SAN DIEGO — In more fallout from the Centrix bankruptcy, Mission Federal Credit Union here announced a settlement over its purchase of Centrix loans bought as participations.
MFCU, saying it was one of the largest participating credit unions in the Centrix indirect auto loan program, reached a resolution with the Dallas-based Credit Union of Texas, one of the major originators of Centrix loans in the country. Credit Union Times referenced the dispute in a story on Mission's losses published in the June 13 issue.
The credit unions jointly owned in excess of $90 million dollars in subprime auto loans, and Mission FCU then exercised its rights under the terms of the Loan Participation Agreements requiring that Credit Union of Texas buy back Mission's 90% participation interest in the Centrix loans, as the proper remedy for unintentional misstatements of fact.
Complete your profile to continue reading and get FREE access to CUTimes.com, part of your ALM digital membership.
Your access to unlimited CUTimes.com content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Breaking credit union news and analysis, on-site and via our newsletters and custom alerts
- Weekly Shared Accounts podcast featuring exclusive interviews with industry leaders
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the commercial real estate and financial advisory markets on our other ALM sites, GlobeSt.com and ThinkAdvisor.com
Already have an account? Sign In Now
© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
