Archive Links

Consumer Archive
CU System Archive
Market Archive
Products Archive
Washington Archive

News Now

CU System
Superior CU sues over Norlarco payout
DENVER (3/17/09)--A Wisconsin-based credit union that had participation loans with Fort Collins, Colo.-based Norlarco CU before it was liquidated is suing the National Credit Union Administration (NCUA) as the liquidating agent for an additional $10.2 million or more the credit union claims Norlarco owed it. Superior Choice CU, based in Superior, Wis., filed the suit in a U.S. District Court in Colorado, on Nov. 5, 2008. It was first reported by The Coloradoan on March 10. In court documents obtained by News Now, Superior Choice said it entered into participation loan agreements with Norlarco in the Florida market but was not told that many of the loans were for investor mortgage loans, instead of the less risky owner-occupied mortgages. In its complaint, Superior Choice also said it was not notified that Norlarco and the builders in 2005 had amended their agreement, releasing First Home Builders from any responsibility to pay off the construction loans if the borrowers defaulted. Superior Choice said it would not have participated in the last two participation loans if it had known this. Norlarco lost more than $50 million on the loans and was placed into conservatorship in May 2007. On Feb. 29, 2008, NCUA placed Norlarco into involuntary liquidation, and NCUA assumed part of the troubled assets as part of a merger agreement in which Denver-based Public Service CU would assume Norlarco's assets and employees. Superior Choice had initiated a lawsuit on June 27, 2007 against Norlarco in the District Court for Larimer County, Colo., and the November lawsuit is a continuation of that suit with the liquidation agent. Superior Choice said it funded more than $22 million total for 112 loans, not knowing 45 of them were investor loans. Of the 112 loans, 40% defaulted, said court records. They represented more than $9.4 million. NCUA has filed a motion for dismissal, saying that Superior failed to file its claims in a timely manner and that the credit union did not exhaust all administrative remedies for each claim.


RSS print
News Now LiveWire
#Iowa Housing Authority honors #creditunion's mortgage commitment #NewsNow http://t.co/97me6ziPFa
8 hours ago
Adams to Zimmerman: Don't let your name define your financial decisions via @ndn http://t.co/kPVgQaDFNo
11 hours ago
Calif. ride-sharing law protects #creditunion collateral #NewsNow #System http://t.co/kXAAmbQgKO
12 hours ago
New offices mean moving sale at @TheKCUA https://t.co/xaof5SJkmE
13 hours ago
Existing-home sales slump in August as cash purchases decline @REALTORS
14 hours ago