FOR IMMEDIATE RELEASE: November 22, 1996

Commissioner Patrick M. McQueen of the Michigan Financial Institutions Bureau suspended the mortgage broker and lender license of 20th Century Financial Corp., doing business as 21st Century Financial Corporation, 1400 Woodward Avenue, Bloomfield Hills, Michigan. McQueen issued an Order for Summary Suspension coupled with a Cease and Desist Order and a Notice of Opportunity to Request a Hearing in response to a petition by the staff. The order was served on the company on November 20 and became effective upon service.

The Financial Institutions Bureau staff petition alleged that 20th Century Financial was systematically engaging in fraud and misrepresentation and had violated its fiduciary responsibilities on mortgage loan transactions. Staff petition further alleged that the fraudulent activities of 20th Century Financial resulted in substantial financial losses to homeowners and banks which were funding loans for the company. Additionally, staff alleged that the company refused to grant unfettered access to company books and records and took steps to frustrate the efforts of staff to conduct a full investigation.

Financial Institutions Deputy Commissioner Murray Brown filed a sworn statement alleging that 20th Century Financial defrauded consumers and banks by assigning mortgages on the same residential properties to multiple parties, and by forging or altering mortgage documents. The affidavit indicated that such practices constituted an imminent threat of financial loss to the citizens of the state and an imminent threat to the public welfare.

In explaining the enforcement action, Commissioner McQueen stated that the imminent threat as alleged in the sworn statement of staff required "emergency action" to suspend the license of 20th Century Financial. The company will have an opportunity to request a hearing on the suspension and the cease and desist order.