ALEXANDRIA, Va. (5/1/15)--The National Credit Union Administration late Thursday announced it placed New Bethel FCU, Portsmouth, Va., into conservatorship.
The NCUA said it placed New Bethel into conservatorship to enable the credit union to continue regular operations with experienced management in place and correct previous service and operational weaknesses. The agency will work to resolve issues affecting the institution's safety and soundness while it continues normal member services.
In December, the agency issued a cease-and-desist order, and officials at the $105,562-asset credit union agreed to a consent order that required New Bethel FCU to:
Produce source documents demonstrating a certificate of deposit with a local bank is properly titled in the credit union's name;
Provide the agency with complete and accurate financial statements and up-to-date member share and loan transactions;
Obtain a member account verification and independent audit through 2014;
Charge off all non-performing loans;
Cease granting any new loans;
Comply with the Bank Secrecy Act and the USA Patriot Act; and
Ensure internal control reviews by the credit union's supervisory committee.
New Bethel members can continue to conduct normal financial transactions, deposit and access funds, and use shares through ABNB FCU, Chesapeake, Va. ABNB will operate New Bethel during the conservatorship under a management agreement with the NCUA.