Skip to main content

Morgan Stanley Pays $225M to Settle NCUA Litigation

Phil Hall
Dec 11, 2015
The National Credit Union Administration (NCUA) has reached another settlement with a major Wall Street entity regarding the failure of five corporate credit unions

The National Credit Union Administration (NCUA) has reached another settlement with a major Wall Street entity regarding the failure of five corporate credit unions.

In its latest settlement, NCUA will receive $225 million from Morgan Stanley to resolve claims first brought in 2013 that five corporate credit unions collapsed as a result of their purchase of the company’s residential mortgage-backed securities (MBS). As part of the settlement, Morgan Settlement does not have to admit any fault in the credit unions’ demise and NCUA will dismiss pending suits against Morgan Stanley in federal district courts in New York and Kansas.

“NCUA continues to pursue recoveries on behalf of the corporate credit unions against the financial firms we maintain contributed to the corporates’ losses,” NCUA Board Chairwoman Debbie Matz said. “These actions fulfill our statutory obligation to act in order to minimize costs to the credit union system resulting from the crisis. They also promote accountability and ensure consumers remain protected.”

NCUA is still pursing litigation in federal courts in New York, Kansas and California against other financial firms, including RBS, Goldman Sachs, UBS and Credit Suisse, for their role in selling problematic securities to the now-defunct credit unions.

Dec 11, 2015
Crime Stories From The Trenches

Bad brokers, renegade Realtors, treacherous title agents. It’s getting tough out there.

Regulation and Compliance
Oct 26, 2021
Feds Reviewing Appraisal Standards, Qualifications

Appraisal Subcommittee said requirements are being reviewed to determine whether they ensure and promote fairness, equity, objectivity, and diversity, in both appraisals and in the training and credentialing of appraisers.

Regulation and Compliance
Oct 20, 2021
​​​​​​​FHFA OK's Desktop Appraisals, Expands Refi Criteria

The Federal Housing Finance Agency (FHFA) said Monday it will take two steps to help make home ownership more affordable and sustainable for mortgage borrowers, especially for those in underserved communities. 

Regulation and Compliance
Oct 19, 2021
CFPB Names 4 To Key Senior Positions

The appointees include two who helped create the bureau and two who served on the CFPB staff during the Obama administration.

Regulation and Compliance
Oct 14, 2021
FHFA Raises Enterprises' Multifamily Loan Purchase Caps

The Federal Housing Finance Agency (FHFA) said the 2022 multifamily loan purchase caps will be $78 billion for each Enterprise, for a combined total of $156 billion to support the multifamily market.

Regulation and Compliance
Oct 13, 2021
CFPB Hits AAG With Complaint For Deceptive Marketing Of Reverse Mortgages

The Consumer Financial Protection Bureau filed a complaint and proposed consent order, which alleges that American Advisors Group (AAG) used inflated and deceptive home estimates to attract reverse mortgage consumers.

Regulation and Compliance
Oct 12, 2021