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.

Call or email me today! Christophe Choo 310-777-6342
The Christophe Choo Real Estate Group
Coldwell Banker Global Luxury
Beverly Hills Realtor | Luxury Real Estate Agent
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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Christophe Choo Luxury Real Estate Series - Beverly Hills & Los Angeles CA https://www.ChristopheChoo.com

mortgage rates financial markets and institutions 2022 mortgage update coldwell banker beverly hills

Transcripts:
Hi, everyone.

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

property purchase

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

bored right

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.

Was very

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.

You know,

the Fannie Mae loan

limits now are 640,000 109,000 109,000

109,000, which you can't buy

literally anything

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.

Financing

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.

That's true.

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.

Yeah, but

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

for appreciations.

Never in the history of the world.

And and we're still

at basically historic lows.

And look, I've had mortgages at 7%,

8%, 6%.

Now it's under three,

which is amazing for a jumbo loan.

So it's just it's amazing to me how

shortsighted people

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?

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?

Now, yes.

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

taxes, insurance

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.

Yes.

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.

I mean,

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,

Kristoff.

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

they're expecting

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.

Nobody.

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

we're expecting.

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.

Yeah, yeah.

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 fair.

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?

Yeah.

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 what

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.

Buying bonds.

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

other.

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.

It's generally

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.

Number two

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

are self-employed.

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.

Obviously, assumption

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

are self-employed.

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?

Yeah.

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

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

buyer

and it look a lot of my first time

buyers in that price range.

Today's world,

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.

Really? Wow.

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.

Yeah, yeah.

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

for anybody.

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.

And so.

Versus you think,

you know, I'm saying

$2 million on a house for house,

which is a lot of money.

Yeah.

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,

prices increasing,

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,

six 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.

But

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.

Yeah,

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

advisor, attorney

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.

Oh, absolutely.

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

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

constantly changing

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.

Just talk.

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,

different criteria.

Exactly, exactly.

And I would say,

well, your Experian, their Experian.

Yeah, but it's a different thing.

So

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

or pre-approval?

Does that affect their credit?

Not for residential mortgage credit,

for opening accounts at Saks,

Bloomingdales, Nordstrom's or.

Retail establishments

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

horror story.

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.

Yeah.

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.

Just communicate

whether it's going to be anything

like whether it's a

business relationship

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.

Say it,

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?

Right, exactly.

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.

So

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

there, wintertime

in the southern hemisphere.

And, you know,

nothing happened.

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,

take pictures.

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.

So

it's it's been it's a fun thing

every single day of signing up.

Nice.

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.

Warren Buffet,

that guy is the richest guy in the world.

Doesn't need to work.

I need to work, you know, quite frankly.

But

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.