PHILADELPHIA.—NCUA Monday issued a cease and desist order to tiny S M Federal Credit Union here.
While NCUA did not state a specific reason for the action, from the details of the order (below), record keeping appears to be an issue with the $56,000-asset CU.
NCUA said S M Federal Credit Union officials have consented to the order, which requires the following actions:
- Provide credit union records to the compensated auditor;
- Complete a member account verification and supervisory committee audit;
- Reconcile and maintain accurate financial statements and member share and loan records;
- Calculate and track loan delinquency;
- Actively and effectively collect past due loans;
- Cease granting new loans;
- Ensure the supervisory committee is fully staffed and fulfilling all obligations; and
- Provide the agency with monthly financial statements; and board and committee minutes.
Chartered in 1959, S M Federal Credit Union serves 115 members, according to the credit union’s most recent Call Report.
A copy of the final order is posted on the NCUA website here.