Report Faults Examiners, NCUA In U.S. Central Failure
ALEXANDRIA, Va. - A new report on the failure of U.S. Central FCU concludes that NCUA examiners failed to adequately monitor the financials of the one-time $52 billion corporate credit union as it piled up increasing concentrations of risky private-label subprime mortgage-backed securities and so-called Alt-A paper.
It wasn't until after U.S. Central, which was finally liquidated on Oct. 1, piled up almost $16 billion worth of subprime MBS and Alt-A bonds in 2007 that examiners started to sound the alarm, a new Material loss review conducted by NCUA's Office of the Inspector General concludes. More details are available at www.cujournal.com by searching "U.S. Central."
Fannie Mae Files SuitIn Wake of Mortgage Scam
WASHINGTON-Fannie Mae last week filed suit against several insurers, including Great American Financial Resources, and The Travelers Cos., claiming they are responsible for losses on the $131 million Fannie Mae paid for fraudulent mortgage loans it bought from U.S. Mortgage Corp. and its CU National Mortgage subsidiary. In a suit filed in federal court, Fannie Mae said that under Financial Institution Bonds sold by the insurers, they are responsible for the losses. The company says it faces $108 million in exposure. For details, go to www.cujournal.com and search "Fannie Mae."
Cal./Nev. CULs Launch CUSOTo Cut Back-Office Expenses
ONTARIO, Calif.-The California and Nevada CU Leagues, along with several credit unions, have launched a new credit union-owned CUSO, CURoots, to help credit unions minimize their back-office costs. Initial offerings are to launch in January and will focus on compliance services.
Lucy Ito, SVP-CU growth and development with the leagues, will be CEO of CURoots. The company said plans call for launching a second collaborative service in 2011, as well.
Virtual Assistant Is Launched
TUKWILA, Wash.-BECU members now can use a newly launched virtual assistant, "Ask BECU," at the credit union's website to find information by simply entering questions in their own words-just as though they are interacting with an actual BECU representative. Developed by Next IT, Ask BECU provides a conversational interface that goes beyond traditional natural language processing by understanding the intent and context of each question, guiding members to information and providing links to products and services that are relevant to them. For more info: www.cujournal.com.
Alliant CU Staff Pull 99-Ton Plane
CHICAGO-A team of 20 employees from Alliant CU recently participated in the 2010 Plane Pull to benefit Special Olympics Illinois, held at O'Hare International Airport. The "Alliant Advantage" team was one of nearly 30 teams from Chicago area public safety, service and business communities that pulled a 99-ton UPS airbus aircraft 20 feet in a tug-of-war style event. The CU's foundation donated money to Special Olympics on behalf of the CU's employee volunteers by paying their $50 Plane Pull registration fees totaling $1,000.
Bluepoint Wins Award from Tech Council
LAS VEGAS-Bluepoint Solutions was named "Best of Show" winner by the CUNA Technology Council last week during BAI's Retail Delivery Show. The award recognizes the company for meeting a number of criteria. The CTC has been honoring a winner at the BAI event for the past several years.
CU Files Suit After Member Snafu
HOUSTON-Smart Financial CU last week filed suit against Open Solutions Inc., claiming the company installed software at the CU that allowed a member who had lost his line of credit to allegedly borrow $130,000.
The suit claims that a member with a $3,000 line of credit, which was suspended in September 2005 because of non payment, had his credit restored after Open Solutions installed new software in July 2006, enabling him to borrow $133,439. The suit claims the new software allowed those without credit suddenly having available credit stated incorrectly and appearing as if it was unlimited. An attorney representing Open Solutions declined to comment.