Archive Links

Consumer Archive
CU System Archive
Market Archive
Products Archive
Washington Archive

News Now

Washington
Treasury urged to investigate potential mortgage fraud
WASHINGTON (12/28/09)--The Credit Union National Association (CUNA) on Wednesday encouraged U.S. Department of the Treasury General Counsel George Madison to “undertake an expeditious investigation into a troubling matter that involves the fraudulent conveyances of residential mortgage loans to the Federal National Mortgage Association (FNMA).” The letter, which was also sent to Sen. Charles Schumer (D-N.Y.), Rep. Barney Frank (D-Mass.), Rep. Paul Kanjorski (D-Pa.), National Credit Union Administration (NCUA) Chairman Debbie Matz, Treasury Assistant Secretary for Financial Institutions Michael Barr, and Federal Housing Finance Agency (FHFA) Acting Director Ed DeMarco, said that FNMA “has not handled” this potential fraud situation “in a manner that is appropriate for the federal government,” adding that the FHFA has not required FNMA to take any action. CU National/U.S. Mortgage, a third party mortgage processing specialist that purchased many loans originated by credit unions, “defrauded at least 26 credit unions” over a number of years “by conveying the loans to FNMA without the authorization of the credit union and retaining the proceeds.” CU National, which filed for bankruptcy in February and whose former CEO is awaiting sentencing after being found guilty of embezzlement, was a FNMA seller/servicer. While FNMA continues to hold these proceeds, CUNA said that “FNMA has not offered, nor has the FHFA required them to offer, a settlement” to defrauded credit unions that may be currently facing “severe prompt corrective action sanctions (PCA) from NCUA as a result of the losses.” The lack of a financial resolution may also create issues for the NCUA, as the agency may be required to draw funds from its National Credit Union Share Insurance Fund “if the affected credit unions are subject to harsh PCA sanctions as a result of their FNMA losses, NCUA may need to draw upon the to deal with the losses,” CUNA added.


RSS print
News Now LiveWire
Today's the last day to complete @CUNA's Home Depot data breach survey http://t.co/UcB8G9bVXe #StoptheDataBreaches
39 minutes ago
Brenda Davis of Cross Roads Ministries will walk through 83 communities during the Ending Hunger Walking tour. (2 of 2)
1 hours ago
The Ending Hunger Walking tour, coordinated by the Maine CU League, kicked off at Old Maine CU in Augusta today. (1 of 2)
1 hours ago
Darwin Brokke of Citizens Community CU represented the #CU Association of Dakotas at a housing summit hosted by @SenatorHeitkamp
1 hours ago
.@TheNCUA says its employees report high job satisfaction in the 2014 Federal Employee Viewpoint Survey. http://t.co/1nLUwrEqnA
3 hours ago