Met Mortgage Chair/CEO Resigns

C. Paul Sandifur Jr. has resigned as chairman, president, and chief executive of Metropolitan Mortgage & Securities Inc., Spokane, Wash., citing a desire to help the company put recent controversies behind it.Metropolitan is in a fight for survival as a going entity. Investors in securities issued by the company and one of its affiliates have filed a class action lawsuit, and the company's auditor, Ernst & Young, has resigned because it said it could no longer rely on the representations of management. Moreover, the Securities and Exchange Commission has started an informal inquiry. In a statement, Mr. Sandifur said Metropolitan "is entering a crucial stage, and I offered my resignation in an effort to try to put the distractions and controversies of the past year behind us." He remains a member of the company's board. Replacing Mr. Sandifur as acting chairman, president, and CEO is Irv Marcus. Mr. Marcus is a former officer of the company, most recently in 1995 when he retired as senior vice president.