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Cal State 9 Credit Union Posts Heavy HELOC Losses

No one wants to talk about the losses or how (or why) they have skyrocketed. At a time when real estate, especially subprime real estate investments are deemed too risky for all but the biggest, edgiest players, Cal State 9 Credit Union here is posting some incredible (loss) numbers.

By Staff Writer | Updated on June 26, 2007

CONCORD, Calif. — No one wants to talk about the losses or how (or why) they have skyrocketed. At a time when real estate, especially subprime real estate investments are deemed too risky for all but the biggest, edgiest players, Cal State 9 Credit Union here is posting some incredible (loss) numbers.

At the end of 2006, the $463 million Cal State 9 Credit Union here had foreclosures totaling $1,119,000 on its books. These loans, commonly referred to as REOs, or Real Estate Owned, are not counted as delinquent because they are foreclosed assets that are owned by the credit union. But at the end of March 2007, foreclosures shot to a stratospheric $8,419,000. That seemed a truly mind-boggling number to several credit union officials, at least one of who is a CPA, Credit Union Times consulted for analysis on this story.

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