MISMO, the mortgage industry’s standards organization, launched a new artificial intelligence governance toolkit on Thursday, which is designed to help lenders, servicers and other housing finance companies manage AI-related risks while supporting innovation.

The Framework for Responsible AI in the Mortgage Ecosystem, known as FRAME, is now available to MISMO member companies through MISMO Connect.

FRAME was introduced during MISMO’s Spring Summit in Louisville, Kentucky, where lenders, servicers, technology providers and compliance professionals received an overview of the framework and its implementation tools.

The framework was developed in collaboration with MISMO’s AI Community of Practice and is intended to help organizations establish policies, procedures, controls and oversight mechanisms for the responsible use of artificial intelligence.

The initiative originated with the Mortgage Bankers Association’s Residential Board of Governors, which asked MISMO to lead the development of an AI governance framework tailored to the mortgage industry.

“RESBOG recognized early that our industry needed practical guidance for responsible AI adoption,” said Dan Sugg, 2026 chairman of the Residential Board of Governors and chief mortgage lending officer at Michigan First Credit Union. “Mortgage companies are increasingly utilizing AI-enabled systems, and they need a framework that helps them manage risk while supporting innovation.”

FRAME includes a governance policy template, an AI system inventory, an AI system risk assessment, implementation guidance and a getting-started guide. The tools are designed to help organizations identify, assess, monitor and govern AI-enabled systems used across their operations.

Rick Hill, vice president of industry technology at MBA and a contributor to the framework, said the toolkit is intended to serve as a risk management resource rather than create additional regulatory requirements.

“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,” Hill said.

MISMO President Brian Vieaux said the organization plans to continue refining the framework through engagement with regulators, government-sponsored enterprises, investors and other stakeholders.

“Our goal is to create a practical framework that lenders can use today while helping build broader understanding and acceptance across the industry,” Vieaux said.

The announcement comes a day after the MBA released a white paper urging the mortgage industry to develop a unified framework for managing artificial intelligence. The white paper, which warned about the risks that AI poses to the financial services industry, recommended that lenders maintain a “human in the loop” approach.

Government agencies have started to address the issue of AI governance. Earlier this year, Freddie Mac updated its seller-servicer guide to include AI and machine learning governance requirements, and Fannie Mae issued guidance calling on lenders to establish policies and procedures that govern AI systems.

This article was written by Sarah Wolak and generated with the assistance of HousingWire Automation, then reviewed by a HousingWire editor before publication.

More: