High Desert Placed in Conservatorship
ALEXANDRIA, Va. -- The NCUA has assumed control of High Desert FCU, which lost $4.6 million in the second quarter of 2008.
The Apple Valley, Calif.-based credit union was placed into conservatorship and is operating under new management, the agency said.
The credit union, which has more than 13,000 members and $149 million in assets, experienced a 4.5% decline in loan income, a 3.6% decline in the value of its real estate loans and a 2.3% drop in investment income, during the second quarter, the most recent data available.
The credit union, which was chartered in 1951, serves people who live, worship and work in San Bernardino County, Calif.
Accounts at the credit union are insured to at least $250,000 by the NCUSIF.
NCUA Touts Availability of Liquidity
ALEXANDRIA, Va. -- NCUA Chairman Michael E. Fryzel reminded credit unions that the agency's central liquidity facility is available to back up and lend money to credit unions during difficult times.
"The CLF has a total of approximately $41.5 billion available to meet back-up liquidity demands, appropriated by Congress and administered by NCUA. Credit unions should carefully monitor liquidity and if necessary, utilize the CLF on an as-needed basis," Fryzel wrote in a letter sent to all federally insured credit unions.
Congress recently increased the borrowing authority of the fund, which was needed because of a surge in requests. The fund, which can be accessed through corporate credit unions or through individual memberships by credit unions, has lent credit unions $1.6 billion this year, exceeding the previous $1.5 billion cap.
There are three kinds of loans offered by the fund: short-term adjustment credits; seasonal adjustment credits and protracted adjustment credits.
For more information, visit www.ncua.gov/CLF/index.htm.
Guide Provides Information on CPAs
WASHINGTON -- Executives looking to find accountants who performing extensive work with credit unions can consult the new edition of the 2008 Guide to Credit Union CPA Auditors.
The book lists accountants and includes a sample request for proposal for credit unions to use.
"As credit unions navigate through economic cycles and changing accounting standards, discerning guidance from seasoned auditors is more essential than ever," said Jay Johnson, executive vice president of Callahan and Associates, which published the book.
The guide can be viewed at: http://www.creditunions.com/resources/.
NCUA Offers Guidance on CU
Employees Who Handle Mortgages
ALEXANDRIA, Va. -- The housing bill passed by Congress earlier this year applies to individuals engaged in the origination of second mortgages and home equity lines of credit, NCUA Associate General Counsel Sheila Albin wrote in a legal opinion letter.
She also clarified that a "loan originator" refers to someone who has the power to negotiate loan terms and discuss and counsel about available loans and explain legally required disclosures. Those employees who work at state-chartered credit unions need only register with the system that the law requires NCUA to establish. Those employees need not obtain a state license to engage in loan origination activities on behalf of a state-chartered credit union.
Albin, who wrote her comments in a letter to American Credit Union Mortgage Association Chairman John Reed, said that employees of CUSOs that engage in loan origination activities, whether the CUSO is owned by a state or federal credit union, need to be licensed in accordance with the applicable state requirements.