Gene Mundt

Recently, I received a great comment regarding one of my blogs from Karen Cooper, a mortgage banker/broker from Ashland, Oregon. She mentioned that she hosted wine tastings using local wines as a way of bonding and marketing to her referral partners. What a great way to promote not only your business, but other businesses and features of your local area!

Karen's region of the U.S. is noted for its wonderful wineries, but did you know that Illinois also can brag about its wine growing and harvest?

Most people think of Bordeaux in France, California's Napa Valley, Australia's Barossa Valley, and Oregon when they think about wine production. And, although it is true that a concentration of fine vineyards is to be found in these areas, the largest (in terms of land mass) wine growing area in the world is actually to be found in the Upper Mississippi Valley, which touches upon four U.S. states and includes Illinois.

Most vineyards found in this area are small and family-run, covering just four to 10 acres. They are very hands-on in nature and many allow access and up-close viewing of the wine-making process. Tours of the vineyard, coupled with other amenities, are not uncommon. Some will even let you mash and stomp your own grapes in the old-fashioned way. There is actually an annual festival held in the area that borrows its name from the famous "I Love Lucy" wine-stomping episode.

Galena, Illinois is a major focal point of the wine tours hosted in this area. The oldest winery in this area makes 40 different wines from grapes and other fruits, including apples, blueberries, blackberries, cherries, and peaches ... even rhubarb. A wine tasting gallery is operated on-site along with a shop that offers all sorts of specialty items that compliment the wine experience.

Especially now, during autumn's spectacular colors, Galena and the entire Upper Mississippi Valley region is a place to consider for scenic fall stays and driving tours. The rolling hills, the beautiful small towns, B&B's, the glimpse of wild turkey, fox, and deer and the byway along the Mississippi, all offer visions of Illinois that most do not equate with the state.

I invite you to come visit our state. Relax ... sip one of our fine wines ... and stay awhile. You'll love it.

For additional info., go to:

http://www.fs.fed.us/r9/conditions/fall_color/

www.galena.org

www.jodaviess.org

gene@chicagobancorp.com

Just had to post this today ... seemed like a Friday thing to do!

This was sent to me courtesy of my good friend (and referral partner) Richard Stringham of Stringham Insurance Agency in Mokena, IL. The best "dog-gone" insurance man I know!

Thanks Richard!

There have been many articles written recently regarding the looming tax credit deadline for first-time home buyers. A real debate has been raging ... should or shouldn't the tax credit be extended?

In the meantime while the pros and cons of this are being debated, I'm experiencing a great number of phone calls asking ... "Can I still take advantage of this credit"? And ... "Do I still have time to get a deal closed before the cut-off date"? As the clock ticks down on this program, it is getting harder and harder to answer in the affirmative. Closings are hard to guarantee and time is terribly short now. I hate having to tell a young first-time buyer that they may have missed their opportunity. It's sure not easy telling a referral partner that message either.

It's why I was almost giddy when I learned about a new loan product being added to the program menu at our company through Fannie Mae. This new program is exclusive to Fannie Mae Foreclosed Properties. No one needs to tell you, there is currently a virtual backlog of home inventory being held by this mortgage giant.

In order to improve the housing market, this inventory needs to be moved. To address this problem, Fannie Mae has now developed and will provide an unique financing opportunity for these properties through qualified, program participating lenders.

Some of the Highlights/Unique Advantages of this new program are:

1. 5% DOWN CONVENTIONAL FINANCING with lower than typically allowed Credit Scores

2. INVESTORS allowed (Non-Owner Occupied) with 15% Down Payment

3. NO MORTGAGE INSURANCE Required

4. NO APPRAISAL Required

How does this fit? How does it help everyone's cause? Buyers looking to enter the market at low prices tend to search for distressed properties, like foreclosures and short sales. Pitfalls are encountered by these buyers when the property is appraised or mortgage insurance is denied.

NEITHER of these issues is a concern with this new product. NEITHER an appraisal or mortgage insurance is needed.

Take these two major issues out of the underwriting/processing/closing mix ... and you have a much better chance at getting a loan closed before the deadline of November 30th!

This new program has been delivering new life into the agencies that I work with. Agents are seeing real potential for immediate assistance for their customers ... and their personal businesses with this dynamite new program.

The wheels of change have been a long time coming, but with the advent of this new HomePath loan ... there is finally some hope of improving some of the frustrating circumstances presently before us.

A couple of weeks ago, someone asked me if I ever tried to talk business or truly market myself to the others in the group while on the golf course. Did I view it as part of my overall marketing plan?

Now my wife and I have had this "argument" and marketing discussion since time eternal. Bottomline, she thinks I"m full of hooey when I'm telling her my upcoming golf round could mean business for me down the road. It's become sort of a joke between us over the 32 years of our marriage.

But, truth be told ... we both DO view the golf as part of the marketing plan we put together for me each year.

This marketing plan of mine goes beyond the normal golf outing participation and door prize give-aways that seem to be considered as part of our industry's yearly dues. Ask any loan officer or realtor if they get requests to attend and donate for a golf outing (or two, or three, or more) during the year and most likely you'll get a huge "YES"! Almost guiltily, I will tell you that my marketing for the year includes funds set aside for golfing "adventures" that go beyond those typical opportunities for participation.

I host weekly Wednesday night golf lessons year-round. In Illinois, that's quite a trick in the winter. Don't remind my wife! (Thank you Ditka SportsDome in Bolingbrook!) Business partners are asked to join me at our home in Galena, Illinois, for a few rounds of golf during the summer. (BTW, Galena, and the surrounding area, has some of the most scenic and budget-friendly golf venues in our state. And yes, that's part of the reason I chose our home there ... guilty again!)

Recently, I hosted a group of business partners at a PGA tournament held close by. I was able to land a great deal on the tourney tickets and everyone in attendance enjoyed the day together immensely. My wife says I'm pushing it, but I even see these get-togethers as mini-"leads" organizations. The relationships within the group are strenthened and we all benefit from that too. There are always other golf rounds and opportunities that routinely wind up on my calendar too.

But ... does any solid BUSINESS get discussed during any of those golfing get-togethers? Probably not. So what are the true benefits then?

I know I learn alot about the personalities of my business partners on the golf course ... good and bad. It can be a real education for me and I gather real insight. Let's just say I've discovered a few "sandtraps" and "water hazards" concerning personalities during a round and let it go at that.

I also see these as great opportunities to re-solidify old relationships. I get a chance to celebrate the friendship and also just show my appreciation for what we share. Newer relationships have an opportunity to gather steam during these times, as well. I see this all as a great benefit to me moving forward into my actual business day.

I am convinced that I gain much (both personal and business-wise) through my participation in golf. And especially when I'm trying to convince my wife that I need to enjoy another round on a beautiful day ...

That's my argument and I'm sticking to it! See you on the golf course!

It's September. As history will tell us, it's typically the Stock Market's worst month. However, there's been nothing "typical" about this last year or so, in terms of "the markets". Ben Bernacke states that the worst of times are behind us, and that the indicators bear that out. Whether or not that's true, time will tell.

I personally feel that the Economy cannot truly experience a recovery until the Real Estate Markets and property values make a steady and sustainable improvement. My fear is that unemployment and decreasing earnings will continue to get in the way of that and we will see "see-sawing" in our economy for a while longer .

Because of the falling income experienced during this downturn ... banks and lenders are saying "no" to investors, borrowers, developers, and the like if their present income picture isn't stable. They obviously are nervous as well, about the potential for these commercial developers/owners problems to continue moving forward.

So where does that leave commercial property owners who can't renew their 5 year balloon note taken out on their strip center during the years of 2003, 2004, and 2005? (Even if the Borrower/Owner has maintained his/her income level through these tough times ... what has happened to the appraised value of their properties (i.e. the bank's collateral)?

These are real problems and scenarios being seen and faced by commercial property owners everyday. Their stories have gained increasing focus by the media more frequently as of late.

Enter our "Asset-Based" Loan Program, which has NO INCOME, NO REAL ESTATE APPRAISAL, NO CREDIT REQUIREMENTS. It's hard to find flexible options like these, as you are well aware.

An unique lending option has been developed and made available for Borrowers/Trusts/Entities with substantial, traded, and liquid Stock, Bond, or otherwise convertible holdings that are facing this dilemma. Now, their assets can be collateralized and are the ONLY QUALIFICATIONS NECESSARY FOR THIS SPECIALIZED LOAN.

Example: You have a Builder/Developer/Investor as a client who has done very well over the last 5-10 years. They invested wisely in stocks, bonds, mutuals, C.D.'s etc. However, their bank just said "no" to the renewal of the note on their commercial property.

At a rate less than 6%, (when an individual can "pledge" stocks, bonds, mutual funds, C.D's, etc.) an Asset-Based Loan can offer low-rate financing options in 30 days or so, after a review of those holdings, up to 75% of the "market value". For those of you involved in religious, charitable, and community organizations, an Asset-Based Loan has even helped a non-profit organization move their building plans along after their bank said "no" to conventional financing.

A loan of this type may just be the answer to your client's needs and provide an option that hasn't been available for them until now. Please keep this loan option in mind for investors, non-profit organizations, and commercial customers.

For further information regarding this lending program, please contact me. I'll be happy to answer any questions you have!