AUSTIN, Texas – The growing number of credit union failures has forced NCUA’s Asset Management and Assistance Center, which had been managing as many as 1,000 residential properties in south Florida, to expand into new markets in Southern California and Las Vegas in recent months.
Recent liquidations of Ensign FCU in Las Vegas, and High Desert FCU and The Members’ Own FCU in Southern California, have added to the burgeoning real estate portfolio for the agency’s asset management operations, according to John McKechnie, chief spokesman for NCUA.
NCUA still owns 633 houses in southwest Florida as a result of the liquidation of three credit union failures, Norlarco CU, Huron Rover Area FCU and New Horizons Community FCU. Of these, 220 are leased, according to McKechnie.
“We originally started with around 1,000 houses in 2008,” he said. “We have sold 267 houses since the assets were assigned to AMAC; with 66 being sold thus far in 2010. Our plan is to sell 150 houses this year, so sales this year are slightly above plan.”
“All sales of our residential properties are thorough local real estate brokers,” he said. “We have a professional onsite property manager in southwest Florida, which is the only area where it has made economic sense to do so.” The agency also is considering selling some of the loans in packages but has no current plans to do so, he added.
NCUA is not holding any other significant assets from failed credit unions other than loans, he noted.
