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Frequently Asked Questions

  1. Who is Mission Management and Consultants, LLC?
  2. Who does Mission Management represent?
  3. To whom does Mission Management represent churches, Christian schools, and ministries?
  4. What does Mission Management do for churches, Christian schools, and ministries?
  5. What are some of the advantages of using Mission Management versus a local bank or singe-source church lender?
  6. Why should a church, Christian school, or ministry use MMC as opposed to seeking a mortgage loan on its own?
  7. What harm does it cause for the church to seek funding on its own first and retain Mission Management only if it is unsuccessful in that funding quest?
  8. Is there such a thing as a “bad loan” if it gets the church building funded?
  9. When can our organization begin?
  10. What can our church organization do to better improve its financial position?
  11. Should our church do an in-house stewardship campaign or retain the services of a professional stewardship company?
  12. What Stewardship Company does Mission Management recommend?
  13. How does Mission Management get financing when many others fail?
  14. Can we use our own bank for the loan?
  15. How long does the loan process take once we begin?
  16. How can you obtain a loan commitment so quickly?

 

Who is Mission Management and Consultants, LLC?

Mission Management is a mortgage banker made up of Christian bankers, professionals of various disciplines, businessmen and women, and pastors or other ministry-gifted people with a passion to secure the very best rates, terms and conditions for churches as they seek mortgage funding.

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Who does Mission Management represent?

Mission Management represents only churches, Christian schools, and ministries.

A Christian organization is defined as one that believes that Jesus Christ is deity (God), that He came to earth as a man, that He died a sacrificial death on the cross at Calvary for the remission of our sins, that he was buried and arose from the dead on the third day, and that He is seated at the right-hand of the Father today.

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To whom does Mission Management represent churches, Christian schools, and ministries?

Mission Management represents churches, schools and ministries to commercial banks, other financial lending institutions, and alternative lending sources to secure the very best terms, rates and conditions on mortgage loans for its church clients. We have national, regional and local relationships and with our extensive relationships in the commercial lending world, we are positioned to negotiate at the senior level for your church loan to get the very best rates, terms and conditions!

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What does Mission Management do for churches, Christian schools, and ministries?

Mission Management becomes your organization’s exclusive in-house mortgage banker and financial counsel. MMC counsels the church on the five elements of successful financing including:

  • Gathering the financial records and data and analyzing the risks
  • Formatting the funding request package into an effective and professional request that gets the loan needed at the price pre-set by MMC
  • Determine the market
  • Negotiating the terms and conditions of the loan to ensure that the church gets the very best terms, rates and conditions and that the church will have the flexibility it needs for future financing as the church grows.
  • Timing the process to secure funding earlier than the church organization would be able on its own

Further, MMC actually performs the five steps for the church in a professional manner that places the church’s funding request in high esteem among commercial lending sources, thus securing the very best terms, rates and conditions available to the church client.

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What are some of the advantages of using Mission Management versus a local bank or singe-source church lender?

Borrowing money (buying the use of capital) is like purchasing any other kind of commodity. The price is set by supply and demand. When the church injects serious competition into the loan process, the church gets better rates. When the church makes a strong first-time impression and has all of its request properly documented, stated and structured, it will be in a stronger negotiating position. Since bankers have their own culture, the church needs somebody that “speaks bank”. One of the greatest challenges for churches is that churches speak “church” and the borrower and lender often “lose something in the translation”. That failure of communication often results in poor rates and terms for the church or denial of the loan request altogether.

Since Mission Management becomes your organization’s in-house banker and financial counsel, we present the church in the manner that banks understand. We speak “bank”. Recognizing the uniqueness of churches and ministries from for-profit organizations, we educate the bank on how churches operate in a manner bankers can relate. We pre-underwrite the request ensuring that the loan package and request is professional, organized and structured in a viable manner, comprehensive, concise, and obtainable.

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Why should a church, Christian school, or ministry use MMC as opposed to seeking a mortgage loan on its own?

Understanding church finance is a specialty and a science. In our experience, many churches and Christian ministries have goodhearted and properly motivated boards made up of volunteers and church staff. Most of these individuals have never negotiated or obtained a million dollar or more loan, especially in a commercial loan setting. These committees simply lack the proper expertise, understanding, knowledge or skills to “do battle” with commercial lending institutions.

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What harm does it cause for the church to seek funding on its own first and retain Mission Management only if it is unsuccessful in that funding quest?

First, lack of proper documentation, structure and presentation can effect whether the funding request is granted. What is difficult for the church community to sometimes understand is once a lending institution turns down a funding application it takes a position on that church that is usually final.

Second, once the church has “shopped” its loan request to two or three banks, word gets out that the funding request is being denied and creates an atmosphere among lenders that leads to further rejection.

Finally, just like with personal credit requests, the church gets one chance to make an impression with lenders and that impression generally determines whether the credit or loan will be granted, and what the rates, terms and conditions of that credit or loan will be.

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Is there such a thing as a “bad loan” if it gets the church building funded?

Absolutely! Mission Management spends a great deal of effort helping churches recover from bad loans. Church-minded people are generally experienced in buying a home and obtaining a home mortgage. Few have obtained commercial loans. In the home loan setting, there are many federal and state safeguards to protect the consumer. In the commercial lending arena—the church loan arena—it is buyer beware!

One common loan “crisis” we often encounter is something called the “Interest Swap”, which is a form of a derivative product designed to benefit the bank—it rarely benefits the church. Two major problems exist with “Interest Swap” funding packages—first, there are few “derivative specialists” in the banking world and none in the church world. Second, the Interest Swap virtually locks the church into a bad loan and prevents refinancing and future church growth for the duration of the contract. The sole purpose for these derivative products is to permit the bank to hedge against increased interest rates on church loans. While that can be argued as an “upside” if it secures the loan, the downside is far too severe for most growing churches.

The interest swap requires extremely large “breakage fees” often in the range of ten (10%) percent or more of the remaining loan! When the church asks, “Is there a prepayment penalty associated with this loan?” a bank loan representative can honestly say “No” because the “breakage fee” is not a prepayment penalty. Further, the language associated with these vicious contracts is so difficult to understand that many church lawyers just “sign off”. Banks count on that.

Finally, without experience and banking knowledge, negotiating out of the Interest Swap is generally unsuccessful. It takes tremendous clout and loan options for the church to navigate these dangerous waters. Mission Management routinely navigates around these derivatives.

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When can our organization begin?

The church can generally begin immediately once it completes and submits the MMC one-page or on-line survey. Our analysis will determine the amount the church can qualify for and the amount it can afford.

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What can our church organization do to better improve its financial position?

Stewardship and capital building campaigns are very important in the area of church financing. A poor campaign can damage the church emotionally and its ability to service church debt, while an excellent campaign can bring a church together as a team with sacrificial giving for the Kingdom of God. Properly planned and executed stewardship campaigns are vital to the funding process because they reduce the risk for the lenders and provide an additional means of servicing the mortgage debt.

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Should our church do an in-house stewardship campaign or retain the services of a professional stewardship company?

In our experience, most in-house stewardship campaigns fall short of the potential and often lead to internal problems among members of the congregation.

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What Stewardship Company does Mission Management recommend?

Mission Management has worked with churches around the country in various stages of stewardship, whether in-house or through one of dozens of stewardship companies designed to help churches raise money. Our consistent experience is there are only a few companies that perform with such excellence that Mission Management can “bank” on and we are able to leverage the campaigns in the early stages to increase the amount of loan the church may obtain. Please contact us and we will be happy to refer you to the best stewardship company based on your needs.

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How does Mission Management get financing when many others fail?

We obtain such excellent results for three primary reasons:

  • We have twenty-five years of mortgage and banking experience, securing loans as large as $120,000,000, along with our experience in loan audit and compliance—we speak bank!
  • We have the clout through the volume of loan business we bring into the marketplace so that we can dictate the very best terms, rates and conditions for our clients
  • We have the personal and professional relationships necessary to present the church’s case before national, regional and community lending sources as well as with alternative funding sources as the need may arise.

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Can we use our own bank for the loan?

In many cases, the church can use its local banker to secure the loan. Mission Management believes in strong, healthy banking relationships and wants to enhance rather than destroy those relationships between the church and its local banking friends. MMC goes through its normal process, markets the loan and obtains funding commitments, and then returns to your local banker and permits him/her to meet the rates, terms and conditions of our best offer. The banker appreciates that he/she got the business and the church appreciates that it continues and strengthens its community relationships, while being good stewards in keeping down the cost of church funding.

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How long does the loan process take once we begin?

After your church organization submits the signed contract and application fee, we begin immediately. Once the church has gathered all of the requested documentation in proper form necessary for MMC to complete the underwriting and loan package, it is Mission Management’s goal to have one or more loan commitments in the shortest amount of time possible. It all will depend on the condition and accuracy of the documentation.

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How can you obtain a loan commitment so quickly?

We do the underwriting for the lender. We have analyzed the risk, identified the market, and structured the loan for acceptance. We have done all of the work for the lender, using our twenty-five years of mortgage and banking experience plus audit and compliance experience to present the most professional and comprehensive package most lenders ever see.

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