Poor recordkeeping and unsafe loan practices are among theconditions that officials of Kappa Alpha Psi Federal Credit Unionagreed on in a letter of understanding and agreement with the NCUAto improve, according to documents released today by the NCUA.
The letter, which was signed last June 30, stated that theCarrollton, Texas-based credit union hadn't reconciled its books ina timely manner and there isn't enough detail to identify specificinformation about certain transactions. It also stated that therewas inadequate loan documentation and loan limits aren't based oncredit risk and income levels. The June 30, 2009 letter modifies aprevious one signed Aug. 13, 2008.
The NCUA didn't explain why it is releasing the document now andthe credit union's chairman didn't return a phone call seekingcomment.
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