“We have to be unified. China is unified because they have one vote, that’s President Xi. He says ‘do it’ and that’s the end of that. We have a different system,” Trump told reporters in the Oval Office on Thursday.
Mortgage industry trade groups lauded the order.
“CHLA commends the Trump Administration for yesterday’s Executive Order that will help maximize the full capabilities of Artificial Intelligence (AI),” said Scott Olson, executive director for the Community Home Lenders of America (CHLA). “Individual Mortgage Banks are already gaining efficiencies through the use of AI — and avoiding a patchwork of 50 different state laws is crucial to those efforts.”
The Mortgage Bankers Association (MBA) also released a statement of support.
“MBA welcomes President Trump’s executive order on AI and appreciates the Administration’s focus on establishing a clear, nationally consistent framework for emerging technologies,” MBA president and CEO Bob Broeksmit said. “Technology does not stop at a state border. We believe strongly that a unified federal approach is necessary to avoid a confusing patchwork of state laws and regulations that would stifle innovation and raise compliance and borrower costs.”
According to The Associated Press and the IAPP (formerly the International Association of Privacy Professionals), Colorado, California, Utah and Texas have enacted AI laws covering data collection, transparency and anti-discrimination measures, while other states have implemented rules tied to government use of AI and limiting deepfake technology.
The executive order directs the attorney general to create an AI Litigation Task Force “whose sole responsibility shall be to challenge State AI laws inconsistent with the policy set forth.” States that do not comply with federal requirements could face funding restrictions.
Additionally, within 90 days, the Department of Commerce must outline conditions under which states can qualify for remaining Broadband Equity Access and Deployment (BEAD) program funds.
Alongside the president for signing were David Sacks, the White House AI and crypto czar, and fellow tech investor and podcaster Chamath Palihapitiya.
David Sacks, the White House AI and crypto czar, and fellow tech investor Chamath Palihapitiya, stood alongside Trump in the Oval Office for the signing on Thursday. They were joined by Sen. Ted Cruz (R-Texas), Commerce Secretary Howard Lutnick, senior AI policy adviser Sriram Krishnan, Treasury Secretary Scott Bessent and others, according to Politico.
State government officials have mixed feelings about the order.
Utah Governor Spencer Cox (R) posted on X that “an alternative AI executive order focused on human flourishing would strike the balance we need: safeguard our kids, preserve our values, and strengthen American competitiveness. States must help protect children and families while America accelerates its leadership in AI.”
The order comes just days after Freddie Mac updated its Selling Guide to “establish a comprehensive governance framework” for the development, deployment and oversight of artificial intelligence and machine learning systems. The guide said the update is effective March 3, 2026.
“The updated sections include enhanced requirements and best practices to ensure transparency, accountability and ethical stewardship within AI/ML initiatives. The governance framework outlined in these sections will support organizations in aligning with regulatory standards, mitigating risks and fostering trust in AI-driven solutions,” the bulletin reads.
