By Chris Grimes, CEO of FundMore
The American Mortgage Conference (AMC) 2025 kicked off with a whirlwind of insights, regulatory updates, and candid industry discussions that showcased the rapidly shifting landscape of mortgage lending and banking. As CEO of FundMore, I had the privilege of attending and want to share my top takeaways from Day 1, which brought together banking leaders, regulators, and policy advocates to unpack the state of our industry.
1. A New Regulatory Environment: Deregulation Meets State-Level Oversight
A dominant theme was the dramatic reduction in staffing at the Consumer Financial Protection Bureau (CFPB)—from 1,500 to around 200 staff under the current Trump administration. As Blake Earley and Peter Gwaltney from the ABA legislative team described, the administration has shifted the CFPB’s focus from enforcement to deregulation, resulting in industry-wide uncertainty and operational questions.
However, the message was clear: states will step into the regulatory vacuum. Pennsylvania Governor and other state officials have already signalled their intent to enhance oversight if federal activity wanes. Panellists warned lenders not to relax their compliance frameworks. The same regulatory statutes remain in place, and inconsistent state laws could add compliance costs and confusion if federal guidance isn’t clearly replaced.
2. Credit Score Modernization Delays
Tyler Gilday, Chair of the ABA’s Mortgage Markets Committee, addressed the ongoing delay in the rollout of FICO 10T and VantageScore 4.0 credit scoring models. While both models were approved under Dodd-Frank requirements, meaningful implementation is on hold due to lack of validated performance data, especially in stressed markets.
The industry remains committed to supporting credit models that increase financial inclusion, but banks are urging FHFA and the GSEs to prioritize thoughtful, phased rollouts with proper regulatory guardrails. This remains a major discussion point as lenders grapple with the fair lending implications and operational costs of switching scoring models.
3. AI and Technology: Exciting Possibilities, Real Compliance Risks
Artificial intelligence was a major talking point. The ABA Mortgage Markets Committee explored the dual-edged nature of AI adoption in underwriting, customer service, and document processing.
The benefits are clear: faster response times, improved consistency, and reduced operational costs. One committee member reported a recent test call where an AI agent answered loan servicing questions indistinguishably from a human representative.
Yet fair lending concerns and the risks of AI “hallucinations” (false answers) are major hurdles. Lenders were urged to have strong controls, policies, and auditing protocols in place, and to understand that responsibility for customer communications—even via bots—ultimately rests with the bank.
4. Mounting Industry Challenges and Costs
A sobering point came from the Mortgage Markets Committee: the current cost to originate a loan stands at approximately $13,500 per loan. Rising costs, talent shortages, and ongoing insurance availability issues are hitting lenders hard.
Additionally, issues like builder joint ventures competing with banks and emerging stress in consumer credit card and auto loan markets were identified as potential storm clouds on the horizon.
The panel encouraged lenders to monitor early warning signs and to prepare for more consumer credit stress potentially bleeding into mortgage delinquencies in 2025 and beyond.
5. Legislative & Regulatory Updates: Housing, CFPB, and CRA
There was substantial discussion about current legislation, including:
- The Road to Housing Act, championed by Sen. Tim Scott and Rep. French Hill, which would expand financial literacy efforts, improve access to housing in opportunity zones, and consider creative land use reforms.
- The ACRE Act, included in the current reconciliation bill, aimed at exempting from taxation interest income on rural ag and mortgage loans for communities under 2,500 people.
- Efforts to reform CFPB governance by converting the agency into a bipartisan commission and bringing it under annual Congressional appropriations for increased accountability.
- Withdrawal of the 2022 Community Reinvestment Act (CRA) rewrite was viewed positively. Leaders praised the pause as an opportunity to rethink CRA modernization collaboratively.
6. Trigger Leads and Advocacy Success
An inspiring real-world example came from a community banker who, during a meeting with Congressman Tim Moore, secured his co-sponsorship for the Homebuyers Privacy Protection Act by telling a firsthand story about “trigger leads” harming her client relationships.
The bill, which aims to prevent credit agencies from selling consumer mortgage application data to competitors, passed the Senate by unanimous consent last year and has strong bipartisan momentum again in this Congress.
7. Leadership in Challenging Times: Lessons from Steve Richman
The lunch keynote featured Steve Richman, who delivered a lively and highly practical session on what true leadership looks like in today’s mortgage industry. Richmond, known for his no-nonsense approach, reframed leadership not around titles, but around the ability to help others succeed.
He distilled leadership into four actionable pillars:
- Commitment to excellence – not perfection, but an ongoing pursuit of high standards.
- Visibility of effort – letting your team see your work ethic to inspire trust.
- Having the team’s interest at heart – genuinely caring about your employees as people.
- Sincerity – leadership only works if it comes from authentic intention, not from “checking the box” exercises.
Richman also challenged leaders to move from “product thinking” to “platform thinking,” urging lenders to treat their organizations as ecosystems that serve client needs broadly, not just through transactional products.
The standout quote from the session:
“Leadership is getting people to follow you, and people will follow if you help them get what they want.”
Finally, Richman encouraged executives to balance two simultaneous realities:
- Operational excellence today, and
- Strategic planning for what’s coming five years from now.
The session was an energetic reminder that strong leadership remains the differentiator in times of market disruption.
Conclusion: Cautious Optimism and a Call to Prepare
Day 1 of AMC 2025 made it abundantly clear: our industry is in a pivotal moment of regulatory, technological, and market transformation.
Banks and lenders who embrace proactive compliance, thoughtful AI adoption, and maintain strong customer relationships will emerge as leaders. Those who rely on old playbooks may face disruption from both regulators and emerging competitors.
At FundMore, we’re leaning into this moment with optimism and a continued commitment to use technology and innovation to empower lenders and simplify homeownership.
Stay tuned for my Day 2 recap!