By Dennis Norman, on July 30th, 2009  Dennis Norman By: Dennis Norman
Today we pick up where we left off yesterday with my E-View TM with respected mortgage banker, H. John Frank, President of Paramount Mortgage Co. here in St. Louis.
If you missed part one or two, there are links to both at the end of this post. And now, part three of the E-View TM:
Q-I have seen a lot of reports about “jumbo” loans and rates being artificially high on those loans. What is a “jumbo” loan and have the rates been affected in a negative way as a result of the mortgage mess?
 H. John Frank, Jr., President, Paramount Mortgage Co. A- Jumbo loans are ones that exceed the FNMA (Fannie Mae) loan limit. In most states, this limit is $417,000. There are fewer and fewer investors who make these loans because they are not as marketable (investors can always sell their ‘conforming’ loans to Fannie Mae or Freddie Mac if they need to raise funds). Without this constant outlet, the liquidity of these loans is diminished, thus demanding a higher yield for the product.
Continue reading “Mortgage information and advice from a St. Louis Mortgage Banker – Part 3 of a series“
By Dennis Norman, on July 29th, 2009
H. John Frank, Jr., President, Paramount Mortgage Co. By: Dennis Norman
Yesterday I did the first post of my E-View TM with respected mortgage banker, H. John Frank, President of Paramount Mortgage Co. located here in St. Louis.
Today we continue with part two of the E-View TM:
Q-How many states require mortgage brokers/bankers to be licensed? Does licensing protect the consumer in your opinion? If so, how? If not, why not?
A-I don’t know how many states require licenses, but later this year (I believe around the 1st of August) most, if not all, states will adopt a National Licensing Law which will require all companies and Loan Officers to be registered and licensed. Continuing education will be required as well as surety bonds, criminal background checks, fingerprints, etc. will be mandatory. I’m not sure if this protects the consumers, but it surely will cut out’ many of the brokers. The government will begin tracking Loan Officer’s, as well as appraisers, to make sure ‘bad’ loan officers can’t just jump from state to state making bad loans to innocent, uneducated homeowners. Continue reading “Mortgage information and advice from a St. Louis Mortgage Banker – Part 2 of a series“
By Dennis Norman, on July 16th, 2009  By: Dennis Norman
Recently the The Office of the Comptroller of the Currency issued a Consumer Advisory. The Advisory contains consumer tips for avoiding mortgage modification scams and foreclosure rescue scams.
The advisory states; “Scams that promise to “rescue” you from foreclosure are popping up at an alarming rate nationwide, and you need to protect yourself and your home. If you’re falling behind on your mortgage, others may know it too – including con artists and scam artists. They know that people in this situations are vulnerable and often desperate.”
The OCC suggests that before you do business with someone offering to negotiate a loan modification for you or to stop or delay foreclosure for a fee that you carefully check his or her credentials, reputations, and experience. Watch out for warning signs of a scam, and always maintain personal contact with your lender and mortgage servicer. Continue reading “Avoid mortgage modification and foreclosure rescue scams“
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