National Bank Of Kansas City

National Bank Of Kansas City Announces New President And CEO

2008-06-11T00:00:00

Overland Park, Kan. (June 9, 2008) – National Bank Of Kansas City announced today that the board of directors has elected Brian Unruh president and CEO. Unruh replaces Steve Matthews. In addition, the board of directors has elected Matthews chairman of the board.

Both Unruh and Matthews have been with National Bank Of Kansas City since its inception as a de novo bank in 1999. Between National Bank Of Kansas City and other financial institutions, the pair have worked together for a total of 14 years.

Under their leadership, National Bank Of Kansas City has been one of the fastest growing banks in the Midwest while ranking first in the nation in several profitability measures such as Return on Assets and Return on Equity.

In April 2009, Matthews will have served at the Bank for 10 years and plans to fully retire at that time. Matthews’ banking career spans over 40 years. He has served as president and CEO at six banks and as a director at 10 institutions.

“It is time for me to pursue other interests,” Matthews said. “Brian is very well qualified to lead National Bank Of Kansas City into the future. I am extremely proud of his skills and abilities and it is time for him to take control. I will watch his progress with a great deal of pride.”

Unruh has 17 years banking experience. Most recently he was executive vice president and chief lending officer for National Bank Of Kansas City.

“Steve has had a tremendous influence on my banking career and I am truly thankful for all I have learned from him. Additionally, I am grateful to National Bank Of Kansas City’s ownership and directors for this opportunity, and I’m excited to continue in the tradition and success of the Bank.” Unruh said.

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About National Bank Of Kansas City

Headquartered in Overland Park, Kan., National Bank Of Kansas City (www.bankofkc.com) has an asset size exceeding $880 million. The bank’s retail operations offer a complete menu of personal and business banking options as well as commercial and consumer lending. National Bank Of Kansas City currently has branches in Leawood, Kan., Overland Park, Kan., Lee’s Summit, Mo., Liberty, Mo., Platte City, Mo., and Excelsior Springs, Mo. National Bank Of Kansas City has a loan production office in Denver, Colo., and a division specializing in automobile dealer floor-plan lending services in Kansas City, Kan. In addition, TrendLine Financial, a company providing equipment financing and leasing services to businesses, is also a division of the Bank.

Taking Refi Pitch to Mortgage Investors

2008-05-19T00:00:00

American Banker - May 16, 2008
by Kate Berry

Of the numerous strategies that have been proposed for stemming the foreclosure tide, many involving Federal Housing Administration refinancings, few if any start with the investors holding troubled mortgages.

That is where National Bank Of Kansas City has been looking for opportunities to boost FHA volume. Since January the $963 million-asset Overland Park, Kan., unit of Ameri-National Corp. has been approaching noteholders with a proposition: Identify loans in your portfolio that you would like to unload, and the bank will solicit the borrowers to refinance.

The loans it targets are current but typically are adjustable-rate mortgages whose teaser rate is soon to reset. "These loans might have a high possibility of default or foreclosure, and the noteholder would rather get them refinanced," said Todd Geiman, an executive vice president at the bank's mortgage division.

With the secondary market for such loans moribund, helping borrowers refinance is one of the few ways investors can cash out. And for National Bank Of Kansas City, which has seven branches in three states but lends nationally using leads purchased from IAC/InterActiveCorp's LendingTree LLC, the program is another way to generate government and conforming loan volume.

"There are a lot of holders of mortgage notes that would like to get them off their books," Mr. Geiman said. "Most of the people we're partnering with cannot fund mortgages on their own, so they're looking for a partner."

Since January, National Bank Of Kansas City has refinanced 2,000 to 2,500 borrowers through its Mortgage Recovery Program; 60% were put into new FHA loans, and the rest were put into Fannie Mae or Freddie Mac loans. The bank makes its money by selling the new loans into the secondary market, which is much more welcoming of mortgages that carry a guarantee from a federal agency or a government-sponsored enterprise.

Mortgage analysts have said the foreclosure prevention bill the House passed this month from Financial Services Committee Chairman Barney Frank, D-Mass., would rely too heavily on servicers, who have little authority to change loan terms, rather than noteholders or trustees. The bill is designed to prevent foreclosures by having servicers reduce the balance voluntarily on troubled mortgages and then refinance into FHA-guaranteed loans.

Mr. Geiman said the noteholders in National Bank Of Kansas City's program sometimes forgive a portion of the debt or waive prepayment penalties.

Still, some borrowers get turned away. With underwriting standards tightening in the secondary market, National Bank Of Kansas City's mortgage unit is turning down a higher percentage of borrowers "than we would have hoped," primarily because of poor credit or low property values, said Christa Spencer, a bank spokeswoman. (The bank would not give a specific number.)

Bill Alread, a managing partner of contract finance at Steel Mountain Capital Management LLC, a Lakewood, Colo., investor in scratch-and-dent mortgages, said it has had "quite a bit of success" using the program. "This is one of the few options to show liquidity out of our portfolio."

One pitfall has been trying to communicate effectively with borrowers, he said.

Steel Mountain's loan portfolio is serviced by Wilshire Credit Corp., a unit of Merrill Lynch & Co. Inc., and Mr. Alread said that because borrowers send their payments to Wilshire, the borrower assumes that Wilshire owns the loan.

"Having NBKC call them and say they have a great deal, and the owner is willing to forgive some of the principal and pay the closing costs, makes the borrower very suspicious," he said. "There is strong emotion in people's minds that any offer is too good to be true."

For that reason, Mr. Geiman said, National Bank Of Kansas City often has the servicer send solicitation letters to borrowers on its behalf. It is working with six servicers, which also refer the bank to noteholders.

Unlike many lenders that have started underwriting government loans recently to stay afloat in the current environment, National Bank Of Kansas City is a relatively old hand in the sector. Last year 25% of the $1 billion of loans it funded were guaranteed by the FHA or by the Department of Veterans Affairs.

Mr. Alread said other banks are considering similar programs that would bring liquidity to investors. By facilitating a refinancing, the noteholder eliminates the need to get another appraisal, which likely would be lower than the original one as a result of falling housing prices, and it can avoid taking a big loss.

"It's fair to say that with the number of foreclosures and REOs on the market, servicers have their hands full," he said. "So it goes without saying that the owner of the asset is taking the lead in this."

NBKC Selected For FDIC Small Dollar Loan Pilot Program

2008-04-14T00:00:00

Overland Park, Kan. (April 14, 2008) -- National Bank Of Kansas City announced today they have been selected by the FDIC to participate in a two-year case study exploring affordable small-dollar loan programs.

National Bank Of Kansas City is one of 30 banks selected as part of the program and the only bank located in the Kansas City metro area. As part of the program, National Bank Of Kansas City is now offering a low cost, quickly processed unsecured short term personal loan to consumers in the Kansas City metro.

“We are excited to be part of the FDIC’s pilot program for small dollar loans,” said Brian Unruh, National Bank Of Kansas City’s executive vice president. “This product offers an alternative to high-interest pay day loans. In addition, the requirement to open a savings account introduces many to a saving component they don’t currently have.”

The loan, which is a safe alternative to quick pay day advances, has a maximum dollar amount of $1,000 and a minimum of $200. The maximum length of the loan is 12 months and the annual percentage rate (APR) is 20%. The APR is fixed for the duration of the loan. In most cases, National Bank Of Kansas City will be able to review and approve or deny the application within 24 business hours. If approved, the applicant will be required to open a Savings Account with a $50 initial deposit. National Bank Of Kansas City has added a short online application for this new product at www.bankofkc.com. Those interested in applying for a small dollar personal loan should call Stacy Nickel at (913) 901-5211 or apply online at bankofkc.com.

About National Bank Of Kansas City
Headquartered in Leawood, Kan., National Bank Of Kansas City (www.bankofkc.com) has an asset size exceeding $985 million. Although National Bank Of Kansas City’s initial strength was mortgage lending via the Internet (www.nbofkc.com), it has expanded and diversified it’s portfolio to commercial real estate loans as well as industrial and consumer loans. Plus, the bank’s retail operations offer a complete menu of personal and business banking options, including online banking. National Bank Of Kansas City currently has branches in Leawood, Kan., Overland Park, Kan., Lee’s Summit, Mo., Liberty, Mo., Platte City, Mo., and Excelsior Springs, Mo.

Leawood Parks & Recreation Eggstravaganza Egg Hunt

2008-02-20T00:00:00

National Bank Of Kansas City will once again sponsor the 15th annual Leawood Parks & Recreation Eggstravaganza egg hunt. The event, which takes place on Sunday, Mar. 16, 2008, at Leawood City Park (10601 Lee Blvd.), routinely attracts more than 3,000 children eager to hunt for eggs.

Lunch and activities such as temporary tattoos, balloon artists, and games run from 11:30 a.m. - 1:30 p.m. The egg hunt starts at 12:30 p.m. for children ages infant - 9 years old.

The event is free for all participants with plenty of eggs for everyone. The Leawood Kiwanis Club will be serving a hot dog lunch (hot dog, chips, and drink) for $4 per adult and $3 per child (ages 12 & under). Plus, enjoy free pictures with the bunny.

National Bank Of Kansas City Starts Mortgage Recovery

2007-12-11T00:00:00

In an effort to help those borrowers hurt by subprime mortgages, National Bank Of Kansas City’s (NBKC) mortgage division has started a Mortgage Recovery program.

As part of the program, NBKC will review a consumer’s current loan, including prepayment penalties, adjustment dates and rate variables, and educate the borrower on the current loan and available options.

With so many stories in the media regarding subprime loans, refinancing, FHA loans, rate freezes and foreclosures, consumers are confused about their options,” said Todd Geiman, Executive Vice President of NBKC’s mortgage division. “We were taken aback by the misinformation given to many of the people we’ve spoke with. Many home owners don’t even realize they fall in the subprime category. We want to help people understand their options.”
Out of this concern grew NBKC’s Mortgage Recovery program. Loan officers will review current loan papers, making sure the consumer understands when their loan will adjust and what it will adjust to. If the consumer’s loan has already adjusted and they are struggling to make the payments, the loan officer educates them on their options as well as provides information on other agencies that may be of help. Those interested in having their loan reviewed can call 800-375-8096 to schedule an appointment.

Refinance is an option for some people, while others may qualify for the rate freeze. The problem we’re seeing is that people don’t know where to turn or what they qualify for,” said Shawn Courter, one of the loan officers who volunteered for the program.

The consultation is a no-pressure, no-sales meeting. It’s strictly about arming the borrower with the facts about their mortgage and making sure they understand any potential risk.

“Home ownership has climbed to 80 percent in the last couple of years. We are finding people in subprime loans that shouldn’t be,” Geiman said. “Many would qualify for an FHA loan, which can include better terms, and more importantly, a fixed rate.”

On Dec. 6, President Bush announced a plan to freeze rates for a select group of subprime borrowers. To qualify, the loans had to be funded between Jan. 1, 2005, and July 31, 2007, and have an interest rate that will reset between Jan. 1, 2008, and July 31, 2010.

The rate freeze will only help a fraction of the more than one million subprime borrowers. Borrowers also need to look at FHA loans and refinancing as possible solutions. Refinancing to a fixed rate should be the first option the consumer considers,” Geiman said.

Recently the Federal Housing Administration received broader flexibility to offer refinancing to homeowners with good credit history.

Although NBKC is a national lender, lending in all 50 states, the program is being rolled out first on a local level. It will be rolled out nationally in the second quarter of 2008. Currently NBKC funds conforming loans, including FHA and VA mortgages. In 2007, 24.69 percent of NBKC’s funded loans fall in the FHA and VA categories. NBKC funds FHA loans in all 50 states.