CONCORD, Calif. — Chief Financial Officer Richard Headrick, thearchitect of Cal State 9 Credit Union's outsourced HELOC loanprogram is no longer with the CU, Credit Union Times haslearned. Cal State 9 Credit Union President/CEO Jackie Wongconfirmed the inquiry late yesterday. Headrick may have left CalState several weeks ago, but Wong declined further comment.

Cal State 9 CU has been operating under a cease and desist orderfrom the California regulator since early September. The CU istaking steep losses from its HELOC program, with second quarterdelinquencies of $26.3 million. September's figures are not yetavailable, but the 1-2 month delinquency category poses huge lossesas it is $17,119,919. If a substantial portion of those loans goesinto default and then to foreclosure, Cal State 9 will be hardpressed to manage (or even borrow) its way out of the hole.

The state of California also withdrew a deposit of $20 millionfrom the credit union in August. Cal State 9 CU would not offerfurther comment.