SAVANNAH, Ga. — NCUA Region III Director Alonzo Swann told attendees at Georgia Credit Union Affiliates' annual convention that the litany of exotic mortgages and subprime lending has not been a huge deal for Georgia, but elsewhere in the region, particularly in Florida, it has become an issue.
Due to a housing bubble burst in the Northeast, Georgia had its largest loss ever in 1992 at $165 million, Swann pointed out.
Meanwhile, there were eight less credit unions in Georgia in 2006. Swann said the state has the highest net worth of any other state in the region he oversees at 14.6%. That's compared to the national average of 11.5%. The average assets for Georgia's credit unions are $66 million compared to the national $81 million. Growth is 10.1% for the state compared to 7.9% for the nation, Swann said.
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Last year was probably the best year for NCUA's insurance fund with the regulator able to return a dividend. Swann said other issues his office will continue to look at are liquidity, legal threats from banking groups and compliance issues, which "cranked up" about two years ago. Specialized lending, especially member business lending and sub-prime lending and pandemic preparation are also key areas. Swann said helping small credit unions is also a priority as well as efficiency and due diligence with new products and services with credit unions throughout the region.
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