Wednesday, August 4, 2010

Veritas FCU Hit With Enforcement Action

The National Credit Union Administration (NCUA) has published a Letter of Understanding and Agreement (LUA) entered into with the officials of Veritas Federal Credit Union, Franklin, Tennessee.

The LUA identifies corrective actions needed at the credit union. Adverse conditions identified in the LUA include:
 Weak management – failure to address prior LUA and DOR;
 Weak internal controls;
 Out of balance general ledger conditions;
 No Supervisory Committee audit and no complete member account verification since 2008 – prior to relocation of the credit union from California to Tennessee; and
 Inadequate Allowance for Loan and Lease Loss account balance – required funding is expected to drop Net Worth from 7.6% to 4.9%.

For example, the LUA has instructed the $33 million credit union by the end of August to start repossession and foreclosure actions on loans that are at least 90 days delinquent. It is requiring the credit union's ALCO Committee to meet monthly. The credit union has agreed to hire an outside party to reconcile WesCorp settlement accounts and the ATM accounts.

1 comment:

  1. Sadly, I'm not surprised. The formerly known as Nissan credit union management laid off all of the CA management team and then gradually closed down the one branch in CA, which had more walk-in traffic than the TN location and a staff which actually cared. They have no interest in conducting business properly, and the CA members are fleeing to other credit unions in droves. As we formerly loyal members continue to close our accounts, only those who cannot are bad risks will continue to maintain accounts with Veritas.

    ReplyDelete

 

The content is provided for educational purposes only, with the understanding that neither the authors, contributors, nor the publishers of this site are engaged in rendering legal, accounting or other expert or professional services. If legal or other expert assistance is required, the services of a competent professional should be sought.

Comments appearing in response to articles appearing on this site do not necessarily reflect the views of the ABA. ABA makes no representations regarding the truth or accuracy of commentary or opinions that may be posted in response to the articles that appear on this website.

The inclusion herein of any link to a website, either in the text of an article or in a comment, does not denote any approval, sponsorship, or endorsement by the ABA, and ABA is not responsible for the content or opinions expressed on those linked websites or related commentary. This content is not licensed to third parties sites and is not affiliated with any third party site. Any reference to the author or this content on any third party site on the Internet is not authorized by the ABA.

It is the policy of the American Bankers Association to comply fully with all antitrust laws. Certain discussions should be considered off-limits, including those that contain competitively sensitive data such as price and cost information, or statements that could be construed as reflecting an attempt or desire to control or influence a particular market or markets. Future pricing or other prospective competitive information should never be shared.