AI MBS Trading, AI Workflows, Sub-Servicing, eNote, Asset-Based Lending Tools; Colorado Revamps AI Law

How do you go about trying to run your company’s AI efforts without knowing the rules? Testing suggests Google's AI overviews tells millions of lies per hour. Colorado rewrote its landmark AI law: “Unpacking SB 26-189 and what it means for businesses” described by Ballard Spahr. AI, recapture, and capital markets were one of the topics in yesterday’s Capital Markets Wrap. Certainly, companies in our biz are grappling with the AI influence on the manufacturing process, and using it for guideline questions, is something on which many lenders are ruminating. (Today’s podcast can be found here and this week’s ‘casts are sponsored by nCino, and its Mortgage Suite that supports a modern homeownership journey. This week at nSight 2026, mortgage leaders will explore how AI, intelligent automation, and connected experiences are reshaping lending operations and borrower engagement. Hear an interview with Flex’s Ryan Metcalf on how financial fragility is reshaping the foundation of homeownership demand, challenging traditional credit models, and forcing lenders and policymakers to rethink risk, readiness, and the role of demand-side solutions.) Lender and Broker Products, Software, and Services Operational risk in bankruptcy servicing rarely comes from a single catastrophic failure. More often, it emerges from small breakdowns in coordination across timelines, systems, and compliance obligations. Most servicing organizations have the policy knowledge to manage bankruptcy. What's harder to build is the workflow infrastructure to manage it consistently, at volume, without depending on institutional memory or manual intervention at every critical juncture. In CLARIFIRE®’s latest blog, “Why Bankruptcy Workflows Continue to Challenge Mortgage Servicers,” we examine the specific workflow gaps that rising bankruptcy volume tends to expose, from automatic stay response windows and proof of claim accuracy to Rule 3002.1 compliance and post-discharge reconciliation, and the value a rules-based approach can provide. If bankruptcy servicing is on your radar for 2026, it is worth the read.