The Wisconsin Division of Banking Tuesday called the abrupt closing of Central States Mortgage Co., the Milwaukee CUSO, discomforting and "extremely unusual" for an operation its size.
"Right now we're trying to contact the leading figure but so far we've had no response," said Michael Mach, administrator of a division which regulates mortgage brokers. Mach said he was referring to Dean Wilson, the chairman of Central States and the president/CEO of Focus CU of Wauwatosa.
Mach said his office learned about the suspended operations following media reports of the firm informing its 220 employees Monday morning it was closing shop. A note was attached to CSMC headquarters with Wilson appearing briefly to explain the closing as "necessary." CMSC has been party to a bitter and long-running litigation involving former managers ousted last year.
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Mach said Sue Cowan, the state's top CU regulator, was out of town and unavailable for comment.
"CSMC has a license from this division but it was not surrendered and so I really don't know what is going but we are trying to find out," said Mach.
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