Encyclopedia Dubuque
"Encyclopedia Dubuque is the online authority for all things Dubuque, written by the people who know the city best.”
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Affiliated with the Local History Network of the State Historical Society of Iowa, and the Iowa Museum Association.
BANCO MORTGAGE COMPANY
BANCO MORTGAGE COMPANY. A subsidiary of Northwest Bancoporation, a giant in Midwest banking in 1981 and the fourth-largest mortgage banker in the United States, Banco had fifty offices in seventeen states. Before 1970, agents of the company had driven from Waterloo to Dubuque to do business. The company specialized in federally guaranteed loans from the Federal Housing Administration and Veterans Administration. It was generally considered Dubuque's second-largest home loan source behind DUBUQUE SAVINGS AND LOAN ASSOCIATION. (1)
In 1981 the company announced that it would be closing its Dubuque office. Linda BUDDE, assistant manager of the Banco office, explained, however, that Banco would continue to offer mortgages under an arrangement with FIRST NATIONAL BANK OF DUBUQUE. She would generate the home loans with Banco agreeing to buy the mortages. (2)
During its existence in Dubuque, Banco often made the news. In 1978 real estate agents and contracts referred to Banco as "the only game in town." Steve Jenn, manager of the office, agreed this was probably true since it was the only lending agency making loans to anyone with less than 25% down. Local attorneys claimed the company was created a closed legal system by accepting title opinions from only three Dubuque lawyers. Jenn explained this by saying the company had to guarantee its mortgages against any title defect. The three attorneys had proven records in their work with Banco. (3) In 1980, a time of falling interest rates, the company announced that its method of calculating interest rates on government-backed loans would be determined on the date of closing rather than the date of application. This would allow buyers to take advantage of falling rates. (4) The issue was resolved with Banco accepting the work of other attorneys if their work was prompt. (5)
The 1974 through 1980 Dubuque City Directory listed 140 Dubuque Plaza.
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Source:
1. "Banco Closes City Office, Cites Slump" Telegraph Herald, August 23, 1981, p. 3
2. Ibid.
3. "Banco Plays 'Only Game in Town," Stirs Up Local Attorneys," Telegraph Herald, June 25, 1976, p. 20
4. "New Banco Mortgage Policy," Telegraph Herald, June 22, 1980, p. 34
5. Interview with Jim Schilling, May 2, 2018