The LUA requires the credit union to take steps to correct unsafe and unsound practices, including:
- Failure to comply with the requirements of previous enforcement actions.
- Operating without adequate supervision and direction by the credit union’s board of directors over senior management.
- Failure to maintain accurate books and records.
- Failure to establish appropriate internal controls.
- Engaging in unsafe and unsound underwriting standards and practices.
(i) credit reports reviewed during the underwriting process contain credit scores;
(ii) loan documentation includes discussion of why members with adverse credit are granted loans;
(iii) debt-to-income ratios are calculated correctly and include all debts from the member’s credit report and loan application; and
(iv) loan notes are completed accurately and ensure proper procedures are in place in the event that loan notes are changed.
Lynn Municipal CU has 398 members and almost $2.2 million in assets.
Read the press release.
Read the enforcement order.