Artificial Intelligence

FHFA: Rule Proposed to Improve Federal Home Loan Bank Governance

The Federal Housing Finance Agency (FHFA) issued a notice of proposed rulemaking which addresses boards of directors and executive management of the Federal Home Loan Banks (FHLBanks) and the FHLBank System’s Office of Finance. The proposed rule will update and clarify regulatory requirements on a variety of corporate governance topics. “The Federal Home Loan Bank…

OCC: Research Solicited on Artificial Intelligence in Banking & Finance

The Office of the Comptroller of the Currency (OCC) is soliciting academic research papers on the use of artificial intelligence in banking and finance for submission by December 15, 2024. The OCC will invite authors of selected papers to present to OCC staff and invited academic and government researchers at OCC Headquarters in Washington, D.C.,…

HUD: Fair Housing Guidance Issued on Applications of Artificial Intelligence

Department recommends best practices to prevent discriminatory uses of artificial intelligence in tenant screening and advertising of housing and housing-related services Today, the U.S. Department of Housing and Urban Development (HUD) released two guidance documents addressing the application of the Fair Housing Act to two areas in which the use of artificial intelligence poses particular…

CFPB: CFPB Joins Federal and State Agencies in Coordinated Statements on Tech & Enforcement

Today, federal and state agencies, including the Consumer Financial Protection Bureau (CFPB), released agency-specific action statements on tech capacity. These statements reflect concrete actions to increase tech capacity, including actively hiring technologists – which will help enforce the laws on the book and design remedies that work for consumers, workers, small businesses, and others in…

FHFA: 2024 Generative AI in Housing Finance TechSprint Announced

The Federal Housing Finance Agency (FHFA) today announced its second TechSprint, an in-person team-based problem-solving event hosted by its Office of Financial Technology. FHFA’s Generative Artificial Intelligence (AI) in Housing Finance TechSprint will bring together technology, regulatory, housing, and consumer finance experts to identify use cases (or specific scenarios) and associated control measures to support…

CFPB: New Guidance Issued on Credit Denials by Lenders Using Artificial Intelligence

Consumers must receive accurate and specific reasons for credit denials Today, the Consumer Financial Protection Bureau (CFPB) issued guidance about certain legal requirements that lenders must adhere to when using artificial intelligence and other complex models. The guidance describes how lenders must use specific and accurate reasons when taking adverse actions against consumers. This means…

CFPB: Issue Spotlight Analyzes “Artificial Intelligence” Chatbots in Banking

Poorly deployed chatbots can impede customers from resolving problems The Consumer Financial Protection Bureau (CFPB) today released a new issue spotlight on the expansive adoption and use of chatbots by financial institutions. Chatbots are intended to simulate human-like responses using computer programming and help institutions reduce the costs of customer service agents. These chatbots sometimes…

CFPB: Artificial Intelligence, Automated Systems and Advanced Technology Have the Potential to Result in Unlawful Discrimination

CFPB and Federal Partners Confirm Automated Systems and Advanced Technology Not an Excuse for Lawbreaking Behavior Four federal agencies jointly pledged today to uphold America’s commitment to the core principles of fairness, equality, and justice as emerging automated systems, including those sometimes marketed as “artificial intelligence” or “AI,” have become increasingly common in our daily…