DES MOINES, Iowa — While Community Business Lenders works to recoup $11.9 million in defaulted loans from residential developer Regency Cos., the CUSO said it is also talking with regulators, private guarantors and those who have expressed interest in purchasing the 76.1 acres of land.
Eight lenders have filed suit against Regency for defaulting on nearly $57 million in loans. According to several published reports, in April, the company ceased operations laid off its 103 employees and left behind 300 homes for lenders to deal with. Regency was Iowa's largest home builder.
Meanwhile, CBL has taken several measures to protect its members, said Pat Jury, chairman of the CUSO and president of the Iowa CU League, one of CBL's founders. CBL has sought external resources to help administer the suit, reappraisals have occurred and the CUSO is talking with people interested in purchasing the property, Jury said.
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"It's a good piece of property in the middle of a growing suburban area," Jury said. "Ultimately, we want to make every effort to be prudent in helping credit unions be healthy and vital."
Jury said this is the first time since CBL's launch in 2005 that the CUSO has had to file a suit. Jury said CBL has kept the communication lines open with NCUA and the Iowa Credit Union Division on the matter.
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