What is Going on in the Residential Mortgage Industry? Notes from Mark Cohen of Cohen Financial Group the #1 Top Originator in Home Loans Nationwide.

What is Going on in the Residential Mortgage Industry? Notes from Mark Cohen of Cohen Financial Group the #1 Top Originator in Home Loans Nationwide.

I am writing today to assure our clients and the real estate community that the team at Cohen Financial is still actively closing loans. We have 34 years of experience and well-established partnerships with both major lenders and boutique investors that enable us to find solutions for even the most challenging borrowers.

We are also here as an information source to keep you abreast of the latest data that affects the mortgage industry during this crisis.

Some recent developments worth noting:

Housing demand and sales in LA are showing signs of recovery.

The LA housing market is showing signs that buyers and sellers are recovering from the initial shock of the pandemic. Our team has seen an uptick of new loan applications, and recent housing data shows that new listings and escrows are coming off early March lows. I believe history shows Los Angeles is one of the world’s most desirable cities to live in, and housing will always be a robust, appreciable asset.

Rates haven’t been this low since 2012.
Fixed rates for loans under $765K are at or near all-time lows, which is a welcome silver lining in the cloud presently hanging over our economy. Cohen Financial’s inside track with lenders allows us to cut red tape to process home and refinance loans at these favorable rates.

Fed intervention hasn’t been all good.
Steps were taken by the Federal Reserve to buy mortgage-backed securities and grant forbearance to stabilize the mortgage market. These policies are a double-edged sword. They have de-stabilized lenders, drying up available cash for new loans. Banks are now lending more cautiously, especially on jumbo and bank statement loans. Additionally, most banks are not funding cash-out loans because they don’t want to lend more than they have to.

Fortunately, Cohen Financial is a solution. We have resources to secure bank statement loans with investors who are actively lending and will do cash-out deals.

Lending restrictions have increased.
Lenders now seek higher credit scores, funding, and future payment liquidity and regularly check on employment status until the loan closes. Cohen Financial has been on top of changes in lender requirements to advise clients so they can close with certainty.

Do the potential challenges mean you should wait on a new home loan or refinance? No. It simply means working with an expert with the right knowledge and relationships is critical.

Now more than ever, Cohen Financial Group is in your court, laser-focused on seeing each deal to the finish line so that you can prioritize the safety and well-being of your family and our greater community.

Sincerely,

Mark Cohen

President & CEO
Cohen Financial Group
310.777.6342
MarkCohen(at)CohenFiancialGroup(dotted)com