WASHINGTON–Five credit unions are among the 10 lenders the U.S. Department of Agriculture has removed from participation in the OneRD Guaranteed Lending Program for high delinquency rates and what the department called “noncompliant” practices.
will be precluded from further participation in the program.
“The Trump Administration has absolutely no tolerance for the irresponsible and noncompliant actions of these lenders and has banned them from participating in USDA guaranteed lending programs,” USDA Secretary Brooke Rolliins said in a statement. “I will continue to protect the American taxpayer and ensure their hard-earned dollars are spent where they belong – on projects that revive and strengthen rural America.”
The five credit unions can be seen in the chart below and include Greater Nevada CU, Georgia’s Own CU, U.S. Eagle FCU in New Mexico, Jefferson Financial FCU (which recently merged into Keesler FCU in Mississippi), and Genisys Credit Union in Michigan.
High Delinquencies
In making its announcement, the USDA said the 10 lenders have portfolios with approximately $620 million in delinquent loans, accounting for approximately 47% of Rural Development’s delinquent loans.
The average for all 760 lenders in the program was $2 million in delinquent loans, according to a USDA dashboard.
“By taking immediate action to root out abuse, the USDA is strengthening its commitment to responsible lending practices and program integrity,” the USDA said in a statement. “This action will allow the USDA to provide improved customer service and support to the over 750 remaining lenders who continue to provide critical access to capital for rural America through the OneRD Guaranteed Lending Program.”
The USDA dashboard can be found here.
