The cease and desist order found that the $12.8 million credit union and one or more of its institution-affiliated parties have engaged in unsafe or unsound practices, violation of law, rule, and regulations, and have violated the conditions set forth in an April 24, 2017 Letter of Understanding and Agreement (LUA).
Among the items enumerated by the cease and desist order are the following:
- The board of directors failed to adequately supervise and direct credit union's management.
- The credit union had inadequate management.
- The credit union failed to address material deficiencies and comply with terms and conditions specified in the LUA.
- The credit union operated with a net loss or insufficient income to support net worth growth.
- The credit union had declining net worth.
- The credit union had ineffective loan and collection policies and practices.
- The credit union failed to reduce delinquencies by 25 percent as specified in the LUA.
The credit union is expected to retained qualified management.
The enforcement order further mandates a 50 percent reduction in delinquent loans by December 31, 2017 from December 31, 2016 levels.
Read the order.
The first two points above are melrose and progressive to a T.
ReplyDeleteThe first two points are McW/NCUA board and management to a T for allowing melrose and progressive to put 70% of their assets in taxi loans.
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