The NCUA's Supervisory Review Committee has rejected the5,000-member, $32 million Commodore Perry Federal Credit Union'sappeal of NCUA Regional Director Herb Yolles' decision to upholdthe results of the agency's most recent exam.

The move is the latest in an ongoing dispute in which the creditunion had alleged the male NCUA examiner retaliated against thecredit union by lowering its CAMEL rating after the credit unioncomplained he had sexually harassed female members of the creditunion's staff.

The NCUA's Office of Inspector General investigated the creditunion's claims but said it could not substantiate them. Nor did the OIG make its report public.

Commodore Perry initially appealed the exam results to theregional level and, after it was rejected there, carried the appealforward to the SRC. After the SRC rejection, Thomas Renz,president and chief development officer for the Oak Harbor, Ohio,credit union, said the credit union would seek clarification ofdifferent points of the rejection and then appeal it further to theNCUA Board of Directors.

And he signaled the credit union is prepared to go farther.

“At this point we have little hope that the board will do theright thing but, in hopes of avoiding a court battle, we willexhaust our agency options first,” Renz said in an e-mail revealingthe rejection.

Renz also said points in the rejection were “factuallyincorrect” and noted that the rejection indicated “how broken theexamination and appeals process is and how important it is for ourindustry to push for change.”

Paul Mercer, president of the Ohio Credit Union League, made apointed comment about who the NCUA's exam and appeal processappeared designed to serve. He also signaled the League wasprepared to seek assistance from Congress.

“The effectiveness of NCUA's exam appeal process is a matter ofperspective,” Mercer said in a statement about the rejection. “Itfunctions well if intended to affirm the infallibility of NCUA'swork. For credit unions seeking balance and fairness, the processfalls short.

“Undoubtedly, there are greater concerns among credit unionsabout NCUA – a budget process lacking restraint, prescriptivesupervision, undermining of the state system; however, the absenceof a meaningful appeal process is a serious vulnerability forall.”

He added, “NCUA's promotion of the virtues of the currentprocess will not cause change.”

Mercer said the Ohio League will now focus on seeking supportfor the Financial Institutions Examination Fairness Act (S.2160/HR. 3431).

{ The story line:

• Nov. 9, 2012 Commodore Perry Appeal Decision Due in 30 Days
• Nov. 2, 2012 NCUA OIG Denies Request for Report
• Oct. 26, 2012 Commodore Perry Appeal Set for Nov. 7
• Oct. 25, 2012 CPFCU Prez, Attorney Say Appeals Process Dodges Real Issue
• 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 }