CONCORD, Calif. — Chief Financial Officer Richard Headrick, the architect of Cal State 9 Credit Union's outsourced HELOC loan program is no longer with the CU, Credit Union Times has learned. Cal State 9 Credit Union President/CEO Jackie Wong confirmed the inquiry late yesterday. Headrick may have left Cal State several weeks ago, but Wong declined further comment.
Cal State 9 CU has been operating under a cease and desist order from the California regulator since early September. The CU is taking steep losses from its HELOC program, with second quarter delinquencies of $26.3 million. September's figures are not yet available, but the 1-2 month delinquency category poses huge losses as it is $17,119,919. If a substantial portion of those loans goes into default and then to foreclosure, Cal State 9 will be hard pressed to manage (or even borrow) its way out of the hole.
The state of California also withdrew a deposit of $20 million from the credit union in August. Cal State 9 CU would not offer further comment.
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