Apr. 11: Thoughts on customer service, DPAs; Mortgage executive orders; Ginnie Mae: en fuego; Saturday Spotlight: Gershman Mortgage

Collections of people who work at lenders, investors, and especially third-party providers spend a chunk of their time in hotels, probably rack up loyalty points with certain hotel chains. They’re an “asset” for you, but a “liability” for hotels. Hotel and motel chains have to literally account for the fact that they technically owe their customers money. This adds up: seven large hotel groups collectively owe $11.6 billion to their guests, squirreled away across millions of loyalty accounts, redeemable at some point down the line. Marriott owes its 271 million Bonvoy guests $3.99 billion in the aggregate, Hilton owes its 243 million members $2.91 billion, IHG $1.73 billion and Hyatt $1.53 billion… all in perks redeemable at some point down the line. The problem is that customers rack up points faster than they can burn them. The gap at Marriott between points earned and points cashed in was $473 million last year. Given the sheer size of the programs, it’s expected that hotels are eventually going to pull off the same fiscal maneuvers that the airlines did, like when Delta raised $9 billion in financing during the pandemic that was backed up by the health of the SkyMiles program.

Saturday Spotlight: Gershman Mortgage

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Home Begins with Us.

We recently caught up with Adam Mason, President of Gershman Mortgage, to hear about its more than 70-year history, what sets it apart and what’s driving the company’s next chapter.

In 3-5 sentences, describe your company (when was it founded and why, what it does, where, recent growth and plans for near-term future growth).

Gershman Mortgage was founded in St. Louis, MO, by Solon Gershman in 1955 to complement the real estate company he established a few years prior. More than 70 years later, Gershman Mortgage is one of the largest family-owned residential mortgage companies in the Midwest, licensed in 22 states with branches throughout the U.S. We also operate as a correspondent lender, partnering with banks and credit unions to expand access to mortgage solutions across its footprint, as well as a multifamily and healthcare facility lender nationwide. Looking ahead, we continue to grow through unwavering support of our employees, by attracting top producing loan officers, making smart investments in technology, and building relationships with real estate and referral partners across our markets.

What does your company do to help elevate your employees’ growth? Describe any mentoring programs, outside classes or training, in-house training. How does the company help people develop?

Gershman invests in our people through a culture of mentorship, dedicated support, commitment to ongoing professional development, and long history of promoting from within. Loan officers have access to dedicated sales training programs designed to sharpen skills, build pipelines, and support long-term production growth. Beyond formal training, we foster a culture where experienced professionals invest in those around them. The goal is never to create replicas of top producers but rather to share best practices and perspectives that each professional can adapt to their own style, market, and strengths.

Things you are most proud of that don’t have to do with sales.

Our culture and our employees. We support and help each other. We celebrate successes and are there for each other when times are tough. Our team has character, integrity, talent, drive, and is empathetic to our customers’ needs. We take the long view: no shortcuts, no compromises on ethics, no winning a deal at the expense of a relationship or a reputation. Building something that lasts requires doing things the right way, every time.

Fun fact about your company.

In over 70 years, Gershman has had only three presidents. Talk about stability!

Is there anything else you’d like to share along these lines?

Gershman is actively growing and intentionally so. We continue to expand our loan offerings, recently adding non-QM and medical professional loan programs to serve a broader range of borrowers. Our correspondent lending platform sets us apart in the market, and Gershman is seeking banks and credit unions to join our TPO program.

On the recruiting side, growth is deliberate. Gershman is not adding loan officers for the sake of numbers; it is looking for the right people. The right fit includes professionals who have built their businesses on relationships and results. Those who want an environment that adds power around what they’re already doing well, without asking them to be something they’re not, excel at Gershman.

(For more information on having your firm’s extracurricular activities, employee growth, and your charitable side featured, contact Chrisman LLC’s Anjelica Nixt.) 

Thoughts on helpful things for originators

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Rob Chrane sent, “Rob, having read ‘Buying a Home Costs $32,000 in Extra Costs Beyond the Down Payment’ that you referenced on Saturday, I agree with the math. Buyers are spending an average of $31,502 beyond the down payment, nearly four times what they expected. But the author misses the big picture. DPA can serve a growing group of qualified buyers who can afford their payments without draining their savings. With 62% of programs serving incomes above $100K, the question is: why aren’t lenders using DPA not only to qualify more of these borrowers but also as a financial planning strategy? Who wouldn't love an LO who says, ‘Let's see if we can help you keep more money in your pocket’?

Citi’s Thomas Coale had some thoughts for clients on the current lending environment. “Since we can’t do anything about rates or housing inventory or inflation or tariffs, etc., what kinds of things can we do to drive change either on an individual basis or on a larger scale basis with our team? As my Uncle Olaf used to say, ‘Focus on small changes that will lead to larger changes that will lead to desired outcome(s).’

“For example, let’s take a general concept like ‘Customer Service.’ If we change the wording slightly to ‘Service to the Customer,’ it seems warmer with a real human focus on our most important asset, our customers. Going further down the rabbit hole, Customer Service is reactive in nature, relies heavily on technology, and said technology needs to be functioning properly.

I would recommend discarding the antiquated notion of Customer Service and replacing with the wording and the thought of providing ‘Service to the Customer’ which provides a much more Proactive approach when working with customers, vendors, and folks on your own team. It requires a buy in not only from our team, but also as individuals we need a personal buy in to practice this kind of proactive service every day. This type of approach relies much less on technology. It requires us to know our customers on a deeper level and will allow us to manage expectations more effectively. The ROI on this approach may be harder to calculate initially, but there is no upfront cost to facilitate a thought/attitude change, and our customers will appreciate this level of service which will most certainly improve retention rates (it makes you go hmmm).” Thank you, Tom.

Executive orders have never been law

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They’re more like “intent” or “this is the direction I think we should go,” and every president issues them with varying degrees of effectiveness and publicity. Recently President Donald Trump issued a series of executive orders aimed at reshaping the housing and mortgage landscape, focusing on expanding mortgage credit (particularly through smaller community banks), and reducing regulatory barriers to home construction, though their durability remains uncertain since future administrations could easily reverse them.

On the credit side, regulators including the Federal Reserve, Consumer Financial Protection Bureau, Federal Deposit Insurance Corporation, National Credit Union Administration, and the Office of the Comptroller of the Currency are directed to ease compliance burdens tied to Dodd‑Frank Wall Street Reform and Consumer Protection Act rules, shift supervisory focus toward borrowers’ ability to repay rather than technical compliance, raise data-reporting thresholds under the Home Mortgage Disclosure Act, and adjust capital requirements to encourage portfolio lending, mortgage servicing rights, and warehouse lending at smaller institutions. 

The order also proposes expanded use of alternative appraisal technologies and broader access to funding through the Federal Home Loan Bank System, potentially including discount window access via the Fed, while housing supply measures direct agencies such as the U.S. Department of Housing and Urban Development and Federal Housing Finance Agency to reduce regulatory constraints on development, ranging from environmental permitting to building code timelines and manufactured housing rules.

Taken together, the directives signal an effort to increase mortgage market participation and housing supply by loosening regulatory constraints, though the ultimate impact will depend on how aggressively agencies implement the changes and whether they survive future political shifts.

Recall that President Trump’s remarks at Davos suggested the administration is wary of policies that would significantly lower home prices, viewing affordability gains achieved through falling values as harmful to household wealth. Instead, the administration appears to favor lowering mortgage rates as the primary mechanism to improve affordability, a perspective that aligns with its recent directive for the GSEs to increase purchases of mortgage-backed securities.

The accompanying executive order aimed at institutional investors remains short on specifics but appears designed to add constraints rather than impose an outright ban on investor activity. It limits the role of the GSEs in facilitating investor purchases, calls for greater DOJ scrutiny of large acquisitions, and leaves open how broadly “institutional investor” will be defined, a key factor in determining its real impact. The order also includes an exception for build-to-rent developments, recognizing a segment that surged after the pandemic as investors integrated construction into their business models and that, while moderating, remains elevated relative to pre-pandemic norms.

FHA & VA loans need to find a home somewhere

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Ginnie Mae's mortgage-backed securities (MBS) portfolio outstanding grew to $2.9 trillion as of January 2026. In addition, Ginnie Mae issued $52.1 billion in total MBS, resulting in net portfolio growth of $20.6 billion. Ginnie Mae facilitated the pooling and securitization of more than 57,000 loans for first-time homebuyers year to date. Key highlights from the January issuance include $50.9 billion in Ginnie Mae II MBS, $1.1 billion in Ginnie Mae I MBS, including $1 billion for multifamily housing loans, the pooling and securitization of loans for more than 147,000 American households, including over 57,000 first-time homebuyers. For detailed information on monthly MBS issuance, unpaid principal balance, Real Estate Mortgage Investment Conduit (REMIC) issuance, and a broader analysis of global market trends, visit Ginnie Mae Disclosure.

Ginnie Mae is accelerating a long-planned overhaul of its MBS platform to enable loan-level servicing transfers, a foundational shift from its legacy pool-level structure that leadership calls the most significant change since the program’s inception in 1970. While complex and requiring a cautious rollout to avoid market disruption, the move is expected to allow greater flexibility in servicing transfers, improve data granularity, enhance cash-flow accuracy, and support better modeling of prepayments, delinquencies, and loss mitigation, ultimately boosting liquidity. Alongside this effort, Ginnie Mae is piloting AI and machine-learning tools to identify emerging risks, expanding its digital collateral program, and reporting strong issuance growth, with $526.4 billion in MBS backing loans to 1.4 million households and continued global investor demand reinforcing confidence in the government-backed housing finance system.

Ginnie Mae’s fiscal year 2025 Annual Financial Report showed strong financial and operational performance, underscoring its role as a key source of liquidity and stability for government-insured mortgage lending. The MBS program financed about 1.4 million households and generated $526.4 billion in issuance, lifting the outstanding portfolio by 7.2 percent to more than $2.8 trillion, while maintaining an unmodified audit opinion for the sixth straight year. Backed by FHA, VA, USDA, and HUD programs, Ginnie Mae reinforced market confidence through disciplined risk management, modernization, and cybersecurity investments, including significant progress in digital collateral with over 300,000 eNotes securitized and $84.4 billion in issuance, supporting affordable housing access across economic cycles.

Ginnie Mae’s mortgage-backed securities (MBS) portfolio outstanding grew to $2.88 trillion as of December 2025. In addition, Ginnie Mae issued $52 billion in total MBS, resulting in net portfolio growth of $15.7 billion. Ginnie Mae facilitated the pooling and securitization of more than 715,000 loans for first-time homebuyers year to date. Key highlights from the December issuance include $49.2 billion in Ginnie Mae II MBS, $2.7 billion in Ginnie Mae I MBS, including $2.6 billion for multifamily housing loans, and the pooling and securitization of loans for more than 144,000 American households, including over 54,000 first-time homebuyers. For detailed information on monthly MBS issuance, unpaid principal balance, Real Estate Mortgage Investment Conduit (REMIC) issuance, and a broader analysis of global market trends, visit Ginnie Mae Disclosure.

In place of the usual joke or trivia or video clip, today we have a very serious public service announcement. Recently I was speaking to an ER doctor doing his residency, and I asked them what the most surprising thing is he’s seen or learned. He replied, “Swallowing button batteries!!” He said it’s like a “code red heart attack” because the current drills a hole through people’s innards. Wow. The problem is that they’re everywhere in devices. And if someone leaves them out, and a toddler comes along, well… Please be careful.

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. This month’s piece is titled, “Mortgage Rates Are Not Random.” 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.)