Tuesday, December 23, 2014

Tiny Faith-Based Low-Income CU Under Cease and Desist Order

The National Credit Union Administration has issued a cease and desist order to New Bethel Federal Credit Union of Portsmouth, Virginia.

According to the enforcement order, the credit union is required to:
  • Produce source documents demonstrating a certificate of deposit with a local bank is properly titled in the credit union’s name.
  • Provide the agency with complete and accurate financial statements and up-to-date member share and loan transactions.
  • Obtain a member account verification and independent audit through 2014.
  • Charge off all non-performing loans by December 31, 2014 and fully fund its allowance for loan and lease loss accounts.
  • Cease granting any new loans until NCUA deems the credit union to be operating in a manner conducive to making sound lending decisions.
  • Comply with the Bank Secrecy Act and the USA Patriot Act .
  • Ensure internal control reviews by the credit union’s Supervisory Committee.
New Bethel Federal Credit Union has assets of $85,845 and serves 176 members.

Read the order.
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