P.M. BRIEFING : U.S. OKs 15 R.I. Credit Unions
Fifteen more credit unions that closed on New Year’s Day after their private insurer collapsed have been approved for federal coverage but 11 have been deemed “not currently insurable,” officials said today.
The approvals brought to 22 the number of credit unions that will receive federal insurance as long as they sign a necessary agreement with the National Credit Union Administration and make their deposit payment, the NCUA said in a statement.
The 11 deemed uninsurable were rejected because they had a “high proportion of commercial, real estate and other loans that are non-performing or are poorly underwritten,” the NCUA said. “Some credit unions have extremely high delinquency, and in some cases solvency is in question.”
The remaining two of the 35 credit unions closed New Year’s Day did not apply for federal insurance. They were not identified, nor were the 11 that were rejected.
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