Mortgage compliance questions, answered
Common questions compliance teams ask when researching a rule — answered with the same discipline the rest of this site runs on: verbatim regulator text, nothing invented, every answer a working draft for your compliance/attorney review, not legal advice.
How do I know if my policies and procedures (P&Ps) are current with the latest regulation?
Run a gap analysis: compare your P&P clause-by-clause against the verbatim, current rule text and flag anything that is stale (restates a requirement the rule changed or removed), conflicting (contradicts the current text), or missing (the rule now requires something your P&P does not cover). The key discipline is to ground every finding in the regulator’s own words and to say so explicitly when a point is not in the source, rather than inferring it. Claude for Compliance publishes the verbatim rule text as machine-readable registers you can run your P&P against.
What does the Fannie Mae AI Lender Letter (LL-2026-04) require?
LL-2026-04 asks every seller/servicer for a governance framework over its use of AI/ML: policies and procedures for the development, use, and maintenance of AI/ML and for measuring and managing its risks; a named owner who reviews them at least annually; governance of vendor/subcontractor AI that is “no less protective”; the ability to disclose the types, purpose, and safeguards of its AI to Fannie Mae on request; and compliance with the Information Security and Business Resiliency Supplement. It takes effect August 6, 2026. Operationally that means an AI inventory, a risk assessment against ECOA/FCRA/AVM rules, and a governance policy.
How do I check my FHA loss-mitigation policy against Mortgagee Letter 2025-06?
ML 2025-06 replaced FHA’s permanent loss-mitigation framework (effective February 2, 2026): it retired FHA-HAMP and its 31% targeted-payment math, sunset the COVID-19 Recovery options, and stood up one consolidated waterfall around the Repayment Plan, Standalone Partial Claim, Payment Supplement, and Loan Modification (with a minimum 25% P&I-reduction target), plus the Borrower Affordability Attestation. To check a policy, gap-analyze it against the verbatim ML 2025-06 / Handbook 4000.1 text: remove the retired options, add the new ones, and fix any owner-occupant gating (the rule requires considering owner-occupant and non-occupant borrowers for all options).
Does using AI to review compliance documents create a hallucination risk?
It does if the AI is allowed to state requirements from memory. The mitigation is to make grounding a mechanism, not a request: give the model the verbatim rule text, require every citation to be an actual quote from that text tagged to its source, and have it flag anything it cannot ground rather than guessing. A vendor name, a “score,” or an “automated” label is not evidence of a fact — the method treats unconfirmed items as questions to resolve, not assertions. Reviewed this way, AI accelerates the reading and drafting while a human keeps the judgment.
How do I make AI-assisted compliance work audit-ready?
Tie every statement to a source. Each citation should be a verbatim quote from regulator-published text, linked to a source snapshot and an immutable content hash, so an examiner can verify the provenance. Keep a change log of what was analyzed and changed, and treat the output as a working draft for compliance/attorney review rather than legal advice. Claude for Compliance structures the corpus this way — verbatim quote plus snapshot plus content hash on every clause.
Where can I get verbatim, current U.S. mortgage regulation text in a machine-readable format?
Claude for Compliance publishes 2,600+ federal regulation registers — CFPB Reg X/Z/B/V/P/F, HUD Handbook 4000.1 and Mortgagee Letters, Fannie Mae Selling and Servicing Guides, Freddie Mac Single-Family Guide, VA/USDA/GNMA handbooks, BSA/OFAC, GLBA Safeguards, SCRA, Flood/FDPA, and federal statutes — as verbatim, source-snapshotted registers with paragraph-level obligations, free to read and download as CSV or XLSX.
Getting compliant with the Fannie Mae AI Lender Letter? The FNMA AI Lender Letter compliance kit walks through building the AI inventory, risk assessment, and AI governance policy LL-2026-04 requires — a playbook you run in your AI window, grounded in the verbatim rule. Keep going: browse the regulatory corpus, see the latest regulatory updates and their update kits, or read the methodology. Everything is grounded in verbatim regulator-published text with source snapshots and content hashes.