ALEXANDRIA, Va.—In 2016 there was an increase in the issuance of preliminary warning letters (PWL) and a decrease in the issuance of letters of understanding and agreement (LUA) by the NCUA, reported Keith Leggett on his Credit Union Watch blog.
ALL LUAs were unpublished in 2016, noted Leggett, former senior vice president and senior economist at the ABA, who stated the information was obtained under a Freedom of Information Act. Leggett’s blog shows that in 2016 there were 69 PWLs and 47 the previous year. Last year NCUA issued 115 LUAs and 134 in 2015.
“One LUA was issued by field staff to Servco FCU (Bensalem, Penn.) on February 25, 2016 – just weeks before NCUA liquidated the credit union. If it was not for the Material Loss Review issued in February, we would not have known about the LUA,” said Leggett.
The agency issued two cease and desist orders in both 2015 and 2016, Leggett reported.