PHILADELPHIA – NCUA issued a rare cease and desist order to a troubled community development credit union yesterday that could wipe out all of the tiny CDCU’s remaining capital.
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The NCUA order will require People for People Community Development CU, which had just $40,000 of net worth at Sept. 30, to charge off more uncollectable loans, add to its loan and lease allowance and establish a Bank Secrecy Act compliance program.
The $1.1 million CDCU serves just 1,500 members and reported a loss of $30,000 and net worth of less than 1% for the first three quarters of the year.
