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Posted on Tue, Nov 15, 2011 : 12:15 p.m.

Chicago bank launches mortgage banking headquarters in Ann Arbor with 115 employees

By Nathan Bomey

A Chicago-based bank leased office space and moved 115 workers into a new mortgage banking operation in northeast Ann Arbor over the weekend.

Led by Ann Arbor mortgage banking industry veteran Willie Newman, formerly executive vice president of ABN AMRO Mortgage Group, Cole Taylor Bank leased 27,800 square feet at the Northeast Corporate Center complex on Green Road in a deal negotiated with Ann Arbor-based McKinley Inc.

The bank officially moved into the space over the weekend, shifting workers from offices in Hamburg Township — where the company established the administrative functions of its new mortgage banking unit less than two years ago.

Willie_Newman_Cole_Taylor_Bank_mortgage.jpg

Willie Newman, head of Cole Taylor Bank's mortgage division and former executive vice president of ABN AMRO Mortgage Group

Photo courtesy of Cole Taylor Bank

The news reflects one of the largest commercial real estate deals in Washtenaw County over the last few years — and one of the largest single incidents of job creation in the private sector.

Newman, who leads Cole Taylor Bank’s mortgage unit, told AnnArbor.com the new operation would originate mortgages, acquire loans from mortgage bankers, service loans and package them for sale.

The unit’s growth — Newman launched it in December 2009 — comes as the mortgage industry has entered a period of prolonged stagnation in the aftermath of the U.S. housing market’s implosion.

Total mortgage originations for 1-family to 4-family residences were expected to fall from 1.572 million in 2010 to 1.182 million in 2011 and 907,000 in 2012, according to a forecast released Oct. 11 by the Mortgage Bankers Association. In 2013, mortgage originations are expected to rise to 1.103 million.

Newman said Cole Taylor Bank is well positioned to succeed in a challenging market.

“There’s certainly a counter-cyclical aspect to it,” he said. “To me, it’s better to get in at the bottom than to get in at the top.”

He added: “We felt that having a clean balance sheet would be an advantage strategically and tactically in not only entering the business but growing the business.”

So far, the model is working. Newman has expanded the mortgage unit quickly, describing the process as “rapid startup phase.”

Newman said the company was previously doing business in Hamburg Township mostly because it “was very much a turn-key location.” But, as the company expanded, its operation was split between two different buildings and it needed new space.

That’s when negotiations started with McKinley, which is managing and marketing the Northeast Corporate Center on behalf of an institutional client. The property, which became embroiled in a legal battle in recent years and was placed in receivership, is one of the largest office complexes in the area. Previous tenants at the 223,196-square-foot property include Toyota and Pfizer.

Cole Taylor Bank's deal with McKinley marks one of the largest instant business expansions in Washtenaw County in recent years.

“In today’s Ann Arbor, that’s a huge lease transaction,” McKinley CEO Albert Berriz said. “We’re really excited to bring Willie back to Ann Arbor.”

Newman served as president of Interfirst Wholesale Mortgage Lending Inc., which was acquired by Standard Federal in 1993. Newman continued to lead Interfirst through a series of deals until corporate parent ABN AMRO Mortgage Group was sold to Citigroup in a deal announced Jan. 22, 2007, the same day Pfizer announced it was leaving Ann Arbor. Citigroup later spun off the business as CitiMortgage — and today the operation employs about 850 workers after a series of cuts and expansions over the last few years.

Berriz said Newman’s new mortgage business is primed to succeed because of its “opportunistic” approach to the industry.

“If you’re going to be an opportunistic entrepreneur, you’re usually in when everyone else is getting out,” Berriz said, drawing comparisons to McKinley, which has grown its business by acquiring, renovating and cleaning up distressed shopping centers and apartment complexes throughout the country.

Berriz added: "Everybody that’s out there is talking about all the issues and all the problems. That’s a great time to enter.”

Taylor Capital Group Inc., the corporate parent of Cole Taylor Bank, reported $7.6 million in revenue from mortgage originations in the third quarter ended Sept. 30, up from $6.3 million in the third quarter of 2010.

The mortgage unit also recorded $521.5 million in "loan fundings" in the third quarter, up from $318.3 million in the second quarter. The company is originating mortgages in about 30 states through a network of mortgage brokers and its own retail network, including a retail office at 1328 South Main Street near Michigan Stadium in Ann Arbor.

Overall, Taylor Capital Group reported a profit of $9.8 million in the third quarter, a reversal from a $1.4 million loss a year earlier.

The company’s new Ann Arbor office is processing and evaluating loans during the closing process, preparing documents, prepping loans for sale and educating consumers about the next step in the loan payment process.

Newman said the company’s workforce can fluctuate based on a continual assessment of demand. For example, the company added about 30 workers, including permanent and temporary employees, over the last three months.

“A lot of it will depend on what opportunities we have,” he said.

But “we definitely have some space” to grow, he said. “That was done purposely.”

Newman did not provide an average salary for the mortgage loan business’ employees but suggested that the workers are well compensated. Berriz said they’re “high-paying” jobs.

Contact AnnArbor.com's Nathan Bomey at (734) 623-2587 or nathanbomey@annarbor.com. You can also follow him on Twitter or subscribe to AnnArbor.com's newsletters.

Comments

applehazar

Thu, Nov 17, 2011 : 12:33 p.m.

These people are great to deal with. Quick and efficient. Basically nice people to work with. The big guys could learn some customer service skills from Cole Taylor.

a2why

Tue, Nov 15, 2011 : 11:52 p.m.

Welcome to Ann Arbor! Don't run over the pedestrians on Plymouth road...

fostoria160

Tue, Nov 15, 2011 : 10:34 p.m.

Willie, you look like a nice guy. Please do some positive marketing for your company and the mortgage industry in general. We are all suffering in part because mortgages were bundled and packaged together - and nobody truly knew what was in the package or bundle that was bought sold and traded. Come to find out , these packages and bundles contained ticking time bombs of people who were not able to pay their mortgages all packaged up prettily and sold with festive bow on top (exaggeration to make a point). Real deceit - nobody would find out until later and oh what a surprise! In the meantime it was a good gig to sell dog do-do for a pile of cash. When it's said something like you "package mortgages for sale", please write in and tell us that when it comes to lessons learned - your company and others like it realize the errors of its ways. Tell us its not just (unethical) business as usual. Tell us you and others are working to correct those issues so we don't go down this miserable road again. Please write Willie. Thanks.

William Newman

Thu, Nov 17, 2011 : 3:56 p.m.

I appreciate your response to the article as well as your candor. When several of us industry veterans banded back together in late 2009 to form Cole Taylor Mortgage, one of the primary factors that motivated us was to bring back certain aspects to the mortgage business that seemed to have been lost over the preceding several years - caring about people, integrity, respect. We strongly believe that we had demonstrated these characteristics in our previous businesses and plan to again. As a matter of fact, we believe that will be one of our strategic advantages. As an example, we do not offer a sub-prime mortgage product line, nor did we in our previous businesses. In addition, the industry itself has changed dramatically. One can debate about the nature or effectiveness of the changes, but ultimately the changes are intended to prevent a reoccurence of what transpired over the last several years. We hope and intend to be part of that change. In order to help folks get to know us, both as professionals and as people, we have established a Facebook page. It's at <a href="http://www.facebook.com/willieworksforyou" rel='nofollow'>www.facebook.com/willieworksforyou</a>. One of our objectives with the page is to demystify the mortgage process. Hopefully you and many others will subscribe and get to know us better. You can also visit us at <a href="http://www.coletaylormortgage.com" rel='nofollow'>www.coletaylormortgage.com</a>. Thanks again for your comments.

mortgagekhat

Wed, Nov 16, 2011 : 2:53 p.m.

Willie is out of town at the moment, but this is something that I know he'd like to address personally. He's got a page on <a href="http://facebook.com/willieworksforyou" rel='nofollow'>http://facebook.com/willieworksforyou</a> and will respond directly on the page.

KMHall

Tue, Nov 15, 2011 : 10:34 p.m.

&quot;No tax credits?&quot; But I think they're planning to make mortgage movie ......

clownfish

Tue, Nov 15, 2011 : 8:50 p.m.

I guess they did not get the memo that Ann Arbor does not accept businesses. Sigh, another myth hits the hard cold slab of reality.

AAite

Tue, Nov 15, 2011 : 8:12 p.m.

Is this the new Hantz Bank? I don't see the name of the bank in this article.

johnnya2

Wed, Nov 16, 2011 : 1:54 a.m.

&quot;Newman, who leads Cole Taylor Bank's mortgage unit,&quot; &quot; Cole Taylor Bank leased 27,800 square feet at the Northeast Corporate Center &quot; &quot;Newman said Cole Taylor Bank is well positioned to succeed in a challenging market.&quot; &quot;Cole Taylor Bank's deal with McKinley marks one of the largest instant business expansions in Washtenaw County in recent years.&quot; &quot;Taylor Capital Group Inc., the corporate parent of Cole Taylor Bank, reported $7.6 million in revenue from mortgage originations in the third quarter ended Sept. 30,&quot; Yeah, I can see how you can miss the name of the bank. Maybe even look at the caption under the picture

15crown00

Tue, Nov 15, 2011 : 6:50 p.m.

another bank in the fold.OK???????????????????

dswan

Tue, Nov 15, 2011 : 6:38 p.m.

No tax credits? Were any provided when the Hamburg location opened? Perhaps it is possible for private corporate investment without the state crowning winners.

say it plain

Tue, Nov 15, 2011 : 6:48 p.m.

No, no tax credits for mortgage banks lol...not small-time operators anyway ;-) You gotta get &quot;too big to fail&quot; first...

say it plain

Tue, Nov 15, 2011 : 6:35 p.m.

Well, Mr. Bomey, that's the question: Are there *new* employees here being moved from Chicago, like the headline most certainly implies?! Or are the only employees so far the ones from Hamburg township? Can we expect moving from Chicago people, and if so, how many?! Jeez, isn't this supposed to be in the original article?! Did I miss it? please tell me I did....

MyOpinion

Tue, Nov 15, 2011 : 6:27 p.m.

And, it really isn't new jobs for Michigan. These were already here: &quot;The bank officially moved into the space over the weekend, shifting workers from offices in Hamburg Township — where the company established the administrative functions of its new mortgage banking unit less than two years ago.&quot; But an article titled &quot;Livingston County firm moves to Washtenaw County&quot; doesn't sound quite as impressive.

MyOpinion

Wed, Nov 16, 2011 : 3:16 a.m.

This is good news for Washtenaw County. These workers will spend money during the work week and some may choose to move to Washtenaw County. That said, the article reads a bit like a press release - especially if all it is is a consolidation of multiple buildings into a single location in Washtenaw County. The news reflects one of the largest commercial real estate deals in Washtenaw County over the last few years — and one of the largest single incidents of job creation in the private sector. Nathan hasn't responded as to whether this move involves job creation or just a transfer of jobs from Livingston to Washtenaw. I'm guessing that it does involve additional jobs. Otherwise, the quote about &quot;largest single incidents of job creation&quot; is an embarrassing stretch.

johnnya2

Wed, Nov 16, 2011 : 1:49 a.m.

So I suppose those people who work there won't use any of the restaurants on Plymouth Rd? None of them will move to Ann Arbor to be closer to work? The company is growing, therefore will add jobs as needed. This is typical of the naysayers to everything in the world. I suppose if Ford opens a plant in Washtenaw County, it really is not a net gain of jobs because after all it takes away car sales from Toyota who also has jobs in town.

sellers

Tue, Nov 15, 2011 : 9:12 p.m.

say it plain: It's a net gain of jobs in city proper. Not residents. :)

say it plain

Tue, Nov 15, 2011 : 6:44 p.m.

and it's only a sort-of-significant net gain for Ann Arbor if these employees actually *move* to here...you know, pay property taxes here instead of Livingston Co, send their kids to school here, etc... I suppose the gas stations on Green Road would see an uptick in business regardless!?

sellers

Tue, Nov 15, 2011 : 6:33 p.m.

I agree, Hamburg Twp is still a draw from the same talent pool surrounding Ann Arbor. This is a net gain for the city core, which helps urban sprawl but not an employment gain for the region.

rusty shackelford

Tue, Nov 15, 2011 : 6:11 p.m.

Is it &quot;Chicago-based&quot; or are its headquarters in Ann Arbor? Seems it can only be one or the other, assuming words still mean things.

say it plain

Tue, Nov 15, 2011 : 6:44 p.m.

lol. assuming. :-)

Gordon

Tue, Nov 15, 2011 : 5:51 p.m.

This does make a lot of sense. Starting fresh without all the mis-management of the previous mortgage companies The Taylor capital Group should do very well. It will be slow growth; but their are excellent opportunities for re-fy, new mortgages, and reverse mortgages. Who ever helped convince them to come to A2 deserves a big pat on the back.