May 31: The financial role of credit unions; Household well-being survey; vendor news; Saturday Spotlight: TRAiNED, Inc.

Hey, I like food as much as the next guy. Or gal. Maybe more than some. Especially Original Chips Ahoy, but that is a tale for a different time. And with all the talk about keeping things within the United States versus “we’re a global village,” I decided to check out food. There are 195 countries in the world, and only Guyana produces enough food to self-sufficiently feed all its citizens without foreign imports. The study, published in Nature Food, investigated how well each country could feed their populations in seven food groups: fruits, vegetables, dairy, fish, meat, plant-based protein and starchy staples. Worldwide, the study found that 65% of countries overproduced meat and dairy, compared to their own population's dietary needs. It also found that Guyana, located in South America, was the only country that could boast total self-sufficiency, while China and Vietnam were close behind, being able to produce enough food in six out of seven food groups. Forget Swiss chocolate or French champagne… Horticultural products, particularly fruits and vegetables, form the largest category of US food imports. According to USDA data, roughly 50 percent of all agricultural imports fall under this umbrella, a testament to Americans’ desire for year-round access to fresh produce and unique flavors. Good luck to the Fed for keeping inflation low when pricing for much of this is out of their hands.

Saturday Spotlight: TRAiNED, Inc.

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“Unlock Significant Cost Reduction with AI Mortgage Manufacturing”

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).

TRAiNED was founded in late 2021 by Jonathan Freed to develop AI-driven mortgage manufacturing. The goal: reduce closing times, reduce human error, and most of all, cut operational costs. Using actionable LLM’s applied to machine learning workflows, TRAiNED offers the benefits of AI with little business upheaval. TRAiNED plugs into your existing LOS. No change in work process, no new system to learn for your team.

Asked why he founded TRAiNED, Jonathan Freed explained, “With my background in process-re-engineering, and through many years of running a mortgage company, I remained amazed at the very cumbersome, lengthy, and unnecessarily complex processes in making a loan. There just had to be a better way. Once I departed the mortgage company, this became my holy grail. Our AI-driven solution is a first step to smoothening that process. Most importantly, it delivers immediate savings to our customers!”

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?

TRAiNED has pioneered the human-in-the-loop concept for Mortgage manufacturing AI. Our team of AI technicians quarterbacks the AI process, handling rejected documents, as well as ‘training’ the AI platform. This enables us to handle the extremely wide variety of documents and formats, while providing service levels much quicker than all human processing by the mortgage originator can deliver.

Since early 2024, Jonathan has been joined by Mark Cunningham (CEO) and Arend de Jong (CFO), both formerly of the Sales Boomerang leadership team, bringing experience with scaling a FinTech company. This allows Jonathan to continue to focus on further solution-driving, so that TRAiNED remains at the coalface of AI-innovation in mortgage manufacturing. Together with the TRAiNED team, the three intend to grow TRAiNED to become the standard in the industry when it comes to AI in mortgage manufacturing.

To support its ongoing growth. TRAiNED has launched a crowdfunding investment campaign. Through Startengine.com.

Fun fact about your company.

Almost our entire team of AI technicians is formed by neuro-diverse team-members, thereby also offering career opportunities to the local community in Pittsburgh. This group has specific talents that work very well with the AI Technician role, and we are proud to be supporting the neuro diverse community this way. 

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

In the summer of 2024, TRAiNED started commercializing its product. Today, TRAiNED serves over 15 customers with its solution, providing a 10X ROI on investment. And we are on a steep growth trajectory: the goal is to serve 50 customers by the end of 2025.

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

Are you better off than before?

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Regardless of what was said during the 2024 campaign, the Federal Reserve's 2024 Economic Well-Being of U.S. Households report found that overall financial well-being remained stable compared to recent years, with 73 percent of adults reporting they were doing okay or living comfortably and 63 percent able to cover a $400 emergency expense. While inflation remained the top concern, fewer adults reported worsening finances due to rising prices compared to 2023, and many adjusted their spending in response. The labor market showed resilience, but job changes were less likely to lead to better opportunities than in prior years. Additionally, the report highlighted a growing concern over financial fraud, with 21 percent of adults affected in 2024, resulting in an estimated $63 billion in unrecovered losses from non-credit card-related scams.

Credit unions, with tax advantages, aren’t sitting on their hands

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Credit unions are seemingly on a mission and view residential mortgages as part of that. Whether you work for a CU and want to know what’s going on, or work for a bank, independent mortgage bank, or broker, and wonder what CUs are all about, here is a piece titled, “Economic Benefits of the Credit Union Tax Exemption to Consumers, Businesses, and the U.S. Economy” by Robert M. Feinberg, Ph.D. (American University) and Douglas Meade, Ph.D. (Interindustry Economic Research Fund, Inc.)

“Credit unions are member-owned, not-for-profit cooperative financial institutions that serve defined fields of membership. Democratically owned and operated, credit unions are organized without capital stock and governed under a ‘one member, one vote’ principle: each member has one vote, regardless of the amount on deposit. While banks are operated with the purpose of maximizing profits for their shareholders, the purpose of credit unions is to return those benefits to their member-owners. As a result, credit unions in many markets offer interest rates which are superior to those of other competing financial institutions.

“By virtue of their unique cooperative structure and mutual purpose, credit unions have been exempt from federal income tax since 1935. Those basic defining characteristics of a credit union, no matter the size, endure today as they did then. While competing financial institutions with different organizational structures have often challenged credit unions’ tax-exempt status, Congress has consistently affirmed the credit union tax exemption.

“The benefits of credit unions are vital to many communities, and the loss of the federal income tax exemption would have far reaching consequences. Our analysis indicates that removing the credit union tax exemption would cost the federal government $33 billion in lost income tax revenue over the next 10 years. GDP would be reduced by $266 billion, and 822,000 jobs would be lost over the next decade as well. This study quantifies the benefits to all consumers (both credit union members and bank customers) of having a credit union presence in financial markets.

“Statistical analysis revealed the following estimates of the interest rate differential between U.S. banks and credit unions for the period 2014-2023. Interest rates on savings, checking, and money market accounts were 8 basis points (66 percent) higher at credit unions. Interest rates on CDs, IRAs, and KEOGH accounts were 34 basis points (87 percent) higher at credit unions. Real estate loan rates were 32 basis points (7 percent) lower at credit unions. Credit card and unsecured loan rates were 106 basis points (9 percent) lower at credit unions. Credit union rates on new and used car loans were 151 basis points (32 percent) lower than bank rates, on average.

“These rate differences are highly consequential to households, especially those living at the margins. For example, a borrower with a $40,000, 60-month auto loan at the average credit union rate over the 2014-2023 period would save $1,600 over the life of the loan versus the prevailing bank rate. The cumulative direct benefits to credit union members of these better loan and deposit rates were estimated to range from $6.6 to $14.3 billion annually over the past ten

years. Total credit union member benefits over the period were estimated to be $92.4 billion.

“The benefit of better credit union loan and deposit rates extends to bank customers as well, due to increased competition. A 50 percent reduction in the credit union market share would cost bank customers an estimated $11.9 billion to $22.8 billion per year in higher loan rates and lower deposit rates. The total losses to bank customers due to less favorable rates totaled $142.2 billion over the ten-year period examined. The total benefit to U.S. consumers from the significant presence of credit unions in financial markets was $234.6 billion over the ten-year period of the study, or more than $23 billion per year.

“These conclusions align with the findings from previous studies of the impact of eliminating the credit union tax exemption in Canada and Australia, where the number of credit unions was severely reduced following taxation. Reduced competition for consumer financial services led to higher interest rates on consumer loans and lower interest rates on deposits in both countries. A very conservative estimate of $13.8 billion per year reduction in personal income (50 percent of the average estimated annual loss to consumers, adjusted for inflation) resulting from higher loan rates and lower deposit rates due to a diminished credit union role in the economy would lead to an annual reduction in GDP of about $26.6 billion and a loss of 82,000 jobs per year over the next decade.

“In conclusion, the loss of the credit union tax-exemption would result in direct losses to consumers. Making very conservative assumptions, this report finds that in the absence of the credit union federal tax exemption, a significant reduction of the presence of credit unions in the U.S. economy would have resulted in a direct loss to consumers of $234.6 billion over the ten-year period studied. These losses would be due to both increased loan interest payments and reduced deposit interest received by bank and credit union members alike.

“A reduction in credit union market presence would hurt all consumers The presence of credit unions in local consumer lending markets has a significant positive impact on both bank customers and credit union members for both loans and deposits. Consumers saved and earned approximately $23 billion per year over the past decade in direct benefits thanks to the presence of credit unions in financial markets. These benefits are unlikely to occur without the federal tax exemption granted to the credit union industry.

“It is worth nothing that the simulated 50 percent reduction in credit union market share assumed in this study is a very conservative estimate of what would likely occur as a result of the elimination of the federal tax exemption, as the Australian case demonstrates. Therefore, the effects simulated in this study also understate the true benefit of credit unions to bank loan consumers. Furthermore, the calculated benefits to credit union members presented above may underestimate their gains from the presence of credit unions in local markets, as bank rates would be less favorable (and the gap between actual credit union interest rates and bank rates would be even larger). Loss of the credit union tax-exemption would have far-reaching consequences for the overall economy.

“There are even larger consequences to the overall economy when these credit union benefits are applied to Inforum’s dynamic general equilibrium model. In the absence of the federal tax exemption, reduced purchasing power by bank and credit union members would lead to reduced consumer spending in other sectors of the economy.

“The reduced purchasing power in the U.S. economy resulting from a $13.8 billion annual loss of personal income would reduce consumer spending by about $24.2 billion per year over the next decade (in 2024 dollars). This would result in a reduction in GDP of approximately $26.6 billion per year and employment losses of roughly 82,000 jobs per year. Model results incorporate the elimination of preferential loan and deposit rates for credit union members as well as the effect on bank consumers of reducing the market share of credit unions.”

Third-party provider tidbits

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What lenders don’t rely on outside parties for their business? Let’s take a random look at who’s up to what.

We’re excited to announce the official launch of the Chrisman Marketplace, a centralized hub for vendors and service providers across the mortgage industry. This initial rollout features a curated selection of companies from our Founding Cohort, offering a first look at the powerful partnerships and solutions driving innovation in the space. We’ll be adding new vendors daily, so check back often to see what’s new. To reserve your place or learn more, contact us at info@chrismancommentary.com.

AppraisalVision, the mortgage industry’s leading appraisal technology platform announced its transformation into the first fully autonomous appraisal execution system through an exclusive partnership with Alpha7X, a next-generation AI agent platform. AppraisalVision’s AI-powered architecture now replaces the need for traditional SaaSbased appraisal order management (AOM) systems by using Alpha7X to autonomously manage every step of the process from order initiation to final report delivery.

Prudent AI announced the launch of Prudent AI Upfront, the mortgage industry's first true one-touch pre-qualification platform that revolutionizes lender sales funnels. This innovative solution empowers lenders to process more applications, reduce fallout, and capture more business. Prudent AI Upfront boosts sales funnel efficiency through three transformative outcomes: 24/7 Document Submissions: Brokers and third-party originators can submit borrower documents round the clock with instant alerts on missing documents, eliminating manual intervention. Evaluate Borrower Repayment Ability at a Glance: Compute qualified income of borrowers in minutes, instead of hours, with 100% accuracy. Real-Time Insights: Instant loan recommendations based on borrower profiles with AI Income Copilot.

OptifiNow, a leading provider of cloud-based sales and marketing automation and CRM solutions announced the launch of KPI onDemand, a powerful new tool designed to give sales teams real-time, personalized insights into their performance and a reason to stay motivated. What sets KPI onDemand apart is its flexibility. Instead of relying on generic, one-size-fits-all metrics, organizations can define their own custom KPIs based on the specific activities that matter most to them. Whether it’s calls, emails, lead conversions, loan submissions, or deals closed, KPI onDemand captures it all. At its core, KPI onDemand is about driving better sales performance. But it also does something just as important it helps salespeople feel more connected to their goals, their process, and their success. That kind of engagement can transform how teams work and how they win.

BOK Financial is excited to announce the launch of its Mortgage Finance line of business. For more than 20 years, BOKF, NA has supported independent mortgage bankers as a top 10 dealer of mortgage-backed securities, offering trading liquidity, comprehensive treasury management platforms, structured product solutions, a deep organizational understanding and long-standing involvement in the mortgage banking space. The new vertical is dedicated to meeting the credit needs of non-bank mortgage originators across the country and will initially offer warehouse credit facilities with additional products to follow. Under the leadership of Donnie Martin, the Mortgage Finance group will create a full-service ecosystem tailored to the unique needs of these clients. Reach out to Donnie, Becky Lottridge, or Chris Thurber to schedule a meeting at the upcoming MBA National Secondary Conference in New York.

Remember five years ago when Olive and Mabel swept the internet and Zoom calls were on the rise? Here’s a fun flashback.

Visit www.robchrisman.com for more information on our industry partners, access archived commentaries, or to subscribe to the Daily Mortgage News and Commentary. If you're interested, visit my periodic blog at the STRATMOR Group web site. This month’s piece is titled, “Compensation is Still Lender’s Largest Expense.” The Commentary’s podcast is live and at any place you obtain your podcasts (like Apple or Spotify).

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(Market data provided in partnership with MBS Live. For free job postings and to view candidate resumes visit LenderNews. This newsletter is for sophisticated mortgage professionals only. There are no paid endorsements by me. For up-to-date mortgage news visit Mortgage News Daily. For archived commentaries, or to subscribe, go to www.robchrisman.com. Copyright 2025 Chrisman LLC. All rights reserved. Occasionally 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.)