The NCUA should cut back on the frequency of some of its examinations and should streamline its regulations.
While that’s a message that usually originates from the offices of CUNA and NAFCU, this time it’s coming from a group of state regulators.
“Last year, NCUA announced its intention to send federal examiners annually to every FISCU (federally insured state-chartered credit union] with assets in excess of $250 million, regardless of the CAMEL rating or condition of the institution," NASCUS President/CEO Mary Martha Fortney wrote in a letter to NCUA Chairman Debbie Matz.
"When NCUA is unable to accompany the state regulator on the scheduled primary examination of the FISCU, the agency has indicated its intention to schedule a separate federal onsite insurance review. This policy should be reconsidered. NCUA should rely on the state examination and spare the FISCU the disruption of a second examination,’’ Fortney wrote.
Fortney also suggested that the agency set up a joint task force with NASCUS to review all regulations that impact state-charted credit unions.
In addition, she added that the agency should rearrange the order of some of its insurance rules in the listing of regulations to make it easier for credit union executives and regulators to look them up.
Fortney noted in her letter that NASCUS was making its recommendations in the wake of Matz’s recent speech at NAFCU’s Congressional Caucus in which she announced the expansion of some regulations and the reduction of others.