Lending

Central States Mortgage Co., a Wauwatosa, Wis., provider of origination services to more than 250 credit unions, shut its doors Monday.

WAUWATOSA, Wis. – Central States Mortgage Corp., which ceased operations yesterday, said it will continue to service loans for more than 250 credit unions it did business with, even as it winds down operations.

WASHINGTON-President Obama is looking to shut down the Federal Family Education Loan program and replace it with direct federal aid-a move that could hurt banks and CUs that participate in the $80-billion federal student loan market.

NEWARK, N.J.-Dozens of credit unions will ask a federal bankruptcy court this week to order Fannie Mae to return tens of millions of dollars of mortgage servicing rights they claim were fraudulently sold to the secondary mortgage market giant by their servicer CU National Mortgage.

NEWARK, N.J.-The CU National Mortgage case will tie up many millions of dollars, with the largest unsecured claim weighing in at $99.2 million from Fannie Mae, but the next 19 largest unsecured claims are from credit unions, including: Suffolk FCU ($33.8 million); Proponent FCU ($21.6 million); Sperry Associates FCU ($9.2 million); Treasury Department FCU ($8.7 million); Novartis FCU ($3.1 million); Educational Systems FCU ($3.1 million); County Educators FCU ($2.8 million); Energy FCU ($2.6 million); Rutgers FCU ($2.2 million)_ Piedmont Aviation FCU ($2.1 million); Pinnacle FCU ($1.8 million); Velocity County FCU ($1.5 million); TCT FCU ($1 million) as, well as Picatinny FCU.

WASHINGTON-The credit union lobby turned its efforts to the Senate last week after the House passed a bill over its objections that would allow troubled homeowners to ask a bankruptcy court to amend the terms of their mortgages.

MT. PLEASANT, Penn.-Though housing values continue to decline, sales volumes are up significantly in south Florida and a positive trend in foreclosures could help bring an end to the worst housing slide in the state's history. According to new numbers from Default Research, foreclosure lists pending fell about 12% in January compared to the previous month. Miami-Dade county saw a 22% drop, Palm Beach's foreclosure listings fell 15%, and Broward saw a 4% decrease. The new numbers come after Gov. Charlie Crist asked financial institutions to implement a 45-day voluntary moratorium on foreclosures in December, meaning those numbers could rise again very soon.

ROCHESTER, N.Y.-Credit unions will not be able to completely absolve themselves from responsibility for the mortgage foreclosure "tsunami" one industry analyst predicts will hit this summer.

CAPE CORAL, Fla.-As housing values and sales continue their fall nationally, analysts in some markets believe they may now be seeing the floor.

McLEAN, Va. – Home loan rates rose this week after moving lower the past few weeks, according to Freddie Mac.

WASHINGTON – The House approved the bill last night to authorize bankruptcy courts to restructure troubled home mortgages, over the objections of the credit unions and banks, sending the so-called cramdown measure on to the Senate.

WASHINGTON – The credit union lobby continued yesterday to fight the bill to give bankruptcy courts authority over mortgages, rejecting a compromise that would ease the measure, even as the bill comes to a vote before the House as soon as this afternoon.

NEWARK, N.J. – A civil suit filed against CU National Mortgage last week hours before the company filed for bankruptcy charges the owner and CEO of CU National masqueraded as an executive vice president of Picatinny FCU and signed "allonges" assigning millions of dollars of the Dover, N.J., credit union’s mortgages to Fannie Mae as part of a wide-ranging fraud scheme that may involve hundreds of millions of dollars of credit union loans.

McLEAN, Va. – Mortgage rates inched up just slightly this week amid sagging consumer confidence and lower sale prices for existing homes, Freddie Mac said yesterday.

WAUWATOSA, Wis. – A state court issued a $2.7 million judgment last week for U.S. Bank against Dick Jungen, the creator of Central States Mortgage who was fired as CEO of the mortgage CUSO last year.

NEWARK, N.J. – The FBI is investigating claims of a massive fraud at U.S. Mortgage Corp., the privately held owner of C.U. National Mortgage, which filed for bankruptcy earlier this week.

GROTON, Conn. – Charter Oak FCU said it has implemented Harland Financial Solutions’ Touché Analyzer MCIF and Advisory Services consulting solutions.

NEW BEDFORD, Mass. – Local credit unions and banks are teaming up for a program to help buyers purchase foreclosed properties in the city with state, local and private assistance.

McLEAN, Va. – Home loan rates dipped again this week to near record lows, according to Freddie Mac.