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Sam Thacker

7/26/2012 04:08 PM

I have written a number of articles about whether credit unions should be in the business of making business loans.

Recently I interviewed an NCUA workout specialist who told me shocking stories of business loans that credit unions should not be making.

As a commercial lender with 17 years of experience it is my belief that credit unions don't have the commercial lending departments necessary to make commercial loans.

I am very concerned about the method that aggressive credit unions are getting around the capital requirement. We are in a time when nearly all banks have stopped doing participations because of the concern over regulator angst. At the same time a small number of large credit unions are circumventing the cap requirement by participating risky commercial real estate loans with other credit unions who aren't doing their own due diligence.

It is quite possible that this next year we will see more credit unions merge or fold because of risky commercial loans that should not be made in the current lending climate.

It all boils down to commercial lending experience which most credit unions don't yet have.

Sam Thacker

Winter Prosapio

7/26/2012 03:59 PM

You might be interested in the Dallas Morning News Op Ed that called for a lifting of the cap - it took umbridge with the ABA arguments.

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