Crisis management firm NachmanHaysBrownstein, Inc., told the Credit Union Times it didn't intend for its press release to imply one credit union client was to blame for the recent bankruptcy filing of Pine Brook, N.J.-based U.S. Mortgage Corp. and its CU National Mortgage subsidiary.
One unnamed credit union is holding out on NHB's attempts to sell CU National Mortgage's entire portfolio of servicing rights, confirmed Howard Brownstein, company principal. But he also stressed it was a combination of events, including threats from the company's communications carrier to cut off service, which prompted the February 26 BK filing.
The most serious issue at U.S. Mortgage Corp. isn't bankruptcy, but "irregularities" on the books that were behind a January 27 FBI raid on the company, Brownstein said. Of 120 CU National Mortgage credit union clients, as many as 30 were directly affected by the irregularities, he said, and they've been NHB's top priority.
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