Third Federal Sheds Regulatory Order
Third Federal Savings & Loan Association of Cleveland said regulators terminated its memorandum of understanding, which had mandated an outside assessment of its management of interest-rate risk.
Third Federal, an $11.5 billion-asset thrift based in Cleveland, has been operating under enforcement actions from the Office of the Comptroller of the Currency, and its predecessor agency, the Office of Thrift Supervision, since August 2010. The original order had required Third Federal to reduce its home equity loan balance and commitments. An updated order, which took effect Feb. 7, 2011, required an assessment of interest-rate risk, a review of executive compensation and a plan to address deficiencies in overall risk management.
Separate memoranda of understanding remain in place at Third Federal’s parent company, TFS Financial, as well as the mutual holding company that owns a majority of TFS Financial.