Claiming it is being made a scapegoat, a Hollywood, Calif. credit union, the $83 million Musicians' Interguild, is wrangling with regulators this week over how to treat modifications on real estate loans written as interest-only and now deemed delinquent on Call Reports.
Marc Jacoby, CEO and treasurer, complained his CU is being "seemingly singled out as an example of what awaits credit unions who write modifications that don't conform to the FDIC model that has been tacitly endorsed as gospel by the regulators."
Jacoby explained that his 7,500-member wrote a number of real estate loan modifications for terms of three to five years with a "motivation to keep members in their homes until the economy improved."
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