The National Credit Union Administration (NCUA) announced that Corporate America Credit Union, Birmingham, Ala., has purchased Smart Source Solutions, a wholly owned credit union service organization (CUSO) of Constitution Corporate Federal Credit Union, South Wallingford, Conn.
The CUSO will be transferred to Corporate America by the end of November. Constitution Corporate will be liquidated Nov. 30.
The transfer provides for the continuation of services to the CUSO’s customers and provides a premium to the National Credit Union Share Insurance Fund.
The selection of Corporate America’s proposal was the result of a bidding process that included both credit union and non-credit union entities.
NCUA reports that it’s transferring the assets of Constitution Corporate to Members United Bridge Corporate Federal Credit Union, Warrenville, Ill.
Members United will assume Constitution’s members, shares, and business processes to ensure ongoing service to the credit unions and their consumer members.
All Constitution term certificates will transfer to Members United at their same rate and maturity. New certificates will be issued under Members United’s current policies.
Over the next 90 days, the former members of Constitution will transition to the systems and processes provided by Members United. Once that transition is complete, the Connecticut facility will be closed.
However, Members United will maintain a presence in Connecticut with three tenured staff members who will continue to serve Connecticut members.
Constitution’s distressed mortgage-backed securities will remain in an asset management estate, and will not be assumed by Members United.
NCUA will securitize Constitution’s distressed assets by the end of February 2011, using the same process for similar assets once held by Members United Corporate Federal Credit Union, SouthWest Corporate Federal Credit Union, WesCorp Federal Credit Union, and U.S. Central Corporate Federal Credit Union.
A U.S. District judge Monday dismissed three lawsuits--including one by the National Credit Union Administration--brought against U.S. Bank National Association and Bank of America, National Association regarding their duties as trustees of residential mortgage-backed securities.