The management team of the now-defunct Norlarco Credit Union inadequately managed its residential lending program, while NCUA and Colorado regulators didn't monitor the credit union closely enough or pay attention to safety and soundness concerns.
Those are the key conclusions of the NCUA inspector general's report on Norlarco Credit Union of Ft. Collins, Colo., which the NCUA placed into conservatorship in 2007 after extensive losses from its real estate investments in Florida.
The report said that the credit union's management failed to conduct a due diligence on its third-party vendor, didn't adequately oversee its residential construction lending program, created a concentration of risk by committing to fund $30 million worth of construction loans each month, and didn't develop adequate policies and a strategic plan to guide the credit union and the loan program.
Complete your profile to continue reading and get FREE access to CUTimes.com, part of your ALM digital membership.
Your access to unlimited CUTimes.com content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Critical CUTimes.com information including comprehensive product and service provider listings via the Marketplace Directory, CU Careers, resources from industry leaders, webcasts, and breaking news, analysis and more with our informative Newsletters.
- Exclusive discounts on ALM and CU Times events.
- Access to other award-winning ALM websites including Law.com and GlobeSt.com.
Already have an account? Sign In
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
