Shortcomings in compliance with consumer compliance risk management regulations, among others, have forced a Washington state bank to sign an agreement with the Federal Reserve and state regulators to address the faults in that program and others, the agencies said Thursday.
The Federal Reserve said the agreement with U&I Financial Corp. of Lynwood, Wash. – which owns and controls UniBank, also of Lynwood – signed the agreement to address the deficiencies with it and the Washington Department of Financial Institutions (WDFI). Under the timetable outlined in the agreement, the bank must act on shortcomings by next spring.
According to the Fed, its June 4 consumer compliance examination of the bank “identified deficiencies in the Bank’s consumer compliance risk management program.”
According to the agreement made public by the Fed, the bank must retain (within 60 days) an independent third party to conduct a comprehensive review of the effectiveness of the bank’s program for compliance with consumer laws and regulations, and prepare a written report of findings, conclusions, and recommendations to the Fed and the WDFI.
The report must be completed, according to the report, within 90 days after the review begins. The bank then has 30 days to “submit a written consumer compliance plan acceptable to the [Fed and WDFI] that fully addresses the findings and recommendations in the Consumer Compliance Report and describes the specific actions taken or will be taken by the board of directors to strengthen the Bank’s consumer compliance risk management program.”
The agreement also calls on the bank to address issues in its corporate governance, lending administration and credit risk management, loan grading and loan review, allowance for credit losses, conflicts of interest, liquidity and funds management, capital plan and conservation,
Federal Reserve Board issues enforcement action with U & I Financial Corp. and UniBank