The standoff between the NCUA and the North Carolina Credit Union Division continued Tuesday with each side mum on whether a resolution of the dispute over dual exams and CAMEL score disclosures is in the offing.
There also was no response to state credit union leaders’ appeals for NCUA Chairman Debbie Matz to come to North Carolina for discussions to help resolve the issue. The agency did, however, call for state regulators to stop the pilot program of revealing the scores so the NCUA could resume partnering with state regulators.
The NCUA has said that key element of the dispute – dual exams of 52 state-chartered federally insured credit unions – has ended for now. But whether they could be an annual affair without a resolution of the dispute remains unclear, sources said.
Meanwhile, Jerrie Jay, administrator of the North Carolina Credit Union Division, reiterated her contention that NCUA has failed to be forthright in dealings with the state agency with full counsel present.
“Neither I nor my attorney have had a response to my December request for NCUA to return to North Carolina so we can all have counsel present,” Jay said Tuesday. She also complained that her agency was left out of the loop in a letter sent Monday to North Carolina CUs detailing the conditional end of dual exams.
The NCUA has accused the state agency of violating regulatory trust and erring in authorizing the $26 billion State Employees’ CU of Raleigh to publish its CAMEL 2 rating. The NCUA responded by conducting its own examinations of the state-chartered CUs, saying it was necessary to protect the NCUSIF.
That drew the ire of credit union executives, the North Carolina Credit Union League and from SECU President/CEO Jim Blaine.
Blaine has sharply and repeatedly blasted NCUA for its “complete lack of dialogue” with his CU and North Carolina CEOs on a matter he has deemed urgent to national interests on transparency. Meanwhile, the NCUA’s David Marquis, executive director, said the agency “looks forward to resuming dual exams with the North Carolina state regulator upon termination of its pilot program authorizing federally insured credit union release of a CAMEL rating.”
Marquis concluded, “We await NCCUD’s decision on whether it will reconsider this pilot program, so that we can move forward together to rebuild trust and resume joint examinations.”