Tag Archives: National Credit Union Association

The National Credit Union Administration (NCUA) announced the closing of U.S. Central Bridge Corporate Federal Credit Union (U.S. Central Bridge). The closing comes after three years of efforts to stabilize the corporate credit union sector, the agency stated in a release Monday.

The National Credit Union Administration (NCUA) selected Gail Laster to lead as the director of the Office of Consumer Protection, a senior management position within the agency.

Another major bank took a hit as the National Credit Union Administration (NCUA) filed a lawsuit against Credit Suisse Securities over the sale of faulty mortgage-backed securities (MBS). Credit Suisse isn't the only one that's been targeted by NCUA-the administration has also gone after JPMorgan Securities, Goldman Sachs, Wachovia, and Barclay's, to name a few.

Credit unions found reason to celebrate recently, with the National Credit Union Administration revealing that unions saw their biggest quarterly push in lending since fall 2008. According to the report, released on Friday, credit unions signed off on $581.7 billion in outstanding total loans over the second quarter. The uptick marks the fifth straight quarterly increase for total loans and helped credit unions originate 1.7 percent more home loans from the quarter before.

Higher-risk mortgage loans may have a new set of rules to go by when it comes to appraisals. A proposed rule from six federal agencies would set out new requirements when conducting appriasals for higher risk mortgages. For example, the rule would require creditors to use a licensed or certified appraiser when preparing reports based on the physical inspection of a property.

The Federal District Court in Kansas denied the most motions from defendants to dismiss the National Credit Union Administration (NCUA) lawsuits over losses from mortgage-backed securities purchased by U.S. Central Federal Credit Union. NCUA Board Chairman Debbie Matz commented on the decision and stating, NCUA is pleased that the court recognized the central merits of our complaints and allowed the cases to move forward.

The National Credit Union Association (NCUA) has reached settlements with Citigroup and Deutsche Bank Securities regarding residential mortgage-backed securities sales to five wholesale credit unions that have recently failed. Citigroup agreed to pay $20.5 million, and Deutsche Bank agreed to pay $145 million to help lessen the losses incurred when the five credit unions failed. Neither bank admitted to fault when agreeing to the settlement. Total losses incurred from the five credit union failures stand at $3.3 billion, according to the NCUA.

The National Credit Union Administration (NCUA) is suing Goldman Sachs in hopes of recovering losses it incurred as the result of two failed credit unions - U.S. Central and Western Corporate federal credit unions. The complaint filed in a California district court alleges Goldman Sachs misrepresented the risks associated with residential mortgage-backed securities bought by the two credit unions, ultimately leading to their demise. It's the fourth securities-related suit NCUA has filed, and the agency says there's more to come.

Reverse mortgage businesses accounted for a bigger share of industry casualties during the first half of 2011. Data released Tuesday shows that three lenders, which together made up 46 percent of the market for FHA's reverse mortgage program, called it quits earlier this year. The study noted that one factor impacting the dwindling sector is the possibility that borrowers will miss insurance or tax payments, which can trigger default on federally insured loans.

Another lawsuit centered around mortgage securities backed by faulty loans may be brewing. The National Credit Union Administration (NCUA) has threatened to sue four banks and investment firms unless they refund more than $50 billion for mortgage-related bonds that went bad. Goldman Sachs, Bank of America's Merrill Lynch unit, Citigroup, and J.P. Morgan Chase are named as the targets of NCUA's legal threats. The regulator says mortgage securities sold by these companies led to the collapse of five wholesale credit unions.