NCUA, Acting N.C. Administrator Agree to Return to Dual Exams
The NCUA and the North Carolina state credit union regulator will discontinue separate exams and resume their previous joint examination schedule going forward, CUNA has reported.
The NCUA broke off regular relations with the North Carolina Credit Union Division after Administrator Jerrie Jay implemented a pilot program that allowed the $25.5 billion State Employees' Credit Union to publish its state CAMEL score.
CUNA News Now reported late Friday that NCUA Chairman Debbie Matz she met in person with NCCUD Acting Administrator Rose Conner. "Administrator Conner has given me her word that NCCUD's affirmative policy moving forward will not authorize any public release of confidential examination information, especially CAMEL ratings," Matz said. "With this new commitment and policy from the state regulator, we look forward to resuming joint examinations, training, and open communications with NCCUD."
Former Administrator Jerrie Jay retired from the agency as she had previously planned, according to a NCCUD spokesman who said he wasn’t authorized to speak on the matter. He said Conner was out of the office Monday and unavailable for immediate comment.
North Carolina Credit Union League President John Radebaugh told CUNA News Now, "The league welcomes (the) announcement. The dual examinations of state-chartered credit unions represented an unwelcome and unnecessary burden in an already complex regulatory environment. We are grateful to both agencies for working through their differences in an effort to best serve the interests of credit unions and their members."
North Carolina’s 52 state-chartered credit unions were subjected to separate exams in early 2012 by both the NCUA and state regulators. The NCUA said the exams were necessary because the pilot program threatened the safety of the NCUSIF and violated the federal agency’s trust in the North Carolina regulator.
Meetings attended by the NCUA, NCCUD and SECU executives resulted in Jay accusing the NCUA of threatening to withdraw federal insurance from SECU and Region III Director Herb Yolles accusing Jay of leaking confidential documents to SECU officials. An NCUA Office of Inspector General investigation ruled in Yolles’ favor.
The situation prompted an industry debate regarding the disclosure of CAMEL ratings, and also resulted in a public standoff between Matz and SECU President/CEO Jim Blaine as Matz addressed the 2012 NASCUS Summit.