Acting Commissioner Gary Mielock, Michigan Financial Institutions Bureau (FIB), has suspended Quality Mortgage Corporation's license to conduct brokering/lending activities, and issued a Cease and Desist Order against its officers, directors, employees, and agents, including Dennis Lysek. The company was also issued a Notice of Opportunity for Administrative Hearing, as required by due process requirements of Michigan law. The summary suspension was effective upon its service November 22, 1999, and continues pending a hearing.

Quality Mortgage Corporation is located at 8061 21 Mile Road, Utica, Michigan.

"I acted to immediately suspend this company's license because the alleged practices of Quality Mortgage constitute an imminent threat of financial loss and a threat to the welfare of Michigan's citizens," said Acting Commissioner Mielock.

The orders and the required notice were issued in response to a sworn petition filed by senior staff from FIB's examination division. The staff investigators charge that Quality Mortgage Corporation engaged in a pattern of fraud, deceit, and misrepresentation in connection with its licensed activities under the Mortgage Brokers, Lenders, and Servicers Licensing Act and the Secondary Mortgage Loan Act.

It is alleged that Quality Mortgage deposited checks made payable to borrowers to its own bank account, failed to forward monies owed to borrowers on a timely basis, and failed to have sufficient funds to pay monies owed to borrowers. These actions, if true, could result in borrowers being required to repay monies owed on a loan not received. Failure to repay the loan could result in the borrower losing his or her home.

The Financial Institutions Bureau is the primary regulator of Michigan's state-chartered banks, credit unions, and over 5000 other licensed lenders. The bureau is 100% fee-funded, requiring no public tax dollars for its supervisory, regulatory, licensing, or enforcement activities. FIB is an agency within Michigan's Department of Consumer & Industry Services.