Consumer complaint received 2015-06-01 00:00:00
Product: Mortgage — Conventional adjustable mortgage (ARM)
Issue: Application, originator, mortgage broker — 
Company: STATE EMPLOYEES CREDIT UNION
State: GA

Complaint narrative:
Please reference Case # : XXXX-In XXXX of XXXX, my wife and I applied for and obtained XXXX & XXXX Mortgages ( HELOC ) from XXXX XXXX ( XXXX ), now XXXX XXXX XXXX ( XXXX ) for the purchase of a home at XXXX XXXX XXXX XXXX, XXXX, XXXX XXXX ( Account Numbers : XXXX - XXXX ; XXXX - XXXX ). On XXXX XXXX, XXXX, North Carolina State Employees Credit Union ( NCSECU ) acquired the XXXX Mortgage loan from XXXX after obtaining approval from XXXX for a Subordination of the HELOC in XXXX XXXX. Complainants commence this complaint alleging fraud, fraudulent inducement, breach of promise & violations of General Business Law ( " GBL '' ) 349, known as the Deceptive Practices Act against XXXX & SECU. In addition to compensatory and punitive damages, complainants seek a declaration that the Subordination agreement signed in XXXX XXXX by XXXX XXXX SECU on behalf of complainants is null & void, and to enjoin the enforcement of the notes & mortgages as unenforceable against complainants. 
-In XXXX XXXX, the US Dept of Justice ( USDOJ ) announced a XXXX ( M ) settlement with XXXX over discriminatory lending practice at XXXX XXXX USDOJ also found that XXXX discriminated against qualified XXXX & XXXX borrowers from XXXX to XXXX - minority borrowers who qualified for prime loans were steered into higher-interest-rate subprime loans. Further, the XXXX in XXXX XXXX reached a XXXX ( B ) settlement with XXXX to resolve Federal & State claims against XXXX & its former & current subsidiaries, including XXXX XXXX XXXX XXXX. As part of this global resolution, XXXX agreed to pay a $ XXXX penalty under the Financial Institutions Reform, Recovery & Enforcement Act ( FIRREA ) and provide XXXX of dollars of relief to struggling homeowners, including funds that will help defray tax liability as a result of mortgage modification, forbearance or forgiveness. The settlement does not release individuals from civil charges, nor does it absolve XXXX, its current or former subsidiaries & affiliates or any individuals from potential criminal prosecution. 
-Notwithstanding, In XXXX. XXXX, Complainants after suspecting XXXX committed Discrimination & Mortgage Fraud in the origination of the XXXX & XXXX Mortgages refinanced the XXXX Mortgage with the NCSECU after NCSECU obtained and agreed to a Subordination of the XXXX Mortgage adjustment with BA. In XXXX. XXXX, XXXX XXXX XXXX suffered Significant & Complex workplace injuries to his Trunk & XXXX areas that made him unable to work. Despite multiple requests to the NCSECU for XXXX Mortgage Modifications, Forbearances or Forgiveness from XXXX ; complainants multiple requests were denied due to the existence of the HELOC with BA. My wife & I made multiple requests to BA for assistance with the XXXX Mortgage and Release or Forgiveness of the HELOC however, all request were denied. Nevertheless, our home went into Foreclosure in XXXX XXXX. 
-In Apr. XXXX, the NCUA reached a $ XXXX settlement with XXXX & some of its subsidiaries over residential mortgage backed securities losses at failed corporate credit unions. However, on XXXX XXXX, XXXX, complainants only received a letter regarding a Full Principal Forgiveness of the HELOC ( Attached ). Based on the current settlements & litigation including but not limited to " For years, XXXX & XXXX unloaded toxic mortgage loans on the government sponsored enterprises XXXX & XXXX with false representations that the loans were quality investments, '' said U.S. Attorney XXXX XXXX for the XXXX District of XXXX. " This office has already obtained a jury verdict of fraud & a judgment for over a XXXX dollars against XXXX XXXX XXXX for engaging in similar conduct. Since NCSECU acquired the XXXX Mortgage loan from XXXX after obtaining approval from XXXX for a Subordination of the HELOC in XXXX XXXX, The XXXX mortgage was and act of fraud.

Company public response: Company believes it acted appropriately as authorized by contract or law
Company response to consumer: Closed with explanation