Filed under Rule 424(b)(3)
Registration No. 333-4837
SUPPLEMENT NO. 3
To Prospectus dated June 12, 1996
MCA FINANCIAL CORP.
$6,000,000
11% Subordinated Debentures,
Series 1996, Due June 30, 2002
This Supplement No. 3 updates the Prospectus dated June 12, 1996
(the "Prospectus"). The information contained in this Supplement No. 3 is
incorporated by reference into the Prospectus. Capitalized terms used
herein and not otherwise defined have the meanings ascribed to them in the
Prospectus.
The following supersedes information appearing in the Prospectus and
Supplements thereto:
USE OF PROCEEDS
The Company intends to use the net proceeds from the Offering to
redeem the principal amount of its 1992 Debentures which remain outstanding
after the Exchange Offer (up to $4.92 million), which bear an annual
interest rate of 11% and mature on March 15, 1997, and for general corporate
purposes, which includes providing advances to its subsidiaries and certain
of its affiliates, as well as the possible acquisition of mortgage servicing
rights and business of one or more unaffiliated mortgage companies. The
broker-dealers and selling agents participating in the sale of Series 1996
Debentures through the Exchange Offer or through a direct sale will be paid
the same commission. Participating broker-dealers and selling agents will
be paid a commission of 6.5%, provided, however, that if a broker-dealer or
selling agent sells $250,000 or more of the Series 1996 Debentures it will
be paid a commission of 7.0% on all sales, and if a broker-dealer or selling
agent sells $500,000 or more of the Series 1996 Debentures it will be paid a
commission of 8.0% on all sales.
The following is additional information which updates the Prospectus:
PLAN OF DISTRIBUTION
In addition to the participating NASD members identified in the
Prospectus, the Company has appointed Magellan Securities, Inc., a member of
the NASD, to act as an additional selling agent in the Offering on a "best
efforts" basis.
The date of this Supplement No. 3 is March 6, 1997.
