Clearinghouse Advisory Group

Serving as liaison between lenders and the house of worship

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Washington Post Reporting

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Church donations have plunged because of the coronavirus.

Some churches won’t survive.

April 24, 2020 at 5:00 a.m. CDT

Pastor J. Artie Stuckey has cut or eliminated every staff salary at his small Mississippi church. He is nervously watching

the payments for the building where Restoration Baptist meets. He reminds his congregation to keep tithing,

but he knows many of them — the barber, the electrician, the musician — have also seen their finances

rocked by the pandemic shutdown. Stuckey, a 42-year-old who sold cars until the ministry called him 15 years ago,

is sympathetic to being cash-strapped. Restoration wasn’t in great financial shape even before the virus wiped out more

than 50 percent of its weekly offerings. But now the 65-member evangelical church outside Jackson is in survival mode.

Which, to Stuckey, feels like a test of faith.  “I made a commitment to God, to my people. We’ve been teaching and

preaching faith. Anyone can be a leader, but if you’re a faith leader, what do we do?” he asked. “Do we fold, or

do we become a living example of what we’ve preached for so many years?”  (See the full article in The Washington Post).

Kenneth Lewis of the Clearing House Advisory Group says, if ministries don't act now to restructure their loans

it might be too late to save them when banks start to dump bad debt. There's an opportunity in this present climate

to negotiate now, but if you wait to late the grace window will close,  and banks will cut their losses. Which means

foreclosures for affected churches.  Free consultation can help you determine the best way forward for your ministry. 

Navigating in a Pandemic

Post Corona Financing 

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Cash Pours Into Distressed Real-Estate Funds as Investors Aim to ‘Play Offense’
Investors are putting billions of dollars into new real-estate funds created to buy distressed debt backed by hotels, malls, office buildings, and other commercial properties suffering big losses of value during the coronavirus crisis.


  • Billionaire investor Carl Icahn told CNBC he expects the U.S. commercial real estate market will crumble.
  • He said he is shorting the commercial mortgage bond market, and it’s his “biggest position by far.”
  • He said the housing market bubble of 2008 has “happened all over again.”
Carl Icahn: Stocks may have a longer way to go down

Billionaire investor Carl Icahn told CNBC on Friday he expects the U.S. commercial real estate market will crumble, much like the broader housing market collapse of 2008.

“You’re going to have this blow up, too, and nobody’s even looking at it,” Icahn said on “Halftime Report.”

Icahn said he is shorting the commercial mortgage bond market and it’s his “biggest position by far.” 

Short selling is a bet against stocks or bonds, with shorts borrowing shares from an investment bank and selling them in hopes that the asset will lose value. If it does drop, shorts buy the shares back at a cheaper price and return them to the bank, turning a profit on the difference.

Icahn’s short is specific to credit default swaps, or “CDS,” which are assets that back mortgages of corporate offices and shopping malls. Icahn said the housing market bubble of 2008 has “happened all over again” due to loans made in 2012 to shopping malls and more.

“You have a bunch of mortgages ... so the banks went out and loaned money against a lot of shopping malls, office buildings, hotels and retail,” Icahn said. “It’s all credible institutions doing it again.”

The banks sold mortgages on commercial real estate “and then, when they did those mortgages, [the banks] sliced and diced them and put them in something called a ‘CMBX,’ an index,” Icahn said. The banks then sold bonds against these mortgages to clients. Icahn expects shopping malls and others in commercial real estate will default on these loans.


“A lot of these bonds now are in grave danger,” Icahn said. “It’s like selling insurance to someone who’s going to go to the electric chair in a couple of months.”

Overall, Ican thinks the market’s drop was catalyzed by the coronavirus pandemic and still “has a longer way down.”

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What that means for the Church Market is, banks are going to be far more aggressive when it comes to collecting on large church loans whose membership is no longer supporting the church at the same levels as before the Corona Pandemic started.

More foreclosures, more debt selling, and more extremely aggressive collection methods by the banks.




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