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By Annan Boodram |
New York, February 2002: For many budding entrepreneurs the real estate industry has provided fertile grounds to get rich quickly, fueled as it is, by the desire of so many to own their piece of the American landscape. In the Caribbean community in particular, many real estate practitioners boost their businesses by adding mortgage brokerage services.
But when Marlon Seenarine decided that he wanted to move beyond real estate he took a pioneering risk and established an actual mortgage bank. Today MGM Funding is one of only two Caribbean owned mortgage banks in the New York area.
MGM Funding was established in January 2000 after Marlon had worked as a mortgage broker for four years. But the decision to launch the bank had been taken since 1997.
"A mortgage broker is at the lender's mercy," said the dapper, soft-spoken Guyanese. "And they're a ton of them in the community"
Besides his own experiences had indicated that the rate at which people's homes were being foreclosed was quite high. And he felt that with his own bank he could make sure that those who became his clients would never have to lose their homes because they would be served with honesty and professionalism.
MGM follows the banking guidelines to the letter. "We look at the person's ability to pay the loan and verify income with the IRS," said Marlon. And they never qualify anyone who does not possess the capacity to pay. Thus MGM has had zero default on loans since its inception.
But Marlon adds, "we get penalized for telling people the truth. Some brokers tell them what they want to hear and then they often end up in problems".
He explained that some people who are turned down by MGM, go to mortgage brokers who then qualify them. Subsequently they end up in problems with their loans and then come back to MGM to seek help. "They tell us we wish we had listened to you guys," he said. "But we cannot help them at that point."
MGM was started with money that Marlon had saved. But it also has access to funding sources that it has tapped into from time to time. And because its operational capital is limited MGM does not service the loans. "We sell them to large banks," explained Marlon.
In this way the money keeps revolving and thus the bank is always able to have funds available for new loans.
With branches in Bronx and Queens, MGM, which has a staff of 30, is headquarted in White Plains where all the processing of loans takes place. The company is also licensed in the state of Connecticut and is looking to soon open an office there as well as another branch in Brooklyn.
By dealing with a direct lender like MGM clients can save the fee paid to brokers. They can also be guaranteed the prevailing interset rate even if that rate increases before they close. And they also are never hit with any hidden costs as often happens when they go through a broker.
From a sawmilling family in Parika, Guyana, Marlon is the first of four brothers and one sister. His father, Ivan Seenarine, died in 1999 and since then he has been assuming greater family responsibility. Brother, Tony, works with him at MGM.
Father of one son, aged five and one daughter, aged three, Marlon is a consummate family man whose hobby is spending time with his family. But he is also a devout Hindu who has always given generously to temples and religious causes.
His sense of family andhis religious grounding have guided Marlon in his business dealings. And while he feels that his achievements thus far, have not fallen short of his expectations, he remains committed to honesty and ethics even as he plans to grow. In fact his ultimate dream is "to become a nationwide lender".