NJ A5496 AI mortgage tool bias audits
New Jersey A5496 — Bias Audits and Applicant Notice for AI Mortgage Lending Tools (Introduced Sept. 14, 2026)
New Jersey · NJ A5496 (2026-2027 Session)
- Status
- Proposed / pending
- Applies to
- AI mortgage tool developers/vendors; residential mortgage lenders, originators and underwriters
This New Jersey Assembly bill would regulate AI tools used in residential mortgage lending decisions. Vendors would need a bias audit within the past year before selling a tool and would have to provide annual audits; lenders would have to post a summary of the latest audit and tell every applicant that an AI tool will be used. Lenders could only input quantifiable metrics, not categories of persons, into the tool.
Who is protected: New Jersey residential mortgage applicants
Legal detail
A5496 covers developers/vendors of 'A.I. mortgage loan tools' and residential mortgage lenders, originators and underwriters. Requires bias audit in the year before sale plus an annual bias audit service at no extra cost; tool notice; lender website summary of most recent audit; applicant notice; input limited to quantifiable metrics. Civil penalties: vendor up to $1,500 first violation (with daily increases); lender up to $500 first violation.
Key facts
| Jurisdiction | New Jersey |
|---|---|
| Level | State |
| Citation | NJ A5496 (2026-2027 Session) |
| Private right of action | No, agency enforcement only |
| Penalties | Vendor: up to $1,500 first violation; lender: up to $500 first violation (per introduced text) |
| Topics | housing and credit decisions · automated decision-making · consumer protection |
| Bill text | NJ Legislature — Assembly No. 5496 (introduced text) |
More AI rules in New Jersey
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- NJ developer litigation against municipal data center bans (2026) · Blocked / in litigation
- New Jersey Quijano AI data center delay and study commission bill (2026) · Proposed / pending
- NJ S4754 AI unauthorized practice of professions · Proposed / pending
Related housing and credit decisions rules elsewhere
- Connecticut algorithmic rent ban — HB 8002 (eff. Jan 1, 2026) · In effect
- San Diego algorithmic rent price-fixing ban (Ord. O-21955, May 2025) · In effect
- Minneapolis algorithmic rent ban (Ord. 2025-010, eff. Mar 1, 2026) · In effect
- Seattle algorithmic rent-fixing ban (Ord. 127241 / SMC 7.34, July 2025) · In effect
- Hoboken Algorithmic Rent-Fixing Ban · In effect
- Santa Monica Algorithmic Rent-Setting Ban · In effect
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