Exam Bill Prompts Trade to Take Another Tack
Faced with uncertainty over whether H.R. 3461 will pass and positive signs from the NCUA that it will consider improving exam procedures and streamline regulations, CUNA has asked the regulator to implement some provisions of the Financial Institutions Examination Fairness and Reform Act now.
In a March 31 letter to NCUA Chairman Debbie Matz, CUNA specifically asked the regulator to provide credit unions with support for exam mandates and create a vehicle for credit unions to appeal exam decisions.
“Some examiners believe guidance is gospel,” Becker said, “while the NCUA’s own former general counsel said guidance is not gospel.”
The NCUA should also hold its examiners accountable for their work, he said, rather than regulate risk out of credit unions. Referring to a December 2011 NCUA board vote to put new concentration limits on participation loans out for comment, Becker said the agency set an “arbitrary number” that is “designed to simply make the agency’s job easier by removing all risk.”