CUNA Mutual Offers Mortgage Fraud Coverage
MADISON, Wis.-CUNA Mutual Group rolled out what it believes to be the credit union industry's first fraudulent mortgage loan documentation coverage.
The Fraudulent Mortgage Loan Documentation coverage will apply to material misrepresentations, through alterations by the borrowers, on certain residential mortgage lending documents used by credit unions to make lending decisions. These include verifications of income and employment, offers to purchase and/or appraisal reports.
Under a typical loss scenario, a member seeking to purchase a home alters documents to represent her employment status in order to secure a mortgage loan beyond her means. Eight months later, after the member defaults on her payments, the credit union discovers the fraudulently altered documents. The credit union is forced to foreclose on the property and incurs a loss.
FMLD is part of CUNA Mutual's bond program, which is underwritten by CUMIS Insurance Society, Inc., a company of CUNA Mutual Group.
Regulators Seize Ala.'s Mutual Savings CU
BIRMINGHAM, Ala.-State regulators last Tuesday took over Mutual Savings CU and relieved the management and board of the $200-million credit union.
Tom Tatum, the former president of nearby Jefferson County Teachers' CU, has been named interim manager and will oversee the day-to-day operations of the credit union along with the Alabama CU Administration, the state regulator.
Mutual Savings Credit Union is the second area credit union to be taken over in recent weeks, with NCUA closing New Hope Community Development FCU on July 22.
Liberty Bay FCU Signs NFL Star
BRAINTREE, Mass.-Liberty Bay Federal Credit Union said New England Patriots' wide receiver Wes Welker, an active member, is its new spokesman. The All-Pro will be involved in marketing campaigns and community relations and will join forces for a variety of charitable events to promote his own Wes Welker 83 Foundation. The $625 million credit union was formerly known as Boston Post Office Employees FCU.
Postman Charged With Mail Theft
SEATTLE-A postman was charged with stealing almost $220,000 in checks from his route and depositing them in his account at BECU, formerly Boeing Employees CU. Trevor McBee was accused of depositing six checks in his wife's BECU account that had been intended for several businesses, including one for more than $208,000. The postman told his wife that he won the lottery after he deposited the $208,000 check, prosecutors said.
McBee confessed to the thefts and said he used the stolen money to pay off bills and buy a new Lexus. He is charged with theft of U.S. mail by a postal service employee and six counts of bank fraud.
CU Offers Back-To-School Bonus
ALEXANDRIA, Va.-Pentagon Federal Credit Union said its members will earn 5% cash back on eligible items at book stores, computer and electronics retailers and office supply stores through Sept. 30 when purchasing with their Visa Platinum Cash Rewards Card. The discount will apply to any student, whether they need paper and pencils in grade school or books and computers for college. Pentagon Fed'sVisa Platinum Cash Rewards card offers 5% cash back on gas purchases, 2% cash back on supermarket purchases, and 1.25% cash back on all other purchases.
CFO Imprisoned For Embezzlement
DOTHAN, Ala.-The former chief financial officer at Wiregrass FCU was sentenced last week to 15 months in prison for stealing $137,000 from the credit union. Becky Hughes, 49, pleaded guilty March 25 to misapplying funds from the credit union between 2000 and January 2008. She admitted opening several Wiregrass Visa credit card accounts in her name and in the names of relatives.She will turn herself in Sept. 14 to start serving her sentenc.
