PLEASANTON, Calif. – Regulators are working to resolve severe financial problems at Sterlent CU, a one-time $125 million credit union that has been pushed to the brink of insolvency by troubled mortgages.
The credit union has lost almost 20% of its assets over the last 12 months, while accruing huge losses, $4.8 million for 2007, then a whopping $5.5 million for the first quarter, erasing all of its equity. At the end of the first quarter Sterlent had negative equity of $292,000.
Credit union officials did not return phone calls from The Credit Union Journal seeking comment. But regulators have been working with the credit union over the past six months to resolve the situation, which led to a cease and desist order in February for unsafe and unsound practices.
Credit union officials reported at the time its problems ere caused by high delinquencies in its portfolio home equity lines of credit.
