On-Site Coverage: NCUA Revamps Corporate Exams To Attempt to Avoid Repeat of Problems
ALEXANDRIA, VA - The NCUA has given all corporates new examiners, made more use of outside experts and begun to hire payment system specialists.
NCUA Office of Corporate Credit Unions Director Scott Hunt described those steps in response to a question from Aspire FCU President/CEO Thomas O'Shea at Tuesday's town hall meeting on the agency's corporate credit union rescue plan.
Hunt noted, for example, that the agency had hired an outside firm to project corporate credit union credit losses because the agency lacked the capability to do so.
He said that six of the 23 corporates not under conservatorship have already met the new capital requirements that all corporates must meet by next October. Those that fail to meet the requirement must then devise a capital plan under prompt corrective action.
NCUA Deputy Executive Director Larry Fazio said in devising the rescue plan they needed to ensure continuity for natural person credit unions. He noted that 4,600 natural person credit unions are served by the five corporates that the agency had placed under conservatorship.