DENVER (6/18/09)--The Colorado State Commissioner of Financial Services issued cease-and-desist orders against two state-chartered credit unions--Longs Peak CU, Loveland, and Saguache County CU, Crestone. Net losses for the year ending Dec. 31 have lowered Longs Peak CU’s net worth by about $1.2 million. This is the fourth year in the past five that the credit union has suffered a net loss, Commissioner Chris R. Myklebust said in the order. The credit union cannot operate after July 31 without developing an achievable operating budget. Saguache County CU’s net worth fell to 6.40% as of March 31. National Credit Union Administration guidelines require credit unions to keep a threshold of at least 7%. The credit union’s operating expenses-to-average assets ratio is 4.65% as of March 31, without accounting for the effects of corporate credit union stabilization-related expenses. Saguache County CU's other-real-estate-owned (OREO) report indicated that it has 14 real estate loans with a value of $1.3 million and a revised appraisal value of $1.1 million. It also has seven problem loans that could result in $40,000 in write offs. The credit union also has $4.6 million, or 23% of its loan portfolio, in subprime loans. Saguache County CU cannot operate after June 30 without developing a capital restoration plan. It also cannot make additional loans to members with credit scores of 650 or less and must sell OREO property.