CUNA has written a polite but firm letter to the NCUA asking the agency to go ahead and implement some changes to its examination procedures that are called for in legislation that has been introduced but not yet passed.
CUNA noted that Reps. Shelley Moore Capito (R-W.Va.) and Carolyn Maloney (D-NY) had introduced legislation, HR 3461, meant to help financial institutions appeal directives from their regulatory examiners, and the association urged the agency to consider aspects of that legislation that it could implement without the legislation having been made law.
“We urge NCUA to consider how certain provisions of the bill could be implemented outside of the legislative process,” the association wrote in its March 30 letter.
“For example, as cited above, one of our recommendations prior to the legislation was that examiners should provide credit unions with the authority that supports their directives,” the letter said. “This recommendation is consistent with NCUA’s Examiners’ Guide and good public policy.”
CUNA Deputy General Counsel Mary Dunn called this reform one of the most important that credit unions sought and said credit unions should not have to face examiners who tell them to do things without citing any authority in law for requiring them.
CUNA also suggested establishing an ombudsman function at the Federal Financial Institutions Examination Council to help credit unions navigate an appeals process.
“The role of the task force could be to review appeals and related matters and to develop and help maintain improved appeal procedures at all agencies. The task force should also report annually to Congress on appeals at the various agencies. In your role as the current Chair of the FFIEC, we urge you to pursue this with the other agencies,” CUNA said in reference to CUNA Board Chair Debbie Matz.
