DENVER — Even without predatory, subprime loans on their books credit unions aren't immune from the fallout of the subprime mortgage debacle.

Some CU bottom lines are now pained by rising delinquencies in credit card and auto loan portfolios and the industry as a whole is waiting to see the full extent of the damage. Many are reassessing the risk for losses they yet face, particularly when dealing with third-party vendors.

Outsourced loan programs have been positioned as a panacea for stagnant lending programs, with the promise of low overhead and high yields. The potential of adding members to the credit union rolls and marketing other products to them is an added draw. The NCUA is clearly concerned that CUs step up risk assessment, as it recently issued Letter NO; 07-CU-13, Evaluating Third-party Relationships, a summary of existing guidance and regulations.