A bill to give financial institutions the chance to appeal theresults of their federal examinations would be beneficial forcredit unions because it “can be a useful incentive to conduct theprocess in a fair and consistent manner from the onset,'' NAFCUExecutive Vice President Dan Berger wrote lawmakers on Friday.

“Consistency in the examination process is a key component toproviding results accurately reflecting safety and soundness,'' headded.

The measure has 66 cosponsors in the 435-member House ofRepresentatives. No companion bill has been introduced in theSenate. Its main sponsors are Rep. Shelley Moore Capito (R-W.Va.),the chairman of the subcommittee with primary jurisdiction overcredit union issues, and Rep. Carolyn Maloney (D-N.Y.), the panel'sranking Democrat. The NCUA hasn't taken a position on themeasure.

Under the bill, a financial institution that is unhappy with theresults of its examination would have the right to appeal it to anadministrative law judge who would submit his or her findings tothe ombudsman of the Federal Financial Institutions ExaminationCouncil, which is made up of representatives of federal and stateregulatory entities. NCUA Chairman Debbie Matz is the council'scurrent chairman.

The bill requires federal financial regulators to produceexamination reports within 60 days of an examination's completion.In addition, if the financial institution wants it, the agency mustinclude an appendix to the report listing all the facts that wereused as a basis for the conclusions.

Earlier this week, CUNA endorsed the bill and made some suggestions for changing it.