The NCUA announced a settlement Wednesday with Nomura Asset Acceptance Corp. and Nomura Home Equity Loan Inc., both of which agree jointly to pay more than $3 million. The settlement comes from the NCUA alleging the sale of faulty residential mortgage-backed securities to two corporate credit unions.
The settlement covers claims the NCUA board asserted in 2011 as liquidating agent for Western Corporate FCU and U.S. Central FCU. NCUA filed suit in federal district courts in California and Kansas against the Nomura entities.
With this settlement, NCUA will dismiss pending suits against both firms. Neither firm admits fault as part of the settlement agreement.
NCUA still has litigation pending against other financial institutions, including Credit Suisse and UBS Securities, alleging they sold faulty residential mortgage-backed securities to corporate credit unions. NCUA also has pending litigation against various residential mortgage-backed securities trustees and LIBOR banks related to corporate credit union losses.
Detailed information about recoveries from securities-related litigation is available on the NCUA’s website.