NCUA Ratchets Up Scrutiny of Losing CUs

ALEXANDRIA, Va. – (February 6, 2008) - NCUA yesterday said it has added full-time examiners and is conducting additional supervision to some credit unions in the face of huge losses being reported for 2007.

“Given that some of the credit unions causing concern are located in the western U.S., NCUA is also performing additional on-site visits,” NCUA spokesman John McKechnie told The Credit Union Journal yesterday.

The federal regulator is watching some of those credit unions reporting large losses much more closely, but the NCUA spokesman refused to say which ones.

The moves come as increasing numbers of credit unions from throughout the country are reporting losses never seen before in the industry. Eastern Financial Florida CU, for example, reported a $49.5 million loss for the fourth quarter and a $45.2 million loss for the year. Wescom CU reported a $26 million loss for the fourth quarter and $33.2 million for the year. Meriwest CU reported an $11.4 million fourth quarter loss and $9.2 million loss for the year. SAFE CU, an $8.4 million fourth quarter loss and $5 million for the year.

More than 20 credit unions in California reported losses greater than $1 million for 2007, including Telesis Community CU $6.7 million, USA FCU $5.8 million, American First CU $5.1 million and Travis CU $4 million. (Credit Union Journal)

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