On April 8, 2026, Fannie Mae issued Lender Letter (LL-2026-04), establishing a governance framework for the use of artificial intelligence (AI) and machine learning (ML) by Single-Family Seller/Servicers. The guidance reflects the growing role of AI/ML in mortgage origination and servicing, while emphasizing the need for responsible deployment aligned with legal, ethical, and risk management standards.
The Lender Letter outlines Fannie Mae’s expectations for Seller/Servicers that utilize AI/ML in connection with loans sold to or serviced on behalf of the enterprise. Seller.Servicers must:
Have policies and procedures regarding the development, implementation, use and maintenance of any AI/ML system it utilizes, and the measuring and managing of AI/ML risks. Policies and procedures must, at a minimum:
be transparent and communicated to appropriate personnel who have job responsibilities in areas that use AI/ML;
incorporate the characteristics of trustworthy and ethical AI/ML;
reflect an understanding of legal and regulatory requirements regarding AI/ML;
reflect risk management activities based on the lender’s risk tolerance; and
have an owner(s) that implements, maintains and reviews the policies and procedures at least annually to ensure they comply with applicable law and consistently reflects industry best practices.
Comply with the requirements in the Fannie Mae Information Security and Business Resiliency Supplement; and
Manage risks and appropriate governance of subcontractor and vendor use of AI/ML that is no less protective of these requirements.
Fannie Mae added that it reserves the right to request detailed disclosures regarding a Seller/Servicer’s use of AI/ML, including the types of technologies deployed, their intended purposes, and the safeguards in place to mitigate associated risks.
The framework becomes effective 120 days from publication.
The full guidance can be found here.