ALEXANDRIA, Va. (8/1/13)--A Letter of Understanding and Agreement (LUA) has been lifted from Lynn Municipal Employees CU. The Lynn, Mass. credit union is no longer bound by its October 2012 agreement with the National Credit Union Administration and the Massachusetts Division of Banks.
When the LUA was imposed, Lynn Municipal Employees CU had agreed to "take steps to correct unsafe and unsound practices," including the following issues:
Failure to comply with the requirements of previous enforcement actions;
Operating without adequate supervision and direction by the credit union's board of directors over senior management;
Failure to maintain accurate books and records;
Failure to establish appropriate internal controls; and
Engaging in unsafe and unsound underwriting standards and practices.
The NCUA confirmed to News Now
all issues were successfully addressed by the credit union.
The credit union had remained open and serving its members while corrective actions were undertaken.