In a couple days I and many others head to Honolulu for the MBAH, joining speakers from all over the nation (Mitch Kider and Bob Niemi from Florida, Brian Levy and Sue Woodard from Wisconsin, Kristin Messerli, Robbie Chrisman, and others from the West Coast, to name a few). In the Aloha State, while data centers are booming across the continental United States, Hawaii’s sky-high electricity costs have kept the industry at bay and legislators are grappling with them. Homeowners, and therefore builders and lenders, know that these data centers change the power grid, economy, and building priorities for builders and lenders. Ask the 49,000 residents around Lake Tahoe, who are set to have their electricity impacted, what they think. In Texas, a farmer donated land for a public park and the city sold it to a data center developer for $10 million. Think about this: Currently, AI servers consume between 6,000 and 8,000 metric tons of tin per year. That’s currently expected to skyrocket to between 22,000 and 25,000 metric tons of tin per year by 2030, as tin is a crucial ingredient in solder. The latest mining policy rolled out by the Indonesian government (which is the second-largest producer after China) possibly threatening supply and constraining quotas down to 55,000 to 60,000 metric tons of production, down from 78,000 metric tons actually produced in 2019.
Saturday Spotlight: Kastle
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“The most deployed AI agent in the mortgage industry”
Kastle is an AI platform built specifically for mortgage lenders and servicers to deploy AI agents across their operations. FDIC-insured banks and large IMBs use Kastle to automate customer interactions in sales, customer service, and collections with fully compliant AI agents.
Kastle is already integrated with major systems of records such as ICE MSP, consumer direct CRMs, and all major contact center platforms. Kastle is backed by some of the largest investors in Silicon Valley including Y Combinator and Emergence Capital. Since launch, Kastle’s AI agents have handled millions of borrower calls and processed more than $300M in cash transactions for mortgage lenders. The company has also won top industry recognition, including the Digital Mortgage Conference Innovation Challenge and LendingTree’s Innovation Summit.
Lenders are building their AI workforce on Kastle using natural language.
Current use cases include agents for AI Customer service agents to resolve borrower inquiries across voice, email, and webchat, AI Collections agents to reduce delinquency rates, AI Loan officer assistants to generate warm transfers and automate manual follow-ups, and AI Quality Assurance Agents to automate manual call and document QC. Kastle’s platform allows lenders to modernize operations, improve borrower experience, and implement AI in a safe, compliant, and cost-effective way.
What we are most proud of is how deeply we partner with our customers.
We see ourselves as an extension of their AI team—spending time onsite, working shoulder-to-shoulder, and aligning around outcomes. In our early days, we even moved the entire company to Tempe from San Francisco to help a top five mortgage lender go live, and that same ethos of customer commitment continues today.
If you are looking to reduce your cost to fund and service loans, connect with us to design a one-year roadmap for successfully deploying AI across your operations.
(For more information on having your firm’s extracurricular activities, employee growth, and your charitable side featured, contact Chrisman LLC’s Anjelica Nixt.)
Condominium lenders beware
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HOA fees and special assessments can force condominium owners out, or potential buyers to look elsewhere. Rarely is this mentioned in discussions about affordability. From the MMBA comes a public service announcement. It would seem that this is for Massachusetts, but in speaking to some attorneys around the U.S. it would appear that it should be a concern everywhere.
“A recent Murphy & King article, “The Collapse of Premier Property Solutions – What Should Condominium Trustees Do To Protect Unit Owners?,” reports that Premier Property Solutions, a Massachusetts property management company, has collapsed amid serious allegations involving the handling of condominium association funds. The article indicates that Premier managed the finances of an estimated 200 condominium associations across Massachusetts and that significant questions remain regarding association bank accounts, financial records, and potential misappropriation of funds.
“This matter is concerning for lenders with mortgage loans secured by condominium units in associations managed by Premier. Possible impacts could include disruption in access to financial records, uncertainty regarding operating or reserve funds, delayed budgets or financial reporting, increased special assessment risk, insurance or maintenance concerns, and broader collateral or project-eligibility questions.
“We encourage members to review their condominium loan portfolios, pending applications, and ongoing project reviews to identify any involvement with Premier-managed associations. Where applicable, lenders may wish to take reasonable steps to confirm the current status of the association, such as whether trustees have retained replacement management, confirmation of control over association bank accounts and direct access to records, review of current financials, budgets, and insurance coverage, and consultation with legal/compliance counsel.”
Are you trying to hire people?
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If you are, and want to avoid a court battle, this Chrisman podcast is very important: Littler’s Colton Long on litigation, and avoiding it, in hiring moves.
In the banking and lending world, talent is critical and expanding companies are always looking. Community financial institutions (CFIs), for example, grapple with a persistent shortage of qualified talent just as competition from nontraditional providers accelerates. Instead of chasing adrenaline, CFIs need reliable, repeatable ways to bridge the gap between their limited internal resources and the growing demands of a modern banking business.
“Financial institutions are finding it increasingly difficult to attract qualified candidates, from compliance and risk specialists to branch managers and technology experts. People’s desire for flexible work arrangements, coupled with smaller CFIs’ inability to compete with more attractive compensation packages offered by fintechs and other non-traditional banks, and even the perception among younger people that career prospects at banks are dull with less growth potential, has made it difficult for CFIs to attract and retain talent.
“As more senior employees with key institutional knowledge begin to retire, many organizations are discovering they have inadequate succession plans in place and are struggling with talent drains. Financial institutions are also discovering that traditional talent sources, such as college graduates, are no longer enough to plug talent gaps, as younger people gravitate to seemingly more attractive employment options with fintechs where there is a greater likelihood of rising through the ranks more quickly and the prospect of owning a share of these organizations. According to EY, 93 percent of financial services hiring managers find it difficult to recruit skilled candidates.
“Nowhere is the talent shortage more evident than on the technology front. As CFIs strive to update core systems, enhance cybersecurity and implement artificial intelligence (AI) initiatives, competition for qualified candidates is fierce as industries compete for the same expertise. Fintechs also offer more autonomy without the need to navigate multiple layers of compliance, making them even more attractive as an alternative to banks. Though 78 percent of executives at financial institutions view advance analytics expertise as a key element of their strategies, only 23 percent of banks have adequate in-house expertise to execute their plans. And with flexible work arrangements particularly valued by IT specialists (67 percent of IT specialists work largely from home), the more traditional in-office offerings of many financial institutions make them an even tougher sell.
“As CFIs seek to close the divide between their needs and staff competencies, there are multiple things they should be thinking about. CFIs should consider a different approach to marketing employment opportunities, including the way that they structure jobs. They could also focus on things to make job openings more appealing, such as ensuring competitive pay, working in hybrid employment arrangements where possible, incorporating sign-on bonuses and factoring long-term training (particularly technology, such as AI and data analytics) into all roles.
“In a world where tech capabilities are key to upward movement, candidates want to know that the organizations they are joining are focused on offering current technologies and continuing education opportunities that will enable them to keep developing their skills and help them remain employable for the long-term.
“Outlining trajectories for career paths and incorporating mentorship opportunities is also important, where possible. According to research from EY, roughly one third of employees feel that they have insufficient technology skills to remain competitive. Regardless of the position, CFIs should focus on the things that will appeal to younger applicants when posting job openings, highlighting the ways that their organizations are forward thinking and embracing technology and avenues for long-term career growth. Failing to do so will make it extremely difficult to lure qualified candidates away from more cutting-edge organizations.
“Some CFIs have already begun putting such tactics to work for themselves. One midwestern CFI doubled the number of applications it received for a compliance officer position by emphasizing hybrid work flexibility and a path for career growth. While another CFI in Texas successfully recruited two data specialists by emphasizing the organization’s impact on its local community and its culture and having recruiters actively target fintech employees looking for greater stability.
“Virginia-based TowneBank highlighted its Lead Program and the organization’s commitment to its local community as a way to recruit data analytics specialists. The three-year management development program for new hires trains young professionals for future management roles, an approach that also helped the organization to be named one of America’s best workplaces.
Another bank that has altered its recruitment approach is Georgia-based Queensborough National Bank & Trust, which has actively incorporated remote work into both full-time and part-time roles. Additionally, the bank has partnered with Augusta University’s cybersecurity program by offering summer internships for students to begin recruiting skilled people early on.”
PCBB writes, “As CFIs look to plug talent gaps the best thing they can do is structure and promote positions that match what people are looking for: roles with flexibility, ongoing training and development opportunities and deep ties to communities where they are helping to make a difference. Attracting young people requires both having an emphasis on community purpose, as well as a long-term trajectory for employees, the very same things that can help organizations maintain qualified personnel.”
Insurance: you can’t afford it, you can’t avoid it
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The Chicago Fed, using public data aggregated to the zip code level, analyzed homeowners’ insurance premium affordability and policy cancellations due to nonpayment of the premium in states that are part of the Chicago Fed’s Seventh Federal Reserve District. Current and prospective homeowners, community organizations, and local governments may benefit from understanding how premiums for homeowners’ insurance affect housing affordability.
Secondary market drives the primary market
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No one who is motivated by profits manufactures something that no one will buy. Lenders manufacture loans using the same premise, and the demand in the secondary markets for a clean, well-documented, well-appraised, compliant product is currently strong. And that helps borrowers.
Splitero, the financial technology company that provides homeowners with better options to access their home equity, announced the closing on May 27 of a $296 million rated home equity investment (HEI) securitization. Splitero Trust 2026-1 issued $202.6 million of senior class A-1 rated A (low) (sf), $56.8 million of mezzanine class A-2 securities rated BBB (low) (sf), $15.6 million of subordinate class B-1 securities rated BB (sf), and $20.77 million of subordinate class B-2 securities rated B (sf), all rated by Morningstar DBRS.
The deal received outstanding market reception, with the Class A-1 senior bonds pricing at the tightest spreads for public-rated HEI securitizations, building on the momentum of Splitero’s record inaugural transaction and reflecting growing institutional demand for the Splitero shelf and the asset class as a whole. Barclays Capital Inc. (“Barclays”) was the structuring agent for the issuance, and Barclays and Nomura Securities International were joint bookrunners. StoneX Financial Inc., Cantor Fitzgerald & Co., and East West Markets, were co-managers on the transaction.
Fannie Mae significantly expanded its role in supporting the U.S. rental housing market in 2025, delivering nearly $74 billion in multifamily loan production volume, a 34 percent increase from 2024 and its highest annual total since 2020, as it worked through its Delegated Underwriting and Servicing lender network to boost housing supply and liquidity nationwide. Financing activity was broad-based, with notable growth in Multifamily Affordable Housing at $8.3 billion, up 31 percent year over year, alongside increases in Structured Transactions, Small Loans, and Manufactured Housing, reflecting demand across both large institutional and smaller, workforce-focused properties.
Roughly 40 percent of all transactions utilized Fannie Mae’s delegated underwriting model, enabling faster execution and greater flexibility in volatile market conditions, while product enhancements such as expanded structured ARMs and near-stabilization executions helped borrowers manage interest rate and lease-up risks. Fannie Mae also reinforced its long-term affordability commitment by investing more than $5 billion in LIHTC equity since 2018, supporting over 100,000 affordable rental units. Major DUS lenders including Walker & Dunlop, Wells Fargo, CBRE, Berkadia, and Newmark led production volumes, underscoring the depth of private-sector participation in scaling rental housing access, as Fannie Mae closed the year with over $500 billion in its multifamily book and positioned itself for further expansion in 2026.
Redwood Trust announced the successful closing of its first-ever securitization backed by medical professional loans through its Sequoia platform, a $482 million transaction that highlights the firm’s push toward specialized, innovation-driven mortgage solutions. As Sequoia’s 165th securitization and eighth deal in early 2026, this milestone reflects Redwood’s strategy of expanding access to housing credit by tailoring products to high-potential borrower segments, such as early-career medical professionals, while maintaining strong credit quality. The deal underscores a broader industry shift toward niche underwriting and diversified loan products, positioning Redwood to meet evolving borrower needs and sustain liquidity in the jumbo mortgage market.
AD Mortgage announced the launch of a $424.1 million securitization backed by 945 recently originated mortgages, with Florida loans reduced to 23 percent of the pool following the company’s expanded national sourcing. The transaction, which has an expected close date of April 21, includes a mix of qualified mortgage and non-QM loans, most underwritten with alternative documentation, with a 750 average credit score and a 69.8 percent average loan‑to‑value ratio.
CME Group announced it will launch options on Eris secured overnight financing rate (SOFR) swap futures on June 16, subject to regulatory review. The derivatives marketplace noted that the addition of options on two-year, five-year, and 10-year Eris SOFR swap futures is designed to support hedging strategies, such as managing nonlinear risk in mortgage-backed portfolios.
Issuance of expanded-credit mortgage-backed securities has accelerated. In fact, a couple months ago, in one week nine deals launched ahead of the end of the first quarter. The nine deals have a total unpaid principal balance of $4.25 billion… Wells Fargo is set to transfer servicing on 55 seasoned non-agency MBS to Shellpoint Mortgage Servicing, according to Moody’s Ratings. The deals were issued between 2003 and 2007, with the servicing transfer scheduled to be completed by June… JPMorgan Chase is marketing a $349.2 million jumbo mortgage-backed security stocked with adjustable-rate mortgages. United Wholesale Mortgage, lately caught up in the Two Harbors CrossCountry maneuvers, originated 81.3 percent of the dollar volume of loans in the MBS.
One of the government-sponsored enterprises recently issued a mortgage-backed security with loans underwritten using the new VantageScore 4.0 credit score. (Recall that VantageScore is owned by Experian, TransUnion, and Equifax.) The effort was a pilot project as Fannie Mae and Freddie Mac work toward adopting the score. TransUnion CEO Chris Cartwright revealed the pilot. “We look at it as essentially the GSEs running water through the pipes before more volume were to come,” he said during an investor presentation. Cartwright declined to provide additional details, and neither the GSEs nor the Federal Housing Finance Agency would comment on the matter. However, VantageScore CEO Silvio Tavares provided more details recently during a separate investor conference. Tavares noted that the loans backing the securitization included both VantageScore 4.0 and Classic FICO.
The aging process
A group of guys grow up together, but after college they all move to different places around the U.S. They agree to meet every ten years in Vero Beach Florida to play golf and catch up with each other.
At age 32 they meet, finish their round of golf and head for lunch. “Where you wanna go?”
“Hooters.”
“Why Hooters?”
“They have those waitresses with the big knockers, tight shorts, and the gorgeous legs.”
“You’re on.”
At age 42, they meet and play golf again.
“Where you wanna go for lunch?”
“Hooters.”
“Again? Why?”
“They have cold beer, big screen TVs, and side action on the games.”
“OK.”
At age 52 they meet and play again. “So, where you wanna go for lunch?”
“Hooters.
“Why?”
“The food is pretty good and there’s plenty of parking.”
“OK.”
At age 62 they meet again.
After a round of golf, one says, “Where you wanna go for lunch?”
“Hooters.”
“Why?”
“Wings are half price and the food isn’t too spicy.”
“Good choice”
At age 72 they meet again.
Once again, after a round of golf, one says, “Where shall we go for lunch?”
“Hooters.”
“Why?”
“They have six handicapped parking spaces right by the door and they have senior discounts.”
“Great choice.”
At age 82 they meet and play again. “Where should we go for lunch?”
“Hooters.”
“Why?”
“Because we’ve never been there before.”
Visit www.ChrismanCommentary.com for more information on our industry partners, access archived commentaries, or subscribe to the Daily Mortgage News and Commentary. You can also explore the Chrisman Marketplace, a centralized hub connecting mortgage professionals with trusted vendors and solutions. If you’re interested, check out my periodic blog on the STRATMOR Group website. STRATMOR’s current blog is “Pricing That Can Help Borrowers.” The Commentary’s podcast is available on all major platforms, including Apple and Spotify.
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(Market data provided in partnership with MBS Live. For free job postings and to view candidate resumes, visit the Chrisman Job Board. This newsletter is intended for sophisticated mortgage professionals only. There are no paid endorsements by me. For the latest mortgage news, visit Mortgage News Daily. For archived commentaries, or to subscribe, go to www.ChrismanCommentary.com. Copyright 2026 Chrisman LLC. All rights reserved. Paid job & product listings do appear. This report or any portion hereof may not be reprinted, sold, or redistributed without the written consent of Rob Chrisman. The views and opinions in this newsletter are mine alone unless otherwise specifically stated herein.)
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