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Article updated: 11/6/2013 10:37 PM

Lake Forest businessman crowd funds mortgage startup

Lake Forest businessman Joseph Bianca Kurczodyna and founder of PMACorp leads us in the Yoga "crow" position during the filming of PMACorp.'s  video for the company's crowdfunding campaign, which launched this week on ProHatch.com.

Lake Forest businessman Joseph Bianca Kurczodyna and founder of PMACorp leads us in the Yoga "crow" position during the filming of PMACorp.'s video for the company's crowdfunding campaign, which launched this week on ProHatch.com.

 

PMACorp

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By Barbara Kurczodyna

Lake Forest resident Joseph Bianca Kurczodyna has launched a crowdfunding campaign to fund his startup company, Patriot Mortgage Acceptance Corporation, on Tuesday. PMACorp's unique, new crowd funding opportunity kicks off with a humorous video of Joe speaking while upside down on two hands in the Yoga "crow" position while pitching his company. "The video is a fun way to inform people about PMACorp, and our launch", said founder Kurczodyna.

PMACorp CEO Kurczodyna, an investment banking veteran, unveiled the groundbreaking incubator project, which invites people to contribute to his idea of optimal home loans to the public on the crowd funding website, ProHatch.com. ProHatch was founded by former Grubb & Ellis CEO Barry Barovick, global real estate veteran Elizabeth Kulik and Jason Kulik.

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PMACorp plans to raise $31,000 in its campaign, and rewards contributors with offering art prints and an art 2014 calendar of original paintings and drawings by world renowned Lake Forest artist Mark McMahon. The Lake Forest-based company will invest the money in further developing their business platform and social media department with a long term goal of providing low-interest, short-term residential loans to consumers in Illinois.

The mortgage startup will utilize funds raised this year for the further development of its social media department and to meet its offering expenses and development of priority software. The company's formidable social media campaign includes Facebook, Twitter, YouTube, and Instagram, since Kurczodyna believes social media is the best way we can reach the public and create profound change in the way people purchase homes and benefit from homeownership.

With 38-years of investment banking experience behind his idea, Kurczodyna is confident the structure he developed will benefit home buyers, the U.S. economy, and current investors. Kurczodyna's Illinois corporation was organized to engage in the residential mortgage banking business with a unique socially responsible agenda.

"PMACorp solves the historic disconnect between Main Street and Wall Street regarding residential mortgages by originating loans permanently at an index rate of one to five percent over 10 to 15-years", Kurczodyna said. The corporation's primary focus will be the origination and servicing of residential mortgage loans at below-market interest rates and other competitive loan terms. Our mission is to offer loan products to prospective borrowers at low interest rates and with shorter terms," Kurczodyna said.

PMACorp loan products will help many homeowners with below market pricing, enabling them to pay off their home loans faster and at a reduced cost. A normal 30-year mortgage is front-loaded, Kurczodyna explained. Payments at the beginning of the mortgage are mostly interest with very little going to equity. That means almost 83% of the payments for the first year are interest. Fifteen-year home loans are not currently available to the average consumer because unrealistic income-to-debt ratios forces borrowers into a 30-year loan, even though monthly payments for a 15-year loan only average 20-30% more. A PMACorp 15-year loan combined with an index rate of one to five percent keeps monthly payments low and affordable. With a PMACorp loan, the borrower will own half of the home within seven to ten years compared to only a small percentage of the home with a traditional loan, according to Kurczodyna.

Banks and Mortgage companies are not lending now because the Mortgage Back Securities and Securitization markets are not producing mortgage money. In the past the Institutional investor bought mortgage paper that carried a five percent 30-year loan. By the very nature of an amortization schedule that variable, equated to a front-end interest loaded loan and increases the interest paid 100 percent according to Kurczodyna.

"Over the next two-years PMACorp corporate finance structure will create billions of dollars of mortgage money and separate home loans from the volatility of Wall Street bankers", Kurczodyna said.

Follow Kurczodyna on Twitter at @PMACorp. and

Prohatch Crowdfunding site http://pmacorp.prohatch.com/

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