On November 6, I reported that Quorum FCU's timeshare lending may have excessive exposure to a single borrower and wondered if NCUA's Region I Regional Director had granted the credit union a waiver from the aggregate loan to one borrower limit.
I filed a Freedom of Information Act on October 24 with NCUA seeking any information related to a waiver being granted to Quorum FCU by the Regional Director and what was the new lending limit.
On December 9, NCUA replied that "we have no responsive records."
I interpret that to mean Quorum did not apply for a waiver and NCUA is clueless about Quorum's exposure to the timeshare industry.
Furthermore, I was tipped off that Quorum is increasing its exposure to the timeshare industry. Hyatt Residence Club recently announced that its members are now eligible to join Quorum.
NCUA is overwhelmed with trying to cover 6000 rugrats some of whom manage a cu from a dining room table and some are, as headlines indicate, absconding funds equal to a sum greater than their assets.
ReplyDeletethen when NCUA tries to focus on larger credit unions they are (in their own words if one looks close enough) uninformed, unprepared, overwhelmed, lack resources and most importantly...conflcited as cuna (cu not accountable) is about the mission...is it prudential safety and soundness or is it "keep the movement afloat"?
this quorom example is a microcosm of the industry.
cant grow. cant generate earnings. cant get weak credit unions to merge with it. rolls the dice and breaks rules.
my credit union and the other larger, healthier credit unions will have to foot the bill and so will the tax payer.
we're thinking of leaving the charter like Harborone.
who is NCUA's boss?
they need to fix this.