Issued PWLs in 2016 Were Up, Issued LUAs in 2016 Were Down

Information obtained under a Freedom of Information Act showed that in 2016 there was an increase in the issuance of preliminary warning letters (PWL) and a decrease in the issuance of letters of understanding and agreement (LUA) by the National Credit Union Administration (NCUA).

ALL LUAs were unpublished in 2016.

One LUA was issued by field staff to Servco FCU (Bensalem, PA) on February 25, 2016 -- just weeks before NCUA liquidated the credit union. If it was not for the Material Loss Review issued in February, we would not have known about the LUA.

The following table reports the trend in PWLs, LUA, and cease and desist orders (C&D) issued by NCUA from 2013 through 2016.