More than half of last year’s over two dozen mortgage-related business closings and failures were credit unions, and the trend is continuing this year.
On Feb. 5, the
Wisconsin Office of Credit Unions served an order of liquidation on CTK Credit Union. The organization was located in Milwaukee.
The regulatory decision to liquidate CTK came after the state determined that it was insolvent and had no prospect for restoring viable operations.
The
National Credit Union Administration, which announced the liquidation, was appointed liquidating agent.
CTK had just 397 members who were
congregants of Christ the King Baptist Church of Milwaukee. It’s assets totaled just $0.2 million.
Another credit union that served church members,
Cory Methodist Church Credit Union, was placed into conservatorship on Feb. 4 by the Superintendent of the Ohio Division of Financial Institutions.
The NCUA, which was named conservator, said
the Cleveland financial institution served 710 members who belonged to multiple area churches. It has $1.6 million in assets and was chartered in 1958.
“The superintendent placed Cory Methodist Church Credit Union into conservatorship because of unsafe and unsound practices at the credit union,” NCUA said. “While continuing normal member services, NCUA will work to resolve issues affecting the credit union’s operations.”
The NCUA approved the liquidation of Internet Archive Federal Credit Union on Jan. 6. The move was approved by the New Brunswick, New Jersey, entity’s members the prior month and followed an NCUA cease-and-desist order in November.
The regulator noted that the order was the result of the credit union’s unwillingness to do business in the low-income areas of the
community it served, violations of the Bank Secrecy Act and USA PATRIOT Act, and weakening financial conditions and mounting losses.
Internet Archive was chartered in 2012, had 391 members and $2.3 million in assets.
The director of the Michigan Department of Insurance and Financial Services placed Clarkston Brandon Community Credit Union into conservatorship on Jan. 13. The NCUA was appointed conservator.
Clarkston Brandon has was chartered in 1957 to serve residents and businesses in several Michigan counties. It has 9,413 members and $68.8 million in assets.
The NCUA reported on Feb. 3 that New York-based Montauk Credit Union, which was thrust into conservatorship in September 2015,
has taken several steps to address financial and management issues affecting the safety and soundness of its operations.
In Dayton, Ohio,
Montgomery County Credit Union was merged into Bridge Credit Union on Jan. 31, the NCUA announced. The institution was placed into conservatorship by the Superintendent of the Ohio Division of Financial Institutions in April of last year.
Mortgage Daily has tracked the demise of four credit unions so far this year. Credit unions accounted for 14 of the 25 mortgage-related closings and failures in 2015.
Finance of America Mortgage is shutting down its correspondent division, Rob Chrisman reported in his newsletter. The last day for correspondent clients to fund loans is on Feb. 29.
In all, three non-bank mortgage business closings have been reported by Mortgage Daily this year.
Including banks and non-banks, Mortgage Daily has tracked seven mortgage-related casualties in 2016.
