NCUA: Arrowhead To Cease Underwriting New Business Loans
SAN BERNARDINO, Calif. – Arrowhead Credit Union has ceased offering any new business loans, including credit cards and SBA loans, as the result of being placed into conservatorship by NCUA.
"While Arrowhead is in conservatorship, NCUA has determined this line of business is not in the best interest of members and does not make sense for the credit union,” said NCUA spokesperson John McKechnie.
McKechnie noted that MBLs at Arrowhead have actually been “restricted” since June 2009 because the credit union’s net worth had fallen below 6% [it is currently below 4%]. Arrowhead CU is processing pending loan applications and any loans and credit cards currently in place.
The conservatorship of Arrowhead has been met with criticism by some analysts that the agency moved too quickly to take over the CU after it had turned the corner and was recording positive net income. But NCUA earlier issued a statement in response to those criticisms, saying some of the numbers being reported by Arrowhead were “inaccurate.”