The NCUA examiner accused of retaliating against the $32 million Commodore Perry FCUdisplayed either extremely gross negligence or retaliation, saidthe Ohio credit union's president and chief developmentofficer.

The credit union is awaiting a ruling, due Oct. 9, from theNCUA's Supervisory Review Committee regarding its exam appeal. Theappeal is only the fifth heard by the committee in the past decade;none of the previous four were ruled in favor of the creditunion

{ The story line:

• Oct. 26, 2012 Commodore Perry Appeal Set for Nov.7
• Oct. 25, 2012 CPFCU Prez, Attorney Say Appeals Process Dodges RealIssue
• Oct. 25, 2012 Appeals Panel Can Toss Commodore Perry ExamFindings
• Oct. 24, 2012 Ohio CU Left Wondering How to Prep forAppeal
• Oct. 11, 2012 NCUA Stands by Examiner in HarassmentAppeal
• Oct. 9, 2012 NCUA Buys Time in Commodore PerryAppeal
• Oct. 4, 2012 Commodore Perry FCU Says Documentation ProvesClaims
• Oct. 3, 2012 Ohio CU Says NCUA Examiner Harassed,Retaliated }

Thomas Renz provided Credit Union Times with a list ofthe exam's exceptions, including charges CPFCU failed to complete acost-benefit analysis of existing products, services andfacilities; failed to reconcile bank accounts, particularly beforea planned system conversion; and will pay more, not less, foroutside professional services as a result of the conversion.

Documentation also provided by the credit union, including athird-party product and location market analysis report and generalledger reports, indicate that CPFCU did complete the due diligencein question.

CPFCU elevated its exam appeal to the SRC after it was denied byRegional Director Herb Yolles in August, although Yolles did promise to send adifferent examiner to the credit union for its 2013 exam.

Commodore Perry CEO Michael Barr said he was frustrated by theruling, because nobody from the Region III office contacted thecredit union to request supporting documentation.

Barr said despite the frustrating appeals process, the creditunion will continue to make its case.

“We remain hopeful that the NCUA Supervisory Review Committeewill review our appeal make a just ruling,” he said.

Regardless of the appeal's final ruling, Renz said CPFCU willcontinue to advocate in favor of S. 2160, the FinancialInstitutions Examination Fairness and Reform Act, which wouldallow credit unions to appeal exams to an administrative law judge,who would submit his or her findings to the ombudsman of theFederal Financial Institutions Examination Council.

The Ohio Credit Union League's John Florian, vice president ofgovernment affairs, said what he called the NCUA's weak appealsprocess and high percentage of appeals ruled in the NCUA's favorhas created a lack of confidence among Ohio credit unions, Floriansaid.

Combine that with “real-world experiences” like those beingreported out of CPFCU, he said, and collectively, it's enough toprompt the league to put the Exam Fairness Act front and center.The bill was the league's key talking point during its Hike theHill event in Washington in June, he said.

OCUL Director of Media and Public Relations Patrick Harris saidwhile the trade association has not quantified how many creditunions in the Buckeye State have experienced exam issues, some haveexpressed concerns.

“I think a lot of that comes from the landscape of Ohio,” Harrissaid. “Sixty-six percent of our credit unions are $35 million andunder in assets, so some of these smaller credit unions are reallyhaving difficulty with NCUA transparency and exam consistency.”

The NCUA said previously it would not comment on an ongoingappeal.