As artificial intelligence moves deeper into mortgage operations, MISMO has released a new industry framework designed to help lenders, servicers, and technology providers establish governance around AI use before regulators do it for them.
The real estate finance industry's standards organization announced Thursday the launch of the Framework for Responsible AI in the Mortgage Ecosystem (FRAME), a governance toolkit intended to help mortgage companies create policies, procedures, controls, and oversight for AI-enabled systems used across their organizations. The framework is available to MISMO member companies through MISMO Connect.
According to MISMO, FRAME was developed in collaboration with its AI Community of Practice and provides mortgage-specific guidance aligned with broader AI governance standards. The framework is designed to be practical, scalable, and accessible for organizations at any stage of their AI governance journey.
“Mortgage companies are increasingly utilizing AI-enabled systems, and they need a framework that helps them manage risk while supporting innovation,” said Dan Sugg, 2026 chairman of the Mortgage Bankers Association’s Residential Board of Governors (RESBOG) and chief mortgage lending officer at Michigan First Credit Union. “This is a perfect example of MISMO fulfilling its mission of serving the industry through collaboration and practical standards development.”
The framework includes a governance policy template, AI system inventory, AI system risk assessment, implementation guidance, and a getting started guide intended to help organizations identify, assess, monitor, and govern AI-enabled systems throughout their businesses.
“FRAME is fundamentally a risk management tool,” said Rick Hill, MBA’s vice president of industry technology and a key contributor to the framework. “The goal is not to create new regulations or additional bureaucracy, but to help mortgage companies understand where AI is being used, assess the risks associated with those use cases, document their decision-making, and establish a repeatable governance process. Organizations cannot manage risk they cannot see, and FRAME provides a practical path to identifying, understanding, and managing AI risk across the enterprise.”
The initiative originated with RESBOG, which asked MISMO to lead development of a mortgage-specific AI governance framework. MISMO said initial feedback from lenders, servicers, technology providers, compliance professionals, and other industry participants who reviewed the framework during the organization’s Spring Summit earlier this month was overwhelmingly positive.
The launch comes as AI governance is emerging as its own discipline within mortgage lending. In recent months, Brody | Gapp introduced a Mortgage AI Governance Audit Practice, while Friday Harbor announced what it described as the industry's first AI governance attestation.
“As AI adoption expands throughout the mortgage ecosystem, it is important that we engage with regulators, GSEs, investors, and other stakeholders,” said Brian Vieaux, president of MISMO. “The feedback we receive from these organizations will help us continue to refine and strengthen FRAME over time. Our goal is to create a practical framework that lenders can use today while helping build broader understanding and acceptance across the industry.”
*This article was drafted with AI assistance and reviewed and edited by a human editor before publication.
