Lending

Credit union mortgage organizations and trade associations are casting a wary eye on a proposed regulation meant to encourage issuers of mortgage-backed securities to use safer mortgages to back their bonds.

Around Valentine’s Day three years ago, holders of auction rate securities fell completely out of love with the debt instruments, causing a market freeze and a slew of lawsuits against the banks with claims of misrepresentation. The fallout continues.

After hearing both sides, a Financial Industry Regulatory Authority panel recently denied all claims made by the estate that was seeking more than $2 million against an investment adviser that worked for a broker-dealer acquired by SECU Brokerage Services Inc.

Sallie Mae announced that it will begin offering no-fee student checking accounts into which colleges and universities can directly disburse financial aid and tuition refunds owed to students.

A new automated account opening and loan origination platform has resulted in a 30% jump in new accounts at the $1.9 billion Keesler Federal Credit Union in Biloxi, Miss.

Five months after the NCUA filed a complaint against a business lending CUSO with the liquidated Ensign Federal Credit Union, the regulator is going after real estate developers who allegedly defaulted on a nearly $2 million loan.