President and CEO, The Manhattan Mortgage Co.

Darrick Meneken

As published in Scotsman Guide's Residential Edition, April 2010.

Melissa Cohn ranked as Mortgage Originator magazine's top originator by volume and units in 2007 and 2008. But she didn't enter her information for Scotsman Guide's Top Originators 2009 ranking and said as of mid-February that her '09 totals weren't final. So we asked how the past year treated her — and if she had any advice for doing business in today's market.

Individually, you closed $885.3 million in mortgage loans in 2008, according to Mortgage Originator. How was 2009?

Everyone had more of a challenging year in 2009. We worked very hard, and I think we did $2.5 billion as a company.

How does that compare to other years?

We do about $3 billion a year. Our biggest year was 2003. We did about $5 billion worth of business that year.

Every year, I'll do several loans between $8 million and $12 million. But the bulk of my business averages about $1.5 million.

Are there differences between working on a $1.5 million deal and a $12 million deal?

No, the loans are processed the same way. You just have to worry about the qualifications of the buyer at that higher loan level. The jumbo-mortgage market is a very tight marketplace right now, and the banks have pretty strict guidelines with regards to borrowers' income — especially if they have a significant portion as a bonus — and their closing reserve.

New York City and the Hamptons are a couple of places you do business.

What's the big difference between those two markets?

The big difference is that New York City is primarily a co-op-and-condo marketplace, and it's become somewhat of a treacherous marketplace because of Fannie Mae and Freddie Mac guidelines with regards to presale, insurance, reserves and what percentage of a building is commercial use.

What regulatory or guideline changes would you like to see?

I'd like to see Fannie and Freddie create waivers to do financing in buildings that are clearly financially sound but may not meet presale requirements. Ease up the restrictions.

Your company has grown substantially since you helped start it in 1985 What's your secret?

Provide the best rate and the best service. When a loan closes, you should have a satisfied buyer and a satisfied real estate broker. If you're looking to grow and develop relationships, stay in touch with that buyer and stay in touch with the real estate broker. More than half of my business comes from repeat clients. Out of sight is out of mind.

Any other tips for how mortgage brokers around the country can stay profitable in today's tight market?

Try to be efficient in your overhead and as aggressive as you can in your pricing. If you can maintain your volume, you can always increase your profitability later on. Don't walk away from loans because you don't think you can make enough. It's harder to grow back the volume than it is to grow back the profitability.

Once you survive, you get to thrive again.

Darrick Meneken is an associate editor at Scotsman Guide. Reach him at (800) 297-6061 or darrickm@scotsmanguide.com.