Material Loss Review of Melrose Credit Union, LOMTO Federal Credit Union, and Bay Ridge Federal Credit Union

The National Credit Union Administration Office of Inspector General contracted with Moss Adams LLP to conduct a Material Loss Review ofthree federally insured credit unions, Melrose Credit Union, LOMTO Federal Credit Union, and Bay Ridge Federal Credit Union. We reviewed the credit unions to: (1) determine the cause(s) of the credit unions’ failure and the resulting estimated $765.5 million loss to the National Credit Union Share Insurance Fund; (2) assess NCUA’s supervision of the credit unions; and (3) provide appropriate suggestions and/or recommendations to mitigate future losses.