CHESTERFIELD, Mo. — While the eventual legal outcome of lawsuits filed against credit unions by Lyndon Insurance, including The CU of Texas, may drag on, Credit Union Times has learned that Lyndon assured the NCUA back in late August 2005 that it was not aware of loan alterations changing coverage of Centrix loans.

Through the Freedom of Information Act (FOIA), a letter sent to NCUA General Counsel Robert Fenner from Richard Hackett, SVP of the Asset Protection Division on behalf of the Lyndon Property Insurance Company has been obtained by CU Times. Hacket wrote: "…regarding your question of whether certain loan alterations have voided coverage at present we are not aware of any such alterations that have voided coverage…I'm not aware of any instance where a loan alteration has resulted in coverage being voided or in a claim being denied." Lyndon would not assert a "blanket assurance that loan alterations will not impact the compensability of a claim," however.

The NCUA wrote Lyndon on behalf of CUs for which it had obtained power of attorney. But Lyndon's claims against some credit unions may be questioned by its contention in this letter that it is "confident with Centrix' past, current and future performance in servicing these loan portfolios."