I hope everyone out their knows the insurance limitiations on their local credit union:
The Ann Arbor News reports from Michigan. “A federal agency announced Monday it has assumed control of operations at Ann Arbor-based Huron River Area Credit Union. Regulators from the National Credit Union Administration, the independent federal agency that charters and supervises federal credit unions has taken over the credit union’s management, placing it in conservatorship.”
“‘We found it’s been operating in an unsafe and unsound manner and is in imminent danger of insolvency,’ said Kathy Fagan, spokesperson for the Michigan Office of Financial and Insurance Services. ‘This was something that came up suddenly.’”
“A credit union is typically placed into conservatorship when its loan or investment portfolios are judged by regulators as too risky, putting the institution’s viability in danger, said David Adams, chief executive officer of a trade association that represents credit unions, including Huron River.”
“‘Most often regulators are identifying problems well in advance of it being a crisis and I suspect that’s what’s happened here,’ said Adams.”
“Sreedhar Bharath, a professor of finance at University of Michigan’s Ross School of Business, speculated the move may be due to the actual or anticipated future foreclosures due to the area’s recent job losses. He also suggested the move may be an attempt keep customers, including other financial institutions, from panicking and withdrawing their money.”
“‘Home lending in Michigan in this climate is a risky bet. They may be being cautious and taking action even before bad things are happening,’ he said. ‘My guess is you might see more of this happening in the future. Foreclosure rates are up in Michigan.’”
Hat tip to Ben Jones
The Ann Arbor News reports from Michigan. “A federal agency announced Monday it has assumed control of operations at Ann Arbor-based Huron River Area Credit Union. Regulators from the National Credit Union Administration, the independent federal agency that charters and supervises federal credit unions has taken over the credit union’s management, placing it in conservatorship.”
“‘We found it’s been operating in an unsafe and unsound manner and is in imminent danger of insolvency,’ said Kathy Fagan, spokesperson for the Michigan Office of Financial and Insurance Services. ‘This was something that came up suddenly.’”
“A credit union is typically placed into conservatorship when its loan or investment portfolios are judged by regulators as too risky, putting the institution’s viability in danger, said David Adams, chief executive officer of a trade association that represents credit unions, including Huron River.”
“‘Most often regulators are identifying problems well in advance of it being a crisis and I suspect that’s what’s happened here,’ said Adams.”
“Sreedhar Bharath, a professor of finance at University of Michigan’s Ross School of Business, speculated the move may be due to the actual or anticipated future foreclosures due to the area’s recent job losses. He also suggested the move may be an attempt keep customers, including other financial institutions, from panicking and withdrawing their money.”
“‘Home lending in Michigan in this climate is a risky bet. They may be being cautious and taking action even before bad things are happening,’ he said. ‘My guess is you might see more of this happening in the future. Foreclosure rates are up in Michigan.’”
Hat tip to Ben Jones
5 comments:
I wonder if any of their mortgages were upstreamed to larger correspondent banks... if so, this could prove to be another Penn Square Mall incident from the early 80s...
Any news on our local Kern Schools Credit Union? I've got some $$$ tied up there and it's all FDIC insured, but I am curious...
The best history about the Bakersfield market as far as price can be found at:
Bakersfield Price History
Oh I forgot. CNBC will be having a stock market challenge beginning in March. Its free to enter (visit their website) and the winner gets a cool million. Every player starts with the same amount of cash and then eight weeks later the top 10 guys go the finals for the million dollars.
The reason I'm posting this here, is because I've entered the challenge and my entire strategy will be based upon SHORT SELLING sub-prime lenders. It sounds like a winner to me!
AG-
I would bet KSFCU is ok - but I do remeber a lot of advertising by them during the run-up for HELOC and other home loan products...
Isn't the michigan real estate market in the tank?Not surprised the feds took over the credit union there.They are probably really hurting with all the forclosures.I guess I won't be visiting eight mile area anytime soon.
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