October Sees Nearly 85K In Home Foreclosures
NEW YORK-Some 84,868 homes were lost to foreclosure during October, a 5% increase over September and a 25% increase over one year earlier, according to data released by RealtyTrac. In addition, 279,561 borrowers received foreclosure filings, including default notices, notices of auction sales and bank repossessions last month.
RealtyTrac said October marked the 34th consecutive month where U.S. foreclosure activity has increased compared to the prior year. Since August 2007, 936,439 homes have been lost to foreclosure. Separately, the Case-Shiller index shows that in 20 major U.S. markets home prices have declined 16.6% over one year earlier.
North Carolina CU Bids To Prop Up Municipal Funding
RALEIGH, N.C.-Local Government FCU launched an initiative at boosting the local credit markets with a pledge to buy up to $50 million in bonds issued by municipalities and local governments.
"With the credit crisis and everything else going on with the economy right now we're seeing investors sitting on the sidelines," said Maurice Smith, CEO of the $840-million credit union. "We are the credit union for municipalities and local governments so we thought this is something we can do about."
By making the pledge and going public with it, Smith said they hope to spur other public investors in the market. He has also called on other North Carolina CUs to join the effort. The initiative is the second launched in recent months by a credit union to help add liquidity to the state's finance. Last summer North Carolina State Employees CU agreed to buy $1.1 billion in bonds from College Foundation, Inc., a state agency that provides funding for federally guaranteed student loans.
North Carolina CUs have been relatively unscathed by the economic turmoil. Both Local Government and SECU reported strong financials for the first three quarters. Local Government had $4.6 million in net income and SECU $92.6 million in net income for the first nine months. But the state and its municipal governments have been impacted by the credit crunch and are having difficulty raising money to finance operations.
Waived MBLs Fees Not Penalties
ALEXANDRIA, Va.-NCUA said a federal credit union may recoup waived settlement costs and fees associated with making a member business loan without it being considered a prohibited prepayment penalty.
In a new legal opinion, NCUA said the recoupment period should be disclosed to the borrower and should be no longer that "that reasonably necessary to offset expenses associated with waived fees." NCUA bars federal CUs from charging prepayment penalties for all types of loans.
CU Adds GoodMoney Payday Loans
SUPERIOR, Wis.-Superior Choice CU has licensed the GoodMoney payday loan program created by Prospera CU.
Superior Choice has partnered with LSS Financial Counseling, a division of Lutheran Social Services of Minnesota, to provide long-term financial counseling for members as part of the GoodMoney program. LSS offers budget and debt counseling, foreclosure prevention services, credit report reviews, reverse mortgage counseling and bankruptcy counseling.
CU Manager Was No Boy Scout
BURTON, Mich.-The former EVP with ELGA CU, who laundered $109,000 of phony checks he wrote through his account with the Boy Scouts, was barred fro the credit union and bank industry, NCUA said.
Thomas Hayes, a Master Scout with the local Boy Scout Troop 176, was convicted last year of writing 89 cashier's checks on the credit union then depositing them into his Boy Scout account, as well as arranging a fake $13,500 loan from the credit union. In all his schemes drained $130,300 from the $210 million CU. He was sentenced to 21 months in prison and ordered to pay restitution.
