While Williams confirmed reports that Wescom got out of the wholesale real estate loan business, he stressed the credit union is still in the retail mortgage business, with 80 employees still on the real estate payroll. Williams estimated wholesale lending only accounted for about 15% of his real estate portfolio, and less than 10% of Wescom's overall loan portfolio.

Henry Kertman, director of public relations for the California Credit Union League, said he hasn't heard of any member credit unions consulting with the league regarding staffing issues resulting from subprime lending. The same goes for Michael Bridges, director of public affairs for the Michigan Credit Union League, and Patrick Harris, director of media relations for the Ohio Credit Union League.

Sue Mitchell, partner in the staffing firm O'Rourke, Mitchell & Associates, said that while sub-prime lending issues may have had a hand in some industry layoffs, she's also noticed billion-dollar credit unions trending toward more operationally efficient shops.

"When you look at the number of employees per member, there isn't much economy of scale as credit unions grow," Mitchell said, "and many are looking at efficiency and making decisions to realign their organizations."

Mitchell said credit union layoffs spark discussion because the industry differs from banks in its attitude toward reorganizations, realignments and reductions.

"If you look at the banking industry, they go through re-orgs quite frequently, because as you get larger, that's often a necessary step," she said.

Credit unions, on the other hand, take a more caring approach toward employees, and prefer developing and placing staff in other areas. In fact, she said, some credit unions making layoff headlines contacted her firm in advance, asking for special assistance in placing outgoing staff, some at the vice president level.

Mitchell cautioned against second-guessing if some credit unions hired on too many staff during the real estate boom.

"Lending is such an important part of meeting strategic initiatives, and when the volume's there, you'd rather lend to members than invest," Mitchell said. "So, in my opinion, I think it really was member focused."

The staffing pro said she thinks many credit unions are scrambling to find other positions for real estate lending staff, now that loan pipelines have dried up. The solution, she said, may well be found in the problem.

"We have a real opportunity to fulfill our mission to help members, and I think we'll see credit unions hold on to their teams by developing them to help members through these subprime situations," she said, adding "you can't help but see the irony there, but sometimes the market works itself out like that."

Mitchell didn't mince words when asked where CEO loyalty should lie, with employees or asset stewardship.

"Credit unions always focus on doing the right thing for the member, and if it means being more operationally efficient, so be it. Prudent financial management is a must, and CEOs of co-ops have to make those tough calls sometimes," she said.

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