consequences under state wage and labor laws. It was one of those moments that made everyone stop and realize how layered these definitions can be.

5. Finding your compliance tribe.

One of the best parts of this conference: realizing you’re not alone. Conversations often went: “How are you handling that rule? Oh thank goodness I’m not the only one confused.” Compliance can feel isolating—this is where you find your people.

6. Old friends, new faces, missing persons.

After decades in the industry, you notice who’s still around and who’s moved on. It’s part of the rhythm of conference life—catching up, remembering, appreciating.

7. Misapplied laws and mental gymnastics.

Some laws are being stretched beyond their intent. Too much to unpack here, but if you know, you know.

8. Why rescinding the Loan Comp Rule could backfire

On the surface, “rescinding” regulations like the Loan Compensation Rule sounds appealing but could be disastrous to the industry. Remember: regulations clothe the “naked” laws that create them. Without regulations—even tough ones—we’re left with just the law.

Eliminating the Loan Comp Rule wouldn’t make life easier; it would force lenders to comply with the bare law itself. And unless Congress steps in (which is rare), the law stays. That’s why revision or modification of rules is usually the smarter path.

I know—it’s a lot of mental hopscotch to process the counterintuitive nature of it all. But sometimes the rules we grumble about are the very ones keeping the industry from bigger headaches.

9. Regulators aren’t the enemy.

In my experience, regulators aren’t out to get anyone. Sure, efforts to help sometimes create unintended consequences, but most aren’t designed with a “gotcha” mentality. (Though yes, some would argue the CFPB of old leaned harder in that direction.)

10. Ancient laws, modern headaches.

Some rules were written so long ago they might as well have come from Mesopotamia. Instead of protecting consumers, they often raise costs and frustration. Looking at you, RESPA.

11. Pro tip: See the monuments at night.

Not compliance-related, but still worth it—D.C.’s monuments lit up at night from a Lime scooter? Unforgettable.

AI Adoption in Mortgage: Where It Fits

So what does all this have to do with AI adoption in mortgage? The industry is shifting. Rules are straining under modern needs. Regulators are trying to keep pace. That’s why using AI in mortgage operations is now a serious part of the conversation.

And here’s the thing: AI vs. chatbots in mortgage isn’t even a fair fight. We’ve seen chatbots in borrower-facing roles for years. AI platforms for mortgage lenders, though, can do far more—analyzing data, flagging compliance issues, predicting risk, and supporting decisions across origination, underwriting, processing, and funding.

If you’re exploring AI, ask:

• Does the tool safeguard borrower data?

• Can it provide audit-ready records?

• Is it transparent enough to explain to regulators?

• Does it integrate cleanly with your existing systems?

  
  

AI, Compliance, and Mortgage Lending – Oh My!

Compliance can feel lonely, laws can feel outdated, and change can feel risky. But AI adoption in mortgage isn’t about replacing people—it’s about giving them better tools. Don’t fear it. Explore it.

If you’ve got questions about AI, compliance, or anything in between, contact us.

P.S. Bonus points if you caught my nods to the B-52s and Missing Persons. You’re welcome.