The National Credit Union Administration this month seized a small New Jersey credit union, citing a lack of profitability, weak capital, and severe recordkeeping problems.
Hunterdon County School Employees Federal Credit Union, Milford, was placed into conservatorship on Oct. 6. Robert F. Schafer, acting director of the agency's Mid-Atlantic region, executed the order against the $4 million-asset institution.
The credit union manager ran it out of her home and "let things go," explained Bob Loftus, NCUA director of public and congressional affairs. "We're still sorting out the books," he said. Operations have been relocated to a nearby office of Union County/Somerset County Federal Credit Union. The agency might merge the two institutions, Mr. Loftus said.
"Our first choice is to keep it as a stand-alone institution, but until we get a better handle on the situation, we can't say." he added.