Conservator takes over Cal State 9 credit union

The credit union reported $54.5 million in loan and lease losses in its September quarterly report on file with the state; in the previous quarter the reported losses amounted to $17 million.

The takeover signals yet another misfortune in the unfolding mortgage crisis in which homeowners are defaulting on their loans and losing their properties. The bulk of Cal State 9's loans are for real estate transactions.