Nobody — not members, not credit unions — wants a loan to go bad. Still, in some cases, they do. Members lose their jobs, have a medical crisis, or encounter other hardships that make it impossible to pay the loan within the agreed-upon terms. In that instance, having a strong team and plan in place to manage the situation is critical. New Mexico Educators Federal Credit Union ($1.04B, Albuquerque, NM) offers extensions and reworks loans and payment plans to meet member needs. Its specialized collections department includes eight staff members all with distinct roles. Three team members focus on indirect lending, one focuses on credit cards, one focuses on direct loans, and the remaining three focus on remarketing and repossessions. To cut off problems before they escalate, the collections team meets weekly with the credit union's underwriters and the vice president of lending. The team also participates in regular collections training. NMEFCU shows what a credit union can do when armed with a plan. As of fourth quarter 2010, the credit union’s delinquency is 1.22%, well below the industry average of 1.76%.