NCUA Conserves Philadelphia CDCU
Seven weeks after slapping it with a cease-and-desist order, the NCUA has placed Philadelphia’s People for People Community Development Credit Union into conservatorship.
The NCUA said Friday it has now conserved People for People CDCU and that “while continuing normal member services, (the agency) will work to resolve issues affecting the institution’s safety and soundness.”
The 1,561-member, $1.1 million credit union had been ordered in November to complete a financial statement audit; charge off uncollectible loans; properly fund the Allowance for Loan and Lease Losses; collect on delinquent loans guaranteed by a third party; reconcile general ledger accounts monthly; and establish and maintain a Bank Secrecy Act compliance program.
The state chartered, federally insured credit union serves an underserved, 14.3-square-mile part of north Philadelphia and is the first to be placed in conservatorship in 2012, the NCUA said.
“The Pennsylvania Department of Banking, which chartered People for People CDCU, concurred with the conservatorship decision,” the NCUA said in a statement.