Podcast Summary: Revolutionizing Mortgage ft. Michael Cohen

Coffeez for Closers with Joe Shalaby Episode 49, titled "Revolutionizing Mortgage," features an in-depth conversation between host Joseph Shalaby and Michael Cohen, the Founder and CEO of UniSource Title and UniSource Credit. Released on October 30, 2024, this episode delves into Michael's extensive experience in the mortgage and credit reporting industries, his entrepreneurial journey, the technological advancements his companies are implementing, and his personal insights on success, education, and leadership.

1. Introduction to Michael Cohen and His Background

Morning Routines and Early Career

The episode begins with Joe Shalaby welcoming Michael Cohen, highlighting his role at a leading national title company renowned for its business with major mortgage lenders and its focus on innovative property technology.

• Michael’s Morning Routine [00:50]:

  "I usually get up around 5:30 or 6 in the morning. I start out usually with a little bit of a quick workout if possible... I'm usually at the office by 7:30, 7:45 in the morning."

Entry into the Mortgage Industry

Michael shares his entry into the mortgage industry in 1994, influenced by his father’s involvement in the credit reporting business. Despite initially having no knowledge of credit reports or mortgages, Michael embraced the opportunity and committed to learning and growing within the industry.

• Starting Out [02:19]:

  "I started back in 1994. I had just recently graduated from my graduate program and an opportunity to join my father... I was still stuck in the mortgage business."

2. Building a Pioneering Credit Reporting Business

Innovations in Credit Reporting

Michael discusses how his father founded a credit reporting company in 1986 to address the inefficiencies of the time, such as manually typed credit reports. They transitioned to using Apple IIe computers to automate the process, reducing delivery time from weeks to just 24 hours.

• Technological Innovation [03:21]:

  "...the whole purpose of starting out the credit reporting company was to take an Apple IIe computer and electronicize the RMCRs... deliver those back in 24 hours."

Growth and Acquisition by Fiserv

By 1989, they had developed proprietary technology for credit reports, which attracted major clients like First American and Credco. In July 2003, Michael's company, Chase Credit Systems, was acquired by Fiserv for approximately $100 million, marking a significant milestone.

• Acquisition Details [10:17]:

  "We did. And it was acquired at that time by Fiserv, which was at that time roughly an $8 billion market cap."

3. Founding and Expanding UniSource Title and UniSource Credit

Establishing UniSource

Post-acquisition, Michael co-founded UniSource in Pittsburgh, Pennsylvania, focusing on the title and escrow business. He emphasizes building the company from scratch, securing licenses across states, and leveraging technology to streamline operations.

• Starting UniSource [11:25]:

  "Yes. So I sold. We sold our organization in July of 2003... I started it out. I was the founder, and yes, I built all the licenses, all the infrastructure ourselves with a partner."

Overcoming Regulatory Challenges

Michael highlights the complexities of obtaining and maintaining licenses in multiple states, a challenge intensified by increasing regulations. Despite these hurdles, UniSource operates in approximately 43-44 states, primarily in major markets.

• Regulatory Hurdles [17:59]:

  "It was a lot less regulations at the time... Today, we're in approximately with direct operations in 43 or 44 states."

4. Leveraging Technology and AI in the Title Industry

Proprietary Technology and Automation

Michael underscores the importance of developing proprietary technology to maintain control and enable rapid growth. UniSource has built significant automation capabilities and is in the early stages of integrating advanced AI to enhance efficiency.

• AI Implementation [24:19]:

  "We are at the very beginning stages at UniSource to implement some very advanced AI technology that continues the automation."

Impact on Customer Experience

The integration of AI and automation aims to deliver title reports within hours, significantly improving the customer experience by reducing wait times and increasing accuracy.

• Enhanced Delivery Speeds [25:48]:

  "We are doing it in many states today and thanks to the technology that's out there, we do have a relationship with our underwriters... delivered within three, four or five hours."

5. Insights on Success, Work Ethic, and Motivation

Defining Success

Michael defines success not just by financial achievements but by the ability to deliver better products and experiences to customers. He emphasizes the importance of hard work, discipline, and seizing opportunities.

• Success Philosophy [21:38]:

  "Success to me is based on the opportunity you have based on the hours that you work."

Motivation Beyond Money

His motivation stems from improving customer experiences and pushing the boundaries of technology, rather than merely focusing on revenue.

• Source of Motivation [23:18]:

  "The motivation is how can we deliver a better product, better technology, better experience to the customer."

6. Personal Reflections and Advice

Advice to Younger Self

Michael advises his younger self to work smarter, not harder, emphasizing efficiency over sheer hours worked.

• Work Smarter, Not Harder [27:53]:

  "Working 20 hours a day... it's how much you can advance in a day without working 20 hours."

Guidance for Building Wealth

He encourages young individuals to pursue what they love while having a backup plan, highlighting the importance of passion and resilience.

• Building Wealth [29:26]:

  "Find what you really like to do... have a backup plan of, hey, if YouTube doesn't work out."

Favorite Quotes and Life Philosophy

Michael resonates with Michael Jordan’s quote: "You miss all the shots that you don't take," advocating for taking risks and embracing opportunities.

• Inspiring Quote [32:06]:

  "You miss all the shots that you don't take... I tell everyone out there, there's no opportunity and there's no shame in you trying for something."

Importance of Education

He underscores the value of college education for personal and professional development, while acknowledging alternative paths like social media.

• Value of College [34:57]:

  "In the long term, education is something that no... the education is something they can never take away from you."

7. Goals and Future Aspirations

Family Goals

Michael aims to see his children grow into successful individuals who pursue what they enjoy, supporting their aspirations without forcing specific paths.

• Family Aspirations [38:06]:

  "See my children grow up and be successful in their own ways... do something that you truly enjoy."

Business Objectives

UniSource is poised for exponential growth through continued investment in technology, automation, and artificial intelligence, aiming to become a significant player in the national market.

• Business Vision [38:06]:

  "This gives us the opportunity to drastically invest back into our organization... take over and becoming a significant player in this market."

Personal Life Goals

Michael hopes to balance his intense work ethic with enjoying life, spending quality time with family, and eventually reducing his work pace.

• Personal Balance [41:57]:

  "Understand that I would like to really see that I enjoy life to the fullest... spend family time with them as much as possible."

8. Final Reflections

Legacy and Quality of Life

Reflecting on legacy, Michael emphasizes the importance of personal relationships and the quality of experiences over financial success. He believes that meaningful memories with family and friends constitute one's true legacy.

• Legacy Considerations [43:18]:

  "The quality of the person and the memories you build with them is what's going to be your legacy that you leave behind."

Notable Quotes with Timestamps

1. Morning Routine Insight [00:50]

   "I usually get up around 5:30 or 6 in the morning... and see what's happening."

2. Defining Success [21:38]

   "Success to me is based on the opportunity you have based on the hours that you work."

3. Advice on Working Smart [27:53]

   "Working 20 hours a day may not be the answer. It's how much you can advance in a day without working 20 hours."

4. Inspirational Quote [32:06]

   "You miss all the shots that you don't take."

5. Education’s Value [34:57]

   "In the long term, education is something that... no one can take away from you."

6. Legacy Statement [43:18]

   "The quality of the person and the memories you build with them is what's going to be your legacy."

Conclusion

In Episode 49 of Coffeez for Closers, Michael Cohen provides a comprehensive overview of his journey in the mortgage and credit reporting industries, highlighting the critical role of technology and innovation in driving success. His insights on work ethic, motivation, education, and legacy offer valuable lessons for entrepreneurs and professionals alike. As UniSource Title and UniSource Credit continue to expand their national footprint, Michael’s commitment to enhancing customer experiences and leveraging advanced technologies positions his companies as pivotal players in the evolving mortgage landscape.

For professionals in the mortgage industry, aspiring entrepreneurs, or anyone interested in the dynamics of running a successful business, this episode offers a wealth of knowledge and inspiration. Michael Cohen's dedication to excellence and his strategic approach to overcoming industry challenges exemplify the essence of "Coffeez for Closers."