Nevada's top credit union regulator, George Burns, taking note of the state's grim economic picture, disclosed that his office has issued "letters of understanding and informal cease and desist orders" to unidentified credit unions to bring them into balance sheet compliance.
Declining to name the number or location of any of the troubled CUs, Burns reiterated the negative view shared by many in and outside of Nevada of poor conditions impacting CUs as the state undergoes a continued high rate of foreclosures, falling home prices and 13% unemployment.
Burns, who is commissioner of the Nevada Department of Financial Institutions overseeing both banks and CUs, said one hard hit area remains indirect auto loans, witnessing what he said are overextensions and "a 50-75% decline in CUDL business over the last four to six months by some credit unions." That was a reference to Credit Union Direct Lending Corp., of California the CU-owned point-of-sale network.
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:
- Breaking credit union news and analysis, on-site and via our newsletters and custom alerts
- Weekly Shared Accounts podcast featuring exclusive interviews with industry leaders
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the commercial real estate and financial advisory markets on our other ALM sites, GlobeSt.com and ThinkAdvisor.com
Already have an account? Sign In Now
© 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.