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Mortgage information and advice from a St. Louis Mortgage Banker – Part 1 of a series

Dennis Norman

Dennis Norman

By: Dennis Norman

It seems home mortgages are in the news daily lately: record-low interest rates, record-high foreclosure rates, the sub-prime mortgage mess, lack of jumbo loans and so on. It’s confusing at best and causing much concern for many people wishing to buy a home or refinance their existing home mortgage.

H. John Frank, Jr., President Paramount Mortgage Co.

H. John Frank, Jr., President Paramount Mortgage Co.

To find out just what is going on in the home mortgage world today I turned to someone I have known for over 20 years that is a highly respected St. Louis mortgage banker, H. John Frank. John agreed to do an E-View TM to discuss what is going on with mortgages today and to share information to help educate consumers that may be seeking a mortgage.

John was a great source of information and I have a lot to share so I plan to share his E-View TM in a series of posts over the next few days.

Here’s the beginning of my E-View TM with H. John Frank, the President of Paramount Mortgage Co. based in St. Louis, MO:

Q-John, can you please give me some information about your background and experience?

A-After graduating form University of Wisconsin I became a teacher for 3 years. I went to work for Gershman Investment Corp. in 1976 where I became the top producer there for nearly 10 years. In 1989 I bought into Paramount Mortgage Co. where I have become the President of the company. I have been the President of the Mortgage Bankers Association of St. Louis as well as the President of the Missouri Mortgage Bankers Association. I’m involved with the Home Builders Association as well as the St. Louis Association of Realtors.

Q-You mention the Mortgage Bankers Association, can you please explain what the MBA is and the significance to a borrower of a lender being a member?

A- The MBA is a group of mortgage bankers (not brokers) who oversee each other and abide by a set of guidelines that keep the borrower’s best interest in the forefront. The MBA teaches, informs and constantly tries to improve our members to improve the home buying experience for all, making home ownership one of the greatest goals for all who pursue it.

Q-You point out that the MBAis comprised of mortgage Bankers not Brokers. Can you please touch on the difference between a Mortgage Broker and a Mortgage Banker? Include any significance between the two to a borrower.

A- A mortgage banker originates processes and underwrites their loans. They also use their own funds at closing and service the loan for a period of time. Mortgage brokers originate and do some processing of their loans. Typically they cannot underwrite their loans and do not have any warehouse lines of credit so they must be subservient to the investor as to the closing and funding of the loan. The broker has no control of the loan (will the loan be approved, will the money be there on time, what if there is a problem at the closing table…it can’t be corrected quickly).

I realize we are just getting going but I’m going to stop here today but will pick up tomorrow where I left off.

To contact John for help with your financing needs, or with questions, you can reach him by phone at (314) 372-4300, email at hjfrankjr@paramountmortgage.com or you can visit his company website at http://www.paramountmortgage.com/.

 

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