Credit Union Exam Solutions Presents With Flying Colors
When DORs become LUAs: What you Need to Know About Letters of Understanding & NCUA
Jun 24, 2024
Experts Steve Farrar and Todd Miller discuss the rise in Letters of Understanding in credit unions. They cover the significance, implications of non-compliance, negotiation strategies, and the importance of clear communication between board and management.
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Quick takeaways
- NCUA issues more Letters of Understanding to troubled credit unions, signaling serious issues.
- Compliance with LUAs is crucial, seeking professional advice vital to navigate the process successfully.
Deep dives
Understanding Letters of Understanding and Agreement (LUAs)
Letters of Understanding and Agreement (LUAs) are formal commitments from credit unions to address persistent problems identified by NCUA. NCUA may publish these for severe issues, signaling the credit union's troubled status. LUAs set forth corrective actions with stringent time frames and consequences for non-compliance. Credit unions facing LUAs should seek advice to navigate the process and understand the serious nature of these actions.
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