Brody Gapp has launched a mortgage AI governance audit practice, responding to growing regulatory scrutiny over automated decision-making in lending. The new service targets lenders seeking to validate their AI systems for compliance and fairness.
The practice will be supported by a forthcoming Mortgage Bankers AI Governance Guide, scheduled for release in Q3 2026. The guide is expected to outline best practices for deploying AI in underwriting, pricing, and borrower communications.
Mortgage lenders have increasingly adopted AI tools to speed up processing, but regulators have raised concerns about bias and transparency. Gapp's audit practice offers a structured review of AI models, data inputs, and outcomes against existing fair lending laws.
The move reflects a broader industry trend: mortgage firms are investing in governance frameworks to preempt regulatory action. Without standardized guidelines, many lenders have struggled to self-assess their AI risk.
Some industry observers caution that voluntary audits may not be enough if federal regulators impose stricter mandates. The guide's 2026 release also leaves a gap for lenders navigating near-term compliance uncertainty.