Mortgage Backed Securities (MBS) Wreak Havoc on Credit Unions
The global credit collapse occurred two years ago and the fallout continues to devastate individuals and institutions alike. Recently, three corporate credit unions burdened by toxic assets were seized and placed into conservatorship by the National Credit Union Administration. The entities were: Members United Corporate Federal Credit Union of Warrenville, IL; Southwest Corporate Federal Credit Union of Plano, TX and Constitution Corporate Federal Credit Union of Wallingford, CT. These wholesale or corporate credit unions provide financing and investment services to the credit unions providing services to retail consumers. Although they are supposed to invest only in safe liquid assets, according to federal rules, some were lured into investing in mortgage backed securities (MBS) as they sought higher returns. Credit Unions are not immune from the same deceitful marketing tactics perpetrated on individuals, as these new and complex products were being offered. The result was the same as for countless others, as their portfolios evaporated due to the mortgage meltdown. Our firm has successfully represented credit unions and individuals for the recovery of their losses on subprime mortgages.
Our firm represented C.A.S.E. Credit Union in FINRA# 07-00712 which resulted in an award of $1,028,443.00 by an arbitration panel in Detroit MI.
If you suffered losses from Mortgage Backed Securities (MBS), please contact our securities law firm for a no obligation consultation. Cases are handled on a contingency basis.