SAN DIEGO — It appears that losses related to a portfolio of loans purchased from Centrix played a role in steep losses that the $1.9 billion Mission Federal Credit Union experienced in the second quarter of 2006.

According to NCUA's second quarter numbers, some of which the credit union was disputing as of press time, the CU saw its Return on Average Assets drop to zero in the second quarter, even as its total delinquent loan balances dropped from over $21 million in the first quarter to $18.6 million in the second. Even more significant, the CU's balance of loans 12 months or more delinquent jumped from over $560,000 as of Mar. 30 to $2.8 million as of June 30.

Michelle Brega, spokesman for Mission, confirmed that the CU had purchased "several subprime indirect auto loan pools from Centrix in the past" and that delinquencies related to the Centrix portfolio had led the CU to increase its allowance for loan losses from $7.2 million as of Mar. 30 to $14.4 million as of June 30.

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