SAN FRANCISCO—The California Department of Business Oversight issued a consent order against Jones Methodist Church Credit Union here.
The final order is based upon a Dec. 31, 2017, Report of Examination, which detailed unsafe and unsound practices at the $590,634 credit union, reported Keith Leggett, the former senior vice president and senior economist at the ABA.
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
- Control share growth and manage the high concentration of shares in one member's account