NCUA Board Chairman Debbie Matz has sent a letter to the Federal Housing Finance Agency, the regulator and conservator of Fannie Mae and Freddie Mac, seeking resolution of a dispute over some mortgages that credit unions complain were stolen.
The dispute dates back to the now bankrupt CU National/US Mortgage Corporation where the CEO of that organization, without permission, sold some loans owned by credit unions to Fannie Mae and then pocketed the proceeds. The CEO has pled guilty and awaits sentencing, but the credit unions are still struggling to make good their losses from his actions.
Matz's Nov. 9 letter to Edward DeMarco, acting director of the FHFA, recounted the work efforts both regulators have brought to the table but also the frustration NCUA and the credit unions felt about what they view as Fannie Mae's intransigence.
"While I am extremely appreciative of the cooperation and assistance your OGC has provided in attempting to brings about a resolution to this matter, I am concerned that Fannie Mae has not made a larger, more reasonable settlement offer to the affected credit unions," Matz wrote. "I appreciate that Fannie Mae is also a victim of this crime. However, the financial impact of CU National's fraud on these member-owned cooperatives is significant. Indeed, for some of the credit unions, their losses will be so great as to force our agency to take drastic action under the prompt corrective action rules," she added.
