NCUA responds to Texas flooding

ALEXANDRIA, Va. – NCUA deployed Region V examiners onsite here last week to three federal credit unions hit by the extensive flooding in Houston and 28 southeastern Texas counties. Many of the areas were declared federal disaster areas after thousands of businesses and homes were damaged or completely destroyed by flooding from Tropical Storm Allison. According to NCUA, several other credit unions are reporting water damage but are functional. One of the hardest hit credit unions includes BCM Federal Credit Union in Houston where it has reported three to four feet of standing water inside. The credit union is attempting to set up camp at another Houston area credit union. Another credit union where NCUA has deployed examiners to assist is Missouri Pacific Houston Federal Credit Union of Houston. The building may be a complete loss, according to NCUA, and the credit union is attempting to set up a remote office at Greater Houston Federal Credit Union. Additionally, Houston Belt and Terminal Federal Credit Union also of Houston is flooded but its office is up and running also at Greater Houston. Under NCUA’s disaster relief policy, the agency encourages credit unions to make loans with special terms and reduced documentation to members who lost their homes and property in the floods; reschedules routine examinations of affected credit unions if necessary; and guarantees lines of credit for credit unions through the National Credit Union Share Insurance Fund and the Central Liquidity Facility. One of the last times NCUA had to implement its disaster relief policy was when a tornado hit Terrant County, Texas, March 30, 2000. The policy goes into effect during every national emergency and has been used numerous times during the agency’s existence. Under disaster conditions, such as extreme flooding, agency personnel are to ensure the safety of the credit union staff; keep facilities and operations available to its members; and provide material and technical assistance as needed. According to a statement issued by NCUA, one credit union manager and an examiner lost their homes to the floods and everything in them. The agency is also working closely in conjunction with the Texas Credit Union League and the Texas Credit Union Department to ensure federally insured credit unions are informed about the assistance available through NCUA. [email protected]