The first installment of restitution from the estate of CU National makes most of the credit unions almost whole in the recovery process as separate settlements with their insurer, CUMIS Insurance Society, and Fannie Mae, where their mortgages ended up, preceded the latest payout, according to two credit union executives who declined to be identified because the terms of their CUMIS and Fannie Mae agreements are confidential.

The huge fraud caused an uproar at many of the credit unions and at NCUA because the potential losses just as the mortgage bust was creating red ink elsewhere on their books threatened to force them into insolvency. At the time, NCUA was dealing with burgeoning losses among credit unions and the corporate system.

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