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How to save for a down payment on a home: part I

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Purchasing a home marks a significant milestone in your life. We’ve already shared with you the 5 steps to buying a home, but what about before you even begin that process? While searching for the perfect property and finally finding the dream home you’ve been looking for is exciting, saving up the money for a down payment can be a bit daunting.

If you’re interested in purchasing a home, there are a few details to consider. Understanding the process can help immensely when deciding to purchase a home and set aside money for this substantial investment. As an interested buyer, you can become more focused when you know what to expect and how much money to contribute toward ownership of a home. Consider speaking to your trusted mortgage consultant to provide guidance early to help determine what kind of down payment you will need to provide.
saving for a down payment on a home

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The purpose of providing a down payment 
Buying a home often involves acquiring a home loan to afford the purchase. This translates into monthly mortgage payments over the course of a set amount of time, during which you pay and become a full owner of your property. Because it is a loan from a mortgage broker, bank or lender, interest is also applied to the amount of money borrowed. So if you purchased a $100,000 home, you would actually pay more because of the interest rate affixed to the mortgage.

A loan serves a fantastic purpose in allowing homeownership to be more attainable for everyone, but fluctuating interest rates may drive individuals to refinance or put off purchasing a home to save more money.

This is the primary purpose of giving the seller a larger down payment when buying a house. If you can supply a larger down payment, you are more likely to be approved for a home loan. You will not have as much to pay off and may even increase chances of obtaining a lower interest rate.

Low down payment options 
There are programs available that allow individuals to qualify for a home loan despite only being able to provide a small down payment. Government-sponsored enterprises, such as Fannie Maeand Freddie Mac, can provide an interested homebuyer with a 3 percent down payment option. However, higher interest rates and other requirements are put in place to help protect the lender. Gifts from family members are also allowed, but check with your loan officer to see what guidelines may apply.

Another agency that makes homeownership more attainable is the Federal Housing Administration. An FHA loan can help offer financial assistance when purchasing a home through a variety of programs such as fixed-rate FHA loans for people purchasing their first home. There is an option for everyone that will make navigating through the real estate industry easier.

An FHA-backed loan protects a lender in case a borrower is unable to continue with his or her mortgage payments. By providing this insurance, qualified buyers who have a difficult time providing a larger down payment or have a lower credit score due to debt accumulated during his or her education can still become homeowners.

Another way the amount of your down payment can affect your total monthly payment is when mortgage insurance is added, often referred to as PMI (private mortgage insurance). For example with conventional loans, PMI may be required if you don’t put down at least 20 percent. This protects the lender if the borrower should default on the loan. Even if you put less than 20 percent down, the mortgage insurance cost is lower if you put down 5 percent rather than 3 percent or even lower with a 10 percent down payment rather than just 5 percent.

Additional costs to consider 
Before someone decides to start saving up money, knowing how much to save is a crucial factor one must contemplate. Working with a trusted lender can help guide you and provide information to help determine what loan will be best for you and how much of a down payment will be required.  According to U.S. News & World Report, a buyer will not pay merely the agreed selling price, but also will need to designate funds for additional expenses such as:

  • Closing costs
  • A home inspection
  • Taxes
  • Appraisal fee
  • Credit report fee

In addition, some purchases may require a homeowner’s association fee to be paid as well as private mortgage insurance. Buyers should account for these expenses when creating a budget and starting a basic savings account for this exciting purchase.

 

When you click links marked with the “‡” symbol, you will leave UMB’s website and go to websites that are not controlled by or affiliated with UMB. We have provided these links for your convenience. However, we do not endorse or guarantee any products or services you may view on other sites. Other websites may not follow the same privacy policies and security procedures that UMB does, so please review their policies and procedures carefully.




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Choosing the Right Mortgage Partner

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The housing market continues to show signs of improvement. If you’re looking to buy or move to your next house in life, it’s important to choose the right mortgage partner. Here are some tips to help you as you navigate this long-term financial plan.

 

Equal Housing Lender and Member FDIC logo

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UMB Financial Corporation (Nasdaq: UMBF) is a diversified financial holding company headquartered in Kansas City, Mo., offering complete banking services, payment solutions, asset servicing and institutional investment management to customers. UMB operates banking and wealth management centers throughout Missouri, Illinois, Colorado, Kansas, Oklahoma, Nebraska, Arizona and Texas, as well as two national specialty-lending businesses. Subsidiaries of the holding company include companies that offer services to mutual funds and alternative-investment entities and registered investment advisors that offer equity and fixed income strategies to institutions and individual investors.



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World Kindness Day

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Pack a lunch this week and use your savings to help a neighbor in need. Here are some of our favorite ways to celebrate World Kindness Day.ideas for giving back

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UMB Financial Corporation (Nasdaq: UMBF) is a diversified financial holding company headquartered in Kansas City, Mo., offering complete banking services, payment solutions, asset servicing and institutional investment management to customers. UMB operates banking and wealth management centers throughout Missouri, Illinois, Colorado, Kansas, Oklahoma, Nebraska, Arizona and Texas, as well as two national specialty-lending businesses. Subsidiaries of the holding company include companies that offer services to mutual funds and alternative-investment entities and registered investment advisors that offer equity and fixed income strategies to institutions and individual investors.



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reStart, Inc. supports veterans

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Veterans Day – Only in America

We live in the greatest country on the planet. Why? Because we were founded by strong-willed dreamers who were tired of persecution and being told by decree that they had to stay in the class they were born into for the rest of their days.

The U.S. was founded on the principals of freedom, opportunity and the rights of individuals. And over the years, these values and principals have been hard fought, more so than most of us can truly understand or comprehend. Many of us don’t know or don’t reflect enough on just how lucky we are and how sacred these values are to our core. Over the years, much blood, sweat and tears have been shed to protect this great land of ours.

And for those reasons and so many more, we salute the very people — our veterans — who risk the most and understand at the deepest level just how great the country really is and what it takes to keep it this way for the rest of us dreamers.

So tomorrow, Veterans Day 2015, is for you — our veterans and military families — dream keepers and flag bearers of this great nation.

We salute you.

Mariner Kemper

 

reStart Kansas City

UMB strives to honor veterans every day, but November 11 is the day that our country sets aside to recognize the men and women who have sacrificed for our freedom. We’re particularly excited about the work that an organization in Kansas City is doing right now. reStart was one of the 2015 UMB Big Bash beneficiaries, using the funds for the Supportive Services for Veteran Families (SSVF) program. UMB’s Veterans Engagement Taskforce (VET) is also involved with reStart’s veteran mentorship program.

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“One of the biggest helps they were able to give me has been a mentor, and it’s been through their help that I’ve been able to have a better life today and a brighter future for tomorrow.”

Below, read more from one of the mentors, James Carlile, who is a financial analyst at UMB and also a veteran. He shares what compelled him to become a mentor and the results he’s seen from the program.

At one of our VET meetings, Robin Johnson, head of reStart’s SSVF, mentioned that she had several veteran clients in her program that were really wanting to turn the corner and make a sustainable transition away from the homelessness cycle and into self stability. What they needed, and what reStart’s limited staffing and resources could not always provide, was personal encouragement. Our VET group jumped all over this and began to work on a plan in which our additional contribution would be the love, guidance and support of UMB veteran associates.

Robert Durham - veteran and reStart clientI really had little idea what to expect when I initially met with Robert Durham. All I knew was that he wanted and needed someone who would take the time to listen, help him think through his issues and concerns, and offer encouragement and motivation in the face of very real and very persistent adversity. I could tell he genuinely wanted to improve himself, and he didn’t have anyone else to help him with a strategy on doing so. I was fortunate in my transition from the military to have a loving and supportive family that was there for me unconditionally through some very choppy times. Robert did not have that family support, and although I knew I could not solve his issues for him, I could provide him a level of consistency, positivity and encouragement.

Robert and I meet every six weeks at his subsidized one room efficiency apartment. We eat sandwiches, and talk intensely about how he is feeling, what he is working on, the status of his distant relationships with his family, and keeping him focused on his goals. I’ve learned just how difficult it is for those caught in the crisis cycle to make that change, even when the will is present and pure. Even though we do spend ample time discussing basic professional and life skills, our primary goal together is deliberate emotional support. Robert is currently working on his insurance licensing through the financial support of reStart. His ultimate goal through the vehicle of self sustainability is to mend his fractured relationship with his children and to be the father and example he knows he should be. My role in this is nothing compared to what Robert will have to overcome to get there, but whatever bit of guidance or encouragement I can impart on him I consider a humbling privilege when it impacts the outcome of his quality of life.

 

When you click links marked with the “‡” symbol, you will leave UMB’s website and go to websites that are not controlled by or affiliated with UMB. We have provided these links for your convenience. However, we do not endorse or guarantee any products or services you may view on other sites. Other websites may not follow the same privacy policies and security procedures that UMB does, so please review their policies and procedures carefully.

 


UMB Financial Corporation (Nasdaq: UMBF) is a diversified financial holding company headquartered in Kansas City, Mo., offering complete banking services, payment solutions, asset servicing and institutional investment management to customers. UMB operates banking and wealth management centers throughout Missouri, Illinois, Colorado, Kansas, Oklahoma, Nebraska, Arizona and Texas, as well as two national specialty-lending businesses. Subsidiaries of the holding company include companies that offer services to mutual funds and alternative-investment entities and registered investment advisors that offer equity and fixed income strategies to institutions and individual investors.



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Meet the Veterans: Bert Oster

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UMB is fortunate to have several veterans on our team and are proud to hire veterans in our local communities. This series highlights some of our associates who have served their country in the military prior to joining UMB. Be sure to check out the other profiles in our series—Steve MarinRyan GardnerLynda McWhirter and Stacey Huddleston.
Bert Oster_kitchen

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Tell us about yourself.
I grew up in a very small town in North Dakota. My first real job was at 13 picking rock for a local farmer. The job is exactly what it sounds like, pick up large rocks laying on the ground, put them in the front end loader and dump them on the edge of the field. It makes for a long day. When I got a bit older, the farmer I worked for gave me more responsibilities such as operating the machinery to plant and harvest the various crops, which was still very hard work. During my high school summers, I would actually live on the farm.

I’m married to Heidi, a transplanted Minneapolis girl. We currently live in Phoenix with our senior German Shepherd dog and one cat—both rescues.

What about your past shaped who you are today?
I think growing up in a small rural community helped me develop an appreciation for hard work. Most farmers develop a very strong work ethic. The hours are long, and most of the time, their success or failure is determined by outside forces that can’t be controlled, mainly weather. North Dakota is dryland farming; there are very few fields that are irrigated, which means the crops grow only if it rains and rains at the right times.

Tell us about your family.
I have one older sister and two younger sisters. I was the only one of the four children to venture out of North Dakota. The three sisters all live within 20 miles of each other and have no desire to move. The main reason for me moving was career advancement, but weather was a factor too!  North Dakota is known for long winters. Most years, winter arrives in late October and stays until early May.

Why did you choose to join the military?
Bert Oster_United States Marine Corps
I’d like to say I joined the military to serve my country, which is partly true. The rest of the story is that in 1969, I was in my second year of college and like a lot of young men, I was lacking in discipline and direction. In my sophomore year, I became friends with a former Marine who was attending college on the GI Bill. I admired the way he handled himself. He was mature, confident and knew what he wanted to do with his life. When the school year ended, I went back to North Dakota to work for the summer with plans to continue my education in the fall. In June, I received disappointing grades. I remember thinking “this is not good.” Not good, because our country at that time had implemented the draft system to fill ranks of the military. All young men were considered eligible for the draft, although deferments were issued for those attending school like me.

The first national lottery was televised in December of 1969. I still remember sitting in front of the television as the lottery was held. My birthday was the 22nd number drawn which guaranteed I would be drafted once my school deferment ended. With this in mind, my poor grades and a total lack of direction, I decided to enlist in the Marine Corps. I went to the recruiter’s office the middle of June, signed up for a two-year enlistment and left for boot camp on July 7, 1970.

Give us some highlights about your military career.
As I look back on my time in the military, I believe the two years I spent in the Marine Corps was, without a doubt, the single most important decision I ever made. It truly shaped my life. The military has a way of instilling a strong sense of discipline and purpose in your life. When I was discharged in July 1972, I had matured and was much better prepared for the next stage in my life. Upon discharge, I moved back to North Dakota and went back to college on the GI Bill. College for me this time was a different experience. I applied myself, achieved much better grades and even made the Dean’s list once. I graduated with a major in Business Administration and a minor in Criminal Justice.

What are the greatest challenges that someone leaving the military and entering a new career faces?
I believe the challenges someone leaving the military in 1972 are much different than today. My experience was, for the most part, positive. I adjusted well to civilian life; attending college was an experience I enjoyed and more importantly, helped me decide on a career path. Attending college after being discharged from the military was much different. I worked part time which resulted in establishing valuable business contacts within the community. These contacts ultimately led me to securing my first banking job when I graduated college.

How did you come to be at Meridian Bank, recently acquired by UMB? What made you want to work there?
One of my friends worked for Meridian Bank and asked if I would be interested in an opportunity with the bank. At first I was reluctant, but ultimately made the decision to come on board in January 2009.  Not a good time in Phoenix as we were in the middle of a serious real estate recession with no relief in sight. The first two and half years was devoted to dealing with challenging real estate loans. While the work was stressful and demanding, it was rewarding. The ownership was very supportive of our efforts, and in 2011 we achieved our goal of resolving our problem loans.

What are your favorite hobbies?
My favorite hobby is riding and restoring motorcycles. I’ve been an avid motorcyclist since I was 14. The past several years my riding time has diminished as I sold my newer road bike. To fill this void, I began restoring older vintage motorcycles in 2009. I find old BMWs (generally 1974 to 1978 model years) that have been out of service for an extended period of time or the previous owner took them apart and then lost interest in completing the restoration. At any given time, I will have one or two old BMWs sitting in the garage either in the process of dismantling or rebuilding. I consider the time I spend in the garage as therapeutic.

Over the past 20 years, I have taken numerous motorcycle trips in all of the western states. The summers in Phoenix are brutal, so the best way to beat the heat is get out of town. My favorite places to travel are in the mountains of Colorado, the coastline of California and Oregon and the high deserts of New Mexico.
Bert & Heidi OsterMy wife and I are dedicated pet owners. Our passion is German Shepherd Dogs. We’ve had four now; the last two have been senior rescues. Currently, we have a very large, old German Shepherd Dog named Czar and a younger, rescued cat named Toby. Czar has brought such a good feeling to our house. We rescued him from a shelter in San Diego in March 2014. He was originally abandoned in Mexico and then transported to the shelter in San Diego. He had a skin infection, an ear infection, an eye infection and had lost most of his hair on his legs and belly. My wife said, “He is a mess.” I agreed, but we decided he would be perfect for us! Rescuing a senior dog is not about the rescuers, it’s about the dogs and being able to give them a quality of life, for however long they are with us. The next weekend, we drove back to San Diego to get Czar, and he has been a member of our family since. His eye, ear and skin infections are under control, and he is a very active, healthy old dog. My wife and I still joke about her comment that “he is a mess.” We also are unsure if we rescued him or he rescued us. He is such a good dog.
motorcycles and German Shepherd - Bert Oster


Mr. Bert Oster is a Senior Vice President for UMB Arizona. He is responsible for Commericial Real Estate Loan Production. He joined UMB on May 29th, 2015 as part of the Meridian Bank acquisition. Bert has 30 years of experience in the financial services industry.



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Third quarter 2015 earnings explained

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We released our third quarter 2015 earnings  recently, and our Chief Financial Officer is here to share the highlights.

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Mr. Walker is the Chief Financial Officer and Chief Accounting Officer at UMB Financial Corporation. He joined UMB in 2007. He earned a Business Administration (Accounting) degree at Kansas State University and his Masters of Business Administration degree at Rockhurst University. In addition to his involvement with several community and charitable organizations, he is also the treasurer for the Big Bash Foundation, a not-for-profit foundation focused on providing financial assistance and increasing visibility for local not-for-profit organizations.



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UMB: Insights – Public Finance

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UMB Industry Insights

UMB has a long and successful history with underwriting municipal bonds for cities, counties, public hospitals and universities. One of the keys is to foster relationships with attorneys, bond counsels, underwriters and the customers. Learn more in this continuation of our UMB: Insights series.

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UMB Financial Corporation (Nasdaq: UMBF) is a diversified financial holding company headquartered in Kansas City, Mo., offering complete banking services, payment solutions, asset servicing and institutional investment management to customers. UMB operates banking and wealth management centers throughout Missouri, Illinois, Colorado, Kansas, Oklahoma, Nebraska, Arizona and Texas, as well as two national specialty-lending businesses. Subsidiaries of the holding company include companies that offer services to mutual funds and alternative-investment entities and registered investment advisors that offer equity and fixed income strategies to institutions and individual investors.



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UMB: Insights – Growth in agribusiness

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UMB Industry Insights
“We have focused our growth and our expansion around the “Bread Basket,” because we believe everything starts with agriculture.” Mariner Kemper, our Chairman and CEO, and other UMB leaders share why we focus on agribusiness.

Be sure to watch our first video about agriculture: What ag means to UMB.

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UMB Financial Corporation (Nasdaq: UMBF) is a diversified financial holding company headquartered in Kansas City, Mo., offering complete banking services, payment solutions, asset servicing and institutional investment management to customers. UMB operates banking and wealth management centers throughout Missouri, Illinois, Colorado, Kansas, Oklahoma, Nebraska, Arizona and Texas, as well as two national specialty-lending businesses. Subsidiaries of the holding company include companies that offer services to mutual funds and alternative-investment entities and registered investment advisors that offer equity and fixed income strategies to institutions and individual investors.



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UMB associate inspires, gives back through Abilities group

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UMB recently created Business Resource Groups (BRG) for our associates to encourage engagement and add value to UMB businesses and talent practices. BRGs serve as a catalyst for innovative ideas focused on recruitment, retention, talent development, community and client connections.

Through BRGs, our associates are making significant impacts on UMB’s culture, promoting a work environment that values diversity and inclusion. The eight resource groups include Abilities, Asian American, Black/African American, Hispanic Latino, LGBTQIA, Millennials, VET and Women. Hopefully you saw our VET group showing off their push-up skills recently with the ACP Give Them 20 challenge in support of veterans. One of our associates, Jennifer Hertha, shares what the Abilities BRG has been up to this summer and why it has personal meaning for her.
Jennifer Hertha_Abilities UMB

Jennifer’s story

Have you ever encountered someone with a disability and instantly thought they would be unable to do something? I think we all have at some point or another. Even though I have a disability, I’ve caught myself thinking those kinds of things.

I would like to share a little bit about my story:

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I was born with a rare bone disease called Osteogenesis Imperfecta (OI). Only 30,000–50,000 people in the United States have this disease. Some types are so mild that those individuals are still able to walk and live fairly “normal” lives. Then, there is a type that is so severe that it can cause a child to die shortly after birth. My type is in the middle of the severity—I’m 33 years old, and I’ve had more than 100 broken bones. Because of the numerous breaks I’ve had, I have used a wheelchair to get around since I was 10. Using a wheelchair can make things challenging, and sometimes make things feel almost impossible to accomplish. However, I was always taught if you really want something in life, you’ll find a way to make it happen. The same goes for my career.

More than eight years ago, I applied for a teller position at UMB Bank. I didn’t know if it was truly something I could do because every bank I’ve ever been in had high counters at their teller line. But, I thought I would at least apply and see what happened. To my surprise, I was brought in for interviews and eventually offered the position contingent on whether accommodations would be able to be made for me to do the job. The tricky part was identifying possible accommodations. The people who hired me met several times to review options. They discussed lowering a counter, which they decided wasn’t a good idea due to security reasons.  Another option they looked at was building a ramp behind the teller line; however, in order to get the ramp high enough and still meet ADA standards, there wasn’t enough room. Finally, the team discovered an electric wheelchair that would raise the seat up by 12 inches and purchased it for me. This purchase opened up the doors to start my career with UMB.  Since then, I’ve had the opportunity to advance in my career four times. Because UMB invested in me from day one, not knowing if I would still be with the company six months down the road, it has made me even more passionate and invested in working here. In my current role as a recruiter, I’ve had the opportunity to be a co-chair of our Abilities Business Resource Group.

As part of the Abilities BRG mission, we want to increase awareness of various disabilities and to challenge people to create an environment of acceptance. Recently, the group sponsored a Share-A-Bear campaign. We asked for donations of small stuffed animals (like Beanie Babies) and stickers to send to the Alle Shea Project; a project that has dedicated its time to raise awareness about OI and send care packages to children who have this bone disease.

This campaign was obviously near and dear to my heart. Most of my breaks occurred when I was under the age of 18. There were several times I was taken by ambulance to the hospital and a few times I had to undergo surgery for treatment of a broken bone. During a few of my experiences, I received stuffed animals which not only helped me to take some of the focus off of the pain, but also let me know that there were others out there that cared about what I was going through. I’ve kept some of those animals to this day because they were a significant piece in my recovery as a child.
Abilities UMB Beanie Babies driveThrough the generosity of UMB associates, the Abilities BRG collected more than 1,100 stuffed animals and 100 sheets of stickers! Many days felt like a celebration because I would come into my office and there would be another package of animals waiting to be opened. My office became so full that I had to strategically place boxes filled with stuffed animals so that I could maneuver my wheelchair around—a very welcomed challenge! The Abilities BRG and I are extremely grateful for their support in this campaign.

I hope that by sharing my story, it will encourage others to share experiences and to remind others that whether someone has a visible or invisible disability, we all bring something to the table. Those with a disability just might have to take a different path to get to the same end result.

 

When you click links marked with the “‡” symbol, you will leave UMB’s website and go to websites that are not controlled by or affiliated with UMB. We have provided these links for your convenience. However, we do not endorse or guarantee any products or services you may view on other sites. Other websites may not follow the same privacy policies and security procedures that UMB does, so please review their policies and procedures carefully.




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Money mistakes newlyweds should avoid {infographic}

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With the annual summer wedding season behind us and the fall season kicking off, here are 6 money mistakes newlyweds should avoid.
budgeting advice for married couples

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Member FDIC. equal housing lender


UMB Financial Corporation (Nasdaq: UMBF) is a diversified financial holding company headquartered in Kansas City, Mo., offering complete banking services, payment solutions, asset servicing and institutional investment management to customers. UMB operates banking and wealth management centers throughout Missouri, Illinois, Colorado, Kansas, Oklahoma, Nebraska, Arizona and Texas, as well as two national specialty-lending businesses. Subsidiaries of the holding company include companies that offer services to mutual funds and alternative-investment entities and registered investment advisors that offer equity and fixed income strategies to institutions and individual investors.



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