OFIR Places Wixom Mortgage Servicer Northwestern Financial into Conservatorship

June 9, 2009

by Michigan RealEstateRama

LANSING, MI – June 9, 2009 – (RealEstateRama) — Office of Financial and Insurance Regulation (OFIR) Commissioner Ken Ross has placed Northwestern Financial Corporation into conservatorship and named OFIR Director of Receiverships James Gerber as conservator. The Commissioner also directed that the company cease and desist from doing business.

Northwestern is a small Wixom mortgage company which serviced 156 mortgages in Michigan as of December 31, 2008. The Commissioner’s actions were prompted by the agency’s discovery that Northwestern was improperly servicing its mortgages.

The order allows the conservator to operate Northwestern and stabilize the company’s mortgage servicing operations.

“Our examiners found that Northwestern Financial failed to service these loans in accordance with the servicing contracts, so we shut them down,” Ross said. “Consumers should continue to make their payments as usual.”

Northwestern customers will be notified in writing of OFIR’s actions and provided details on how they can obtain additional information. Customers with concerns or questions about their accounts can call OFIR toll-free at 877-999-6442.

This is the first time OFIR has placed a mortgage company into conservatorship since 1999.

To view the Commissioner’s order placing Northwestern Financial Corporation into conservatorship, visit: http://www.michigan.gov/documents/dleg/Northwestern_Financial_Corp._-_Order_Appointing_Conservator_281775_7.pdf

Contact: Jason Moon 517-335-1700