Poor recordkeeping and unsafe loan practices are among the conditions that officials of Kappa Alpha Psi Federal Credit Union agreed on in a letter of understanding and agreement with the NCUA to improve, according to documents released today by the NCUA.
The letter, which was signed last June 30, stated that the Carrollton, Texas-based credit union hadn't reconciled its books in a timely manner and there isn't enough detail to identify specific information about certain transactions. It also stated that there was inadequate loan documentation and loan limits aren't based on credit risk and income levels. The June 30, 2009 letter modifies a previous one signed Aug. 13, 2008.
The NCUA didn't explain why it is releasing the document now and the credit union's chairman didn't return a phone call seeking comment.
Continue Reading for Free
Register and gain access to:
- Breaking credit union news and analysis, on-site and via our newsletters and custom alerts
- Weekly Shared Accounts podcast featuring exclusive interviews with industry leaders
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the commercial real estate and financial advisory markets on our other ALM sites, GlobeSt.com and ThinkAdvisor.com
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
