Oct. 19, 2012 – NCUA this week published a letter of understanding and agreement it signed Oct. 12 with Lynn Municipal Employees CU and its state regulator in Massachusetts.
The LUA requires the credit union to take steps to correct unsafe and unsound practices, as follows:
- failure to comply with the requirements of previous enforcement actions;
- operating without adequate supervision and direction by the credit union’s board of directors over senior management;
- failure to maintain accurate books and records;
- failure to establish appropriate internal controls; and
- engaging in unsafe and unsound underwriting standards and practices.
“NCUA is working with the credit union to make a sustained, conscientious effort to correct these practices,” the agency said in a statement. It notes violations of the agreement could draw formal administrative action from NCUA that could include civil financial penalties, cease-and-desist orders, removal and prohibition orders, or orders to liquidate, conserve or merge the credit union.