NCUA Left Holding Bag On Las Vegas Member Business Loan
LAS VEGAS – NCUA last week filed suit against a local real estate investment firm to recover on a $1.4 million member business loan, one of dozens of defaulted loans the credit union regulator has accumulated from the detritus of failed credit unions.
In the new suit, NCUA says Washington 2500 LLC and its three owners have defaulted on a $1.45 million loan it obtained in 2007 from Henderson-based Ensign FCU to secure speculative real estate in downtown Las Vegas. The one-time $135 million credit union was taken over by NCUA last year in one of the biggest credit union failures ever and its remnants assigned to EDS CU (now InTouch CU) of Texas.
As of Sept. 23 the members owed $1.36 million in principal and $89,000 in interest on the loan. Interest is accruing at $285.13 per day.
Ensign was one of four major credit union failures in Nevada last year, along with Clearstar Financial CU, Community One FCU and Cumorah CU. NCUA said last week the failures of Ensign and Clearstar Financial will cost the National CU Share Insurance Fund an estimated $42 million. Cumorah, which was sold to Credit Union One of Illinois, cost its private deposit insurer, ASI Inc., $8 million to resolve.
While NCUA is having difficulty recovering on defaulted loans, this one is a bit different because it was personally guaranteed by the firm’s three principals: Ali Moradshahi and Isaac Norman of California, and Hamid Mahban of Nevada.