The U.S. Government Accountability Office (GAO) is urging stronger federal oversight of AI-driven tools transforming the homebuying process, cautioning that limited transparency and regulatory gaps may put prospective buyers at risk.

“Their use of AI has raised questions about potential effects on homebuyers and the housing market, particularly regarding compliance with fair housing and other consumer protection laws,” GAO stated in a report. 

GAO said most mortgage lenders rely on property technology systems from Fannie Mae and Freddie Mac, but the fair lending regulatory landscape is shifting. Hence, it is recommending clearer guidance on how the enterprises’ federal regulator will supervise these tools.
It found that most federal agencies provide limited, product-specific oversight, except the Federal Housing Finance Agency (FHFA). Recent FHFA policy shifts created uncertainty for Fannie Mae and Freddie Mac, and GAO says clearer written guidance is needed to ensure compliance and protect underserved communities.
As a result, GAO urged FHFA to issue written guidance clarifying how the enterprises should meet fair lending requirements and how the agency will oversee their compliance.