ADDISON, Texas – Kappa Alpha PSI FCU, a six-year-old fraternity-based credit union that never reached $1 million in assets, was closed down by NCUA this afternoon, the 20th credit union failure of the year and the second already this week.
NCUA said t was unable to find a merger partner for the $780,000 credit union, chartered in 2004, and will pay off its 1,340 members instead.
The liquidation follows Monday’s failure of Certified FCU of Commerce, Calif., which was merged by NCUA into Vons Employees FCU, of El Monte, Calif., in a purchase and assumption agreement.
