Thank you for sharing!

Your article was successfully shared with the contacts you provided.

Things were pretty serious last week with the private insurance column. This week I want to lighten up a bit with a new code credit union leaders should live by given recent events.

“I pledge not to sell swamp land in Florida.” While this sounds silly, it’s not after considering what happened to three credit unions (see story page 1) and the trouble they got into over what amounts to a real estate loan scam out of Florida. What makes this worse is these credit unions weren’t based in Florida! No they were based in Colorado (Norlarco CU and New Horizons CU), and Michigan (Huron Area River CU). We’re talking infomercials for real estate classes called Millionaire University and promises of real estate riches! This doesn’t sound like anything credit unions should be involved in. It led to heavy losses and all three credit unions being conserved. Critics of private insurance talk about the reputational risk that credit unions have should private insurance experience a failure–stories like this carry very heavy reputational risks. Where were the regulators on this one? Didn’t the out of state aspect signal any red flags. Reporters at a Colorado newspaper have dug in to this story and are ready to expose all the ugly details. We are working in conjunction with them so look for more updates in the weeks ahead.

Complete your profile to continue reading and get FREE access to CUTimes.com, part of your ALM digital membership.

Your access to unlimited CUTimes.com content isn’t changing.
Once you are an ALM digital member, you’ll receive:

  • Critical CUTimes.com information including comprehensive product and service provider listings via the Marketplace Directory, CU Careers, resources from industry leaders, webcasts, and breaking news, analysis and more with our informative Newsletters.
  • Exclusive discounts on ALM and CU Times events.
  • Access to other award-winning ALM websites including Law.com and GlobeSt.com.

Already have an account?


Credit Union Times

Join Credit Union Times

Don’t miss crucial strategic and tactical information necessary to run your institution and better serve your members. Join Credit Union Times now!

  • Free unlimited access to Credit Union Times' trusted and independent team of experts for extensive industry news, conference coverage, people features, statistical analysis, and regulation and technology updates.
  • Exclusive discounts on ALM and Credit Union Times events.
  • Access to other award-winning ALM websites including TreasuryandRisk.com and Law.com.

Already have an account? Sign In Now
Join Credit Union Times
Live Chat

Copyright © 2022 ALM Media Properties, LLC. All Rights Reserved.