| FOR IMMEDIATE RELEASE: September 9, 1998
Commissioner Patrick M. McQueen of the Michigan Financial Institutions
Bureau announced that Mortgage Sources, Inc. of Birmingham, Michigan,
has agreed to unwind their business within 45 days as a result of
administrative action taken by the Bureau.
Commissioner McQueen had issued an Order on August 3, 1998, denying
Mortgage Sources application for licensure under the Mortgage Brokers,
Lenders, and Servicers Licensing Act and revoking the company's
Secondary Mortgage Act license. As a result, Mortgage Sources is
without authority to conduct business under either act and has been
ordered to cease operating in violation of the Mortgage Brokers,
Lenders, and Servicers Licensing Act.
Mortgage Sources, owned by Mel Durbin, has paid $15,000 in civil
penalties. Other principals, agents, and employees named in the
Order include Michael E. Cauley, Renee Fortin, Anne E. Melone, and
Ken Paskiewicz.
The license revocation resulted from an investigation conducted
by the Financial Institutions Bureau. The FIB staff investigation
led to charges that principals, agents, and employees of Mortgage
Sources, Inc. engaged in fraud and misrepresentation by falsifying
loan applicant's income and employment information in order to obtain
loan approvals for borrowers. The Commissioner found that Mortgage
Sources knowingly, or without the exercise of due care, violated
the act.
The company has been granted 45 days to close the loans in process
and liquidate its operation.
The Michigan Financial Institutions Bureau is the primary regulator
of Michigan's state-chartered banks, credit unions, savings banks,
and over 4000 other licensed lenders.
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