AM Community CU May Have Been Over Extended on MBL
Against a backdrop of a groundswell of support to expand business lending authority, one outcome is becoming an unfortunate black eye on those efforts.
Some credit unions that have succumbed to financial collapse have been linked to massive losses in commercial real estate and member business loans.
“It’s kind of hard to talk about participations and not talk about MBLs,” said Harvey Johnson, senior manager and CPA with Witt Mares PLC, a Newport News, Va.-based accounting and business consulting firm that counts credit unions and community banks among its clients.
“They often go hand in hand. These are the larger ones that some credit unions don’t have the liquidity to fund themselves or don’t want to because of the risk.”