State Employees’ Credit Union has asked the NCUA’s Office of Inspector General to investigate “untrue’’ statements made by a key NCUA official about the credit union’s release of its CAMEL rating.
State Employees’ CU President/CEO Jim Blaine contends that the NCUA based its decision to stop joint examinations of North Carolina’s state-chartered federally insured credit unions – and conduct its own – on two statements made by NCUA Region III Director Herbert Yolles.
Blaine said Yolles erroneously accused his credit union of improperly obtaining a draft of a document of resolution that was being developed by the NCUA from the North Carolina Credit Union Division.
“We received the draft as a normal part of the exit interview,’’ Blaine said in an interview.
In addition, Blaine disputes Yolles’ contention that North Carolina Credit Union Division Administrator Jerrie Jay said in a meeting that NCUA had initiated the process of terminating NCUSIF protection of the credit union’s share accounts.
Blaine said that Jay had merely asked if the agency was considering that action.
That discussion occurred because during the NCUA’s insurance examination it raised concerns about the quality of the credit union’s mortgage lending, asset liability management and governance.
SECU didn’t release the letter it received on this matter from the NCUA but in its response letter to the agency, the board noted that the credit union was in compliance with GAAP and is well capitalized.
The statements that Blaine is challenging were made by Yolles at a Dec. 6 meeting with Jay, NCUA Executive Director David Marquis and NCUA General Counsel Michael McKenna. Jay has also refuted the accuracy of Yolles’ statements in a letter to the agency and says she has a taped copy of the meeting.
Blaine wrote NCUA Inspector General William DeSarno asking him to review the statements made by Yolles.
“The statements are untrue and we would welcome your visit with SECU to confirm that statement and to discuss suggested remedies,’ Blaine said in his letter.’
DeSarno replied and asked Blaine for more documentation.
The NCUA has accused the state agency of violating regulatory trust and erring in authorizing the $24 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.