Regulation — housing-specific
FTC Section 5 — unfair / deceptive practices for non-bank mortgage lenders
Independent mortgage bankers (IMBs) sit outside the OCC / FRB / FDIC prudential-supervisory frame. FTC Section 5 is the primary federal reach into their AI underwriting. "Unfair" and "deceptive" have both been actively cited in FTC AI matters through 2025-2026.
What the regulation actually says
"Unfair methods of competition in or affecting commerce, and unfair or deceptive acts or practices in or affecting commerce, are hereby declared unlawful."
15 U.S.C. §45(a)(1) — FTC Act Section 5
"The FTC's authority extends to preventing the use of AI in a manner that violates the FTC Act, including AI that produces discriminatory outcomes, is deceptive as to its capabilities, or unfairly harms consumers."
FTC public statements 2023-2025 — AI enforcement stance
What this means in plain English
- Non-bank lenders do not escape federal AI oversight. FTC picks up what CFPB and prudential agencies do not.
- Discriminatory-outcome AI is unfair-practice reachable. Actual harm + reasonable-avoidability + no-offsetting-benefit is the FTC test.
- Deceptive AI claims are actionable. Marketing a model as "fair" or "unbiased" when internal monitoring shows otherwise = deception.
What triggers the exposure in the sample
For the non-bank IMB variant of the sample, FTC is the primary federal cop. The H3 differential is the actual-harm foundation. The vendor's "green dashboard" is the deception foundation if any marketing claimed fair / unbiased outcomes.
What the $499 Snapshot shows against this rule
- Dated distributional-shape record — the "actual harm" evidence base
- Independent-verifier declaration — the "reasonable avoidability" record
- 3 fix-first items — the "remediation under way" record
- Signed principal attestation — the "not deceptive" record for any AI-fairness marketing claims
$499 Snapshot. 3 business days.
Independent-verifier determination + dated evidence base + 3 fix-first items.
Buy $499
Snapshot credit applies to Baseline ($2,500) or Enterprise Attestation ($35-55K) upgrade within 30 days.