NCUA: FCUs May Process Loans For Other CUs
ALEXANDRIA, Va.-NCUA said a federal credit union may provide residential mortgage loan processing and servicing to other credit unions under its incidental powers rules.
Under a proposal approved by NCUA, a larger credit union is planning to service and process mortgages for a number of smaller credit unions which would fund and close the loans to their members. After the loan closing, the larger credit union would purchase the loan from the smaller credit union and sell it to Freddie Mac, with the larger credit union retaining the servicing rights.
"We conclude this would be permissible as a correspondent service and note, as required for all incidental powers activities, FCUs must comply with any applicable NCUA regulations, policies, and legal opinions, as well as state and federal law applicable to the activity," NCUA said in its opinion.
The opinion was provided to Bill Donovan, an attorney with the Washington law firm Venable LLP.
Polish & Slavic Expands Into Chicago Market
CHICAGO-Polish & Slavic FCU is expanding its footprint with the opening of two branches here, the $1.2-billion credit union's first offices outside its core New York and New Jersey market. The branches are located in the suburbs of Mt. Prospect and Norridge. The two new outlets bring to 14 PSFCU's total number of branches, four of which have opened in the past two years.
Partners FCU To Close Ops Center, Consolidate Work
BURBANK, Calif.-Partners FCU, which serves Walt Disney Co. employees, announced it is closing its Anaheim operations center and consolidating the work in Burbank and Orlando over the next six months.
The $900 million credit union's branches in Orange County will remain open. Partners is the result of a 2008 merger of Disney's two main credit unions, Partners FCU and Vista FCU.
Prohibition Orders Are Issued
ALEXANDRIA, Va.-NCUA has issued orders prohibiting 10 individuals from participating in the affairs of any federally insured financial institution.
Among those who consented to the prohibition without admitting or denying fault were:
* Brenda Alexander, a former employee of the merged TRICARE FCU, Newark, N.J.
* Steven Pennington, a former manager of the merged First Future CU, San Diego.
* Ana Santana, a former employee of the merged TRICARE FCU, Newark, N.J.
* Henry L. Slootmaker, a former employee of Peoples First Choice FCU, Glen Rock, N.J.
Other prohibition orders included:
* Becky Joyce Hughes, a former employee of Wiregrass FCU, Dothan, Ala., who was convicted of misapplication of credit union funds and sentenced to 15 months in prison, five years supervised probation and ordered to pay $138,318 in restitution.
* Charice Kaahanui, a former employee of Leahi FCU, Honolulu, Hawaii, who was convicted of bank fraud and sentenced to 14 months in prison, five years supervised release, and ordered to pay $26,980 in restitution.
* Steven Long, formerly of Citizens FCU, Midland, Texas, was convicted of theft and ordered to pay $3,200 in restitution.
* Crystal L. Smith, a former employee of Bluegrass Community FCU, Ashland, Ky., was convicted of unauthorized use of an access device with intent to defraud. Smith was sentenced to 57 months imprisonment; five years supervised probation and ordered to pay $178,709 in restitution.
* Emily Vanterpool-Charles, a former employee of St. Thomas FCU, St. Thomas, US Virgin Islands, was convicted of embezzlement and ordered to serve two years in prison, with all but six months suspended, and placed on supervised probation for two years.
* Betty Lee Wing, former vice chairman of New England Lee FCU, Boston, Mass., was convicted of larceny and filing false reports in relation to employment at the Massachusetts Department of Public Safety.
Dea Named CEO At LAFCU
LOS ANGELES-Los Angeles FCU said has named John Dea, its chief operating officer the past 16 years, as named president and CEO of the $700-million CU. Dea will succeed Steve McDiffett, who is retiring after running the LAFCU for more than 30 years.
The credit union hired Anthony Cuevas, COO at LA Financial FCU, to succeed Dea.
LA FCU reported a $2.6-million loss for the first three quarters of 2009, including a $1.7 million operating loss (also an $890,000 charge for the corporate credit union bailout). It has not yet filed its fourth quarter report with NCUA.
