A management shakeup at Central States Mortgage has resulted in the abrupt departure of company founder and former chief executive officer Richard “Dick” Jungen.
Jungen founded the company in 1984.
The Wauwatosa company’s board of directors has promoted Craig Lester as president and acting CEO. Lester previously served as executive vice president.
Both Lester and Rich Koenig, chairman of Central States and CEO of Milwaukee Metropolitan Credit Union in Cudahy, said Jungen made the decision to retire.
“This was a conscious decision on his part,” Lester said.
Koenig said Jungen was not forced out of Central States Mortgage. He elected to retire, and the board of directors agreed with his decision.
“We’re going in a new direction with younger management,” Koenig said. “Dick decided that it was time.”
The shakeup also resulted in the departure of chief financial officer Jerry Poehnelt and the re-assignment of Jungen’s wife, Elaine, from president to vice president.
Neither Richard Jungen nor Elaine Jungen returned calls seeking comment for this report.
Koenig said Elaine Jungen’s new position was not a demotion, but a reflection of the company’s new operating structure.
“Craig is the president and acting CEO,” Koenig said. “We are doing a national search (for a permanent CEO) and Craig is in the running for that. This is a new day, new times and we’ve decided to take the company in a new direction.”
Sources said several other key personnel have left Central States Mortgage.
However, Koenig said that is not the case, and that Dick Jungen is the only high level person to leave the company recently.
Central States Mortgage is a credit union service organization (CUSO). The company provides mortgage banking for credit unions.
A majority share of the company is owned by a coalition of 25 credit unions.
The Central State Mortgage board of directors is led by chairman Rich Koenig, president and chief executive officer of Milwaukee Metropolitan Credit Union in Cudahy, and president Dean Wilson, president of Focus Credit Union in Wauwatosa
Central States Mortgage has about 200 employees total, between its title, mortgage origination and Home Sale Realty divisions, Koenig said. Its originating volume has stayed steady at between $40 million and $50 million per month.
“Our margins are a little weaker because of competition – everybody is waiving fees,” he said. “But we’ve been able to stay focused. It’s been a great time for all of us.”
