THE AM QUARTERLY NEWSLETTER | 2022
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A DREAM.
IT ALL STARTED AS A NEEDS-BASED DREAM. IS IT POSSIBLE THAT ONE DAY WE CAN BE OUR BANK? By John Fortino, President Dear readers, Praise the Lord. Why do we think like this; what happened? In 2013, we analyzed the mortgages of the Churches with high interests. We realized that in the eagerness and need to “buy” a new building or build a bigger one, many churches had seized sky-high interest on theiÅr mortgages. In addition, we had mortgages with more than 52 different banks, each charging as it saw fit. Some churches sometimes paid up to 12% of interest in some cases, only paying towards the interest without ever touching the principal. A single bank could have 2, 3, and even 15 churches in its client portfolio as if this was little. The number of churches under one portfolio complicated our situation because all our churches are under the same title. If any church fell behind on a payment or stopped, it affected the other churches.
DIRECTORS & EXECUTIVE OFFICERS
AM QUARTERLY NEWSLETTER JOHN FORTINO, CHAIRMAN FELIPE LUGO, VICE CHAIRMAN EDDIE CAMPA, EXECUTIVE DIRECTOR JOSEPH V. RODRIGUEZ, DIRECTOR JORGE MONTES, DIRECTOR LEOBARDO MAFFEY, DIRECTOR GIL AGUILAR, DIRECTOR SUZANNE VALENCIA, DIRECTOR YVONNE VASQUEZ, DIRECTOR GEORGE LOPEZ, DIRECTOR LOAN COMMITTEE
If this were not enough, if you recall, we had to satisfy the banks with monthly “compilations” of data that “all” banks demanded of us because the word was already spreading amongst them that we had financial problems. Therefore, they wanted to secure the monthly mortgage payments. The situation of our properties was a challenge and an urgent need that we needed to attend to.
FELIPE LUGO ELISEO RAMIREZ MATTHEW GARCIA MARTIN AMADOR MARIO LANDA
FINANCE COMMITTEE GIL AGUILAR SUZANNE VALENCIA ISAI BAEZA
COMPLIANCE COMMITTEE JORGE MONTES YVONNE VASQUEZ ERICKA JUÁREZ
STAFF
ABRAHAM MAFFEY, ACCOUNTANT ESTEBAN ROBLEDO, LOAN OFFICER GLADIA PACHECO, BUSINESS RELATIONS EVA RODRIGUEZ, ASSIST. EXECUTIVE DIRECTOR ELIZABETH ORELLANA-CAUDILLO, EDITOR DOMINIC MOSCHETTI, CREATIVE DIRECTOR
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I always thought there had to be another way to do “business” of investments and buying and selling properties. The way we were doing it wasn’t helping us; on the contrary, it was sinking us deeper into a hole. Banks took advantage of this situation; there had to be another way. Therefore, a thought became a dream. What if we become the bank using mechanisms that allow us to do so? This way, we would lower our churches’ interests and normalize their expenses. Doing so could, in turn, help the churches continue to expand the Kingdom of God. A church with a high mortgage is limited in what it can do for the community and the Kingdom of God, but a church freed from monthly mortgage pressure can undoubtedly do more.
THE AM QUARTERLY NEWSLETTER | 2022
In the continual analysis of the issues in front of us, I was alarmed to know that we had churches that had sold, and the money collected was put back into the banks whom we had loans with to repair, build, and expand. These transactions were bothersome. When I investigated the amount of money in question, I realized millions of dollars were in the banks. This money was then used as loans with interest, by the same banks, to allow property purchases. That was “our” money. That was the last straw that filled the glass. This was unacceptable; this was our money, money from brothers and sisters, being used to “help” buy our buildings. I truly believed we could do this through our system.
A PLAN.
I took all this to the Lord in prayer so that he could guide me and give me wisdom and knowledge. I was about to embark on a new endeavor and needed direction. Something had to change. Therefore, I shared the situation with the Members of the General Board of Directors, then Bishops, and also pastors. Some embraced the idea with joy, and others were not in agreement, as in all things. However, this idea continued to grow. We finally decided to form a commission of financial experts led by the General Treasurer, Bishop Felipe Lugo. I presented the problem in our midst, the plan with details, and I asked them to think about this idea for a month and decide whether it was feasible or out of reach. I told them not to worry about the details; we would review them later. All I was asking at this moment was, in their opinion, “Could the Apostolic Assembly reach Independence from banks and become a bank?” By this time, we had started working on a trust fund that provided loans with a maximum amount of $50k towards church repairs or any problem within their building. However, we understood this was not enough. We needed to raise the amounts, normalize loans, and lower the interest rates.
The commission of experts met, and after deliberating for several weeks, they concluded that we could achieve the dream with the proper protocols and legal counsel. Therefore, our next task was to find a lawyer with expertise in this type of entity, which is how Apostolic Mutual came to be.
A BEGINNING.
Apostolic Mutual officially began on January 16, 2018; we have not stopped since then. Presently, we have 6 million in assets and have given loans to 54 churches, leaving us with $45,000 in monthly principal and interest payments, with an annual interest income of $136,358. A 10% of the net interest earnings are set aside to aid retirement funds for our missionaries. For the glory of God, there is a projection to be the only bank used by the Apostolic Assembly in the future. Looking back at 2013, we went from having 52+ banks to only having 4, Pacific Premier, BBVA, ACCU, and our very own Apostolic Mutual. Today, Apostolic Mutual not only gives loans to churches for refinancing, remodeling, and repairs in general. It also receives investments from the churches that previously received 0.01% interest on their bank accounts. With the investment program, they receive 1.25-2.25% interest, depending on the time they leave it invested. Monies received from Flor Azul, Ministerial Credentials, Social Assistance, and churches with large sums in their accounts, through their leaders and legal settlements, are now being deposited with Apostolic Mutual receiving better dividends. It is essential to clarify and recognize that although the money moves internally, it is controlled by experts who make up the committee and mutual lawyers who support these transactions.
A LEGACY TO BE CONTINUED.
Dear brothers, my administration ends in November, and perhaps we will not see the fruit of this ministry in its entirety. Still, I am convinced that if we press forward, we will soon see revenue, a harvest like never before.
THE AM QUARTERLY NEWSLETTER | 2022
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A DREAM Now, why do we want this money, you may ask? Why do we want to earn more? As I have shared with Members of the International Board of Directors, the Committee of the Apostolic Mutual, and the Lawyers who advise us, my desire is not to increase salaries or earn more in personal gains. I believe this is why God has blessed us. This harvest is to continue the expansion of the Kingdom of God worldwide. If we keep this mindset, God will provide help and protection. I believe this is just the beginning. We can take this economic plan to the missionary field to purchase the homes where our missionaries reside. We would no longer pay yearly rent and lose money. Furthermore, we can buy the general offices and stop renting along with paying for buildings that can be ours. At the same time, we desire to assist pastors. We want pastors not to feel the pressure of high mortgage payments, which slows down the drive to advance the work of God. I want to end on this very personal note. My parents were Italian immigrants who all they did was work and work. One day when I was seven years old, I asked my dad:
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“Why do you work so much?” He answered, “So that you and your sisters do not go through what we went through.” I will never forget his response. My father is no longer with me, but his example of work ethic for his children is etched in my mind. We are working for the generation that comes after us. I want to pave an easier way for them not to rest, but so they can advance the kingdom to higher heights, so their sole purpose may be to continue bringing souls to the feet of Jesus in all parts of the world. From the bottom of my heart, I want to thank the Apostolic Mutual Committee for all your support and encouragement. I charge you in the name of the Lord Jesus that you may continue with the vision of helping the pastors across the country and missionary field, so they may continue expanding the Kingdom of God. Fraternally, Bishop, J. Fortino
LEFT TO RIGHT: ESTEBAN ROBLEDO, LOAN OFFICER, ELIZABETH ORELLANA-CAUDILLO, EDITOR, EDDIE CAMPA, EXECUTIVE DIRECTOR EVA RODRIGUEZ, ASSIST. EXECUTIVE DIRECTOR, GLADIA PACHECO, BUSINESS RELATIONS, DOMINIC MOSCHETTI, CREATIVE DIRECTOR MISSING: ABRAHAM MAFFEY, ACCOUNTANT
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THE AM QUARTERLY NEWSLETTER | 2022
APOSTOLIC MUTUAL: A VISION WITH A PURPOSE By Elizabeth Orellana-Caudillo, Editor At its heart, the dream, and purpose of Apostolic Mutual is to support churches and pastors to continue expanding the Kingdom of God and fulfilling the Great Commission by alleviating the financial pressures of overwhelming mortgage payments and high maintenance and repair costs. To God’s glory, Apostolic Mutual has made this dream, which started in 2018, a reality. Apostolic Mutual, with its team of pastors who are experts in loans, real estate, and investments, has served more than 54 churches. In addition, Apostolic Mutual counts on advisors and lawyers who form part of this committee to validate its system. Therefore, when a pastor seeks advice or assistance, they are served by pastors who care, pray, and value them as partners in ministry. This alone sets Apostolic Mutual aside from any secular bank or financial institution.
HOW DO YOU GET STARTED?
As a pastor, your financial needs will vary. However, you can learn more about the different types of loans available at our website, www.aposotolicmutual.org.
Your church may need loans for building reparation, purchasing, or refinancing. Regardless of the type of loan you seek, the first step in seeking counsel for your financial needs will be applying online for a loan.
THE PROCESS.
When a loan application is submitted, it is reviewed by our loan officer, Pastor Esteban Robledo, along with our Executive Director, Pastor Eddie Campa. There is a detailed process to ensure the application is reviewed and the pastor who applied is contacted to receive further information. Furthermore, all members of the board and committee become part of the process to ensure all information is handled with confidentiality and with the utmost respect. Our committee reaches out and provides each applicant with the next steps in the loan process and the average time for a loan to close. On average, the loan processing can take up to 2-3 months. However, it is important to know that all loans are based on different needs; therefore, time frames will differ.
THE AM QUARTERLY NEWSLETTER | 2022
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APOSTOLIC MUTUAL: A VISION WITH A PURPOSE ACCOUNTABILITY IS KEY.
Apostolic Mutual takes pride in working with our pastors and guiding them through the financial process. There are many documents that pastors will need to submit to begin a loan process; therefore, financial records, bank statements, and PNLs must be up-to-date. Some primary financial documentation that will be requested to ensure financial accountability include: 1. Last three years of financial reports 2. PNLs will need to be up-to-date 3.Bank statements (most recent 12 statements) 4. Copy of insurance policy & declaration page 5. Church Ministry Biography These are just a few of the main financial documents our accounting department will request to conduct a financial analysis to ensure financial accountability. Know that these requirements ensure the financial strength and stability of a church, and our team of expert pastors guide each applicant through the process. Knowing your loan application and information is being handled, prayed over, and reviewed by specialists in the field makes Apostolic Mutual unique from any fund If having this peace of mind is essential to you when dealing with financial matters for your church, do not hesitate to visit our website and contact us today.
THE CHALLENGE.
What started as a dream is now becoming a legacy; we hope to continue expanding the Kingdom. However, we cannot do it alone; we need YOU. Investing in our fund allows us to continue giving back to churches within the Apostolic Assembly. Here are ways you can join the coalition.
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INVEST TODAY, REAP TOMORROW.
There are different opportunities to invest. Apostolic Mutual offers IRA and CDs. Our fixed rates are competitive with that of banks. We offer different IRA (Individual Retirement Account) opportunities that allow you to accrue interest yearly. Here are some of the typical IRAs. • Traditional IRA: A Traditional IRA is an Individual Retirement Account to which you can contribute pre-tax or after-tax dollars, giving you immediate tax benefits if your contributions are taxdeductible. With a Traditional IRA, your money can grow tax-deferred. • Roth IRA: A Roth IRA is an Individual Retirement Account to which you contribute after-tax dollars. While there are no current-year tax benefits, your contributions and earnings can grow tax-free, and you can withdraw them tax and penalty-free after age 59½ and once the account has been open for five years. In addition, we offer CDs (certificates of deposit). A CD is a type of savings account with a fixed interest rate, usually higher than a regular savings account’s rate. This type of savings account offers a high-interest rate in exchange for the customer agreeing to leave a lump-sum deposit untouched for a predetermined period. As we continue the vision of the Apostolic Mutual, we are building our funding through membership. All which in return benefits OUR organization, YOU. In addition, Apostolic Mutual gives back 10% of its profits to assist in the mission field. Through IRAs and CDs, your investment goes towards the vision and mission to continue the expansion of the Kingdom, support pastors as they continue the work, and, most importantly, support our missionaries. As a joint coalition, we are paving the way for future generations to continue fulfilling the Great Commission.
THE AM QUARTERLY NEWSLETTER | 2022
MEET THE NEW MEMBERS OF THE TEAM! Eva Rodriguez, Executive Director Assistant
Apostolic Mutual welcomes Sister Eva Rodriguez. Sister Eva Rodriguez serves the Apostolic Mutual as our Executive Director Assistant. Sister Eva has served the Church in many capacities and brings her banking experience to our team, making her a great asset to Apostolic Mutual. Sister Rodriguez will be more than happy to assist you and answer your questions.
GET TO KNOW EVA RODRIGUEZ!
“I have served in various positions of leadership including President and Vice President for East Los Angeles District Ladies, National Decor Director for the Ladies, and various positions at a local level. I have had the opportunity to serve alongside my husband Daniel Rodriguez as assistant pastors, event coordinator, secretary, greeter director, and cell group leader. I have over 20 years of customer service experience. I have worked with many banks including Wells Fargo and SCE Federal Credit union as a credit agent, Proof of Deposits, and New Accounts. Currently, I am working towards my Business Administration Degree to continue serving the Kingdom with excellence! My passion has always been to serve in any capacity. My desire is to be the help I needed and still sometimes need. One of my favorite verses that reminds me as I continue to serve, “Let all you do be done with love” (1 Corinthians 16:14). May everything I do be done with love.”
Elizabeth Caudillo, Apostolic Mutual Newsletter Editor & Chief Apostolic Mutual welcomes Sister Elizabeth Caudillo. Sister Elizabeth Caudillo serves the Apostolic Mutual as editor in chief for our quarterly newsletter. Stay connected and visit our website to read our newsletter for exciting new information! GET TO KNOW ELIZABETH CAUDILLO! “I’ve been given the privilege to serve in many leadership capacities, however, I am most honored to serve alongside my husband, Hector Caudillo at Clovis Apostolic Church. Presently, I serve as the Secretary for our District Messengers of Peace after serving as President for six years, I assist in editing our National Messenger of Peace Magazine, The Messenger, and I serve in various ministries for my local congregation. I hold a BA in Liberal Studies with mathematics emphasis, STEM Master’s Degree, and I am working towards receiving my Administrative Credential. I love teaching and have been do so for 9 years. In the next few months, I will be transitioning into a new position, and I am excited for doors that are being opened. My dream is to one day open a school in my local community that serves students needs but also instills the wisdom of the Word of God in their lives. My testimony and life can be encapsulated in my favorite verse, “What if you have been chosen… for such a time as this.” (Esther 4:14). I pray the Lord may continue to use my life to further His Mission.” THE AM QUARTERLY NEWSLETTER | 2022
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APOSTOLIC MUTUAL UPDATE By Pastor Eddie Campa, Executive Director It has been an incredible year for Apostolic Mutual. As we end the third quarter of 2022, we have surpassed 6 million in assets and have become the third-largest lender to the Apostolic Assembly. I am very grateful to the Board of Directors and our Staff, who have worked diligently to help Apostolic Mutual achieve its goals. In our financial update, I would like to highlight some key statistics. INTEREST SAVINGS Apostolic Mutual currently has over $4.5 million in outstanding loans. With the current market conditions and the Federal Reserve raising interest rates to curb inflation, the interest saved from a loan with Apostolic Mutual is significant. With commercial loan interest rates nearing 6%, the Apostolic Assembly will save approximately $40,000 a year and about $400,000 over ten years with the current loans that Apostolic Mutual services. SAVINGS BASED ON DIFFERENT RATES Commercial Rates Apostolic Mutual Rates Interest Savings in 10 Years 6.0% 4.5% $406,220.00 6.5% 4.5% $545,302.00 7.0% 4.5% $686,201.00 *Calculations by Pastor Jorge Lopez GROWTH THROUGH INVESTMENTS The ability to lend funds to churches is made possible through the 5% contributions from the Districts and the General Fund, as well as the deposits made by our investors. In 2022, Apostolic Mutual (AM) had over $3 million in deposits by investors who are earning anywhere between 1.25% to 2.25% in interest. Our investment program has grown by 50% in the last twelve months. IMPROVING OUR TECHNOLOGY With the current growth we have experienced, we are upgrading our systems to assist our churches and investors better. Our new system allows borrowers and investors to access their accounts online to review their balances and obtain statements. Lord willing, this will be implemented by December 2022. We look for more opportunities to improve our services as we move forward. During the transition into the Next Generation System, there may be a temporary pause in our investing program until the start of the following year. However, we look forward to offering a new promotional rate to usher in 2023. May the Lord continue to bless you and your local congregations as we unite to build the Kingdom of God.
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THE AM QUARTERLY NEWSLETTER | 2022
APOSTOLIC MUTUAL INDIVIDUAL RETIREMENT ACCOUNT
BECAUSE YOUR FAMILY IS WORTH EVERY PENNY! Whether you’re just starting to think about retirement or have already built up your nest egg, an Apostolic Mutual Individual Retirement Account (IRA) ensures that your money will be there when you need it most. IRA CERTIFICATE An IRA is also a smart supplement to an existing pension or employer-sposored retirement plan. • You only need $1,000 to open an IRA Certificate*. • You can invest in Traditional & Roth, or more IRA certificates. • You will benefit from compounding interest.
FREQUENTLY ASKED QUESTIONS
What is a SEP IRA? A direct tax benefit for either the 1040 tax return or the corporate 1120 return Contribution limits apply (limitations adjusted annually) MAXIMUM: Up to 25% of annual income not to exceed $58,000 / MINIMUM: $1,000
What is a Roth IRA? No tax benefit on the 1040 tax return No income limitations (limitations adjusted annually) MAXIMUM: $6,000 (below age 50) / $7,000 (age 50 or older) / MINIMUM: $1,000
What is a Simple IRA? Small business owners with employees Employees can retain employer-matched contributions without vesting MAXIMUM: $13,500 (below age 50) / $16,500 (Workers aged 50 or older) / MINIMUM: $1,000
What is a Traditional IRA? A direct tax benefit on the 1040 tax return Contribution and income limits apply (limitations adjusted annually) MAXIMUM: $6,000 (below age 50) / $7,000 (age 50 or older) / MINIMUM: $1,000
What is an Education Savings Account? ESA can be used for college and TK-12 educational expenses Income and age limitations apply MAXIMUM: $2,000 per year / MINIMUM: $1,000
Is a self-directed IRA secure? Under this non-traditional method, there is minimal risk Funds are secured through current real estate holdings
For answers to additional questions, please contact us at: 909-987-3013 THE AM QUARTERLY NEWSLETTER | 2022
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TO VIEW BACK ISSUES OF THE AM QUARTERLY NEWSLETTER VISIT: WWW.APOSTOLICMUTUAL.ORG
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THE AM QUARTERLY NEWSLETTER | 2022