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NCUA liquidates 17th CU of 2010

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ALEXANDRIA, Va. (11/02/10)--Spokane, Wash.’s The Union CU (TUCU) was officially liquidated by the National Credit Union Administration (NCUA) late last week. The $12 million asset credit union was the 17th federally backed credit union to be liquidated this year. TUCU served 3,115 members at the time of its closure. The NCUA was appointed liquidating agent by the Washington Department of Financial Institutions (DFI) last week after the state agency closed TUCU. The NCUA then entered into a pair of agreements that shifted some of TUCU’s assets and liabilities to Alaska USA FCU and Spokane, Wash.-based Numerica CU. In a joint letter to ex-members of TUCU, the CEOs of Alaska USA and Numerica said that “all share savings, certificates and checking accounts, as well as share/certificate secured loans, credit line loans with established overdraft protection agreements, and business credit cards were transferred to Numerica.” “All other loans, including personal credit card accounts, were transferred to Alaska USA,” the letter added. Numerica holds $1 billion in assets from 84,000 members. Alaska USA holds $4.1 billion in assets from 399,000 members. For the full NCUA release, use the resource link.

CDFI opens 2011 NACA funds for native communities

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WASHINGTON (11/2/10)--The 2011 round of the U.S. Treasury’s Community Development Financial Institutions (CDFI) Fund’s Native American CDFI Assistance (NACA) Program officially began last week, the CDFI Fund said in a release. The NACA program, which is designed to encourage the creation and strengthening of certified CDFIs that primarily serve Native American, Alaskan Native and Native Hawaiian communities, will make $10 million in funds available to eligible CDFIs. The NACA funds may be used to finance capital or may be provided to financial institutions in the form of technical assistance grants. The CDFI Fund has provided a total of $46.8 million in funds since 2004. CDFI Fund Director Donna Gambrell said that the NACA Program “plays a critical role in our commitment to support Native communities and the efforts by the CDFI Fund will ensure that the number and the capacity of Native CDFIs will continue to increase nationwide." The CDFI Fund will explain the program and how to apply during a live NACA workshop in Denver, Colo., on Nov. 9. The application process also is covered during a pre-recorded webinar, which can be viewed at any time. Credit unions that wish to apply for NACA certification must do so by Dec. 2. The funding application deadline is Dec. 22. For more information, use the resource link.

Studies stats on NCUA indirect lending webinar agenda

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ALEXANDRIA, Va. (11/02/10)--The National Credit Union Administration (NCUA) has announced that the agenda for its Nov. 9 indirect lending webinar will include discussions of indirect lending red flags, best practices, guidance, case studies, and statistics. Q&A sessions also will take place during the webinar. The free webinar will begin at 2:00 p.m. ET and will “provide guidance, best practices and insights into indirect lending examination issues,” the NCUA said. NCUA Board Member Gigi Hyland will moderate the webinar, which will include input from NCUA Office of Examination & Insurance Director of Supervision Timothy Segerson, Office of Examination & Insurance officer Marcus Vander Wall, and Region V lending specialist Victoria Bennett. Risks associated with indirect lending include material shifts in balance sheet composition and increased credit risks, liquidity risks, transaction risks, compliance risks, and reputation risks, the letter said. In Letter to CUs 10-CU-15, which was released earlier this year, the NCUA warned that an "improperly planned or loosely managed indirect lending program can lead to unintended changes in the risk profile and financial performance" of credit unions. The agency in that letter recommended that credit unions mitigate these risks by properly establishing the goals and portfolio limitations for indirect lending programs, creating and following specific underwriting standards and vendor policies, and maintaining a "comprehensive, effective, and ongoing due diligence program." For the NCUA release, use the resource link.