ALEXANDRIA, Va.—During its open board meeting Thursday, NCUA provided an update on the impact California wildfires are having on Los Angeles County credit unions and how the agency is responding—including providing new training for examiners to help them assist affected CUs with managing their loan portfolios.
NCUA Board Chairman Todd Harper addressed the fires’ devastation.
“They have burned more than 40,000 acres and an estimated 13,000 structures have been damaged or destroyed. Dozens of people are reported dead or missing. Moreover, tens of thousands of people have found themselves homeless, including at least one NCUA examiner,” Harper said.
Harper said NCUA is closely monitoring the impact of the wildfires on the credit unions.
“We know of 58 credit union facilities belonging to 38 credit unions located within five miles of the wildfires,” Harper said, adding NCUA has plans in place to facilitate recovery efforts. “Two federal credit unions were initially evacuated due to the fires, but the order has since been lifted. All credit union buildings are currently safe, but some branches are closed due to power outages or poor air quality.”
Harper reminded NCUA has issued guidance encouraging financial institutions operating in the affected areas to work with their members to meet their communities’ needs.
“That includes constructively working with borrowers to adjust or alter the terms of loans and permitting the use of temporary facilities for conducting business,” Harper said. “Among other things, next week the NCUA staff will receive training on helping credit unions manage their loan portfolios that may be adversely affected by the fires.”
Vice Chairman Kyle Hauptman said he lived in Southern California when he attended college at UCLA. He recalled encountering the Santa Ana Winds for the first time. As CUToday.info has reported, high winds have been a major reason the current fires have been growing and spreading rapidly.
“I've lived most of my life as a high school student in the northeast,” he said. “I wound up at UCLA and I vividly remember my first winter there. And winter in Los Angeles is kind of like October in D.C. I remember getting up in the morning and hearing howling wind, and I said, alright I’ll bundle up a little bit. I walked out and got blasted by heat. That blasting wind that is hot and dry—that was different than any other thing I have experienced in my life.”
Board member Tanya Otsuka credited the work NCUA’s Western Region team and the office of Consumer Financial Protection.
“NCUA staff have been working with the California state credit union regulator and with credit unions…I just want to thank everybody. I know it's been a really tough week-and-a-half, especially for those who have been directly impacted by the fires,” she said.