Between July 2006 and September 2006, the NCUA initiated a full scope exam in
which examiners were critical of management and the Board indicating that there
had been little leadership for close to two years. As a result, NCUA lowered the
Credit Union’s composite CAMEL rating to a 3, with the Management component
being assigned a 4 due to the lack of oversight and leadership from executive
management and the Board. The NCUA issued a DOR with corrective action
issued for identified problem areas relating to credit risk, transaction risk, and
strategic risk. Upon receiving the DOR and downgraded CAMEL rating, the CU
immediately lost RegFlex eligibility. It was also during this time that the Board hired
a new Chief Executive Officer.