ALEXANDRIA, Va. – NCUA recently announced that it had issued a Letter of Understanding and Agreement to the board of Toledo Metro Federal Credit Union to restore operations to a safe and sound manner.
The officials of the $32 million credit union signed the LUA, acknowledging the credit union's situation and committing to correcting the adverse conditions. Among the problems listed were poor loan quality, field of membership violations, delinquencies, and weak management. According to NCUA's records on the credit union, its delinquencies and charge offs were well above its peers and return on assets was negative.
Violation of this agreement could result in formal administrative actions, possibly including civil money penalties, cease and desist orders, removal and prohibition orders or orders to liquidate, conserve or merge the credit union.
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