LA JOLLA, Calif. — NCUA Director David Marquis didn't have muchgood news for WesCorp Future Forum attendees during hispresentation on the event's first day. Not only has the agencycharged $215 million to NCUSIF reserves so far in 2008, but lastyear's NCUA employee collective bargaining agreement and CapitolHill's increased interest in financial institutions will result inhigher audit and compliance costs industry-wide.

The reserve expenditure is the highest amount in more than 20years, up from 2007's total of $40.8 million, and more than allcharges combined from 1994 through last year combined.

Not surprisingly, California and Florida are the two biggestrecipients of share insurance funds. In response, Marquis, NCUAdirector of examinations and insurance, said the agency has shiftedall of its special action assets team, which focuses on specificrisk problems, to the two states. Additionally, examiners inCalifornia and Florida will be paying close attention to HELOCs,and the ripple effect foreclosures and consumer debt might have onthe popular product.

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