40 CUs ID'd In Heartland Payment Systems Breach
ARLINGTON, Va-As of Feb. 9, 40 credit unions had been identified among the 135 financial institutions affected by the breach at Heartland Payment Systems, according to cuinforsecurity.com. "Because the list depends on public announcements by the institutions, the list is considered a tip of the iceberg in terms of actual cards compromises," the company said.
CUinfosecurity.com said the 40 credit unions are spread throughout the U.S. in 24 states. In Iowa, five credit unions reported their cards were comprised, the most of any state.
CU National Mortgage Reportedly Is Closed
PINE BROOK, N.J.-Multiple reports from credit unions confirm that CU National Mortgage closed its doors last week. The mortgage service provider created exclusively to bring affordable ownership to credit union members, CU National Mortgage was owned by US Mortgage Corp., founded in 1996. It has been reported that 50 offices and 200 employees will be affected.
CUMAnet, in Basking Ridge, N.J, was quick to report it is stepping up to assist CU National Mortgage's CU clients. In addition to any CU National Mortgage client transitions, CUMAnet will also welcome some of the now out-of-work staff to assist in the increase of mortgage projects.
"There are many, many good people at CU National and our hearts go out to them during this difficult time. We are deeply saddened by the events that are taking place at CU National Mortgage," said CUMAnet President Daniel von Schaumburg. "Even though they are our direct competitor in the credit union space, we do respect them for their work in providing credit unions with mortgage lending packages to members who want to become homeowners."
CUSO Forecloses On Chicago Mall
MATTESON, Ill.-The former commercial real estate CUSO of Texans CU has filed a foreclosure lawsuit to collect nearly $39 million on the suburban Lincoln Mall, a troubled shopping center outside of Chicago.
The former Texans Commercial Capital LLC alleges that the Texas partnership, called Realty America Group LP that owns the mall failed to make monthly mortgage payments beginning Sept. 10, according to a complaint filed in Cook County Circuit Court.
In a counterclaim, Realty America seeks to collect $20 million from the lender, now called CU Liquidity Services LLC, and alleges the lender's executives have jeopardized the project by conducting a campaign to force the partnership into default.
The dispute comes after the 2007 return to the mall of JCPenney Co. after a seven-year absence, a key step in the mall's revitalization. Now, the foreclosure jeopardizes a pending $10-million subsidy, approved by the Matteson village board in October, intended to help finance another phase of the project.
In 2004, Texans Commercial issued a $62-million loan to finance the initial stages of Lincoln Mall. The loan had an outstanding balance of $37.6 million last month, not including unpaid interest of $1.1 million, according to the complaint.
Texans CU sold off a majority stake in 2007 in Texans Commercial, which is now known as CU Liquidity Services LLC.
In its countersuit, Realty America charges the one-time CUSO couldn't fund loans promised for a 2007 mall renovation. The counterclaim alleged a fraudulent pattern in which the lender accumulated promises it couldn't keep on many deals.
Boston Globe ECU To Be Merged Out
BOSTON-State regulators have approved the combination of troubled Boston Globe Employees CU into Metro CU, the Bay State's fifth largest CU.
Under the merger agreement, Metro will retain the sold office of the $21 million credit union as a branch.
Corrections And Clarifications
* An item in the Jan. 26 issue on Florida CUs reporting losses should have clarified it was Community First Credit Union of Florida, Jacksonville.
* An item reported on cujournal.com on Feb. 10 related to ORCC misspelled the name of Matthew Tennenbaum. Further, in a statement to Credit Union Journal, ORCC said the board seats discussed in the item are not vacant and are occupied and up for re-election; that an outside shareholder group has not said they will push for a sale or merger, but want to have a "fresh perspective" to act in "the best interests of and maximize value for all shareholders"; that the outside sharegroup announced its proxy plans on Dec. 23, 2008; that the same shareholder has 9% of common stock with a convertible preferred security, which increases voting rights to 22%, and that no poison pill is in place or being considered.
