From: clarinews@clarinet.com
Newsgroups: clari.news.gov.usa,clari.news.politics,biz.clarinet.sample,clari.news.top
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Subject: White House credit union delinquencies
Keywords: usa federal, government, politics
Date: Wed, 15 Apr 92 21:18:15 PDT
ACategory: washington
Slugword: whitehouse
Priority: major
Format: regular
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Note: (Editors: repeating ealier story)

	WASHINGTON (UPI) -- The White House Credit Union, which counts
President Bush among its 5,000 members, had one of the highest rates of
delinquent loans in the nation last year, a published report shows.
	The Washington Times, citing a financial performance report obtained
under the Freedom of Information Act, said Wednesday the credit union
had a delinquent-loan rate of 3 percent, nearly double the national
average.
	The Times said the report by the National Credit Union Administration
also found it ranked among the bottom one-fourth of 1,591 comparable-
size institutions for the percentage of loans written off as
uncollectable -- 0.9 percent.
	The NCUA, which oversees credit unions, declined comment, citing its
policy of confidentiality.
	But Bush promptly assured reporters he did not have any bad loans or
late payments himself, and a defensive White House argued it would be
unfair to compare the matter to the checking-bouncing scandal on Capitol
Hill.
	``It's apples and oranges,'' insisted press secretary Marlin
Fitzwater. ``The House manages the bank. We have nothing to do with the
credit union.''
	Fitzwater said ``no'' when asked if the White House would disclose
the names of the ``deadbeats.'' The administration pressed for full
disclosure of the check-bouncers.
	``We urge that the National Credit Union Administration regulate
these institutions to the best of their ability,'' he told reporters. 
``Our relationship is not the same as the House to the House bank, and
you know it.''
	He said ``if this credit union is not'' doing a good job collecting
loans, ``then they ought to do whatever it takes to shape up.''
	The credit union, which dates back to the 1930s, has a full-time
manager, Illa Kruckesky. Last May, it hired its first full-time bill
collector.
	Its all-volunteer board of directors is headed by John Cohrssen,
assistant director of Vice President Dan Quayle's Council on
Competitiveness.
	Cohrssen said in a telephone interview that the credit union's
delinquency rate last year was actually 2.98 percent, and said it was
largely due to a delinquent home equity loan of $83,000.
	Reading from the NCUA's report, he noted that ``without this loan
being classified as delinquent, the deliqency ratio would be 2.25
percent.'' That's still above the national average of 1.8 percent,
though.
	Cohrssen said the NCUA gave the White House credit union an overall
rating of 2 on a 5-point scale last year, with a 1 being the highest
possible mark and 5 the lowest. He said it was based on capital,
management, liquidity and earnings.
	Fitzwater said: ``The credit union is an independent entity. It has
no relation to the White House. It has all kinds of people in it,''
including military, Secret Service, and administration appointees.
	``Yeah, I got one,'' Bush said when asked by reporters if he had an
account with the credit union. Asked if it was up to date, he said: ``It
better be.''
	The White House Credit Union offers government employees with full
access to the White House grounds home equity loans, low-interest credit
cards and unsecured personal credit.
	Any bad debts or unpaid loans are absorbed by the membership.
	As of Dec. 31, the credit union had total assets of $22.4 million,
with $11.3 million in outstanding loans.
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