Christophe Choo 2022 Mortgage Update Interview With CEO of Cohen Financial Beverly Hills Mark Cohen
An exclusive live interview with CEO of the Cohen Financial Group, Mark Cohen, with an outstanding amount of 21,000 originated loans totaling more than 14 billion dollars in volume. "Mark has the distinction of being the only mortgage broker in the US to reach 500 million dollars or more in loan volume on an annual basis for the past 8 years.
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The Christophe Choo Real Estate Group
Coldwell Banker Global Luxury
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Email: [email protected]
Christophe Choo is in the top 1% of brokers internationally selling real estate since 1989 as the President of the Christophe Choo Real Estate Group at Coldwell Banker Global Luxury Real Estate in Beverly Hills. The #1 producing office in the United States for 24 years and the most comprehensive source for luxury real estate listings, from estate homes to luxury condominiums, incredible tear-down opportunities, and investment properties. Christophe was voted as the #1 Real Estate Video Influencer for North America in 2018.
Based in Beverly Hills, California, The Christophe Choo Real Estate Group provides exclusive luxury homes for sale on a local, global and international stage. Hence the tagline: “Locally Known – Globally Connected”.
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mortgage rates financial markets and institutions 2022 mortgage update coldwell banker beverly hills
It's Christophe Choo
from the Christophe Choo
Real Estate Group in Beverly Hills,
and I'm very excited
to have my good friend and
and mortgage broker Mark Cohen
from Cohen Financial here
to talk to us again today
about what's going on
in the mortgage industry.
I know that's been a really,
really hot topic, particularly
the last three to six months.
And I work with Mark
for a very long time,
and he's been doing mortgages
now for 36 years and get this season
21,000 mortgages, over 14
million in loans.
And just a quick story.
My when one of my
client deals we did together,
I had a client, Mark Stein
as well and a friend of both of ours
that was buying a 10 million dollar house
and he was planning to pay cash.
And then we open escrow.
He's like, Christophe,
I'm going to get a loan.
I'm like, a loan?
what do you mean a loan?
It was a 10 million major major fixer
who says, Don't worry about it.
Mark Cohen's my guy.
He's going to take care of it.
Well, Mark Short
as 10 million dollar
loan approved in five days and we close.
I've never seen a loan
get done that quickly.
But anyways, I just
I love Mark He's so good at what he does.
And especially, I mean, think about it,
21,000 mortgage loans.
I mean, that's someone
who knows this stuff.
Marc, tell us a little bit
about you and your company and maybe
look at how you started
because I never talked about that.
We'll start back in how I started.
Step one, you know, make it nice and
brief so people aren't
out of law school with law school
for grandparent reasons.
Know, and you got to be a lawyer,
doctor or whatever.
It's a law school graduate,
and I didn't want to really practice law.
So Mother was the first
female mortgage broker
in the city in those days.
it was a totally different
industry is very initial in its stages.
She's the first female mortgage broker
I worked with her
for from 1996 to 1999
and now when I first
started the business.
the Fannie Mae loan
limits now are 640,000 109,000 109,000
109,000, which you can't buy
in the country for that.
So, so, so it's changed a lot.
The whole structure
of the other business.
I started 86, eight, seven years,
you know, sort of love
at first sight because,
you know, I always like real estate.
My family have been involved
in real estate and,
you know, it's my major as she was.
is a perfect match.
I like talking to people
and making deals,
so it's the closest thing to Wall Street
without being on Wall Street for real.
So in 1999, started my own company.
And here we are.
22 years later. So
one of the interesting things
going on with mortgages now, I mean,
rates dipped down a little bit this week.
I think he went back from over for it
to just back under four
for four loans to nothing.
but it's still a point
or so higher than a few months ago.
But it's interesting,
you know, buyers
today are so short sighted because like,
Oh my gosh, rates went up from three
and a half percent to 4%
and we just closed the deal and the buyer
got a loan at like 2.8%.
And he said,
I wish I would have done this
four months ago.
I could have got like 2.3%.
And I said, you know,
you're way too young to understand this
because he's only 27 years old, I said.
But when I started in the late eighties,
I mean, you remember this
rates were 16, 17,
18% for a mortgage , right?
You remember those days after,
I mean, I was 18 years
old, new in the business.
I didn't know any.
I didn't know rates had been lower.
I just I didn't even know.
So I thought, Yeah,
I thought in 1987 for my first house,
I was paying 93 quarters on a five year
adjustable rate loan
and thought I was
still in still on a deal.
They were higher.
Yeah, 14, 15, 16%.
In the early eighties.
Exactly. So nowadays, it's just so funny.
People are like,
Oh my god, 4% is so high.
I don't want to buy a house.
I mean, first of all, real estate
is the number one asset
Never in the history of the world.
And and we're still
at basically historic lows.
And look, I've had mortgages at 7%,
Now it's under three,
which is amazing for a jumbo loan.
So it's just it's amazing to me how
are with mortgage rates.
And I've always told buyers
said, Look, you know,
the mortgage rates are what they are.
You need to buy a house,
you know, you need the tax deductions,
you need to live there.
But what's interesting is the last,
I would say, a month or so.
The Air Premiere adjustable rate mortgage
conversation is coming back into play
because people are like, well,
going to adjustable rate
loan instead of a fixed time
because most people
like generally a fixed loan, right?
one thing I want you to talk about is
I always ask my clients,
I know you do as well as,
OK, you're buying this house here in L.A.
What is your current moment plan?
Are you planning to be here
for five or ten years
and maybe move to a bigger house?
Or are you planning to be here
for ten years?
If your job, if you're planning,
move back to New York.
And of course, if you can get
a lower rate on a ten year,
I mean a fixed for ten years
and it adjusts after the fact.
Why not do it?
But I think that's part
of why you're so good
is that you really counsel
your clients and.
And how do you do that?
What questions do you ask
someone to help them to help guide them?
Because we're guiding our clients first
and buying houses
with interest rates and so forth?
You know, they've gone up
and you're asking,
you know, where do you think,
how long you'd be living in a house
for your game plan
so you can try and go on a short
term loan, right?
At the same point time, though,
I always ask How is your business?
Because that's the whole thing.
So if you're business,
if you're expecting
your business to grow by 25%
and your payments are 5% higher,
it really is a moot point.
So people will have to get focused
on the big picture.
As with everything in life,
they can afford this.
It's not like whether you're paying
5000 or 5500 a month on your mortgage.
So if I was my business
doing, you know,
am I going to be making more money?
So I mean, I think it's the first thing
because anybody should be buying a house
to feel comfortable
that they're going to be able to,
you know, have the reserves
and be able to buy a house comfortably
and not have to worry about a few hundred
extra dollars per month.
And that's actually a good question.
one of the questions
I had for you is it reserves.
Let's say you're buying
a 2 million dollar house
and your mortgage payments
are going to be,
let's say, $7,000 a month.
first of all, I'd always advise clients
maybe it was wrong or right,
and I love to hear your thought
that I always thought,
Look, people can get loans again
nowadays for 10% down.
I think I haven't done that yet,
but I always felt
like if you and I haven't
didn't say quite this way.
But I think if you're buying a house,
you need to have at least 20% down.
That's just kind of my
I think you do don't have 20% down
should you really be buying a house?
And then secondly, for me, I told them,
I know banks will approve you
with like three or four
or five months of reserve.
I tell people, Look,
you should always have
at least a year's reserve, in my opinion,
in the bank for your mortgage
so that, you know, in life things happen.
You could have an illness,
you could have a family,
so you just don't know
what's going to happen.
Who knew when COVID started it?
All these restaurants and all
say the purpose is we're going to close.
And even today, and you know,
not that applies here,
but all the poor people in the Ukraine
or in Russia, for that matter, you know,
their lives got just
taken away from them, from us
and not the same person.
So you got always
you got to play defense
on this stuff yourself.
You can, you know,
90% loans and get a loan for an attorney.
She makes a lot and she's
going through a divorce
and she's got a year's worth.
you know, in the family, in our purchase,
she's got about,
you know, against the bank.
But she's I really just
want to put down 10%.
So I got the deal for her.
So it all depends on
everybody's risk perception
and how secure your cash.
You're right, though,
You know, a year's worth of payment,
I agree with you.
Is that the customary norm,
especially on jumbo loans at 20% down?
But it's not a big difference
that much longer
if it's 10%, ten or 20% down
right up to certain rates
in their qualifications
and all that you mean it's about, yeah,
yeah , it's all you got to qualify
with that extra debt.
And some people, some banks want
an 85% is no problem
up to $3 million, right? 90% loans.
Just the cut is for the better.
Just as 2 million.
And it's interesting also,
I mean, as you know, in our market
in Beverly Hills,
a lot of people do like to
pay cash, right?
However, the last,
you know, three or four years,
most of them are not paying cash.
They're just getting a loan.
Because first of all, I mean,
they can borrow at, you know, 2.83%, 4%.
And then, you know, smart businessmen
can make their real money.
Work for them at tends to
be maybe 20% or so. So
it was it's interesting to me
how how the markets are always changing,
you know, the feds are talking about
to continue to raise
interest rates this year.
And I think I heard
the other day on the radio
and you correct me if I'm wrong, that
potentially there could be six rate
increases over the next twelve months.
What do you see?
Well, you know, to say defensive,
like a lot of people on CNBC
are saying, it's
hard to say there's only six increases.
Now I'll tell you the reason why
the world changes quickly
and you don't know
what's going to happen.
So let's say, for example,
on this past week,
you know, obviously
the rate should be increased.
We've got ramp inflation
and primarily now
it's going to be compounded
by the fact about the price of oil.
I mean, it's out of sight.
I mean, was driving
past the station I go to
or I drive by all the time, it's over $7.
I know I couldn't believe that.
And you know,
can I afford it or whatever?
I mean, yes, but it's a lot of money.
So it's it's it hurts a lot of people
and it's going to translate
over to FedEx deliveries,
food deliveries, everything.
So there's going to be inflation
in this country.
That same point time, though,
you know, the Fed's mandate is to have
2% inflation, and that's
not nearly where we're at right now.
So they have to use
their quote unquote tools.
And that's raising rates.
And their other mandate
that they have is to have
a strong employment
market, which we do now.
Today it came out.
The Fed had a 476,000 670,000 new jobs
in the month of February, which is brisk.
The only saving grace for that
from a bond market standpoint
and why rates are down a little bit
today is one because of Ukraine
and also a really important part
the market looks at.
And it's very important
is the wages to the wages
A half percent on the average is flat,
which to me it's important
because that's the wage
inflation is the whole key
component to inflation.
A big, big part of it.
So that was a positive sign.
And the other reason I can't say it, but
you know, the economic
numbers are softening
another one that came out
before yesterday .
It's called the Chicago
Purchasing Managers Index
and other industrial sectors doing
the national, and it was
much lower than expected.
So you're starting to see some
slowdown in the economy
on the superficial level,
and consumer sentiment is at a
like a ten year low.
So it's OK.
I mean, you go, but
the things work to the process.
The Fed's definitely
raising rates in March.
And, you know,
I wouldn't be surprised
like another one or two after that.
And you'll see because
if the inflation issue.
Supply chain issues
is ameliorating at that point in time,
then there probably won't be any time.
So you know, they're buying time.
The Fed's buying time,
but they have to raise rates to maintain
any kind of credibility
because I mean, you have
you have to go to
a restaurant or any place.
I mean, it's higher.
This thing is more expensive. Yeah.
The other thing
at one of our local restaurants,
which I know
you go to a jittery
chicken, was $68 for a January chicken.
I remember you being 40 something
the last time, I guess I.
Yeah, no, it's it's it's it's out there.
You have to go too far
to see us and everything.
We need to raise our mortgage rates.
We need to raise our money.
I need to raise my face
to which I can't do.
I'm happy just to help you classically.
So I remember last year
the Fannie Mae prime lender here. Yes.
Last year, I think Fannie Mae and Freddie
Mac and the National Mortgage Association
all predicted rates
this year to be in the upper
threes lower for us,
which seems like that's
kind of where we're going.
And of course, nobody has a crystal ball.
Do you think rates could potentially
by the end of the year, go up two points?
I mean, could go up that quickly
that I don't think so
because I think a lot of
facing the cake right now.
We have oil now at 1111, ten,
13, whatever it is.
I saw that 1:14 the night, wasn't it?
$80 a barrel three months ago?
So that's already baked into the cake.
You know, I think you're
to see the slowdown in the economy
and so forth, and
I think the supply chain
issues will improve.
So I just think the
inflation expectations will go down a bit
where the Fed can justify
not raising rates
maybe after two or three times.
Yeah, because if that happens, you know,
you're into July already
and it's like, like you
and I know the world can just change.
So it's hard to say
somebody saying seven times.
It's just, you know,
it's just maybe the right.
But you know, at this point in time,
any reasonable person
knowing the way that the economy's
changing perceptions of the world changes
and you can't go out and say that
but know, yeah, well,
you know, I love to sell houses
and I know, luckily for
you can sell a house
or you can refinance.
But I do advise some clients
because a lot of people
don't want to sell right?
And I tell I do videos
and I tell clients,
like if you refinanced
a year and a half two years
ago, refinance again
because the rates are lower
and it's worth the time
and the effort, I know
it can be a little
little bit of a process,
but you know, when you think
you can save, potentially,
you know, if the rates are a point
less than what it was
a couple of years ago,
that's pretty substantial
and a mortgage pretty good.
So I think it's important about that.
what are the thoughts you have about
like what are the best loans today?
Are there particular programs or loans?
It's as far as seeing the jumbo
loans, you're much better priced
the Fannie and the Fannie Mae,
the agency paper runs, really.
But for example,
I can get on a 5 million
auto loan and out
three and a quarter
on a 30 year fixed rate
at 75%, 5% on three quarter percent.
While that's a jumbo loan.
Now, if I like everybody else, the
I want to go through
a quick in or on a Fannie Mae loan,
you know, up to now
973 rates like three
and three quarters, three and seven.
So what's happened is the government
wants out of the mortgage markets.
So they're having these
and then the
how the mortgage market
is funded by the government,
Federal Reserve or.
So now they're stepping
out of the market
and there's less
than after their products.
So therefore rates are going up
and they announce that,
you know, a couple of months ago,
they're not buying
mortgage bonds at this,
there's going to discontinue.
That's a must reduce
that when I was a force
that's raising the rates.
Why does the government
no longer want to do mortgage loans,
try to stay on the real estate market
and to try to reduce the balance sheet?
They want to have a
market act on its own.
They think it's strong enough.
It's not their mandate
to keep on buying mortgages or not.
So they think the market can support
higher interest rates.
They did this initially
to stimulate the economy and all that
Now that it's doing better,
they want to step back.
But if things might, you know,
with inflation and costs
of living going up and everything,
wouldn't they stayed
for a little bit longer
now they want to do other things,
but then the economy is strong enough
as part of the process is to raise
rates by draining the capital system.
I say creating less demand.
So there's less housing demand.
You have less contractors
working on houses.
It's like the whole thing
slowed down the economy. Right?
Whether it's right or wrong, I mean,
it will work, but
it will change at some point in time.
And just as a rule of thumb, if
if I'm doing a purchase loan
and secondly or a refinance loan,
let's say I'm borrowing $1,000,000.
As a consumer on a purchase side,
what should I expect to pay
percentage wise overall
for the loan appraisal fees?
Is it? I'll just give you a typical day.
Let's say clients buy how it gets
$1,000,000 loan from us.
the 30 year fixed rate three quarters.
You know, it's got be full assault
borrower's full income documentation
will go with other programs
and second, says
full income documentation ratios.
45% zero points,
you know, thousand dollars
for loan docs appraisals,
the lender fees about $2,000.
I get paid for very minimal.
That's a good deal.
Now that's for prime borrowers
with tax returns and qualifying.
45% ratios, if not, that's so.
I always told my clients
there's three types of loans.
So one, the best rates are like
I just discussed with you
tax returns two years returns ratios.
45 full documentation loans right
before the better price
that's just used as a three
and a quarter reference option.
is bank statements
you showed for self-employed people
twelve or 24 months bank statements
and those rates are in the in the
right now, the high fours on those.
And that's where four people
They've got good credit scores,
have a good cash from their business,
but they don't declare
everything they make up.
Gotta say that's
so you pay a tax or premium,
but it's those types of loans
that open up the doors
and are extremely popular right now
because it provides
financing to a large segment
of self-employed people right now.
Don't who can get away or
have proper tax planning.
Where they don't,
they can reduce their tax liability.
I said more. It's like a mortgage tax.
It works out now.
The third one, we're just coming out.
It's kind of it's
still that even higher rate.
It's where if you have strong assets.
In five years, payments to banks,
and most part you get along
if five years or five years,
but you have to show,
you have to show
for the better rates,
you have to show bank statements.
So if you have the millions for the bank
and your payments, ten
or even million dollars of that,
you can get a loan payments
or five or $6,000 a month.
And if you are working
or you can cash it, show any deposits.
So it's pretty easy to get a loan
for people's fears in a box.
is based on a good credit
and you're doing the right thing.
So depending on the job situation,
it can be tailored.
And I know for me, most
of my higher end clients
own their own businesses.
They're all basically self-employed.
Now there's a few corporate CEOs
and executives there on payroll,
but I would say a majority of them
Frank, I've been my boss,
especially at people's
real estate and so forth.
Yes, but I always do.
As you know, full documentation loans,
it may take a little bit longer,
but I always felt like
if you got the money,
you got the assets,
you provide the documentation,
you get the best opportunities.
That's always been
my take on things I agree with.
And, you know, to save $1,000
a month, I mean,
you know, over, you know,
whether it's five years, ten years,
one years potentially or 30 years,
that's that's a tremendous
savings to do that. Absolutely.
And that's a no no no
doubt if you can go for Doc.
That's a that's the way to go.
But I know, you know,
maybe two or three years ago,
Fool Doc was much more difficult
the last twelve months easier
and then six months easier.
Have you noticed that as well?
I mean, look, the banks want to lend, but
they have to have,
you know, the big banks they don't do.
These loans are called on to our loans
without tax strings of the banks.
Just, you know, what happens to him
loan, which I don't know what that is
not a non qualified mortgage.
So those are those are the bank
saving loans we spoke about.
Got it. OK?
So there's a
and that's a huge market on that.
So for the non current loans,
its increase in popularity,
I mean, it's really helped that
the whole real estate
market by opening up
loans for people who normally kind of
get their loans.
So yeah, you're right, the
Christmas market is open up a little bit,
especially if your banking relationships
with with the bank.
If you have a 5000 or $1,000,000
with a bank, you know,
what are they going to do?
For instance, if
you've got five or 10 million
in the bank with
and then they're not going
to give you a mortgage,
you've got that much cash in their bank.
I mean, come on. Yes. Yeah.
So they've been out of their way
to try to do it. Yes.
which, you know, first time buyers
in our market here in L.A.
are typically maybe 18 to 2 million
unless it's a condo condos,
maybe in the lower 1
million range, but very sad.
But true, isn't it?
It is true.
I mean, God almighty,
when you think about that, I mean,
but it is what it is.
I mean, we're lucky to be
in Beverly Hills, L.A.,
one of the best places in the world,
so you got to pay to play what they said.
That's because the first time
and it look a lot of my first time
buyers in that price range.
they may or may not have the cash,
but they have gifts from family
because there's a lot of
transitional wealth of parents
and family have money
and they gift it to the kids.
So how common is
is a is a gift from the parents to get
a mortgage is a 20%, 50% of the time.
It's it's very common.
I'll say the better price loans.
If it's a 20% down payment,
it can be 100% gift.
The requirement is this
is that the reserves
which are typically,
you know, twelve months like that to say,
write your own reserves.
So it can't be, it can't be.
So they want to see that
this you've been able to contribute
or they've been able to save money.
So you're buying
a 2 million dollar house.
Mom and dad can give you
the 400 grand downpayment,
but the bank wants to check the hundred
or $150,000 in the bank
and your bank accounts,
and that can also be 401 K
like 60% of your 401 K.
So now most people have
that will allow you 60%,
quote unquote value
for your for one
case, you've got 200,000 for one K,
they will give you a credit
of 60% of that value
towards your qualifying income
or qualifying cash.
Yes. Interest, yes.
So that said, you know,
it makes a little bit
easier and so forth.
So well, I wasn't aware
of that particular thing
because again, you know, it's tough.
Like, we talked about stuff today
to buy Gemini astronauts
and people don't have four
or 500,000 in the bank,
plus a young couple starting off
and plus 4000 in reserves.
That's that's not exactly easy
That's exactly right now.
That's it's challenging.
And it's, you know, it's
and most of the people,
you know, have really
good jobs and make money.
Versus you think,
you know, I'm saying
$2 million on a house for house,
which is a lot of money.
You know, 99% of the world or,
you know, this country
and you can't find anything.
I mean, it's exactly
it's for a lot of people.
This are very frustrating.
So if it's a buyer's thinking, OK,
I want to buy in the next year or two,
you know, we anticipate properties,
anticipate mortgage rates increasing,
but they're not quite ready.
Now, what should they do
to prepare themselves?
Well, I'm I'm happy to
talk to our clients and say, Hey, Mark
Ryan, you're too scared.
They'll give him a little game plan
what they're going to need to do, and
they're going to have to be
a little more aggressive
on the tax returns or not.
They just have more deposits
going through business accounts.
So I think just a quick conversation
to the credit score
is just have a game plan that that saves
a lot of time and potential
aggravation later on.
And that's what I mean.
You're in a sports, I know.
So you talk about game plans and,
you know, really planning,
and that's so important
in any aspect of real estate. Absolutely.
You know, having that first consultation,
I know you're willing as big as you are.
You take the time with buyers
and talk to them
about how to do that,
how to prepare themselves
for whether it's three months,
twelve months down
the road or even longer
because it's longer.
I love to help people and
you know, it pays for itself.
Obviously, I'm economically driven
and this is a for profit business,
but it's the right thing to do.
You know, it's just to help people out,
and there's a lot of satisfaction.
So question for you.
I'm a homeowner.
I don't really want to sell my house.
I maybe refinanced
last couple of years, or maybe I didn't.
Based on the rates today,
at what percentage?
Like, if I have a loan in my house
as an adviser, I mean, of course,
the specifics of your income
and all that are different.
if you're like, if you see a buyer,
anyone who's over
a rate of
is it 5%, four and a half percent, 6%
at what rate you're like,
Oh, you got to refinance, like
because you're a number like or
it doesn't work like that.
I mean, there's a
whole host of questions,
but it just depends.
But typically right now,
you know, it's not really a
great time to refinance unless you have,
you know, your loan,
you have an adjustable rate loans
that are just or,
you know, you need for cash out.
A lot of people are pulling cash out
their houses down.
Why is it not a good time to refinance
dispersed people who
have refinanced already?
Or don't you think there's
there's maybe ten,
20% of the market
that's got loans and five,
maybe five and a half six?
Yeah, that's fine.
But there's there's usually a reason
why they're in the fire,
so they have to go back
because maybe they don't have
the income today.
Yeah, they did when they got the loan.
typically a bank statement on so
and that takes you down
to the high four so far.
So no, there's that's
why there's so many factors
is that you can't say as a general rule
that if you can qualify
for a loan, you're four, four and a half
and you know which actions
and it's a good reason to refinance.
But I just find there is a lot fewer
of those people out.
But I am doing a lot of loans
where people are pulling cash out
because they're going to stay in
their house and. Right. And
you know why I do some
construction projects on the house.
So it's very popular
pulling cash out of it.
I've never had anyone
do a reverse mortgage.
I'm assuming you don't do
reverse mortgages, right?
I do them there.
I don't really recommend it for people
because they're very
expensive in the sense,
you know, about 7%.
Yeah. And the costs are high.
And it's just
if you can avoid it, it's not.
So you want to sell on the third option
I told you about, it's probably better.
Yeah, it's funny
because on the radio in the morning,
I'll hear like, Oh, you got to do a
a reverse mortgage.
You can put, you know, they scare.
People said, Oh, inflation is rampant.
Gas prices are high.
You have a fixed income.
Do a reverse mortgage.
You got all this money coming in and all
you can pull more money
out is equity builds,
but that's kind of scary.
Now it works for people,
but I mean, it works.
It does provide a valuable
avenue for people.
Same coin time
that's expensive, but you know
you got to pay for what you get.
You know, sometimes
unfortunately, I get older
and your income goes down over time,
but they're sitting on
great assets worth
two and a half million dollars.
There's no loan.
So you know, if you're 80 years old now
and you don't have,
you know, kids are going to
can support you.
You know, you have this vehicle
and it makes sense.
You know, it's just it's.
Just got to just get in this situation
and have a real good
look at look at it for you
because there are
some different situations
that don't work out favorably for them.
And that's what's so important.
I mean, as a real estate broker,
you as a mortgage broker
or an attorney, I think
I mean, first of all,
real estate is quite often
one of the largest assets.
And a normal person house.
I mean, maybe they have stocks and bonds,
but usually the equity.
Or your properties
are your biggest asset.
And that's what's so important,
one of the reasons I love you
and what you do is that
you take the time to really
notice, Oh, let's just make you
get your loan, get your loan.
Was a lot of mortgage brokers.
I shouldn't say that
there are mortgage brokers out there
that just want to do business,
but it's it's not actually
you held you, everybody else.
Look, we all want to make money.
We all have families to support
and our own mortgages to pay and
and staff to pay.
But what I really
think is so amazing about you
is that you really take the time
to really care about
people and help them,
whether or not you're
getting a refinance or not.
You just you take time to talk with them
and counsel them.
Just, you know, you know,
you call an attorney,
you've got to pay them for a quick,
you know, hour meeting
initial meeting, right?
But you and me, we don't charge for that.
Maybe you should with inflation, right?
that's our our times
with money like everyone else.
But you know, we get it on the back.
And obviously, so any advice you have for
first time buyers
or potential refinance ers or,
you know, second, third,
fourth time buyers,
anything you want to share with
the world out there right now
about the world's
right now with the rates are changing.
That's going to talk to somebody
who is going to charge you anything.
And you know what I can accomplish
or you can accomplish in,
you know, five or ten minute
conversation can really lay
the foundation for
good things down the path.
So just based on what I ask
is that you refine
refinancing to value your house,
what you owe your rage
and what you do for a living
with your credit score.
Refinance now, yes or no,
and I'll see what I can do.
And, you know, just start
emailing the applications or anything.
You get it really for five minutes.
You get you get a lot done.
And one thing about FICO scores,
which you know, FICO
scores, is such an important factor
in getting loans right.
Most of us are I think
many people today
have they pay
the monthly fee to Experian or to,
you know, different
apps that you know or
or even your bank
like Bank of America
does it for free, like every few days
or every week or send.
Here's your current credit score.
But the reality is those apps
and those scores are not really
they're not indicative of what is used.
The ones that we use are
residential care reports,
and those are the ones that count
the other ones
you get from B-day or wherever.
I mean, anything
there could be a big gap.
I mean, you could have a a, b
and Experian email
that says you're at eight, 28, 40
and then you apply for a refinance.
And all of a sudden you're like
790 or 780 and you're like,
Wait a minute.
And you show your motorbike
like, Wait a minute.
Look, my score is here.
No, it's not the same,
but this is eleven different,
And I would say,
well, your Experian, their Experian.
Yeah, but it's a different thing.
but I think, you know, obviously
if they make money on the 15 dollar
monthly fees, right?
So they just have a very
generic one they use.
And that's another question
kind of before we finish.
So I think sometimes borrowers
may be concerned,
like, yeah, I'm thinking,
I'd like to refinance or buy a house.
They're afraid that if they pull,
if they pull the credit score,
would you want to kind of a prequel
Does that affect their credit?
Not for residential mortgage credit,
for opening accounts at Saks,
Bloomingdales, Nordstrom's or.
that does affect your score,
but for residential,
you're allowed three in a month
a sector three, basically.
Really? I didn't know that. Wow.
So there would be business development.
Yeah. So you're not penalized for that.
So, you know,
people are panicked by that.
It doesn't make a difference.
I mean, I'd rather have
my score down to see
what if there's a problem
so I don't know about or
you just know where you're at
or what you need to work on.
So and I'm going to make a quick comment
and then I want to ask you a mortgage
So how often have you had
buyers in escrow
there ready to close
and they go leasing a car
or buy a new car
just before closing, right?
And then it throws everything off, right?
Yeah, that's for sure.
I also pretty much
pretty much people know
now they've learned
the most part, not you.
They ask, Now there are
very few of those.
I think there's very few,
but there still are
some that Oh, of course.
Oh yeah, oh yeah.
Yeah. Or they they own another property.
They bother to tell us about it.
Screw up a deal.
The other day I met the guy.
I said, long term planning
to tell me on another property
and then show the application
when the bank ran their fraud guard.
You know, there was there was.
It showed and little on the fact there
two more states on the on the deal.
So that wasn't in his application.
He didn't, because you have to list
all of your assets
in this bank doesn't
report to the credit bureaus.
So there was no way to know
until you see the fraud guard,
you know, I mean,
I got close another bank,
but then the change of program
around a little bit
and the rates are going to be higher.
Obviously, you got, you know, you got to
you got to communicate with people.
That's the main thing.
whether it's going to be anything
like whether it's a
with your staff or your
clients or your spouse, your kids.
It's all about communication. Absolutely.
I agree with you.
I mean, you know, it just it just reduces
problems later on.
It's going to it's going to come out.
So it's communicate
anything in life now
and you feel better
when you say the truth idea.
And we all have our things.
I'm just as guilty as anybody else.
You know, you got to just.
so to end this on
kind of a funny, clever note,
so what's the most interesting,
unique or craziest mortgage experience
you've had in your 36 year career?
Well, when the six out of in
Africa, South Africa, far as my family.
twelve, 13 years ago
and a really important deal,
it was a good size
two of us for good
clients, business manager.
And there are timeframes
in the set of clothes.
So we were in
South Africa late in the day
and they specifically tell you at the
where you're staying,
if you're staying in the open air huts,
if you will, right?
Once it gets dark,
you don't go out without something
because the wild animals, right?
I mean, yeah, you got the
whole crew, the big five.
So I had to make this
call and there was nobody around.
So they had this is in a
really remote part of South Africa
where they had like a international.
My phone works.
I had a satellite phone,
yes, satellite phone.
you I was on my phone
for 1520 minutes and like,
it's so dark out.
So when I got done, this is like
it was our summertime
in the southern hemisphere.
And, you know,
Obviously, I wouldn't be here, but yeah,
I ran back really fast.
Was there a mountain to you here?
Mountain lions roaring
or there are snow that there were
when you came back from the
tour during the day
outside of cougars and
leopards and the whole thing
outside your room.
And so you walk with the security guards
and now you can go out by yourself.
That was the thing.
So I wasn't too interested, too smart
and not just wrapped up in the second.
You hear that, especially at the week
before we were there, right?
Brilliant guy got out of his car
out of the Range Rover,
you know, really do the tour
and just, you know,
And guess what? Never showed back up.
You're kidding me.
So, yeah, so you know,
that was one thing, but you know,
that's one thing.
A lot of deals are the same,
but that's what I like.
You know, the communication.
I mean, I've had a lot of my best friends
through this business
or, you know, initial clients.
it's it's been it's a fun thing
every single day of signing up.
Well, Mark, I, first of all,
I appreciate you coming on again
on this podcast and interview
to help educate people about mortgages.
If ever you want introduction
to mark, please call me.
I'm happy to introduce you
or follow Co-WIN
Financial Online or just Google.
Mark Cohen Financial and Google
21,000 loans 14 billion.
I love that.
And yet you have the heart
and soul like you're just starting out
and you and you do care.
And I know that exactly every day, 00.
So I set goals for myself every day.
A sports analogy.
It's like you look
at the most successful players, people
you know or business
like they get tier one last thing.
that guy is the richest guy in the world.
Doesn't need to work.
I need to work, you know, quite frankly.
I'm not that nearly
not here in the situation.
But you know what?
He has a passion for it,
and it's not the money. It's just a game.
And if you have if you like
what you do in life in your business,
it makes it a lot easier.
And you're always better.
So it's now and it's obvious
you like what you do
and you're a great human being.
You have a lovely family
and it's been so nice to know you
all these years and vice versa.
Yeah, I'm very grateful
for you and thankful.
And again, thank you for the time it was.
Yet again, I'll talk to you. OK?
Thank you so much. Thanks.
Have a great weekend.
Thanks, guys. Take care. Thank you.