ANN ARBOR, Mich. – NCUA is expected to move over the next few weeks to either sell or liquidate Huron River Area CU, one of three credit unions buried under by loans in two south Florida real estate developments.
The $320 million credit union reported $73.1 million in delinquent real estate loans and $59.1 million of losses through the first three quarters of the year.
The credit union has $170 million of real estate loans in the two Florida developments–Cape Coral and Lehigh Acres–where two other recent credit union failures, Norlarco CU and New Horizons Community FCU, also are invested. Thousands of homeowners claim they were fraudulently sold homes in the two developments and have defaulted on their loans.
NCUA has taken all three credit unions under conservatorship, sold New Horizons in June, and is negotiating to sell Norlarco. The sale of the failed credit unions will leave NCUA with an estimated $440 million worth of real estate loans in the two Florida projects.
