Tiny California Church-Based CU Hit with Enforcement Order

The California Department of Business Oversight issued a consent order against Jones Methodist Church Credit Union (San Francisco, CA).

The final order is based upon a December 31, 2017 Report of Examination, which detailed unsafe and unsound practices at the $590,634 credit union.

The final order requires the credit union to:

• hold and document monthly board meetings; 
• establish a comprehensive succession plan; 
• develop a list of suitable merger partners; 
• develop key ratio goals for net worth, return on average assets, operating expenses to gross income, total loans to total shares, and other metrics identified by the board; 
• update 2018 budget with documented budget assumptions and what-if scenarios; 
• develop and document contingency plans if budget projections are not met; 
• post member and investment transactions on a weekly basis; 
• complete OFAC audit and complete FinCEN 314(a) scrubs; and 
• control share growth and manage the high concentration of shares in one member's account.

Read the order.