The framework provides state examiners with a tool to identify and understand AI at financial entities, assess associated risks and determine when deeper review may be needed.

The updates were made to adhere to the changes made under a final rule that recently took effect.

Industry experts said the mortgage industry is using AI for compliance efforts such as flagging fraud, asset reverification or ensuring operational controls are in place.

Brandon Milhorn, president and CEO of the Conference of State Bank Supervisors, said technology can completely change how state examinations are conducted.

Protect Borrowers, a consumer advocacy group, alleged that Bilt is causing harm to consumers by mishandling rent payments and disabling access to accounts as it transitions to a new credit card partner.

Chris Willis, a partner at the law firm of Troutman Pepper Locke, said the CFPB is likely to resume investigations into pending enforcement actions.

The bureau, according to media reports, will conduct all supervisory examinations virtually in 2026.

The new policy requires examiners to read out a statement before conducting company reviews, signaling a shift to more transparent, narrower exams focused on tangible consumer harm.

Cost and regulatory burdens were cited as reasons for rescinding a 2024 rule that would have required nonbanks to report if they had been penalized for violating consumer financial laws.

A CFPB official at a recent industry conference said the bureau is set to resume examinations within weeks. In April, the bureau said it would shift its supervision activities to depository institutions.