Increasing concentrations of non-agency MBS drove Western Corporate FCU to failure, NCUA said in its amended complaint against former directors and officers Tuesday in U.S. District Court
In 2002, Wes Corp’s investment concentration policy restricted private label MBS to 950% of capital – that limit was raised to 1700% of capital in 2003 and 2150% of capital in 2005, reaching a high of 2300% in December 2007, the agency detailed
NCUA seeks more than $1 billion in damages from officer and director defendants, accusing them of breach of fiduciary duties and gross negligence
The number of newly distressed borrowers increased, raising the prospect that foreclosures and delinquencies could resume their rise.
14.4% of borrowers had missed at least one payment or were in foreclosure at the end of June
While the mortgage crisis was driven at first by adjustable-rate mortgages that reset to higher payments, the majority of deteriorating loans are now being driven by unemployment.
This month the administration announced a new round of $3 billion in funding for state initiatives that will offer bridge loans to help jobless homeowners make their mortgage payments
