Metropolitan Mortgage & Securities Co., Inc.
                                   AGREEMENT

      Agreement dated June 24, 1997, between Metropolitan Mortgage &
Securities Co., Inc., hereinafter referred to as Company, and Jon P. McCreary,
hereinafter referred to as Employee.  Company and Employee mutually agree on
the terms and conditions set forth below.

1.    Term of agreement.  Subject to the provisions for employment at will
      stated in paragraph 8 below, as stated in Company policies, and as
      agreed to in his employment confirmation letter signed on September 10,
      1993, incorporated herein, this agreement will begin on June 1, 1997,
      and will end on May 31, 2002.

2.    Deferred Compensation.  If Employee is employed continuously until the
      end of the agreement period, he shall be entitled to receive
      $250,000.00, without interest, provided that Company remains solvent.
      Within 30 days of the end of the agreement period, Employee will receive
      full payment of the deferred compensation.  Other payment arrangements
      may be made if agreed to between Company and Employee in writing at
      least 90 days prior to the end of the term of the agreement.  Both
      parties recognize that the payment(s)  are, according to IRS rulings,
      subject to Federal Insurance Contribution Act (FICA) and Federal Income
      Tax (IRS) withholding and, therefore, Company will withhold applicable
      FICA and IRS contributions when making payment(s) to Employee and will
      also contribute the appropriate amount itself for its share of FICA
      payments.

3.    Employee to devote full-time to Company.  Employee will devote his
      entire working time, attention, and energies to the business of Company,
      and, during employment, will not engage in any other business activity,
      regardless of whether such activity is pursued for profit, gain, or
      other pecuniary advantage.  However, Employee is not prohibited from
      making personal investments in any other business, as long as those
      investments do not require participation in the operation of the
      businesses.

4.    Restriction on post-employment competition.  For two years following the
      end of his employment, Employee will not,

<PAGE>  123

 within the United States of America, own, manage, operate, control or be
      employed by or assist any business similar to that conducted by Company
      and its business groups.  Employee also agrees not to solicit Company's
      employees or its customers for employment  or sales purposes. Company
      may, without waiving the protections of this provision, grant Employee
      the right to engage in business otherwise barred by this provision.  Any
      such permission must be in writing and approved by an authorized
      representative of Company in order to be effective.   If Employee
      violates the terms of this restriction, Employer shall be relieved from
      the duty to make payments under paragraph two of this agreement, and if
      Employee has already received payment, Company shall be entitled to
      receive a full refund of payment, including associated attorney and
      court fees to recover payment.   Employee acknowledges that a violation
      of the restrictions of this paragraph will cause economic damage to
      Company, including damages that are difficult to ascertain with
      certainty.  Employee therefore agrees that, in the event he violates the
      restrictions of this provision, Company shall be entitled to seek
      injunctive relief to prevent further violations  and will also be
      entitled the recover $10,000.00 as liquidated damages for each violation
      of this provision of the agreement.

5.    Confidentiality.  Employee acknowledges that, during the course of his
      employment, he will become aware of confidential business information,
      including trade secrets, that are not generally known to the public and
      which have commercial value from their limited publication.  Employee
      will not, at any time, during or after his employment with Company,
      reveal any such confidential information or trade secrets to any person,
      or use such confidential information, except as required in the course
      of his duties with Company or at Company's request and direction.

6.    Property rights.  All materials, products, processes, and ideas
      developed, established, used, or marketed during the course of the
      employment contract will be the property of Company and its business
      groups.

7.    Death benefit.  In the event  Employee dies during the term of the
      agreement, Company will pay to Employee's estate or beneficiary a pro-
      rated amount of the deferred compensation rounded to the nearest month
      of Employee's death.  In the event Employee dies following the term of
      agreement, but before the completion of payment(s), Company will
      continue payment(s) to Employee's estate or beneficiary.


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8.    Termination of Agreement.  The agreement between Company and Employee
      will become null and void, if Employee violates the terms and conditions
      of this agreement.  The agreement between Company and Employee will also
      become null and void, if Employee is discharged for cause which
      includes, but is not limited to, gross misconduct or gross mismanagement
      of the business of Company, insubordination, repeated failure to meet
      the expectations of her supervisor, violation of existing Company
      policies or hereafter as amended and adopted, and willful falsification
      of any information that Employee gives to any officer or director of
      Company.   Employee's intentional violation of any federal, state, or
      local law or regulation, determination by a court of competent
      jurisdiction that Employee is prohibited for any reason from performing
      Employee's duties under this agreement, and any fraud, theft, or
      dishonesty by Employee adversely affecting Company, or its business
      groups, or its respective directors, officers or shareholders, shall
      also constitute cause for termination.
      
      If Employee's employment is terminated by the employee (resignation or
      abandonment of job), or if he is terminated by Company for cause,
      Company shall be relieved from the duty to make payment under paragraph
      two of this agreement.

      In the event Company terminates Employee at its own convenience,
      Employee will receive a pro-rated amount of the deferred compensation.
      The specific amount will be rounded to the nearest month.
      
9.    This contract may not be assigned.  Any waiver of a portion of this
      contract by either party shall not constitute a waiver of any other
      portion of the contract, nor shall a failure to seek redress for a
      breach of the contract constitute a waiver of the right to enforce any
      other portion of the contract.

10.   Law and Venue.  This contract is to be construed in accordance with the
      laws of the State of Washington.  Any legal action to enforce this
      contract or for breach of this contract, shall be filed in the Superior
      Court of Spokane County, Washington.  Both parties hereby consent to
      jurisdiction and venue in that court.

11.   Severability.  If any provision of this contract shall be found to be
      unenforceable, all other provisions shall remain in effect as if the
      unenforceable provision had never  been included in the contract at all.


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12.   Entire agreement.  This agreement supersedes and replaces all prior
      discussions, understandings, and oral agreements between the parties and
      contains the entire understanding and agreement between them on the
      matters set forth herein.  Moreover, this agreement cannot be modified
      by the parties except by an instrument that is signed by the party or
      parties against whom such modification is sought to be enforced.

IN WITNESS WHEREOF, the parties have caused this agreement to be signed and
validly executed to be effective as of the date set forth above.

Metropolitan Mortgage & Securities Co., Inc.

      /s/ C. PAUL SANDIFUR

      ____________________________________
      C. Paul Sandifur, President and CEO

      /s/ JON P. McCREARY

      ______________________________________
      Jon P. McCreary