A federally insured credit union that is operating in the Empire State with nearly $2 billion in assets has gone belly up.
Melrose Credit Union is comprised of 23,462 members. It’s most-recent call report indicated that assets were $1.78 billion.
On Friday, the New York State Department of Financial Services seized control of the
Briarwood, New York, institution.
The credit union was then placed into conservatorship with the National Credit Union Administration.
“DFS placed Melrose Credit Union into conservatorship because of unsafe and unsound conditions at the credit union,” the state said. “While continuing normal member services, NCUA will work to resolve issues affecting the credit union’s operations.”
The NCUA noted that deposits of Melrose are insured up to $250,000 by the
National Credit Union Share Insurance Fund.
Melrose was the first credit union failure tracked by Mortgage Daily in 2017. The demise is the fourth mortgage-related business closing or failure tracked so far this year.
