The Iowa Credit Union Division was granted authority by the District Court to place SCICAP Credit Union of Chariton, Iowa, into receivership and then tendered the receivership to the National Credit Union Administration. The National Credit Union Administration (NCUA) Board is proposing to eliminate from its Member Business Loan (MBL)regulations the requirement that a credit union obtain a personal guarantee when originating a business loan. This comes five years after the NCUA Board rescinded an exemption for RegFlex credit unions from obtaining personal guarantees when making a MBL. In 2010, NCUA wrote that obtaining the principals’ personal guarantee is a prudent underwriting practice that greatly enhances the likelihood of loan repayment and should be required of all credit unions. For example, a credit union should set limits for MBLs without personal guarantees as a percentage of a credit union’s net worth.
The National Credit Union Administration (NCUA) in 2014 issued 69 preliminary warning letters, 152 letters of understanding and agreement (all were unpublished), and 5 cease and desist orders. In comparison, NCUA in 2013 issued 76 preliminary warning letters, 224 letters of understanding and agreement (of which one was published), and 1 cease and desist order. Tell us about the credit union(s) you’re curious about, and we’ll get them in touch with you.
NCUA made the decision to liquidate Trailblazer Federal Credit Union and discontinue operations after determining the credit union was insolvent and had no prospect for restoring viable operations. According to the credit union’s March 2015 Financial Performance Report, the credit union was profitable with a return on average assets of 1.09 percent and had a net worth ratio of 9.40 percent.
The credit union in the first quarter of 2015 reported negative asset, share (deposit), loan, and membership growth. At the time of liquidation, Trailblazer Federal Credit Union served 1,535 members and had assets of $4.1 million. With the growth in CLF membership, the CLF’s borrowing authority increased by $2.2 billion to $5.1 billion. Flint Firebirds President Costa Papista announced that IMS Hockey and Arena Corporations of Flint and Genesee County and Flint-based Dort Federal Credit Union have agreed to rename the building. This is the third federal credit union to be chartered this year and the first new federal credit union in Illinois since 2006.
The National Credit Union Administration chartered ELCA Federal Credit Union to serve employees, members, synods and member congregations of the Evangelical Lutheran Church in America. There is a lot of wishful thinking in the credit union community that the National Credit Union Administration (NCUA) through regulatory fiat can raise the member business loan (MBL) cap to 17.5 percent for credit unions with more than $100 million in assets.