Savings Bank Acquisition of CU Moves Forward
HAVERHILL, Mass.-Depositors of Haverhill Bank voted unanimously for the merger of a local credit union, Northeast Community CU, into the mutual savings bank. Sixty-seven depositors voted by a show of hands for the rare merger. Members of the $110 million credit union last week approved the deal, 77 votes to 1 vote, at a special meeting.
The deal next must be approved by NCUA and the FDIC, as well as the Massachusetts Division of Banking. At press time NCUA said it had not yet received a merger application from the parties.
Army Sergeant Named in Million-Dollar ID Theft
TACOMA, Wash.-A staff sergeant at Fort Lewis and his wife were charged with using fake identities to obtain more than $1 million in loans and valuables, including a $510,000 home and a variety of goods financed through a false credit union membership. The alleged scheme was uncovered by America's FCU at Fort Lewis where Sergeant Irvin McClendon and his wife, Sonia, opened an account last January using a fake social security number.
The account was apparently used to buy paintings and other goods and pay off bad debts, then to gain credit at other institutions, according to an indictment handed up in federal court here. Prosecutors said when they searched the McClendon's $510,000 home they found paintings, a large uncut diamond, 32 fur coats, a pile of high-end purses, and flat-screen televisions in almost every room.
Sergeant McClendon earned $61,000 a year for the Army and his wife, a fugitive in other states, appeared to have no income.
FHA Offers Mortgage Aid
WASHINGTON-The Federal Housing Administration this week unveiled a program to help struggling homeowners avoid foreclosure after the rates on their adjustable rate mortgages rise. The FHA Secure program will allow homeowners who have missed a payment after their ARMs reset to refinance their mortgage with the FHA at a lower rate. Introduction of the program comes at a time when as many as 3 million ARMs are expected to be reset to higher rates within the next year.
To qualify for FHA Secure, borrowers must have a history of on-time mortgage payments before rates were reset higher, a steady work history and sufficient income. Interest rates on the existing mortgage must be reset between June 2005 and December 2009 and the borrower must have at least 3% cash or equity in the home.
CMG Mortgage To Insure Loans
SAN FRANCISCO-CMG Mortgage Insurance Co., which is partially owned by CUNA Mutual Group, became the nation's first mortgage insurer to cover portable mortgage loans. The GO mortgage insurance program will allow credit union members with secured mortgage loans to transfer key terms of the loan, such as the interest rate, to a new residence, rather than having to apply for a new loan at market rates. Only purchase loans will be eligible for GO program coverage. CMG Mortgage Insurance is a joint venture between CUNA Mutual and PMI Mortgage Insurance Co.
CU Offers 'Turn-Down' Auto Lending
SYRACUSE, N.Y.-Syracuse FCU and Remington FCU said they have signed with XpressCredit to provide their members with its turn-down lending platform. The online lending platform helps members who may not qualify for a car loan at their credit union. When a member is turned down for a loan under the credit union's usual process, the loan manager logs on to the credit union's secure account, then returns a decision within minutes. On approval, the member receives a personalized check that may be taken to the dealership of his or her choice and the loan does not take effect until the check is signed.
Hawaii CUs Join MBL CUSO
HONOLULU-Two Hawaii credit unions, Kauai Community CU and CU Hawaii FCU, announced they have joined Member Business Lending, LLC, the Salt Lake City-based business loan CUSO. Members of the two credit unions will be serviced out of MBL's new Honolulu office. The CUSO, the largest dedicated to business loans, now has 25 credit union members.
Perelman Named M&F Chairman
NEW YORK-M&F Worldwide, the nation's largest check printer, said billionaire raider Ronald Perelman, the company's largest shareholder, was named chairman of the board, after the death of his long-time lieutenant Howard Gittis.
