Friday, October 5, 2018

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.

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