ALEXANDRIA, Va. – NCUA and the Massachusetts Division of Banks have entered into a Letter of Understanding and Agreement (LUA) with $2.1-million Lynn Municipal Employees Credit Union, requiring it to take steps to correct unsafe and unsound practices.

The regulators cited the CU’s failure to comply with the requirements of previous enforcement actions; operating without adequate supervision and direction by the 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.

LMECU reported net income of $11,000 as of June. It is highly capitalized at 19.97%.

 

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