LA JOLLA, Calif. — Head NCUA examiner David Marquis told WesCorp Future Forum attendees yesterday the agency has charged $215 million to share insurance fund reserves so far in 2008, and the board is scheduled to review two more cases tomorrow.
It's the highest amount in more than 20 years, up from 2007′s total of $40.8 million, and more than all charges combined from 1994 through last year.
California and Florida are the two biggest recipients of share insurance funds, Marquis said. In response, the agency has shifted all of its special action assets team, which focuses on specific risk problems, to the two states.
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Additionally, when examiners visit California and Florida credit unions this year, they will be paying close attention to HELOCs and the ripple effect foreclosures and consumer debt might be having on the popular credit union product.
Marquis said he thinks 98% of credit unions will weather the housing storm in fine shape, although those with significant HELOC portfolios on their books may have tough days ahead.
"Overall, the delinquency rate isn't that bad. Yes, we have more charge offs, but it's a recession, that's what happens," he said, adding, "besides, that's what that 14% capital is for."
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