Chicago Bancorp Expands Operations

Posted by: admin | Date: Aug 10, 2009 at 8:44 AM

Chicago Bancorp today announced the official launch of a new group aimed at helping community banks compete as equals in today’s challenging mortgage market and, in so doing, retain customers and build deposits.

Stephen M. Calk, founder, chairman and CEO of what has emerged as one of the Midwest’s largest privately held mortgage banks, said the move reflects the bank’s optimism regarding the long-term health of the nation’s economy.

“For healthy mortgage banks, such as ours, the current economic downturn represents a once-in-a-lifetime opportunity to expand our market share and, at the same time, to come to the aid of community banks that are facing difficult times,” he said.

Joining Chicago Bancorp to head the new Private Label Banking Group is Louis N. Mallers, with long experience in the mortgage banking and saving and loan industries, as well as in the mortgage secondary market. He said the new group will address a number of specific needs that have emerged among small and mid-sized commercial banks.

“Challenged by costs, elevated interest rate and hedging risks and a shortage of specialized staff, many of these banks are adopting more restrictive lending requirements, cutting back on the types of mortgage loans available and, in some cases, not offering mortgage products at all,” Mallers said. “For banks of this limited size, these steps are necessary, but they come with the risk of losing good customers as well as their deposits.”

Mallers said the Private Label Banking Group addresses this issue and eliminates the commercial banks loss liabilities by taking on all facets of the banks mortgage business from loan origination and funding to packaging the loans for sale in increasingly conservative secondary markets.

“In the balance, we expand the client bank’s loan options to include niche products unique to Chicago Bancorp,” he said. “This includes our new and very attractive asset-based loan program that allows people to use stocks and other securities as collateral for non recourse loans with interest rates between 2.5 and 4.5 percent. Borrowers continue to receive credit for dividends and other payouts on their securities during the life of the loan, and should the securities drop in value below the loan amount, they are free to walk away without surrendering the original loan proceeds and without harming their credit rating.”

Mallers said that unlike purely outsourcing services that are taking over some commercial bank mortgage functions, The Private Label Banking Group offers a true partnership.

“We treat our clients as neighbors, working with them to grow their customer base, increase their deposits and meet the broader needs of their customers,” he said. “And even if asked, we refuse to take on a bank that competes with an existing client.”

ABOUT CHICAGO BANCORP
Chicago Bancorp is an independent mortgage banker that offers loan programs throughout the United States. As a mortgage bank, it controls the entire loan process – origination, processing, underwriting, closing and funding. Its centralized loan operation is the industry’s benchmark for efficient service. Its team of professional mortgage bankers and operations specialists is committed to closing loans by the requested date, with ten-day closings customary. The men and women at Chicago Bancorp understand the concerns inherent to the loan process and are dedicated to simplifying that process so the borrower’s experience is uncomplicated and worry-free.

Category: News