ALEXANDRIA, Va. – NCUA said it moved another $30 million to the loss reserves it holds for the National CU Share Insurance Fund as it moved to assume hundreds of millions of dollars in troubled loans from two credit unions.
The additional reserves make a total of $127 million set aside for potential credit union losses. NCUA has agreed to assume almost $240 million in troubled loans made in south Florida from failed Norlarco CU, and as much as $170 million from Huron River Area CU, which it sold off over the weekend. The regulator also is holding as much as $12 million in troubled south Florida loans it assumed when it sold New Horizons Community FCU in June.
The south Florida loan portfolio is expected to cause tens of millions of dollars for the NCUSIF, possibly wiping out any dividend on the fund for 2008.
