Property Technology for Homebuying: Products Present Benefits and Risks Amid Evolving Federal Oversight

What GAO Found

Property technology encompasses a wide range of digital tools used in real estate and is used in nearly every phase of the homebuying process.

Selected Property Technology Products Used in Homebuying

These products can simplify homebuying and reduce costs for homebuyers but also pose risks, particularly related to artificial intelligence (AI). Online real estate platforms offer consumers one-stop shopping but may raise privacy concerns by collecting sensitive consumer data. Chatbots or advertising algorithms also may violate fair housing laws by steering consumers in protected classes toward certain listings, according to studies GAO reviewed and interviews with federal entities, selected companies, and other stakeholders.

Fair lending and other consumer protection laws and regulations may apply to property technology products. With the exception of the Federal Housing Finance Agency (FHFA), agency oversight generally has not focused specifically on the products. FHFA—which examines Fannie Mae and Freddie Mac (enterprises)—has conducted examinations specifically focused on products such as automated mortgage underwriting systems and automated valuation models. The Consumer Financial Protection Bureau’s (CFPB) examinations of mortgage lenders could involve lenders’ use of technology but were not product-focused. The other three agencies in GAO’s review generally have not conducted product-specific oversight.

In 2025, FHFA began implementing new priorities and responding to executive orders directing changes to certain policies and programs. FHFA made changes to its fair lending oversight program, including changing its examination approach, waiving components of its fair lending rule, and rescinding related guidance. Although the enterprises remain subject to fair lending and other consumer protection laws, FHFA has not communicated its revised compliance requirements or supervisory expectations. Given the extent of FHFA’s changes, providing additional written direction for the enterprises on the changes would help ensure the enterprises clearly understand FHFA’s compliance requirements and its supervisory expectations. This would help to ensure that the enterprises appropriately carry out requirements, which are intended to help promote sustainable housing opportunities for underserved communities.

Why GAO Did This Study

Property technology products have transformed homebuying. But 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 was asked to review issues related to use and oversight of property technology products in the homebuying process. This report examines (1) the use of selected products, (2) their potential benefits and risks, and (3) agency oversight of compliance with fair lending and relevant consumer protection laws for the products.

GAO focused on online real estate platforms, automated valuation models and underwriting systems, and electronic closing products, selected for their use at different stages of the homebuying process and potential risks they may pose to homebuyers. GAO conducted a literature review, reviewed industry and government reports, and examined relevant federal laws, regulations, and guidance. GAO also interviewed officials of five federal agencies—CFPB, Department of Housing and Urban Development, FHFA, Federal Trade Commission, and Department of Veterans Affairs—Fannie Mae and Freddie Mac; selected companies; and other stakeholders, chosen in part for their expertise and diverse characteristics.