Michigan Firm Joins Chicago-based iCap

"Our firm dates back 40 years," Lutz told GlobeSt.com. "We were a pioneer inmortgage banking, as it grew from a local community activity and moved intonational and international formations of conduits where Wall Street andother firms got more involved in commercial real estate."

Conduit financing may serve as the capitalization linchpin for commercialreal estate development programs and new business ventures sponsored byproprietary and nonprofit sponsors and promoters.Lutz said his son Adam worked for Nomura Securites and Deutsche Bank beforejoining his father's company.

"Adam recognized that since lending has become global, the servicingcompanies themselves should become global," said Eric Lutz. "He suggested wepursue iCap based on that it has 11 member partners and loaned $3 billionlast year."

So Adam helped the Lutz firm become iCap of Michigan, said Eric Lutz."We're the first local mortgage banking firm that iCap admitted as a partnersince its own formation."

iCap provides intermediary broking service to commercial banks, investmentbanks and other "liquidity providers" in the wholesale financial markets.The company is the largest operator of "liquidity pools" in these markets.Lutz said by joining iCap, his company has access to 70 national lenders.

"We'll be able to offer Southast Michigan borrowers a wider range of lendersand loans on terms and conditions more favorable than before, simply by thesake of the tremendous volume of our new company," Lutz said.

He said rather than doing business with a regional officer, Icap is able tocommand attention of president of lending institutions.He also said the company paid a fee to join the national firm, and is also payingfor a portion of Icap's expenses. He would not reveal the amount paid.The principals at iCap could not be reached for comment.