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Lyndon Tells NCUA it Did Due Diligence on Centrix; Some CUs Questioned Claim Values

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 NCUA back in late August of 2005 that it was not aware of loan alterations changing coverage of Centrix loans.

By Staff Writer | Updated on July 31, 2007

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 NCUA back in late August of 2005 that it was not aware of loan alterations changing coverage of Centrix loans.

Through the Freedom of Infor-mation Act, a letter sent to NCUA General Counsel Robert Fenner from Richard Hackett, senior vice president of the asset protection division on behalf of the Lyndon Property Insurance Company has been obtained by Credit Union 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.

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