Tag Archives: NCUA

NCUA's complaint deals with credit unions U.S. Central, WesCorp, Members United, Southwest, and Constitution, all of which were involved in the purchase of $140 billion in RMBS between 2004 and 2007 and all of which closed after those securities lost value.

The CFPB's mortgage servicing standards--including the Qualified Mortgage (QM) definition and the Ability-to-Repay rule--take effect in less than 90 days. Some bankers have indicated they might limit their offerings to only QM products as the transition is made, and many are concerned that as a result, their operations may run counter to the Equal Credit and Opportunity Act, implemented by the Federal Reserve's Regulation B. Those fears, however, are unfounded, regulators say.

The National Credit Union Administration (NCUA) filed its 10th action against a major Wall Street investment firm--this time, the defendant is JPMorgan Securities. NCUA's suit, which was filed in Federal District Court in Kansas, revolves around mortgage-backed securities (MBS) underwritten and sold by Washington Mutual Bank (WaMu), which was acquired by JPMorgan in 2008 following its collapse.

The National Credit Union Administration (NCUA) announced Monday it has filed suit against JPMorgan Securities and Bear Stearns over allegations of falsely representing the quality of mortgage-backed securities (MBS) sold to corporate credit unions. At $3.6 billion, the legal action is the largest suit ever filed by the NCUA. According to the agency, Bear Stearns (purchased in 2008 by JP Morgan) misrepresented the underwriting standards of loans in securities sold to U.S. Central, Western Corporate, Southwest Corporate, and Members United Corporate. The four credit unions became insolvent and were placed into NCUA conservatorship and liquidated.

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) filed suit Tuesday against Barclay's Capital, Inc. The suit, which was filed in Federal District Court in Kansas, alleges that Barclay's misrepresented mortgage-backed securities it sold to U.S. Central Federal Credit Union (US Central) and Western Corporate Federal Credit Union (WesCorp).

The National Credit Union Administration (NCUA) is suing the global investment firm UBS Securities for allegedly falsely representing the level of risk associated with mortgage-backed securities (MBS) the firm sold to two federal credit unions. According to NCUA officials, the defaults and losses that resulted directly contributed to the collapse of both credit unions. The case against UBS marks the sixth outstanding suit brought by NCUA against securities issuers. The agency has settled similar claims worth more than $170 million with three securities issuers.

The Consumer Financial Protection Bureau, the Board of Governors of the Federal Reserve System, the FDIC, the National Credit Union Administration, and the Office of the Comptroller of the Currency today released a Memorandum of Understanding (MOU) to clarify how they will coordinate their supervisory activities.

State and federal regulators stepped in to shut down five lenders over the weekend, including one New York-based credit union and four FDIC-insured institutions - two in Tennessee and one each in Florida and Minnesota. Eastern New York Federal Credit Union in Napanoch, New York, is the first federally insured credit union to be liquidated in 2012, while the FDIC's failed-bank tally for the 2012 calendar year now stands at seven.

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.