In its order to conserve the 61,000 member, $598 million Alabama One Credit Union, the Alabama Credit Union Administration stated the cooperative lost nearly $11 million over 18 months beginning in January 2014 and ending in June 2015.

The agency said the credit union's executives caused the losses by failing to maintain underwriting standards, underwriting loans inadequately and failing to underwrite mortgages to Fannie Mae standards, thus incurring forced buybacks of previously sold mortgages. 

The ACUA also found the cooperative's executives took advantage of board or committee members' positions to conduct outside advertising at the credit union free of charge. In addition, the agency found, the cooperative granted preferential treatment to the brother of a credit union executive in connection to a member business loan. Further, the agency stated the credit union hid that loan when it became delinquent and failed to act against the borrower.